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Rajjpuut's Folly: Bernanke, Obama Inflationary Policy Aims to Solve Economy

Posted by Bob VanDeHey on March 12, 2011 at 12:29am

 

 
“You can always fool every one of the people who feel that your lies encompass their pre-conceived foolish notions and presumed (but irrational) best interests.” Rajjpuut
 
"Gold is not necessary. I have no interest in gold. We will build a solid state without an ounce of gold behind it." - Adolf Hitler
 
"I find myself more and more relying for a solution of our problems on the “invisible hand” which I tried to eject from economic thinking twenty years ago." John Maynard Keynes (nearing his death) in 1946
 
 
Ben Bernanke, Barack Obama
Inflating Our Dollars in Hopes
of Avoiding Double-Dip Recession
 
          It’s a monstrous game of “Hot Potato.” The winner of the “Biggest Fool Trophy” for economics’ “bigger fool theory of market crashes and bubbles” is right now being fought out among three extraordinary combatants . . . a) the Chinese and other nations’ government officials hoping to avoid collapse of their own economies b) Barack Obama and the congressional Democrats and c) the American public.   All parties, though they may not yet realize it, are faced with the disaster of being the last one holding more and more worth less and eventually worthless American dollars. Let’s examine the battlefield they’re contesting upon.  
The history is brief but poignant: the oldest continuing currency in the world is the British Pound Sterling (BPS) first minted in 775 A.D when "sterlings" or silver pennies were the main currency; 240 sterlings or “pence” weighed one pound.  Silver is relatively heavy so you can imagine how small these sterlings were:  just 1/15 of an ounce each. Their earliest common use was to bribe the Viking invaders  with so-called danegeld and that money became the currency of many 
Scandanavian nations as well as England.  
For over two hundred years between the early 18th and middle 20th Centuries, the BPS was esteemed as the world’s reserve currency (a currency from one country held in substantial quantities by a significant amount of the world’s other nations whose leaders believe this “hoarding” of the originating country's currency as a “reserve” was in the best interests of their countries and the  leaders themselves). 
Before World War I the BPS was clearly and easily the most important international currency with London the world's most important financial hub.  Over 60% of global trade was financed, invoiced and settled in sterling, and the largest proportion of official reserves owned by the world’s nations, apart from silver and gold, was found in BPS notes. Although not even all the territories within the British Empire itself used the BPS as their local currency, most of those that did NOT, pegged their local currency at a fixed rate to sterling, as did many foreign countries outside the Empire including virtually every advanced and important country in the world.   But this two-century old revered status for the BPS was soon to end . . . .
After World War I, the two greatest economies of the planet (America and Britain) had long based their economic thoughts and actions on the hero of the Scottish Enlightenment Adam Smith, author of  . . . the Wealth of Nations (1776) a long-titled book that profoundly motivated our American Founding Fathers when they started drawing up a Constitution eleven years later. Smith who had referred to the idea of “the invisible hand” in his books History of Astronomy and The Theory of Moral Sentiments, eventually found his real niche and talked about “the invisible hand” of the marketplace; and laissez-faire capitalism as the foundation of sound economics.  And England and America as a result of common sense and listening to Adam Smith found themselves prospering mightily. Smiths' fundamental tenet was this:   free market economies are more productive and beneficial to their societies and both England and America largely practiced what Smith preached and prospered mightily over the next century and a half.  But something new was very rotten in England . . . .
England’s own John Maynard Keynes became one of the world’s most trusted economists and Keynes believed that gold and silver and currencies pegged to precious metals were holding back economic growth around the world. Keynes’s  two-volume economic idiocy* Treatise on Money, was published in 1930** and Britain left the gold standard in 1931^^, and many foolish countries that had pegged their currencies to gold and kept reserves in the BPS went along with the nonsense, most especially those countries within the British Commonwealth of Nations.  These countries and others around the world became known as the "sterling bloc".
After World War II ended, the ungrateful British citizens ousted Winston Churchill and welcomed in the progressives (the Labor Party) who began to immediately and seriously inflate the British Pound.  In response most countries outside the Commonwealth quickly began jettisoning the pound in droves. The world faced economic chaos. The natural action of the wise countries was to put their reserves in gold or silver; but they also wanted a more flexible currency as part of their reserves. Since that time, the American Dollar has been the world’s reserve currency and has dominated the international scene for over sixty years.
However, all has not been peachy keen for dollar holders . . . .
1) Richard Nixon in the midst of a pervasive and lengthy American stock market crash (it ran from 1969 with a brief hiatus in ’70-’71 to become a full-fledged meltdown in 1973-74) sabotaged many of them when he let the dollar float against gold.  Nixon's and his second vice- president Gerald Ford's and especially the actions of President Jimmy Carter (inflation briefly reached 21% near the end of his single-term presidency) caused much consternation among dollar-holders.
2) About late 1998, many worldwide holders of the dollars again began to feel serious misgivings about the effect of sub-prime home lending policies festering in America and began ridding themselves of dollars. In the decade between 1999 and 2009, many began putting their reserves into other currencies (most notably the Euro). The peak dollar holdings in 1999 at 70.9% plunged to 62.2% in 2009; while the Euro became the 2nd favorite reserve currency going from 17.9% to 27.3% holdings. Since mid-2009, serious discussions have been taking place about replacing the dollar as the world’s reserve currency and now the International Monetary Fund (IMF) has made a recommendation to that effect while countries like China and Russia and Brazil and India are exploring conducting trade among themselves in their native currencies (Yuan, Ruble, Real and Rupee), while buying gold and silver and lowering their dollar holdings.
Dollar holders face another serious threat in the Obama era.  Neither the IMF nor the many foreigners and foreign nations holding American Dollars already . . . and especially not those foreign governments most-willing in the past to loan money to Americans (by buying our Treasury Notes and other debt instruments)  . . . are enthused by the deliberate and egregious inflationary actions of Obama and Federal Reserve Chairman Ben Bernanke.
C) Bernanke has been running the money printing presses full-time for over thirty months right now.  Currently, if mathematics alone (and not pure trust and tradition) were the telling factor in how much the 2011 American dollar should be worth, it would weigh in   about 1/30 of the value of the October, 2008 American Dollar.
D. In February, 2011, President Barack Obama’s feeble attempt at a national budget showed willful refusal to deal with  our nation's and the world's "dollar problem."  Obama, Pelosi, Reid, the vast majority of Democrats and Union leaders and Michael Moore go so far as to deny any debt crisis exists.   It seems you can always fool every one of the people who feel that your lies encompass their pre-conceived notions and presumed (but irrational) best interests.  Obama and the progressive are now threatening even greater American deficits and national debt. This shows the world that unless the Republican House of Representatives can change the nation’s direction . . . loaning America money and holding American dollars is one of the stupidest actions anyone can make. This brings us back to paragraph one above, where we (presuming that the Republican efforts to eliminate the debt and balance the budget fall short of success) said:
It’s a monstrous game of “Hot Potato.” The winner of the “Biggest Fool Trophy” for economics’ “bigger fool theory of market crashes and bubbles” is right now being fought out among three extraordinary combatants . . . a) the Chinese and other nations’ government officials hoping to avoid collapse of their own economies b) Barack Obama and the congressional Democrats and c) the American public.   Who will be the sucker left holding the American Dollar?
            Unless the G.O.P. can work a miracle . . .  who will be the biggest fool of all still holding onto American dollars rather than using them as toilet paper by 2013?  One world famous economic theorist once said, “"Gold is not necessary. I have no interest in gold. We will build a solid state without an ounce of gold behind it." On the theory that you can’t go too far wrong doing precisely the opposite of whatever Adolf Hitler would recommend, a lot of the “contestants” will undoubtedly opt-out of the contest and buy gold and silver. Another man finally wised up at the very end . . . "I find myself more and more relying for a solution of our problems on Adam Smith’s ‘invisible hand’ which I tried to eject from economic thinking twenty years ago," said John Maynard Keynes nearing his death in 1946 just before the BPS lost its place as the world’s reserve currency.
            Isn’t it funny how the wisest words spoken by some of the world’s most influential progressives are totally ignored? FDR and labor leader George Meany and Jimmy Carter, for example, all agreed that allowing labor unions among government employees is a horrible idea. The founder of Keynesian economics, John Maynard Keynes himself, admitted that Adam Smith had been right and he’d been mistaken . . . but the progressives remember only their nonsense and, indeed, come to worship it.   In all this talk about “millions” as “chump change” and “billions” as “insignificant,” let’s examine what they really mean. Politicians love the public’s inability to deal with large amounts of money, since it frees them to do just about whatever they please . . . think of this: we are currently $14.1 TRillion in debt so paying off the debt at $1 per second means that . . .
1 million seconds = approximately 12 days to pay off $1 million
1 billion seconds = 32 years to pay off $1 Billion
1 trillion seconds = 32,000 years to pay off $1 Trillion
14.1 trillion seconds = 451,000 years to pay off $14.1 TRillion
             Now let’s get back to that game of Hot Potato. Rajjpuut encourages you NOT to be the last one holding dollars in serious quantities when inflation rears its ugly head. Good luck!
Ya’all live long, strong and ornery,
Rajjpuut
 
^^ Influenced also by Keynes, FDR confiscated all non-numismatic American gold in 1933 giving the holders of the coins $20.76 per ounce of gold. He then pegged the value of gold at $35.00 an ounce thus within months inflating American paper currency by 68.6% and robbing the people, to enrich the federal government – a move that turned the depression with a little ‘d’ into the 12.5 year long Great Depression.   Compare the dealings of progressive presidents Woodrow Wilson and FDR to Harding (and his vice president Calvin Coolidge who succeeded Harding when he died in office) in dealing with the “Invisible Depression,”(see the next footnote) should you ever get confused about what’s best for the people and how the purported best-interests of the nation almost always amount to out-and-out theft from hard-working and thrifty individuals.
** Keynes’ “thinking” in 1930 deliberately ignored the fact that the American resurgence (“The Roaring 20’s”) from the “Invisible Depression of 1920” came almost immediately on the heels of the policies of President Warren G. Harding who cut government spending by 48%; cut federal taxes by 49% and paid down the national debt by 30% ending Woodrow Wilson's depression in fifteen months.  Perhaps Keynes believed that the progressive policies of Wilson that created the debacle were responsible for the greatest single-decade jump in prosperity the world has ever known? In any case like many English Fabian-Socialists, Keynes embraced and encouraged progressivism. His ideas fitting right in with the demands of totalitarian states and wannabes everywhere have been thunderously applauded for 80 years but never once worked satisfactorily . . . hmmmm.
 
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Rajjpuut's Folly: Bid a Fond "Adieu" to the Once Almighty Dollar

Posted by Bob VanDeHey on January 16, 2011 at 10:00pm

 

 

A Sad End to the American Era??

 

 

            Greatly accelerated by the policies of Barack Obama and his progressive supporters, the bankruptcy of the United States is now a fact of life. The only questions left are A.  how and when the masses will become aware of it and B.  Will there be an honorable rebound or complete chaos as a result. Rajjpuut has long been warning about the ills of big government, unconstrained spending and of the deliberate betrayal of the country by the progressive-wing of the Democratic Party. 

 

            When the American Dollar loses the position it’s held for the last sixty years as the world’s reserve currency; virtually immediately a shift toward large-scale inflation will be incurred. How will you know that the curtain’s coming down on the American Greenback? Here are seven likely warning signs marking the end of the global U.S. Dollar standard (for most Americans that would mark the figurative “end of the world”) based upon historical antecedents in other countries which have seen their own currencies destroyed:

 

Warning Indicator #1: the price of gold will begin to accelerate toward it’s natural balance level of $12,000 per ounce. 

 

Since the price of gold has already risen over ten consecutive years some say gold has already achieved the acceleration required to prove the point. Others might be suspicious, “If it’s risen that much, isn’t it time that gold started to drop, no investment always goes up.” True, true, but when a currency is being deliberately devalued by its government, gold and silver always get much more valuable compared to that country’s money; and make no mistake, the United States has been deliberately devaluing the Dollar for roughly the last 28 months; and incidentally devaluing it for roughly the last 45 years. Normally markets and the price of commodities fluctuate all over the place as time passes. But the steady rise of gold (the world’s preferred money) as it is priced in dollars over such an extended time period shows that the dollar is not being taken seriously by knowledgeable people. 

 

Warning Indicator #2: Government’s deficits and liabilities are out of control and the interest on the national debt becomes a major source of deficit increase. 

 

Because the deficits of the United States government are right now well over $1.3 TRillion annually; our national debt has doubled since 2005; our total national debt is over $14 TRillion; and UNfunded liabilities without counting items like welfare and food stamps have now reached $112 TRillion . . . it’s a safe bet that this benchmark has been passed. By the way, even the numbers we’re fed are absolutely false. Did you know that the government counts all $850 billion of payroll taxes (Medicare and Social Security) as current income when we all know that the money in question is supposed to be a “set aside” marked for its intended use only rather than included as “general revenue.”  If you or I or any business carried on their accounting this way, jail-time would be in the offing, but our government has been handling things this way as far as the Social Security "set-aside lockbox" for nearly 80 years.  That's why UNfunded liabilities for Social Security, Medicare and the federal side of Medicaid amount to $112 TRillion, twice the Gross Domestic Product (GDP) of the entire world.

Warning indicator #3: Spending gets so out of control that generating high enough tax revenues to deal with federal spending becomes impossible.

 

            Annual deficits are no longer related in any way to tax revenue.   Last year the Democratic-controlled congress refused to pass a budget . . . their most important duty according to the Constitution . . .  revenues were $1.1 TRillion and spending amounted to almost $3.7 TRillion and they want to raise the ceiling on the National Debt. Even if taxes tripled we’d still have run a significant deficit for the year . . . and yes, the interest on the debt runs to roughly $170 Billion yearly . . . all of that’s a sign that the crisis point has been passed.

 

Warning Indicator #4:   The political class begins to bail out and in doing so takes care of their cronies and of the masses to keep them under control -- all at the expense of the middle class. 

 

            Right now federal government unions; state and municipal unions; and other special interest groups are looting the U.S. and the 50 state treasuries. The Obama $787 Billion stimulus cost us a lot of free market real jobs, but the looters maintained and grew the government enormously while the rest of us suffered. $200 Billion per year is wasted on just the federal pensions; welfare amounts to $450 Billion per year; Social Security and Medicare and the federal side of Medicaid cost $1.8 TRillion and much of those funds is tied up in fraud, abuse and waste benefitting the political class . . . none of this was ever authorized by the U.S. Constitution . . . but wait, there’s more: remember national defense; border control and roads and all the other stuff the Constitution actually said the federal government must do? That an an equal amount on “discretionary spending that was never authorized by the Constitution amounst to roughly another $2.6 TRillion . . . aha, now you see why they didn’t want to create a budget! Tell me that a $5.1 TRillion budget with a $1.4 TRillion deficit wouldn’t shock the sensibilities of all sensible Americans. This warning indicator has been passed also.

 

Warning Indicator #5 The government will begin creating money out of thin air.

 

            Yes, this too has already happened. Between late October, 2008 and today, the Federal Reserve Bank has printed and electronically created “magic money” amounting to roughly 29 times the amount of dollars circulating in September, 2008. Technically speaking the 2011 U.S. dollar is now worth 3.4 pennies-worth of the September, 2008 Dollar. In other words, all those banana republics we used to laugh about . . . well, our money is becoming less valuable than theirs. As Stansberry & Associates financial advisors reminds us:  “If printing money were truly good for an economy, Zimbabwe would be the world’s wealthiest country.”  Yet that's precisely what we're being told by our President and by our financial leaders . . . .  Our Federal Reserve Chairman Ben Bernanke has alternated between denying that he was “monetizing the debt” (a.k.a. “printing money”) and then defending the practice. Bernanke and Treasury Secretary Timothy Geithner denied the United States would ever resort to such “devaluation of the dollar” but it’s going on anyway; meanwhile Bernanke keeps busy explaining that it's not exactly "counterfeiting" what he's doing and it's actually good for the economy in the long run (not mentioning that it's a huge gamble with the future of the country and the planet in the short run). A planetwide “run on the dollar” could literally destroy our currency overnight. The whole world has warned about this; the credit-rating firms have pretended it’s not so, but expect it very soon.

 

Warning Indicator #6: We will not be able to repay our debts in the international community.

 

            America’s $55 TRillion international debt amounts to $681, 178 per each American family of four. The average income of American families amounts to less than $50,000 per year. Just the interest on our international debt amounts to $34,000 per family per year. And if we resort to the printing presses to print of more dollars to pay the debt (OOOOPS, I forgot, we’re already doing that!) Then, first the interest rates for borrowing will skyrocket; then people and nations will stop loaning money to America, period.   Friends, once that happens the printing presses can run day and night and there’s no helping us . . . yep, we’ve passed this crisis point, too. The world’s greatest creditor nation has within the 45 year lifetime of President Lyndon Baines Johnson’s “Great Society” which ushered in Medicare and Medicaid and dramatically expanded welfare programs of all ilks become the greatest DEBTOR nation the planet has ever seen.

 

Warning Indicator #7:   American citizens will catch on and, discovering that debt has the potential someday to evaporate in hours, they personally will churn out new debt like a bullet-train parting the atmosphere.

           

            Despite all the talk of the American consumer “cutting back” and practicing austerity issuance of new debt in the United States is soaring. Public and private debt both reached record levels in 2010. The potential is that the economy will twist inside-out if this practice continues. This is the only one of the seven warning indicators that hasn’t yet come to pass.

 

IS THERE, INDEED, NO HOPE?

            Where there’s life there’s hope . . . . Rajjpuut believes the individual ought to prepare himself and his family and other loved ones for the very worst; while still striving to do everything possible to prevent those ills from befalling all of us.  The HOPE that exists lies with the actions of 
individuals protecting themselves^^ and quite frankly with the Republicans in the House of Representatives. UNLESS their actions signal a strong “about-face” to the rest of the world and to our nation’s financial momentum: we’re doomed within 18 months. Everything you and I can do as an individual and through leverage groups such as the TEA Party to change the fiscal- and Constitutional course of the nation must be done. Here’s a story to give us all hope.

            Teddy Roosevelt, a Republican, was the first Progressive president, indeed his personal “Bullmoose Party” was officially called the “Progressive Party.” TR was, thankfully, a great American patriot and his modest progressivism actually benefitted the nation for the most part leading to modernization of the navy, for one good example and the building of the Panama Canal (the land for which was actually stolen from Colombia and renamed “Panama”; not only progressive but unethical as well). Woodrow Wilson was, up till Bill Clinton and Barack Obama, the most sinister progressive politician of them all. After running for a second term under the slogan “He kept us out of war,” within a month of his March, 1917 inauguration he put us into the European War. He left office with the nation undergoing the biggest depression up to that time. The conditions were much worse than what Herbert Hoover (another Republican Progressive) did himself in with. That late 1920 depression came to be known as “The Invisible Depression” after Wilson’s successor Warren G. Harding cut spending 49%; cut taxes 48%; and paid down the National Debt by 30% and was ended within 15 months . . . so it is possible to avert disaster but the Democrats seem to have embraced it and the Republicans must show the political will to do it pretty much on their own, with, of course, constant pressure from you and me.

 

Ya’all live long, strong and ornery,

Rajjpuut

 

 ^^  Purchasing a $100 face-value bag (or more) of "junk silver" might be the simplest most patriotic act you can do while saving yourself.  The bag would cost roughly $2,100 - $2,400 depending upon the value of silver when you buy.  IF and WHEN the currency fails, some sort of new money is going to be in high demand and the 90% silver dimes or quarters minted before 1965; are the most likely candites.  To a lesser extent the 40% silver money minted between 1965 to 1970 would also be accepted as a "new currency" but not nearly so readily as they will be worth 56% less than the 90% coins.

Some more important reading:

 

Here’s some other key reading that’ll shake the earth under most Americans’ feet:

 

http://rajjpuutsfolly.blogtownhall.com/2010/10/26/obama,__to_gop,_%e2%80%9cride_in_back%e2%80%9d;_no_one_tells_truth.thtml

 

 http://rajjpuutsfolly.blogtownhall.com/2010/10/26/%e2%80%9chow_brainwashed_are_you%e2%80%9d_a_test_for_american_voters.thtm

 

All the worst ideas still plaguing America (and a lot of other bad ideas as well) right now are rooted in progressivism, all of them. Think of the worst UNfunded liabilities initiated for “all the best motives” and you’ve described  tyrannical progressivism to a “T.” Here are some of those ideas and the president’ in power when they began: 

1.       Truly Big Government: Teddy Roosevelt

2.     Government Control over large land tracts: Teddy Roosevelt

3.     The Federal Reserve Bank: Woodrow Wilson

4.     The Income Tax: Woodrow Wilson

5.     Fighting in Europe’s Wars: Woodrow Wilson

6.     Government propaganda: Woodrow Wilson

7.     Internment Camps: Woodrow Wilson

8.    Controlling (and shutting down) the press: Woodrow Wilson

9.     Government welfare programs: Herbert Hoover
10. Land banks and other agricultural subsidies:  Herbert Hoover

11.Ultra-high protective tariffs: Herbert Hoover

12. Huge Tax and Spend Government: Franklin Delano Roosevelt

13.Confiscation of Gold: FDR

14. Devaluing the Dollar to fill government coffers: FDR

15. Ultra-big Government: FDR

16.  Social Security: FDR

17.  Expansive Welfare: Lyndon Baines Johnson

18.  Medicare: LBJ

19. Medicaid: LBJ
19 1/2.  Taking silver out of money:  LBJ and Richard Nixon
 
20.  Leaving gold standard entirely:  Richard Nixon
 

21. Government Bailouts of Cities: Gerald Ford

22.             Government control of Mortgage Industry Jimmy Carter

23.   Government bailouts of Chrysler automobile company : Jimmy Carter
 
24.  Regulatory expansion of CRA 77:  Bill Clinton

25.     Expansions by fiat thrice by legislation to Carter’s CRA: Bill Clinton

26.     Motor Voter Act: Bill Clinton
 
27.     Medicare Part D:  G.W. Bush

28.    TARP bailouts: G.W. Bush

29.    Federal Government involved in bankruptcies: Barack Obama

30.   Nationalized Healthcare insurance: Barack Obama

31.   Government bailout  and control of auto companies: Barack Obama

32.   Government control of Banks: Barack Obama
 
33. 
Government control of student loans: Barack Obama

34.  Financial control “reform”: Barack Obama

35.  Bailouts of Banks and Wall Street:  Barack Obama

36.  State Socialism: Barack Obama

 

                

                Remembering the “Watermelon-Connection” wherein ultra-socialists “green on the outside and Deep RED on the inside” want to use Cap and Trade as a stepping-stone to government takeover of virtually everything because it practically requires nationalization of all of a nation’s enterprises; requires the all-powerful central government to control all decisions about what to produce, where to produce it, when to produce, where to market it, and how . . . . isn’t it fitting that Barack Obama and progressive-elitist and would-be president Kerry are so interested in this seriously flawed “science?”  And so looking over that unending list of failure every time serious government taxing, spending, control or interference is contemplated, Senator Kerry still just can’t understand why the masses of sheep are no longer following him to the slaughter house,  "It's absurd. We've lost our minds," he keeps repeating.

 

 

 

 

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Rajjpuut's Folly: Prepare! America's Dollar-Collapse Shifts into High Gear

Posted by Bob VanDeHey on December 28, 2010 at 2:22pm



 

 
              “The world as we know it, will in a sudden flash, disappear . . . .”
 
Warning, Unmitigated Catastrophe Waits Ahead,
Capitalism Crippled and Undermined
 
            Merry Christmas and a Happy New Year:   the very best to you and your families!
A crisis is upon us. That is, there are potential problems, even dangers you must choose to either avoid or face and there are potential opportunities which you must either exploit or allow to slip away. If you do nothing, alas, you will definitely face the dangers and miss the opportunities. “What is the nature of the crisis?” you ask. In a phrase:  American civilization is at severe risk as the collapse of our long-time friend and trusted storehouse of value, the American Dollar, is upon us. I’ll begin with a quick word on A. how it happened . . . then provide B. proof a crisis exists . . . C. Give a quick rundown on the likely scenario as the realized problem begins to play out in everyday lives of the common folk . . .  and finally D. some sage advice about protecting yourself and your family.
 
A.     How did it happen?  Up until the 2010 elections we have been dominated for 82 years by a political philosophy known as Progressivism (“We must ‘progress’ beyond the ‘outdated and ill-conceived’ U.S. Constitution if we hope to ‘progress’ toward our earthly (socialist) Utopia.”) The most “progressive” of politicians of the United States for some 65 years now at a minimum have undermined capitalism and the Constitution and destroyed the American Meritocracy that made this nation the hope of the world for over 200 years. They have also considered themselves the only truly important special interest group and have used the resources of the country to ensure their repeated re-election. This ploy has worked because the people have lazily and ignorantly (not aware; not caring to educated themselves about political activities) allowed the politicians uninterrupted benefit from promising us the various free lunches we’ve so craved.  In those 65 years the nation has amassed not only a $14 TRillion debt but more importantly $112 TRillion in unfunded liabilities. One example will suffice: the so-called “Cash for Clunkers” program diverted new car sales forward roughly two and a half months on average but otherwise did NOT affect auto sales. The program was very expensive and the American taxpayer bore the huge burden. Meanwhile, like all government programs we were not advised of the “unintended but easily foreseeable consequences” of this government interference. So many decent and serviceable used cars disappeared just like that, that the price of the average used car following “Cash for Clunkers” rose $1,800 . . . and even now 17 months later, the average used car still costs $1,100 more than it should have been expected to cost. What is the end result? Society is not only poorer by 700,000 used vehicles deliberately destroyed . . . the poorer citizens now face greater expense in the future when purchasing used vehicles. Yet, in comparison to the typical government spending boondoggle, which on a scale of 1-10 probably rates a 1.75 or less, Cash for Clunkers was a roaring success . . . let us call it an 8.0;  for comparison, Obamacare will rate a deeply negative number . . . but enough of that, you’ve got the picture what 65 years of Government Spending Boondoggles amounts to . . . the combined more than $125 TRillion the country’s obligated for is roughly 2.8 times the GDP (gross domestic product) of the entire world . . . .
B.    As if the debt and unfunded liabilities statistics were not enough, in late 2008, the Federal Reserve Bank used the money-printing presses and began to print up 14 times the amount of paper dollars already in circulation making a combined total of 15 times the original amount circulating around the nation. Theoretically, therefore, the June, 2008 dollar was worth 15 times the value of the June, 2009 dollar since the amount of goods and services did not increase. By the law of supply and demand the 2009 dollar was theoretically worth 6 2/3 pennies worth of the 2008 dollar. Recently the Federal reserve has used another method of creating money out of thin air called “quantitative easing” twice in the last five months and will do so once again in February, 2011. The net result of all this new “money-magic” is that the 2011 dollar will be worth (theoretically) the same as 3 ½ cents worth of the 2008 dollar. In any other country on earth this would have meant immediate and crippling inflation . . . . the United States had one huge advantage that up till now allowed the nation to willy-nilly print as many new dollars any time the government wished: the United States has been the preferred world storehouse of value for 65 years (a.k.a. the “world’s reserve currency” was the American dollar) as nations all over the globe including our enemies trafficked in dollars the most consistently-trusted currency among all the 208 nations of the world. Before World War II the world’s reserve currency was the British Pound Sterling which had born that noble role for about two centuries. The Brits after the end of World War II tried to inflate their currency and spend their way out of debt . . . it didn’t work and hundreds of billions of pounds worldwide were sold in a heated rush as nations and individuals stampeded away from the pound to the dollar. This is why the United States didn’t resume the financial problems we’d known prior to World War II . . . we had become the owners of the most preferred money in the world and our economy was buoyed up then and has been wonderfully blessed ever since. Of course the truly in the know people, the wealthy, kept huge amounts of their wealth protected in gold, silver, and collectible like art and numismatic coins and rare stamps; and, of course, property . . . but that’s another story . . . in any case the bottom line today is that the stampede into the dollar that saved our bacon in 1945 and ’46 has reversed directions right now. Currently it’s an orderly retreat by nations like China, Russia, Japan, Turkey and Brazil . . . countries who don’t want to cause a panic by selling too many dollars at once since their reserve funds are so deeply, deeply dedicated to greenbacks . . . someday soon it’ll become a panic as everybody and their poor relations stampedes to trade dollars for anything of value. Nobody with any sense wants to stay in a currency which has multiplied its paper presence 28.5 times in less than 25 months. Yes, some of these foreigners will be badly hurt by the collapse of the dollar and its loss of “world reserve currency” status, but, that’s nothing compared to the problems facing Americans for whom the dollar is our personal friend and trusted storehouse of value. This should become noticeable within 18 months.
C.    Don’t expect things to be pretty . . . when Americans find that overnight their dollar’s buying capacity has been drastically diminished . . . they’re going to be shocked, frightened, angry and very bitter. If the dollar starts a headlong plunge toward its true value (3.5 pennies) absolute panic could very well ensue. The strikes in Greece, Italy, England and France we’ve seen and the coming demonstrations and panic in Spain, Ireland, Italy, Hungary and all the British Isles (the Euro is far preferable to the dollar, but nothing to cheer about) are infinitesmal compared to what we betrayed Americans will feel toward our government. The TEA (Taxed enough already) Party groundswell of protest against the government these last two years has been circumspect, logical and respectful.    When less patriotic people who’ve been buying the government’s promises for the last 65 years suddenly find they’ve been taken by a scam that makes Bernie Madoff look like an inept pickpocket . . . well, you get the idea Expect violence lots of it and a lot of incredible hardships especially for the poor, the elderly and just about everyone excepts crooks and conmen (“speculators” of all classes will be about the only ones enriched by the situation if preventive measures aren’t taken by the government to reverse the direction now in play; or more likely by smart individuals seeking to protect their wealth and families). America, indeed the world, as we know it, will in a sudden flash, disappear . . . .
D.   There are no guarantees, physical danger can be expected to ride along with economic ruin . . . prudence says that big cities will be flashpoints and hunger riots and ceasing of services like electricity and heat all carry enormous power to injure, deprive, and cause suffering.   Utter self-sufficiency (food stored; safe haven; silver or gold or a trusted foreign currency to use as money when stores won’t accept the dollar; weapons present and the will to use them if necessary) is almost impossible . . . but any steps in the right direction are preferable to apathy or worse (joining in the rioting).
 
One step Ol’ Rajjpuut would advise for anyone interested in avoiding problems would be the purchase of a $100 face-value bag of “junk-silver” right now costing roughly $2,350. It’s conceivable that in a severe monetary crisis, merchants may so crave some fundamental storehouse of value that a couple of pre-1964 dimes might provide a person with a day’s nutrition.
A second step would be for someone in your family to learn the art of safe canning; or for your family to accumulate five or six month’s worth of non-perishable groceries or perhaps even more such stores.
A third step would be to let those you know and love in on the probable truth about the upcoming dangers. The more people as a whole who are self-sufficient, the less danger we all face.
 
Here’s hoping we’re 100% wrong.
 
Ya’all live long, strong and ornery,
Rajjpuut
 
 
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Rajjpuut's Folly: Three Shocking Tales of Obama's Trickle-Up Poverty

Posted by Bob VanDeHey on December 1, 2010 at 3:39pm

Obamacare Forces SEIU to Drop Children’s Coverage
It seems the free market is much more compassionate than Ms. Nanny State after all . . . . At the end of October the Service Employees International Union (SEIU) informed dues-paying members of its monstrously large 1199 affiliate in New York that it was dropping health care coverage for children. That's correct, you read it right, an ultra-radical Marxist union, not evil Republicans, is abandoning our ‘chilluns’ to cut rising health care delivery costs . . . .
According to The Wall Street Journal, more than 30,000 low wage service industry families will suffer because of the decision. Who's to blame? Mitra Behroozi, SEIU 1199 benefits manager, singled out oppressive new government regulations, including the progressives’ sacred cow, Obamacare. Specifically the rule forcing insurers to cover dependents of policy holders until age 26 was singled out by Behroozi who said the Union’s financial resources are “already stretched as far as possible.” These things will happen when to a Union that pushes hundreds of millions of dollars toward losing Democratic candidates and $60 million to elect Obama himself. Not to mention anteing up bus fare for thousands of their SEIU employees to stand out in the sun at a Comedy Central anti-TEA Party rally in Washington five days before the election. The road to hell is paved with progressive intentions . . . .
Obama and Dems Push for Trickle-up Poverty
Margaret Thatcher’s famous line about socialism, “Sooner or later they’ll always run out of other people’s money,” seems quite appropriate these days given the Obama administration’s and Congressional Democrats’ penchant for taxing and spending and expanding the size and scope and unconstitutionality of the federal government. At this moment when the fate of the soon-to-be-expired Bush Tax Cuts is still in the balance, it seems evident that the contrast between the two major parties could NOT be greater. The Republicans seeking smaller government, lower spending and lower taxes are seeking the obvious “trickle-down” economic answer that worked so well for Ronald Reagan and over the first three years of the G.W. Bush administration. The Democrats as always are seeking more taxes to spend for an ever bigger and more controlling and intrusive federal government . . . while doing so they’re hoping to inspire the middle-class voter with wealth-envy by letting only the tax cuts for those earning $250,000 or more annually expire . . . policies that Reaganites called “trickle-up” poverty.
Chinese, Russians Show Disdain
for Dollar as Trade Currency
China and Russia have jointly announced that they will use their own currencies for bi-lateral trade in an effort to avoid the risk that the two nations say the American dollar now represents. While Beijing and Moscow have long wanted to heal their longtime “rift,” the announcement of their trade settlement being based upon their own currencies is a telling statement about the U.S. Federal Reserve Bank’s recent Q1 and Q2 monetary easing (demonetizing American debt and devaluing the dollar). In effect both nations are saying, “Our currency is stronger than the BUCK; and so is yours so let’s abandon the dollar and protect our domestic economies.
The two countries have long used the currencies of other countries, most notably the American dollar for bi-lateral trade. Recently, however, the Chinese Yuan has been traded against the Russian Ruble in the Chinese interbank market while the Renminbi/Yuan from China is soon expected to trade against the Ruble in Russia according to Vladimir Putin in a press conference in a meeting with Chinese leader Wen who was making a trip to Russia two months after Russian President Dmitry Medvedev's three-day visit to China in September, during which he and President Hu Jintao launched a cross-border pipeline linking the world's biggest energy producer with the largest energy consumer.
From the viewpoint of America’s economy, IF this Chinese-Russian agreement proves to be but the first of a cascade of nation’s “bailing out of the dollar” truly bad times are ahead. From the viewpoint of anyone holding dollar bills, including all American citizens, the real question is “What took so long?” In late 2008, Fed Chief Ben Bernanke printed up fourteen times the circulating currency in the United States in new bills. Thus, then with fifteen times the previous level in circulation, the 2009 dollar was POTENTIALLY worth just 6 2/3 pennies of the 2008 greenback. Now in 2010, the two quantitative easings (Q1 and Q2) have doubled the money in circulation as recently as July of this year . . . potentially, then the dollar is currently worth 3 1/3 cents of the September, 2008 dollar. All in all, news that makes you proud to be an American, eh?
Ya’ll live long, strong and ornery,
Rajjpuut
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Rajjpuut's Folly: Obama Puppetmaster Soros: ‘U.S. Main Obstacle to World Stability’

Posted by Bob VanDeHey on November 9, 2010 at 8:30pm

Is “Judgment Day” tomorrow? The foolishness of our Federal Reserve Chairman, Ben Bernanke and the excesses of five “too big to fail banks” now places the entire future of America at risk . . . .

George Soros Seeks America’s Ruin

to Advance His New World Order

In the narrative that follows, two important men (George Soros and Ben Bernanke) are discussed. In fairness to Soros, he appears to be an utter scumbag who has already, via his connections to the Clintons and ACORN, helped set up America’s recent financial meltdown and potentially the upcoming one as well. That’s as fair as Rajjpuut can be. In fairness to Bernanke, he probably sees his ongoing decision as avoiding “death by saber” in preference to death by a million paper cuts. Rajjpuut would remind him that no company and no bank is literally “too big to fail” and if he were strong enough to allow five big banks to fail, that’ll probably be the best thing for the American people and the nation they love . . . let us now return to scumbag George . . . .

Billionaire currency speculator George Soros (a self-claimed ‘philanthropist’ sometimes called ‘the man who broke the bank of England’) has been quoted thusly from time to time, “Sometimes I do feel more than a little bit like God . . . it is very important for the USA to find its proper place in the New World Order . . . as things stand, the main obstacle to world stability is the United States.”

When George Soros was a 13-year old boy in Budapest, Hungary, he was a capo, a Jew set up by the Nazis to help them control other Jews. His specific job was to deliver notifications at first to Jewish farmers and businessmen and lawyers and then later to just ordinary citizens saying, they were to report to the Nazis at such and such a place, at such and such a time (to be deported to a concentration camp). George, who calls himself an atheist these days, says he feels no guilt from his collaboration but just did what he had to do to survive.

Besides making a fortune on the collapse of the British pound-sterling in 1992, George is famous as well for bringing down currencies in Slovakia, Georgia (the former Soviet SSR) and Malaysia and reportedly a few other countries where his connections are a little bit “iffy” to prove. His modus Operandi has been by using radical personalities to form a “shadow government” within the nations he targets. In our case, that Shadow Government is the ultra-progressive left of the Democratic Party.

Thanks to conspiring with Bill Clinton, ACORN, Barack Obama, and progressive American politicians everywhere, Soros seems poised to win another huge currency bet and in the case of the United States, he hopes to collect twice . . . winning tens of billions of dollars when the dollar collapses and then the ruin of the United States would bring about a giant leap forward for Soros’ New World Order led in America’s absence from the top rungs by the Chinese government’s state-capitalist/communists. Hmmmm.

http://www.zerohedge.com/article/debt-bubble-chronicles-does-bernanke-really-think-qe-will-boost-home-prices%E2%80%A6-or-he-simply-tr

Soros’ unwitting (we think?) benefactor in all this is Federal Reserve Chairman Ben Bernanke. Ben’s policy of “Quantitative Easing” (monetizing the U.S. debt by having his Federal Reserve Bank buy up treasury issues) is designed to keep interests rates as low as they’ve been in a generation . . . or even take them lower. But, but, isn’t that (combined with Bernanke’s earlier multiplying of circulating currency in the country to 15 times the September, 2008, levels) a recipe for runaway inflation and perhaps even hyper-inflation? What’s going on? Interest rates are the lowest they’ve been in 30+ years supposedly controlled by Bernanke to maintain the housing market’s fluidity and spur business investments.

The two years this policy of near-zero interest rates have been in effect; plus the nation’s massive home-buyers’ tax credit . . . business has stayed very flat and at best, housing prices have almost stabilized. Is Bernanke even less competent economically than Obama? Or could he have an ulterior motive?

Looking at business we’re not seeing capital expenditure increases or increased hiring of employees . . . just ain’t happening. Instead businesses are buying back their own stock. Why? Because the mortgage industry and the business world are both on the same page . . . the page where it reads: “This is a phony recovery.”

Compared to the spring of 2008, revenues at S&P 500 companies are 12% lower today. Expansion would be foolish under those circumstances. Businesses don’t often buy back their own stock except when a) they think the share prices are too depressed or b) they’ve got nothing better to do with the money or c) both a) and b) above are true . . . but since corporate insiders are dumping their own personal shares like rats leaving sinking rowboats . . . (insider selling/insider buying ratio during October, 2010, ranged from 210/1 up to 2000/1) implies that they believe their companies’ stock shares are way over-valued and not a bargain purchase at all, is it possible that conditions a) and c) above don’t apply here and now? And, therefore, the corporations don’t have anything better to do with their money (condition b)?

That means that Bernanke’s stated purposes are presumably a genuine crock of B.S. Why does he wish to keep interest rates so abnormally low? We return to the never-never land of derivatives and too damn big to fail. The five banks** that Bernanke and Obama have been shoring up since January, 2009 are in deep, deep, deep doo-doo. We are NOT talking chump change here . . . nominally . . .

J.P. Morgan holds derivative exposure of $73 TRillion.

Bank of America holds derivative exposure of $47.5 TRillion

Citibank holds derivative exposure of $44 TRillion

Goldman Sachs holds derivative exposure of $41 TRillion

HSBC holds derivative exposure of $2.6 TRillion

Overall, of their total derivative exposure, $188 TRillion in interest- rate derivatives is held by these five banks. Bernanke is allowing them to profit for exposing themselves to those derivatives without any risk of failure because if they fail . . . America comes close to total implosion. The recklessness of these five banks especially the first four named is absolutely intolerable. The Federal Reserve Bank’s actions have aided and abetted the worst financial malfeasance in world history. Their interest rate derivative exposure is the equivalent of allowing a terrorist to buy a lottery ticket for the opportunity to destroy the entire banking system of the world . . . yeah, you’re probably not going to lose and you get to keep his buck, but, what happens if he rolls a natural?

Banks are NOT supposed to gamble with depositors’’ money! That $188 TRillion is 13.5 times the United States’ gross domestic product and 4.2 times the GDP of the entire world. Bernanke is not protecting you; not protecting the country; definitely not protecting the dollar; and not protecting the world economy. He is protecting profit and preventing ruin for the Goldman Sachs etc. of the world who are “too big to fail” . . . in doing so, he is making tens of billions of dollars for George Soros to collect when runaway inflation hits the country and the dollar stops being the world’s reserve currency.

Is “Judgment Day” tomorrow? The foolishness of our Federal Reserve Chairman, Ben Bernanke and the excesses of five “too big to fail banks” now places the entire future of America at risk. George Soros, who is guilty of helping the progressive wing of the Democratic Party bring about the financial meltdown, is now exploiting the foolishness of Bernanke and perhaps giving a little tweak here and there by selling dollars short on the currency exchanges . . . and the big loser: you and the American Dream.

Ya’all live long, strong and ornery,

Rajjpuut

**According to the Office of the Comptroller of the Currency’s Quarterly Report on Bank Trading and Derivatives Activities for the Second Quarter 2010 (our most recent), the notional value of derivatives held by U.S. commercial banks is around $223.4 TRILLION. The five banks mentioned above account for 94% of those holdings.

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Rajjpuut's Folly: Are You Prepared for the Dollar's Collapse?

Posted by Bob VanDeHey on November 8, 2010 at 9:30pm

As Ben Bernanke Deliberately Collapses

the American Dollar, George Soros Chortles

For lack of a better name, call it the OJCP, "Obama Jobs Creation^^ Program": your money is deliberately being made worth less or worthless to spur jobs creation. The plan is that foreigners will want to get rid of dollars and buy American goods, thus creating jobs. Foreign goods will become too expensive for Americans who will decide to buy American goods instead, presto, again more jobs created here. Doesn't that sound wonderful? The chief architect of all this with Mr. Obama is Fed Chairman Ben Bernanke who is also initiating something called "quantitative easing."

The reserve currency of the entire world for lo’ these many years has been the American dollar. Within the last couple years George “The Puppet Master” Soros (the world’s 35th richest man and its single greatest megalomaniacal communist who already has thrice profited fantastically by bringing about the collapse of some nation’s currency) told the world press that a controlled devaluation of the American dollar was necessary for the good of the world community. The interview was not widely covered in this country, but his comment sent ripples throughout the world especially among those foreign governments who hold U.S. dollars. The legendary Mr. Soros who bankrolls a good ten non-profit groups involved in getting the United States into the shark-filled Cap and Trade waters, by the way, is advocating Cap and Trade** legislation as a way out of our present crisis.

Within the last 18 months, both Treasury Secretary Timothy Geithner and Federal Reserve Bank Chief Ben Bernanke swore that America would never devaluate the dollar, would never resort to inflation as a way to deal with our incredible debt, would never sabotage the American people and those who hold debt instruments from the American treasury . . . . Yep, they lied. The terms “Q1” and “Q2” are now becoming familiar to Americans who do other things than watch sitcoms and “reality” shows on TV. “Quantitative easing” has taken place in both of the last two fiscal quarters.

The Quantitative Easing which Mr. Bernanke is taking us through is a polite way to say that the government is deliberately making toilet paper of your savings, pension funds, etc. That’s what the government is doing. Rajjpuut first mentioned the German Weimar Republic back in a blog in early 2004. The astute Mr. Glen Beck of the Fox News cable network has this very month said that America is now heading for a “Weimar Moment.” The Weimar Republic was the government forced upon Germany when they lost World War I. The infamous Treaty of Versailles also forced upon Germany an impossible set of reparations payments. In order to deal with the demands from the victorious French, the Germans had to inflate their currency. The Deutsch Mark which was worth 25 cents (four DM to the dollar) in 1917 deteriorated so rapidly that in November, 1923; it took 26 Billion Deutsch Marks to equal a dollar. You may also remember November, 1923, as the time when Adolf Hitler led a group of dissatisfied individuals in the so-called Beer Hall Putsch (coup d’état) trying to usurp the government of Bavaria. The resulting trial for treason made Hitler a household name across Germany. Such are the benefits of state-sponsored inflation . . . .

In October of 2008 at the height of the financial crisis, Mr. Bernanke took it upon himself (there are virtually no limits to the power of a Federal Reserve chief’s to inflict intended or unintended pain) to begin printing up money. When he was done he’d printed up 14 times as many new bills as there were dollars previously in circulation so in total: 15 times as much money was circulating as before. In effect, the potential effect on the dollar was that the 20o9 dollar was worth 6.7 cents worth of 2008 money . . . NICE!

In the summer of 2010 when it became difficult to sell American debt instruments because foreign governments were reluctant to risk buying up dollar instruments without a much higher interest rate, the federal government in the form of Mr. Bernanke’s Federal Reserve Bank began printing again and bought up some of the Treasury instruments that were on sale, about one-third of them. This is called “monetizing debt” something you’ll recall from the top of this blog that Timothy Geithner and Ben Bernanke promised would never happen. That didn’t seem to have cured the problems so now Ben’s busy again with the printing presses and monetizing more debt a.k.a. quantitative easing . . . Q1 earlier; Q2 now. Back when Q1 was going on you might recall, Rajjpuut telling Americans to buy gold or silver because paper dollars were becoming worth less and eventually might prove worthless. Now Rajjpuut says that Americans should buy things of value like gold or silver, etc. because “worthless” is the watchword for the dollar. Of course, in ignorance the stock market investors believe Q2 is a good idea and the stock market is shooting up . . . dance while you can, boys, the bill’s coming due. Aren’t you glad “they” are looking out for us in Washington?

Here is the straight skinny and Rajjpuut crosses his heart while typing this: The crisis in the world’s finances comes down to one thing and one thing only . . . a crisis in the American dollar. The U.S. National Debt is almost $14 TRillion. Unfunded liabilities (owed by the country to the citizens) amounts to roughly $110 TRillion. We are by far the greatest debtor nation the world has ever known. While scarfing down junk food and watching American Idol a few other simple facts have escaped the good citizens . . . .

ITEM: Americans are not aware that the U.S. (private controlled central bank) Federal Reserve Bank, creates money out of thin air, is the primary cause of inflation in America, abets the politicians in their horrendous spending, and abets the creation of financial bubbles in the stock market and real estate.

ITEM: The American mainstream media (MSM) are largely “controlled” by their allegiance to the progressive elements in the Democratic and Republican parties. The MSM which did not report on Climategate when it happened one year ago, has also kept the American people ignorant of the coming crisis. Call it “mind control,” if you choose. Just five or six major corporations run the largest of the media outlets. When it comes to the broadcast media: Disney owns ABC, CBS is owned by Viacom, GE owns NBC all of whom are in bed with the progressive agenda in Washington and have a vested interest in keeping Americans entertained, dumb and happy rather than informed about the truth behind Cap and Trade and the value of their dollars.

ITEM: Not only have ultra-progressive George Soros’ words and activities gone unreported, but the IMF (International Monetary Fund) and World Bank, both have already said the dollar will be devalued. However, this has never been reported in the US media.

ITEM: President Clinton’s former economic adviser Robert Reich recently told Canadians that the U.S. dollar will collapse. Again, NOT reported.

ITEM: Collapse or “devaluation” of the dollar means a decline in the dollar’s purchasing power and a huge decline in Americans’ living standard. No one wants to hold a currency declining in value so they must demand higher prices for their goods and services and can use the dollars they receive to bid up the cost of whatever they buy from America in order to get rid of the dollars they hold as quickly as p0ssible.

Item: Today, Barack Obama made several monetary deals with India. Overtly we were told it was “a natural union between the world’s two most populous democracies.” In reality, Obama seeing that China is becoming reluctant to buy dollars was looking for a trade-partner who would be more or less forced by the agreement to keep the dollar respectfully in its hallowed place as a “reserve currency” . . . thus he hopes easing some of the pain the decline will bring to Americans by sharing that turmoil with India.

Item: The world will flee to gold, silver and other precious metals; to the Swiss Franc; and even to the recently despised Euro. Commodities of all kinds can be expected to rise in price FAST.

Ultimately what can we expect? For one thing the rest of the world understands our own crisis far more than our own leaders have informed us about it. So . . . expect a run to get out of the dollar . . . call it “hot potato economics.” People are going to be eager to discard the almighty buck and to buy whatever they can with it, rather than being the last one holding it. Of course that will happen among highly aware foreigners like the Chinese government, or the governments of Russsia, Brazil, Japan and India(?) long before the man in the street in America figures it all out. So expect a brief boom in America. And expect prices of our American products especially foodstuffs to go through the roof . . . so besides gold or silver, it might be nice to have a supply of canned and packaged and non-perishable food on hand while prices are comparatively cheap . . . as a result of these sad truths, expect huge amounts of unrest in the inner cities; expect huge amounts of problems for senior citizens and others living on fixed incomes. Expect George Soros to chortle all the way to the bank . . . .

Ya’all live long, strong and ornery,

Rajjpuut
^^Barack’s OJCP based upon devaluing the dollar is an immensely poor idea for three reasons:

#1 Inflation is tricky and can become devastating runaway inflation and even hyper-inflation destroying a civilization.

#2 When a currency as important as the dollar starts to devalue, no other country wants to import our joblessness, so you can expect demoralizing “currency wars” where dozens of nations seek to devalue their currencies and save jobs. Japan and China have received much criticism for devaluing their currencies but their money is NOT the world’s reserve currency . . . . world chaos would ensue if serious dollar deflation was allowed.

#3 Success at devaluation is close akin to success at swallowing thumb tacks and sure to “get you in the end.” Money is a storehouse of value (some call it “frozen work”) so why not attack your brand new car with a sledgehammer? The effect is the same . . . taking something of value and making it worth less or even worthless. Even if the only effect was upon imports and exports, that would be a tragic result. 19% of the U.S. economy is tied up with imports, drop the value of the dollar and 19% of what we buy becomes much more expensive.

In effect, the OJCP Obama Jobs Creation Program is just making us all much poorer. It’s not exactly sawing a lady in half to create jobs by making the country poorer . . . the magic comes from creating jobs by making us all wealthier like Donald Trump and Bill Gates do . . . not only making themselves richer; but making their stockholders richer; and their workers richer; and providing deep value to their customers. That’s the magic of capitalism which Barack so hates. Remove the minimum wage; remove health care and all benefits; make everyone on unemployment work for $5 daily and you’d have full employment in a month . . . and a much poorer nation as well for at least the three years it would take for a booming capitalism to regenerate our prosperity.

Everyone knows the following discussion is the truth . . . think of it as you ponder what you’ve learned already about the evils of devaluing the dollar:

Many have had to settle for lower wages to keep their jobs.

Many have had to settle for lower hours to keep their jobs.

Many have had to settle for part-time work to keep their jobs.

Many on part-time schedules have found themselves ineligible for the benefits they’ve formerly received.

Many have lost their jobs.

Many have lost higher paying jobs and now work elsewhere for less.

Or they've lost higher paying jobs and can only find work that pays less for mandatory unpaid overtime.

Many have had to take two or three jobs to survive working up to 90-100 hours weekly.

Many lost co-pays, deductibles, or seen eligibility times soar on their health insurance.

Many find that employers can longer match their401(k) contributions.

Many older workers have found themselves dispensible.

Many have lost their pensions.

Some workplaces where experienced older workers are valued have instituted two-tier wage systems. New hires get far lower wages and far less benefits.

Wage-freezes attack many workers in the long run as inflation eats into their present constant wage.

What does this mean? It means that anyone can create jobs by making everyone poorer, no struggle at all. The magic comes from capitalism creating not only more jobs, but better and more valuable jobs. The goal isn't just more jobs, Mr. Obama. It's about creating more jobs that pay enough to improve our living standards. Using a dramatically weakened dollar to create more jobs doesn't really help us.

** if we had Cap and Trade laws in effect right now, the immediate effect would be 67% inflation on average and inflation on food, electricity and gasoline and other necessities closer to 100%. Where does that 67% inflation figure come from? Founder and President of the Chicago Climate Exchange Richard Sandor (other influentials involved include Obama, Franklin Raines, Joel Rogers, John Ayers, Valerie Jarret, etc. and the Chicago ShoreBank supported by Hillary and Bill Clinton as well as ten or more progressive foundations financed by George Soros) put the value of Cap and Trade as an industry at $10 TRillion. In good times the real U.S. economy amounts to $15 TRillion. On paper, that means that selling blue-sky nothingness (that’s what Cap and Trade basically does) is “worth” 67% of the real U.S. economy. So in a $25 TRillion economy including Cap and Trade . . . 40% of the economy is literally “nothing” and that 40% is being stolen from the real economy by the crooks running the CCX. Note: Obama said directly in an interview with the San Francisco Chronicle that his energy plan would “bankrupt the coal industry” and “necessarily make electricity prices skyrocket.” So it’s actually far more likely in reality that the whole U.S. economy would amount to $20 TRillion and half of that economy would be Cap and Trade not only running prices up 100% but reducing the standard of living by 33% at least.

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