The collapse of the Dollar

Posted by Juan Reynoso on June 19, 2014 at 4:17am

By: Juan Reynoso, ACTIVIST - voteforamerica@gmail.com

http://anticorruptionact.org/. http://teapartyorg.ning.com/

The huge national debt will demise the U.S. and the world economy. Ron Paul fight to prevent this economic catastrophe but not one want to listen to this American estate man, Congressman Paul, cares about what most Americans care about, “The future of America”. I pray that we united, can and will strive and succeed in making our country and the world a better place to live in peace and prosperity, for us and all future generations. “Working together means winning together”. When governments fear people, there is liberty. When the people fear the government, there is tyranny. Thomas Jefferson.

GOD BLESSED AMERICA, THE LAND OF THE FREE.

We support the following statesmen to lead our country. 2016 is the crossroads of freedom or economic slavery. We choose freedom. www.represent.us

The Best are:

Ted Cruz – http:// http://tedcruzforpresident2016.com/

Rand Paul - http://www.newsmax.com/Headline/cpac-rand-paul-presidential-poll/2014/03/08/id/556834

Rand Paul – http://www.randpaulpresident.com/

Dr. Ben Carson - www.wnd.com/2014/01/ben-carson-next-president-of-the-u-s/

The following sites will reveal to you what the U.S. Press is hiding from us in protection of what the Washington psychopaths and sociopaths have done to demise our economic.

Billionaires Dumping Stocks, Economist Knows Why.

http://www.moneynews.com/MKTNews/billionaires-dump-economist-stocks/2012/08/29/id/450265/

Washington army of psychopaths and sociopaths will destroy our economy.

http://usawatchdog.com/russian-dollar-dump-could-crash-financial-system-john-williams/

Americans are in complete denial- misinformed by the news media.

http://www.munknee.com/shift-from-u-s-dollar-as-world-reserve-currency-underway-what-will-this-mean-for-america/

We fail to follow Gods law, now we have to pay the price.

http://www.greenteethmm.com/america-dollar-dumped.shtml

Free trade, Globalization and the wars made us defund our USA.

http://www.washingtonsblog.com/2014/03/forget-treasuries-russias-real-leverage-u-s.html

The U.S. world’s predator psychopaths http://www.presstv.com/detail/2014/03/18/355199/dump-dollar-dump-imperialism-analyst/

The signs that not one acknowledged: One World Government is near.

http://www.arewelivinginthelastdays.com/road/collapse.html

Who Needs The United States? Not Russia And China

Posted by walter young on May 22, 2014 at 10:29am

Pay Attention to this... Be ready for the vanishing DOLLAR!!!

Michael Snyder
Economic Collapse
May 22, 2014

Russia and China have just signed what is being called “the gas deal of the century”, and the two countries are discussing moving away from the U.S. dollar and using their own currencies to trade with one another. This has huge implications for the future of the U.S. economy, but the mainstream media in the United States is being strangely quiet about all of this.

Who Needs The United States? Not Russia And China 220514brics

Image: BRICS Leaders (Wiki Commons).

For example, I searched CNN’s website to see if I could find something about this gas deal between Russia and China and I did not find anything. But I did find links to “top stories” entitled “Celebs who went faux red” and “Adorable kid tugs on Obama’s ear“. Is it any wonder why the mainstream media is dying? If a particular story does not fit their agenda, they will simply ignore it. But the truth is that this new agreement between Russia and China is huge. It could end up fundamentally changing the global financial system, and not in a way that would be beneficial for the United States.

Russia and China had been negotiating this natural gas deal for ten years, and now it is finally done. Russia is the largest exporter of natural gas on the entire planet, and China is poised to become the world’s largest economy in just a few years. This new $400 billion agreement means that these two superpowers could potentially enjoy a mutually beneficial relationship for the next 30 years…

Russia reached a $400 billion deal to supply natural gas to China through a new pipeline over 30 years, a milestone in relations between the world’s largest energy producer and the biggest consumer.
President Vladimir Putin is turning to China to bolster Russia’s economy as relations sour with the U.S. and European Union because of the crisis in Ukraine. Today’s accord, signed after more than a decade of talks, will allow state-run gas producer OAO Gazprom (GAZP) to invest $55 billion developing giant gas fields in eastern Siberia and building the pipeline, Putin said.
It’s an “epochal event,” Putin said in Shanghai after the contract was signed. Both countries are satisfied with the price, he said.

Of course countries sell oil and natural gas to each other all the time. But what makes this deal such a potential problem for the U.S. is the fact that Russia and China are working on cutting the U.S. dollar out of the entire equation. Just check out the following excerpt from a recent article in a Russian news source…

Russia and China are planning to increase the volume of direct payments in mutual trade in their national currencies, according to a joint statement on a new stage of comprehensive partnership and strategic cooperation signed during high-level talks in Shanghai on Tuesday.
“The sides intend to take new steps to increase the level and expansion of spheres of Russian-Chinese practical cooperation, in particular to establish close cooperation in the financial sphere, including an increase in direct payments in the Russian and Chinese national currencies in trade, investments and loan services,” the statement said.

In my recent article entitled “De-Dollarization: Russia Is On The Verge Of Dealing A Massive Blow To The Petrodollar“, I warned about what could happen if the petrodollar monopoly ends. In the United States, our current standard of living is extremely dependent on the rest of the world continuing to use our currency to trade with one another. If Russia starts selling natural gas to China without the U.S. dollar being involved, that would be a monumental blow to the petrodollar. And if other nations started following the lead of Russia and China, that could result in an avalanche from which the petrodollar may never recover.

And it isn’t just the national governments of Russia and China that are discussing moving away from the U.S. dollar. For example, the second largest bank in Russia just signed a deal with the Bank of China “to pay each other in domestic currencies”…

VTB, Russia’s second biggest lender, has signed a deal with Bank of China, which includes an agreement to pay each other in domestic currencies.
“Under the agreement, the banks plan to develop their partnership in a number of areas, including cooperation on ruble and renminbi settlements, investment banking, inter-bank lending, trade finance and capital-markets transactions,” says the official VTB statement.
The deal underlines VTB Group’s growing interest in Asian markets and will help grow trade between Russia and China that are already close trading partners, said VTB Bank Management Board Vasily Titov.

You can almost feel the power of the U.S. dollar fading.

A few months ago, when I wrote about how China had announced that it no longer planned to stockpile more U.S. dollars, I speculated that it may be evidence that China planned to start making a big move away from the U.S. dollar.

Well, now China’s intentions have become even more clear.

The Chinese do not plan to allow the United States to indefinitely dominate the globe financially. In the long run, the Chinese plan to be the ones calling the shots, and that means that the power of the U.S. dollar must decline.

These days, instead of piling up mountains of U.S. currency, China has started accumulating hard assets instead. In the past, I have written about how China is rapidly stockpiling gold, and it turns out that the Chinese have also been very busy stockpiling oil as well…

China is stockpiling oil for its strategic petroleum reserve at a record pace, intervening on a scale large enough to send a powerful pulse through the world crude market.
The move comes as tensions mount in the South China Sea and the West prepares possible oil sanctions against Russia over the crisis in eastern Ukraine. Analysts believe China is quietly building up buffers against a possible spike in oil prices or disruptions in supply.
The International Energy Agency (IEA) said in its latest monthly report that China imported 6.81m barrels per day (bpd) in April, an all-time high.

Once upon a time, China was extremely dependent on the United States economically. The same was true with most of the rest of the world.

But now economic power has shifted so dramatically that nations such as Russia and China are realizing that they don’t really need to be dependent on the United States any longer.

And with each passing year, the relationship between Russia and China is becoming stronger. As Pepe Escobar recently observed, this emerging alliance is causing quite a bit of consternation in Washington…

And no wonder Washington is anxious. That alliance is already a done deal in a variety of ways: through the BRICS group of emerging powers (Brazil, Russia, India, China, and South Africa); at the Shanghai Cooperation Organization, the Asian counterweight to NATO; inside the G20; and via the 120-member-nation Non-Aligned Movement (NAM). Trade and commerce are just part of the future bargain. Synergies in the development of new military technologies beckon as well. After Russia’s Star Wars-style, ultra-sophisticated S-500 air defense anti-missile system comes online in 2018, Beijing is sure to want a version of it. Meanwhile, Russia is about to sell dozens of state-of-the-art Sukhoi Su-35 jet fighters to the Chinese as Beijing and Moscow move to seal an aviation-industrial partnership.

Meanwhile, the relationship that the U.S. has with both nations is quickly going sour. The crisis in Ukraine has caused relations with Russia to drop to the lowest point since the end of the Cold War, and now China is deeply offended by charges that Chinese military officers have been involved in cyberspying on the United States…

China on Tuesday warned the United States was jeopardizing military ties by charging five Chinese officers with cyberspying and tried to turn the tables on Washington by calling it “the biggest attacker of China’s cyberspace.”
China announced it was suspending cooperation with the United States in a joint cybersecurity task force over Monday’s charges that officers stole trade secrets from major American companies. The Foreign Ministry demanded Washington withdraw the indictment.
The testy exchange marked an escalation in tensions over U.S. complaints that China’s military uses its cyber warfare skills to steal foreign trade secrets to help the country’s vast state-owned industrial sector.

The divide between the East and the West is growing.

But the Obama administration has not figured out that we need the East more than they need us.

Right now, the number one U.S. export is U.S. dollars. Our massively inflated standard of living is very heavily dependent on the rest of the world using our currency to trade with one another and lending it to us at super low interest rates.

If the rest of the world quits playing our game, our debt-based financial system will quickly fall apart.

Unfortunately, nobody in the Obama administration seems to have much understanding of global economics, and they will probably continue to antagonize Russia and China.

In the end, the consequences for antagonizing them could end up being far greater than any of us ever imagined.

Rajjpuut's Folly: Forget 9/11, Pearl Harbor, 1929: Danger Most Dire Coming Next

Posted by Bob VanDeHey on September 17, 2011 at 12:00pm

“Our Federal Reserve Chairman Ben Bernanke and President Obama have united on policies that saw the printing of new dollars to the tune of 15.1 X our 2008 circulating currency; and then later doubled that amount by running the money printing presses non-stop. In an ordinary country operating by ordinary rules, America would be beset by hyper-inflation and the 2011 dollar would be worth about 3.2 pennies-worth of the 2008 dollar. We’ve been saved by the fact that the American dollar is the world’s reserve currency . . . that lucky saving situation will soon change . . . the day of reckoning is upon us.”

“. . . the American Dollar will be yesterday’s news and those holding dollars and any American paper instruments (like bonds) will be up a certain infamous creek without locomotion. The price of everything in dollars would then jump spectacularly. Gas might reach $16 or $17 per gallon. Eggs? Maybe about the same. Overnight the standard of living of all Americans would drop to about the 1930’s level as the cost of necessities would become prohibitive and luxuries would be . . . well, rare luxuries again.”

American Dollar to Go

The Way of the Dinosaurs?

The seedy little bearded men with wild-eyes carrying signs reading “The End is Near” have stepped out of the magazine cartoons and will soon surround us. The apocalyptic event foreseen long ago, conceived in progressivism and dedicated to the socialist dream is now approaching her “due date.” The gold dollar is long dead, long-live the Obama B.S. paper dollar worth 1/3 of a cent in 1913 money. Hail the new AmeriKa!**

For all but 27 of the last 98 years, progressive politicians have owned the Oval Office. For 93 of those years they have controlled at least one and usually both chambers of Congress (the House and Senate). America in the next fifteen months, probably sooner, will receive an ugly slap across the face; forced to pay for those sad voting truths as our Keynesian chickens get swallowed alive by the voracious hawks of economic reality. Are we talking about the end of the American Way of Life? Short of a miraculous and virtually instantaneous return to original principles and virtues (meaning fiscal-conservativism; Constitutional-conservativism; simple common sense; and drastically reduced government size and scope and interference), that is precisely what we mean: the end of America and the beginning of AmeriKa, the decadent banana-republic socialist state we’ll all come to know and despise. Let’s return very briefly to the beginning of our woes . . . .

With the assassination of William McKinley, Theodore Roosevelt ascended to the presidency. There was no Oval Office then; his successor William Howard Taft was the first to occupy that room. TR was a believer in progressivism (the doctrine that we must progress beyond and abandon the “outdated and ill-conceived U.S. Constitution” if we are to make progress toward our earthly Utopia). What does that mean in real life, your life? What’s progressivism about? Roosevelt did some powerful things that certainly in retrospect seem like they well needed doing. He began the National Park system; he created the Panama Canal; he dramatically expanded and modernized the nation’s armed forces especially the Navy which he sent out upon an ostentatious world tour to flex our muscle while sailing “quietly but carrying a big stick.”

TR is now one of the four faces on Mt. Rushmore and regarded as one of our greatest presidents. So what’s so bad about progressivism? It wasn’t particularly what he did, but more HOW he did it. Teddy commandeered part of a larger country then known as Colombia by creating a revolution there and next removed part of Colombia. He then named the resulting isthmus-nation “Panama” and began dredging a canal there which was owned by the United States. His expansions of the military and creation of the national park system were largely a product of TR’s powerful personality side-stepping and by-passing Congress and the Constitution. It was a benevolent progressivism for the most part, but progressivism nonetheless.

Our first truly progressive and ugly-progressive President was Woodrow Wilson and since the 1913 creation of the Internal Revenue Service and the Federal Reserve Banking System and Wilson’s dramatic expansion of government reach and largesse we’ve largely been a progressive nation ever since. The wages of Wilson’s sins added to those of ultra-progressives Hoover, FDR, Johnson, Carter, and Obama(36 years so-far and Obama’s seeking re-election); and several semi-progressive presidents; and a virtual unending list of progressive Congresses and we’ve now as a predictable result piled up a national debt of $15 TRillion. We’ve played fast and loose with UNfunded liabilities of $112+ TRillion (Social Security, Medicare, and the federal side of Medicaid – not to mention all the welfare state which isn’t even included in that figure) for a total of ($127+ TRillion) 2.2 X the entire planet’s gross domestic product.

Since March, 2009, our Federal Reserve Chairman Ben Bernanke and President Obama have united on policies that saw the printing of new dollars to the tune of 15.1 X our 2008 circulating currency; and then later doubled that amount by running the money printing presses non-stop. In an ordinary country operating by ordinary rules, America would be beset by hyper-inflation and the 2011 dollar would be worth about 3.2 pennies-worth of the 2008 dollar causing immense consternation at the grocery store, gas pump . . . everywhere. We’ve been saved by the grace that the American dollar is the world’s reserve currency . . . a lucky saving situation that will soon sadly change . . . the day of reckoning is upon us.

Understand this: we’re NOT talking about the 2007-to-present financial crisis, but referring to a situation that’s related to it, but infinitely worse. We’re talking about 98 years worth of Keynesian chickens come home to roost. We’re talking about the Bernanke-Obama inflationary epoch coming home to roost; we’re talking about the collapse of the American dollar. In case you don’t understand the word “Keynesian,” let’s quickly clear that up: the Brit John Maynard Keynes’ back in the teens and 1920’s came up with theories that totally defied the collected economic wisdom of the centuries and specifically Adam Smith’s massive tome The Wealth of Nations. In line with the Fabian Society of England (the progressive British fathers of American Progressivism) Keynes said that government spending was an unmitigated GOOD that could create prosperity at will. Government spending was the key to Utopia. Every semi-totalitarian state gained carte blanche from Keynes to spend whatever it took to make the powers that be happy. Every democracy gave progressives the power to promise the people anything and everything to keep their sick policies; and sick leaders in office perpetually. Even though Keynes later in his life recanted and admitted that Smith was correct and his own theories dead wrong, most governments around the world and here in the United States have been enveloped in a binge of government spending ever since.

Around 1949 those policies cost England, Keynes’ homeland, its ownership of the world’s reserve currency the British Pound Sterling after it had held that lofty position for over two hundred years . . . since then England has been shrouded in one financial disaster after another . . . after being THE global military super-power pretty much since 1588 and owning the most trusted money on the planet for roughly 2 ¼ centuries. A far worse fate awaits the United States barring an extraordinary miracle because America under Bernanke and especially under Obama has abused the laws of economics far worse than the Brits ever did. What precisely are we talking about?

The nation is now past the point where a long predictable “economic rebalancing” is overdue. Recently our nation’s credit ranking was dropped for the first time in our history. The point where that should have happened was actually reached in 1973 when Richard Nixon let the dollar “float” against gold and against other countries’ money and refused to honor our country’s fiduciary promises to people who bought American Treasury bonds. Things have gotten much, much worse for foreign-holders of American currency since 1973 and much, much, much, much, much worse for American holders of dollars ever since.

Here’s one very quick example of why this happened. Besides all the foolish government spending of borrowed money (we were the world’s greatest creditor nation two generations ago and are now the world’s largest DEBTOR), the government also stepped into the free markets and told banks and businesses how they must run their operations. Progressive Jimmy Carter and his progressive Congress in 1977 passed the Community Reinvestment Act (CRA ’77) which for the first time required (FORCED) mortgage lenders to knowingly make bad loans to unqualified home loan applicants. Since that time the rate of suspect loans (with 3% down payment or less) has risen from 0.24% in 1977 to 34.25% of all mortgages in 2007 when our financial crisis (the sub-prime loan crisis) began.

That amounted to a 1,425% multiplication of the rate of suspect loans. Worse, instead of giving 3%-down loans to ex-Army officers enrolled in college under the GI Bill (as they were back in 1975), under the 4^th Bill Clinton expansion of CRA ’77 (his 1998 “steroid version” expansion) 0%-down loans were being granted to people without jobs; without good credit; whose only “income” was food stamps; and even to illegal aliens. Many of these people were put into $400,000 homes on the belief that home prices could only rise and they could later sell out and make a profit: a monstrously stupid progressive spread-the-wealth scheme. This was all pure Keynesian prosperity according to the progressive manifesto. The result is history, sad, sad history. Today our woes are so bad that even if all Americans were taxed 100% of our earnings we could NOT repay the national debt ($15 TRillion and growing). As far as the nation’s UNfunded liabilities ($112 TRillion+ and growing) and the welfare state (who knows what the cost of the welfare state is since under Obama just SNAP -- the Supplemental Nutrition Assistance Program commonly called “food stamps” --recipients have reached well over 40 million souls), so your guess on the full size of all these government spending and government interference boondoggles is every bit as good as my guess might be . . . .

The bottom line? Expect (unless miracles occur) the world to change back to the gold standard; or possibly a combination gold standard and a shift to gold-back currencies like the Swiss Franc or the Kruggerand; or most likely a digital-based gold standard for conducting the world’s international trade. That is, the American Dollar will be yesterday’s news and those holding dollars and any American paper instruments (like bonds) will be up a certain infamous creek without locomotion. The price of everything in dollars would then jump spectacularly. Gas might reach $15 or $16 or even $20 per gallon; eggs, maybe about the same. Overnight the standard of living of all Americans would drop to about the 1930’s level as the cost of necessities would become prohibitive and luxuries would be . . . well, rare luxuries again . . . You know those problems with pensions some people have had recently . . . those problems will soon seem like a pimple under Miss America’s evening gown: Bad day at Black Rock.

Ya’all live long, strong and ornery,

Rajjpuut

** What can you do; what SHOULD you do to avoid AmeriKa becoming your own new lifestyle? The question is TOO BROAD and encompasses your safety (expect food riots in big cities) and perhaps even your nationality . . . wealthy Americans will exit in droves taking their job-creation abilities with them probably mostly to Canada and Australia and the U.K. Here’s the minimum you should consider: if you can afford it, GOLD would be a great idea. Gold could see $12,000-$15,000 an ounce soon. But every thinking American ought now to invest in “junk silver.” Either the 40% (1965-1970) or 90% (1964 and earlier) silver coins will do nicely. Silver has risen faster than gold this last decade and has, according to experts still a greater upside than gold. Silver is also much cheaper and far for convenient for every-day transactions. Won’t it be nice to be able to pay for a decent meal with a 40% silver quarter or a 90% silver dime rather than huge amounts of paper currency . . . however, Gresham’s Law (“Bad money drives good money out of circulation.”) would remind you that prudently you should spend your paper before you use any silver at all. The government would smarten up eventually and forbid flight from the country . . . with gold, palladium, platinum or silver or even numismatic coins . . . and even seek to “inspect” people’s safe deposit boxes as a Brave New World ushers in . . . by the way while this reality is galloping toward us, MSNBC's Chris Mathews on his Hardball show (which only throws marshmallow questions to progressive politicians) is accusing the TEA Party of turning the Senate and House into zombies by "body-snatching." So the only sane ideas in politics are being likened to horror flicks . . . my, my . . . .

Who Shot The Dollar?????

Posted by John Thompson on June 17, 2011 at 9:18am

This is from our friends at Personal Liberty;

Who Shot The Dollar?

June 15, 2011 by John Myers

PHOTOS.COM

President Barack Obama delivered the deathblow to the dollar.

Who killed the U.S. dollar? This question will be debated by future historians. Already, more people are asking that question than tuned in to find out who shot J.R. on Dallas. The lineup of suspects is long, but it ends with Barack Obama, the triggerman who killed the buck.

The first wound came from Franklin Delano Roosevelt, who expanded the Federal government’s influence far beyond what the writers of the Constitution ever imagined. He devalued the price of gold and made it impossible for ordinary Americans to convert currency to bullion. But FDR was also crucial during America’s World War II victory, a pivotal event that set the stage for America to become the world’s largest creditor and greatest superpower.

LBJ Chooses Guns And Butter

Another suspect is Democrat Lyndon B. Johnson. When I was in college studying economics, our professor made us read history. This seemed counterintuitive until we read about the guns-and-butter policies of the Johnson Administration.

And while Presidents George W. Bush and Barack Obama make Johnson look like a penny-pincher, Johnson was the first to take a shot at the dollar.

Johnson pressed forward his vision with major spending programs for education, medical care, crime and transportation. He wanted to transform America the way FDR had. And he had a war to fight in Vietnam.

Gold demand rose, creating a drawdown on America’s gold reserves. The root of it all was a growing trade deficit that the United States owed to the rest of the world.

The Administration of John F. Kennedy knew America’s gold standard was in trouble. In January 1961, Kennedy’s Undersecretary of the Treasury, Robert Roosa, suggested the U.S. and Europe pool their gold to prevent a private marketplace for gold in which the price would exceed the mandated price of $35 per ounce. French President Charles de Gaulle reneged on the deal and began to redeem dollars for gold instead of U.S. Treasuries. The drain on U.S. gold became severe.

The 1960s marked a gigantic increase in Federal spending. Johnson’s two-front war was being fought at a prohibitive cost. In 1968, for the first time since 1893, the United States ran a deficit in its balance of trade. Federal debt began to soar. By the end of the 1960s, the U.S. faced the stark choice of eliminating trade deficits or devaluing the dollar.

Gold On Nixon’s Enemies List

On Aug. 15, 1971, President Richard Nixon cut the final link between gold and the dollar. Other nations could no longer redeem rapidly depreciating greenbacks for bullion.

In February 1973, the world’s currencies “floated.” By the end of 1974, the price of gold had soared from $35 to $195 an ounce. The U.S. could suddenly pump dollars without constraint. It was a period during which red flags were being raised for paper investors, few of whom paid any notice.

The majority of investors would pay a steep price for their ignorance. Over the next decade, they suffered through the worst bear market in stocks since the Great Depression and the worst bond market of the 20th century.

A Democrat Gives The Dollar A Reprieve

It is ironic that another Democrat would breathe life into the buck, but that is what President Bill Clinton did.

During the Clinton Administration — with the help of innovative accounting — the dollar stormed back. The disgrace Clinton brought to the Oval Office over the Monica Lewinsky affair seems almost forgivable since his Administration presided over a growing economy and what underpinned it, a strong dollar. More than a decade ago, the world had confidence in the U.S. dollar.

If you do not believe me, check the chart below.

Trade Weighted Exchange Index

As you can see, the greenback has been experiencing an unprecedented decline since 2001. No doubt much of the weakness in the dollar was caused by another guns-and-butter President: George W. Bush.

Just 2½ years into office, Obama is pushing the value of the dollar even lower. It’s so low that the value of the U.S. dollar now threatens to undermine our future and our children’s future.

To read the rest of the article go here:

http://www.personalliberty.com/conservative-politics/government/who-shot-the-dollar/?eiid=&rmid=2011_06_15_PLA_[P11408439]&rrid=394822321

Rajjpuut's Folly: Chinese Economic Hegemony Locksteps onto the World Stage

Posted by Bob VanDeHey on April 26, 2011 at 4:28am

“PAX Americana” to Go

the Way of the Greenback??

The American progressive-left may have its fondest wish coming true according to a recent projection of the International Monetary Fund (IMF) predicting that the Red Chinese economy will surpass America’s sometime in 2016, just five years from now. Under an evaluation system known as PPP or Purchasing Power Parities, the IMF compared economies in “real terms” and their comparison shows the Chinese economy expanding to $19 TRillion by 2016 from its present $11.2 TRillion (while the American Economy rises from $15.2 TRillion to $18.8 TRillion) so that China overtakes America’s share of the world economy as it slips down to 17.7% while China’s cut of the pie climbs to 18% and rising. For perspective, ten years ago the American economy was ten times the size of China’s.

Is this latest IMF projection accurate? There are three good reasons to doubt its veracity in Rajjpuut’s not-so-humble opinion:

1) The dominant influence of the scoundrel George Soros upon the activities and emphases of the IMF . . . .

2) The overt proclivity of China to fudge and adulterate the figures when it comes to their money which has been artificially propped up rather than allowed to float free against other currencies.

3) It’s unprecedented in history for an already large and booming economy to undergo a 70% productivity increase within a five-year period.

Speaking to the first issue, multi-billionaire Soros has been seeking to destroy the American Dollar for roughly seven years now and the so-called “great philanthropist” (a.k.a. “The Man Who Broke the Bank of England” and “The International Man of MISERY”) who has made his fortune destroying currencies in Europe, Eurasia and Southeast Asia has had all fifty-two of his progressive American foundations funding the rise of his favorite Marxist, Barack Obama, for the last five years . . . his man “on the inside.” In other words the puppet Obama has no interest in becoming a real boy when those strings feel so good.

On the second issue . . . anyone could take any figures whatsoever from the Chinese and work them any way they wanted and you’d be no closer to the truth than a snowball is to a glacier. And the third figure seems like it’s come from smoke and mirrors and wishful thinking . . . all of which doesn’t say it’s impossible, only that it’s highly unlikely.

For the sake of argument let’s be ultra-conservative and conced that the semi-slave economy in China has the U.S.A by the short hairs because something pretty rotten is going on in Washington, D.C. and whatever that something is . . . it’s weighing down the American economy so heavily that the IMF figures are 100% accurate . . . it does not take a crystal ball or tea leaves to understand that 100% of Obama’s economic policies have failed on the side of dollar-destruction rather than shoring up the American economy . . . and since Rajjpuut’s antipathy for our Neo-Marxist president is so very high . . . your blog-writer might be allowing his feelings to color the situation. However, given all the available facts, it seems unfortunately that the IMF report if not at least very close to accurate is certainly leaning in the proper direction . . . which makes it, potentially “a blessing in disguise” or what any sensible patriot would call an “immediate fire alarm” for our so-called “leaders” in Washington, particularly Obama, Geithner, Bernanke, and Harry Reid.

Unless immediate and significant spending cuts; a balanced-budget amendment; an elimination of about 20% of the government’s activities; and business-friendly environment are created within the next year, the IMF projection is likely to come true within ten or twelve years in any case and then . . . the world will become a very different place. Consider the historical precedents: the United States first eased ahead of Great Britain economically about 1890. Both the United States and Germany were economically more powerful about 1914 when the First World War sprang up. Even before the end of World War II, in mid-1945, when the Labour Party ousted Winston Churchill and began instituting its progressive and highly-inflationary “reforms” the British Pound Sterling (which had been the World’s Reserve Currency (WRC) for roughly 220 years) shifted into deeply-troubled waters. By 1950 the American Dollar had become the new WRC.

While the Imperial British had some gross failings (as our own colonial experience reminds us) the world with Britain as the greatest military and economic power was a relatively benign place. As long as the Brits got their cut from their own colonies, anything short of the Mau-Mau Rebellion was not going to provoke too much agitation from the London powers-that-be. This situation was continued with the rise of America and the American Dollar . . . except for mistakes borne of ignorance (all too common, unfortunately) the Yanks ran a pretty orderly shop. With America as the world’s dominant economic and military power, generally speaking, things were downright friendly. Consider this almost three-hundred year period of Anglo-Saxon hegemony . . . and most particularly the last 60-odd years of PAX Americana (a generally peaceful time all around a planet dominated by the United States).

For example, can you imagine Adolf Hitler in charge of an Empire against which Mohandas K. Gandhi is agitating for Indian Independence? Khrushchev ever giving the Panama Canal back to Panamanians? The Spanish Empire that preceded the Brits facing down Martin Luther King’s demonstrations; the rise of Nelson Mandela’s government amidst a minority government of a different race in South Africa under China’s rule?

How much charitable good has the United States dropped upon the world’s people via its Navy and Air Force? How beneficial has our model of free markets and democratic-republicanism been for the emerging countries of the world as the age of colonialism slips behind us? How much forthright protection has the U.S. military provided against rogue states during the last three score years? Ah, but it appears the “king is dying, long live the new Chinese king.”

How much different will the world be under dominance of a Communist Chinese government that forces sterilization; forces abortion; limits the number of children; fires upon demonstrators in Tiananmen Square; and is among the leaders in human rights violations performed upon its own citizens? Statism; communism, collectivism and fascism have killed nearly 204 million people in the last 75 years (since Spain’s Civil War in 1936) even though those totalitarian cultures never rose to the absolutely dominant level that Britain and the United States have. The implication is easily made that chaos will be the result if and when China becomes the “Mu Gai PanKock of the Walk.” It’s supposed that the hard left in this country will rejoice as one of their own takes center stage but the song (sung to the tune of Smoke Gets in Your Eyes) might become:

We’ve cried cap’lists should

Be removed for good

Barack, of course, agreed

And he took the lead . . . .

Now----

There’s a firing squad

Busy in the yard

We just smile and say

As our lovely friends die

Marx, he, told us lies ------

Ya’all live long, strong and ornery,

Rajjpuut

Rajjpuut's Folly: Is Obama-led American Economy Already at the Cliff's Edge?

Posted by Bob VanDeHey on April 25, 2011 at 11:30am

http://www.marketwatch.com/Story/story/print?guid=25965F12-6D1A-11E0-8CAB-00212804637C

Only government can take a perfectly useful commodity such as paper, print a few numbers on it and make it worthless . . .

American Economy Facing

Death by 10,000 Cuts

It's too early to calculate if the recent International Monetary Fund's projection (see link above) that the "Age of America" will end in five years when the Chinese Economy surpasses America's is accurate. However, you don’t have to be a gypsy fortune-teller to read-between-the-lines well enough to see that the American economy is dying the death by ten thousand cuts. Of course, many (if not most) of our fearless leaders in Congress and the White House are proclaiming an ongoing recovery. We’re not talking the Mississippi here, but de-Nile, deep, deep denial. Until we’re willing to face up to the truth, no solutions are possible. The progressive leadership in this country over the last forty-eight years (only Ronald Reagan is exempt among presidents and both chambers of every single congress has been guilty with the verdict still out on our present House of Representatives) have destroyed the greatest economic machinery the world has ever known and substantially weakened and corrupted the greatest and freest society ever known.

Except for producing reality TV series and useless TV networks, we almost don’t create or build anything any more . . . we certainly don’t create jobs. The American Dollar whose original symbol was a capital “U” with a capital “S” atop it has been led to a slow death. Thanks to our leaders we are almost literally drowning in debt: $14.3 TRillion officially; plus $115 TRillion in UNfunded liabilities (Social Security; Medicare; the federal side of Medicaid) or a total of almost $130 TRillion we purposefully ignore discussing; plus, oh yes, that Welfare State that just got Obamacare added onto it . . . .

www.prisonplanet.com/24-signs-of-economic-decline-in-america.html

In a recent article the Prison Planet website told a sad story . . . when we’re through examining their cataloging of the situation . . . besides some parenthetical comments you’ll see immediately after each item, Rajjpuut has three shocking insights to add to the picture, Prison Planet said . . . .

The Economic Collapse: 24 signs of economic decline in America

#1 Standard & Poor’s just altered its outlook on U.S. government debt from “stable” to “negative” and warned the U.S. that it could very soon lose its AAA rating (the last time this happened was during the three months following the December 7, 1941 surprise attack on Pearl Harbor).

#2 China has announced that they are going to reduce their holdings of U.S. dollars (China, Brazil, Russia, and several other countries have openly called for elimination of the dollar as the world’s reserve currency and China, Russia, Brazil and India have been moving out of Greenbacks into gold and silver).

#3 Hedge fund manager Dennis Gartman says that “panic dollar selling is setting in” and that the U.S. dollar could be in for a huge decline (the dollar has lost 24% of its value this last decade).

#4 The biggest bond fund in the world, PIMCO, is now short-selling U.S. government bonds.

#5 This cruel economy is causing “ghost towns” and “ghost neighborhoods” to appear all across the United States. There are quite a few counties across the nation that now have home vacancy rates of over 50% (Las Vegas, Nevada has one of the highest home vacancy rates in the nation . . . it’s so bad there that there’s a mini-construction “boom” going on . . . what? why? because rather than clients moving into the ghost neighborhoods for a bargain price they prefer to get into whole new sub-divisions with other people nearby rather than a seedy area over-run by kangaroo rats).

#6 There are now about 7.25 million fewer jobs in America than when the recession began back in October, 2007.

#7 The average American family is having a really tough time right now. Only 45.4% of Americans had a job during 2010. The last time the employment level was that low was back in 1983.

#8 Only 66.8% of American men had a job last year. That was the lowest level that has ever been recorded in all of U.S. history.

#9 The average large company’s CEO made 343 times more money than the average American worker did last year.

#10 Gas prices reached five dollars per gallon at a gas station in Washington, DC on April 19th, 2011. Could we see $6 gas soon?

#11 Over the past 12 months the average price of gasoline in the United States has gone up by about 30%.

#12 Due to rising fuel prices, American Airlines lost a staggering $436 million during the first quarter of 2011.

#13 U.S. households are now receiving more income from the U.S. government than they are paying to the government in taxes.

#14 Approximately one out of every four dollars that the U.S. government borrows goes to pay the interest on the national debt.

#15 Total home mortgage debt in the United States is now about 5 times larger than it was just 20 years ago.

#16 Total credit card debt in the United States is now more than 8 times larger than it was just 30 years ago.

#17 Average household debt in the United States has now reached a level of 136% of average household income. In China, average household debt is only 17% of average household income (1/8 as high a percentage on a lot less earnings).

#18 The average American now spends approximately 23 percent of his or her income on just two items food and gasoline (forty years ago that number was about 7%).

#19 In a recent survey conducted by Deloitte Consulting, 74 percent of Americans said that they planned to slow down their spending in coming months due to rising prices.

#20 Over 59 percent of all Americans now receive money from the federal government in one form or another.

#21 According to the U.S. Bureau of Labor Statistics, the average length of UNemployment in the U.S. is now an all-time record 39 weeks.

#22 As the economy continues to collapse, frustration among young people will continue to grow and we will see more seemingly “random acts of violence”. One shocking example of this happened on a Metropolitan Atlanta Mass Transit Area (MARTA) vehicle recently. The following is how a local Atlanta newspaper described the attack . . . .

Roughly two dozen teens, chanting the name of a well-known Atlanta gang, brought mob rule to
MARTA early Sunday morning, overwhelming nervous passengers and assaulting two Delta flight attendants.

#23 Some Americans have become so desperate for cash that they are literally popping the gold teeth right out of their mouths and selling them to pawn shops.

#24 As the economy has declined, the American people have been gobbling up larger and larger amounts of antidepressants and other prescription drugs. In fact, the American people spent 60 billion dollars more on prescription drugs in 2010 than they did in 2005.

To understand the full picture, consider this: Barack Obama’s puppet-master, George Soros (the “man who broke the Bank of England” and owner of some 52 progressive-foundations that have been working to undermine the U.S. economy for the last nine years as well as funding Barack Obama’s campaigns) is openly calling for the Chinese Yuan to replace the Dollar as the world’s reserve currency. Soros, who has been called responsible for the destruction of at least six other currencies, is now heavily invested in the Dollar’s destruction. Every day that we refuse to emulate the British and adopt severe austerity measures, the closer Mr. Soros gets to adding another few hundred billion dollars worth of profit to his net worth. However, it’s not likely that Barack Obama will cut his own strings and act for the good of the American people against George Soros.

Real money, such as gold or silver, does not change in value over time although because of supply and demand considerations and new inventions, etc. it may be used to buy more or buy less of certain commodities. Paper money which is NOT backed by gold or silver (fiat money) always becomes worth less over time and eventually worthless. Right now Americans are shocked that the dollar has officially lost 24% of its value in a decade . . . but that’s only the official figure. The Federal Reserve Bankers under Fed Chief Ben Bernanke have not so much been “printing money” but merely creating it electronically. If the official figures took into account all Mr. Bernanke’s shenanigans and the world valued the Dollar accordingly then the 2011 dollar would be worth between 3-4 pennies from the 2001 DOLLAR. Leave it to government to take a perfectly useful commodity such as paper, print a few numbers on it and make it absolutely worthless . . . by the way, gold prices have risen 45% in the last eighteen months; silver has risen 58% in the last four months as people and nations are abandoning paper currencies like the Dollar, Euro and Yen.

The combined U.S. National Debt and UNfunded liabilities and Welfare responsibilities of the American government right now is equal to about three and one-half times the Gross Domestic Product ($57 TRillion) of the entire world . . . and yet the highly visible film-maker Michael Moore, all the unions, and the Progressives in congress from both parties claim there is “plenty of money” and refuse to cut spending and are debating when and how and how much to increase the debt ceiling right now. They’re counting on higher taxes upon “the rich” (those married couples earning a combined $250,000 or more who create all our small business jobs) to solve all our problems while continuing to create higher deficits, the one thing NOT on their agenda: spending cutbacks.

Ya’all live long, strong and ornery,

Rajjpuut

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 18^th and middle 20^th 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 2^nd 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.

http://money.cnn.com/2011/02/10/markets/dollar/index.htm

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.

Rajjpuut's Folly: Your Survival During Dollar Disintegration is NOT Obama's Concern

Posted by Bob VanDeHey on February 6, 2011 at 2:00pm

Saving Your Butt as Monetary System Collapses

Hopefully, the politicians will regain their senses in the next couple or three months and the survival information in this little blog will never have to be used . . . call the odds on that happening 200/1 since the tax and spend Democrats still control the senate and Barack Obama still wields the veto pen in the Oval Office. The last time an American President showed courage and wisdom in the face of a severe monetary crisis was 1921 (Harding slashed government spending 48%; taxes 49%; and paid down the National Debt 30% in turning the depression left him by Woodrow Wilson into the "Invisible Depression" within fifteen months). Unfortunately,Barack Obama won't join with the Republicans to save your butt; indeed he's still suggesting mad policies (in the State of the Union speech) that guarantee the grand-daddy of all fiscal meltdowns. Either kiss your butt goodbye, or take matters into your own hands because your survival in the coming meltdown depends upon you.

Rajjpuut began advising readers in early 2004 of the dangers represented by the sub-prime lending crisis to our economy and to their wealth. You know how that turned out . . . . Since roughly April, 2009, he’s been warning of a complete fiscal meltdown in America associated with the U.S. Dollar’s collapse (when the greenback is no longer accepted as the World’s Reserve Currency) and hyper-inflation attacks our way of life . . . since Fed Chairman Ben Bernanke has been busy at the money printing presses and electronically creating dollars as well, the 2011 dollar is technically worth 3.4 pennies of a late 2008 greenback. Our National Debt stands at 95% of our GDP even though Ben Bernanke put the figure at 64% in a National Press Club speech three days ago (he did not include the $4.6 TRillion we've stolen from Social Security and Medicare "lockboxes" which moves the debt from $9.5 TRillion to $14.1 TRillion). Our UNfunded liabilities stand at $113 TRillion. We will soon be able to tax every citizen 100% on their earnings and not be able to fund the profligate Obama budget. The nations of the world individually and the leaders of the world's monetary foundations are in agreement the American Dollar as the world's reserve currency is no longer acceptable; the system stands on the verge of disintegration and you are innocently sitting on the couch watching "reality TV" and playing video games?

To fight against this growing present threat, even more than gold, Rajjpuut has been advising readers to consider buying so-called “junk silver.” Junk silver needs a new name because purchase of a $100-face value bag of American silver coins (pre-1965 dimes, quarters, half-dollars with 90% silver content) now costs -- depending on the price of silver on a given day -- between $1,850 and $1,950 dollars. Few people realize that as an investment, silver has outperformed gold in the 21^st Century. Yes, yes, gold has risen roughly 300% (quadrupled in value since the original 100% is added in) but silver has risen 521% over the same period or gone up to 621% of its original value.

One other little thing: people don’t realize is that silver is now more rare than gold. While virtually every ounce of gold that’s ever been mined is still with us today; approximately 96% of all the silver that’s ever been mined is believed lost forever. Silver has a huge present day demand and has long dominated the industrial markets: it’s still used in photography; and is the preferred metal for electronics, pollution control, tableware and utensils; chemical catalysis; medical use; and in some countries it’s still used in coins . . . but let’s get back to the junk silver we were talking about, when silver reaches $33 per ounce, each silver dime will be worth $2.00. If hyper- inflation hits silver will be in far greater demand than that, for the price of a single silver dime, it’s likely that you’ll be able to buy enough to feed a person three-squares as merchants desperate to trade their wares for something of intrinsic/real value look to silver as their own best investment. These same merchants might NOT accept $4,000 paper dollars for the same food under the same circumstances.

Does that sound far-fetched? At the end of the Weimar Republic’s savage hyper-inflation, German citizens in late 1923 insisted upon being paid three times daily and having splurge-breaks to run off and buy anything just so their money wouldn’t lose all its value before they could spend it. Eric Maria Remarque, famous author of All Quiet on the Western Front, displayed these facts quite graphically in his stark novel The Black Obelisk as 26 TRillion Deutsch Marks traded for one American dollar. Rajjpuut’s stamp collection contains Weimar Republic German stamps with printed prices cancelled out and new prices overprinted . . . in short, hyper-inflation is a mess you’d prefer not to deal with, but one it’s best to prepare for . . . .

However, while silver coins are a great idea, there is one truly great investment that trumps virtually everything else imaginable: farmland. Yes, real hold-in-your-hand coins are absolutely necessary, but the best investment of all over the last 40 years has been American farmland which easily outpaced bonds; stocks; gold and even silver. Farmland was about twelve times more lucrative than the Standard and Poors stock index; and more than four times better than gold during those 40 years.

While the land appreciates in value, it can also be rented out or farmed by you in case of the utter end of civilization, and NO, farmland did not fall in price during even one quarter during our recent meltdown. Investments in the stock market in 1970 (adjusted for inflation) returned only 16% and the stock market can’t save your family in a serious crisis. Just as physical silver is a great idea, owning a farmable plot of land has its great attractions as well. If that’s impossible, you can invest in private Argentine farmland for about $7 an acre; the well-respected Stansberry Report even suggests buying Argentine farm property management via NASDAQ whenever such stocks sell for below book value. To get the full (it's a long presentation) picture, visit:

http://www.stansberryresearch.com/pro/1011PSISBBVD/EPSIM218/PRo=267094&s=269843&u=49822167&l=215636&r=Milo

Ya’all live long, strong and ornery,

Rajjpuut

Rajjpuut's Folly: China Wants Yuan to Replace American Dollar Internationally

Posted by Bob VanDeHey on January 17, 2011 at 12:46pm

Rasmussen: Only 26% Say

Nation is on the Right Track

A recent Rasmussen Reports survey shows only 26% of Americans believe the country is headed in the right direction while 68% of us believe the country is headed in the wrong direction. Broken down by party sympathies: 43% of Democrats; 73% of Independents: and 88% of Republicans believe the country is headed the wrong way. Only 48% of Democrats believe the country is moving in the right direction. Black voters are the only large bloc saying the country is on the right track with 52% agreeing; meanwhile 72% of Whites; and 75% of voters from groups not Black or White say the country is moving in the wrong direction. Here are a few areas of discontent:

ITEM: Rasmussen also showed that 75% want the Obamacare health care law changed at a minimum and 60% believe that it will cost much more than we’ve been told and increase the federal deficit. 55% say it must be repealed.

ITEM: 61% of voters say that Congress (U.S. House of Representatives and U.S. Senate combined), no matter how bad things are, can always make things worse.

ITEM: Chinese President and leader of the Communist Party Hu Jintao has called the U.S. dollar functioning as the global currency a "product of the past" and is promoting a move by the global community toward his Chinese yuan for international investment. Listen here to the video as George Soros the man who has stated that “the United States is the greatest threat to world stability and vowed to destroy the American Dollar; imagine his “new world order” being led by a Communist China which killed 58 million of its own people since 1950:

http://townhall.com/tipsheet/KatiePavlich/2011/01/17/chinese_president_says_dollar_as_global_currency_a_thing_of_the_past

ITEM: Today the Environmental Protection Agency moved to keep one of President Obama’s more dubious promises. The EPA in moving toward closing down a West Virginia coal mine seems hell-bent upon confirming a statement that Obama made to the San Francisco Chronicle during Election 2008, “My energy and cap and trade policies won’t prevent you from building a coal mine, but you’ll go bankrupt if you do.” In the same interview, then Senator Obama, said, “My energy policies will necessarily make electricity prices skyrocket.” U.S. Senator Jay Rockefeller, a West Virginia Democrat who’s been pushing for jobs and economic growth was among the first to protest this ridiculous action.

ITEM: The U.S. labor Department is awarding hundreds of millions of dollars in grants and scholarships to fill scarce green jobs. Despite the fact that no great number, if any, vacancies exist in green jobs across the nation numerous universities and specialized vocational schools are seeking grants of government cash to provide graduates for non-existent or scarce green jobs and the Labor Dept. is giving out the money in keeping with President Obama’s pledge to create five million green jobs. As mentioned earlier, based upon an economic study of the reasons that Spain went from the strongest economy in Europe in 1997 to one of the worst today (4% unemployment to 20.8% unemployed now) subsidies creating five million green jobs here will put eleven million jobs at risk in the real American economy and only 500,000 (10% of those jobs will prove permanent).

ITEM: The EPA is moving by government regulatory edict to force business closedowns for high carbon dioxide emissions having named CO2 a “toxic emission.” The same justification could allow the EPA to kill off all animals and humans as toxic emitters. Of course CO2 is necessary for plant life and plants create the oxygen we need.

ITEM: George Soros, who is right now seeking to destroy the American Dollar (Yes, he declared it openly; it won’t take much, George) after becoming a multi-billionaire by destroying four other currencies including the Russian Ruble and profiting from the meltdowns of seven others (George is known as “The man who broke the Bank of England”) has his CAP (Center for American Progress) providing financial support in the drive to expand California’s Paid Family Leave Law by imposing an increase of 1.2% on payroll taxes so that fathers and mothers will have even more time to bond with their newborns.

ITEM: While the federal government is going bankrupt and the state governments are likewise under huge pressure courtesy of huge union employee pensions and salaries. President Obama moved to freeze federal salaries (when it looks like budget cuts of 15% will be demanded in virtually all other areas of the budget?).

ITEM: The president of one of Ben Bernanke’s federal reserve banks, Charles Plosser, abhors Ben Bernanke's dramatic intervention policies toward the economy. Plosser, President of the Philadelphia federal reserve bank said, "Monetary policy cannot reverse the sharp decline in house prices when the economy has significantly over-invested in housing." Plossser went on, "I have advocated the elimination of Section 13(3) of the Federal Reserve Act, which allowed the Fed to lend directly to 'corporations, partnerships and individuals' under 'unusual and exigent circumstances.” Plosser also said, “We are in danger of assigning to monetary policy a larger role than it can perform, in danger of asking it to accomplish tasks that it cannot achieve, and, as a result, in danger of preventing it from making the contribution that it is capable of making.”

ITEM: Coming soon to a town near you? Just about the worst housing market in the country is found in Nevada. The absolute worst housing market in Nevada is in and around Las Vegas . . . so, guess what? Las Vegas construction companies are building homes like crazy. What, the??? Yes, it’s true. Apparently, because so many Las Vegas homes and especially new homes have stayed empty for so long . . . new home buyers in Las Vegas don’t want to move into the virtual ghost towns infested with mice and rats and other vermin . . . so the only course of action seems to be to build in whole new areas (and eventually bulldoze the empty “ghost towns?”).

ITEM: You know that British health care system that sent thrills up the legs of Obama and his progressive congress? The system they want to emulate and imitate? British Prime Minister David Cameron says his government will make fundamental changes to Britain's state-run health care system," according to the Associated Press. Cameron aims to save money and cut red tape by giving control over management to family practitioners rather than bureaucrats. He said Monday, “standards of care in Britain have fallen behind other European countries." You do remember that Dr. Donald M. Berwick, Obama’s Medicare and Medicaid administrator, praised Britain’s National Health Care system as "one of the truly astounding human endeavors of modern times" about 16 months ago.

ITEM: Hypocrisy comes unglued . . . . Is there something in Tucson’s water? One of the victims of Jared Loughner’s shooting spree in Tucson nine days ago was a man named James Eric Fuller. Mr. Fuller’s website: http://www.hypnothoughts.com/profile/JamesEricFuller states among other things: “I use extraordinary persuasive charisma to interest blasé, apathetic, oblivious and at times hostile voters to listen to the voice of justice and consanguinity.” In a crowded Tucson town-hall meeting, Fuller recently told a TEA Party leader, “You’re dead” and when removed by deputies, called out to all those assembled, “You’re wh_res!” This coming less than four days since Fuller made the round of talk show programs on radio and TV accusing Sarah Palin, Glenn Beck, Speaker of the House John Boehner and the TEA Party of full responsibility for the shooting that killed six and wounded fourteen. So whose speech is “uncivil” and “incendiary” and “violent,” Mr. Fuller? If you listen to the LEFT and you listen to the RIGHT in their own words and watch their actions (violent protests; in Arizona, Oakland, Seattle, Pittsburg, etc. compared with sedate TEA Partiers sitting in lawn chairs) you’ll find the vast majority of instances of such speech have long belonged to the LEFT and the violence of the speech is unquestionably theirs as well. We’re sorry Mr. Fuller got shot, but he and the LEFT needs to practice what he and the LEFT preach: non-violence, tolerance and fairness.

ITEM: The House of Representatives is voting this week to repeal Obamacare. As President Obama’s “State of the Union” speech approaches shortly afterward, we’ll get a good luck at his latest pledges “to work with Republicans” and “to refocus on jobs and the economy.” Shortly after that the House, now controlled by Republicans, will be dealing with raising the debt ceiling and seeking to rollback his unspent stimulus money; and to rollback the budget to levels not seen since 2008 or 2006. The President’s true colors (centrist or leftist) should emerge very soon.

ITEM: The Obama Justice Department is siding with Labor Unions wanting to be able to pass out literature in front of shopping centers. According to the union claims, Girl Scout cookie sellers and Salvation Army Santas show "unfairness" to Unions. The Supreme Court has long held that unions and political activity can be treated differently than bona fide benevolent organizations with regard to free speech and assembly on private grounds; but Obama wants to waste your money to give the unions another chance . . . .

Ya’all live long, strong and ornery,

Rajjpuut

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.

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

Rajjpuut's Follies: Tough Times Demand Total Renewal of the American Dream

Posted by Bob VanDeHey on December 28, 2010 at 2:00pm

Repairing the American Republic
in Ten** Years

Barack Obama is purportedly the “leader of the free world,” but all his political manipulations in the last two years have borne an ultra-socialist flavor and made America a much less free country; threatened the role of the American dollar as the “world’s reserve currency”; and done everything possible to kill the free markets’ abilities to return us to our natural position as the world’s leading economy. Here’s how we change all that and return the country to its former excellence:

Immediately cut all federal salaries 15% and keep them frozen at this level until the budget is balanced and all UNfunded liabilities are funded.
Otherwise cut all federal spending by 10% and similarly freeze it at those levels until the budget is balanced and all UNfunded liabilities are funded.
Amend the Constitution to include a balanced budget amendment except in times of invasion of our country budget must balance and no future liabilities may go UNfunded.
Amend the Constitution so that Unfunded liabilities are unconstitutional.
Amend the Constitution so that the Federal Government has no power to demand state spending on Federal Programs.
Initiate a flat very low income tax beginning at $30,000 earnings per person with no deductions allowed to anyone. Every dollar earned above $30,000 by an individual is taxed at 16% by the federal government. For married couples every dollar earned above $70,000 is taxed at $16%.
The corporate income tax for America is now the highest in the world. Drop it for ten years to a flat 5% on all earnings above $150,000 and jobs and businesses will flood back into this country.
Put the country back on a hard money standard: one ounce of silver = $100 or (but NOT and) gold = $5,000 per ounce.
Eliminate Federal Reserve banking and all the inflationary power that goes with it.
Make unemployment insurance a purely federal program; cut unemployment insurance duration to 13 weeks.
Set up a commission to eliminate duplicate or unnecessary programs or unconstitutional programs; and to eliminate fraud, waste and abuse of federal programs and require this commission to report to congress and the president every year two weeks before the State of the Union report by the president.

Eliminate Obamacare and

a. Allow all citizens and businesses and states to shop across state borders for health care insurance

b. Provide tort reform to eliminate nuisance malpractice suits and cap tort awards at $1,200,000

c. Put the CDC (Center for Disease Control) in charge of improving Americans’ health and lowering medical costs.

d. Reduce Medicare and Medicaid coverage to levels existing in 2000. There will be zero state Medicare or Medicaid coverage . . . only federal coverage at these new levels will exist.

e. Re-establish HSA’s as programs which people can use to responsibly plan their own health care funding protection

Ya’all live long, strong and ornery,

Rajjpuut

**It's too big a job for any "instant fix," so not all will be repaired in ten years but the government will be 100% on the right track within three years

By the way, you may recall President Obama telling us that too much information was a bad, even dangerous, thing and recommending that we just read the Huffington Post to avoid confusion . . . . Well, get this the owner of the HP website Arianna Huffington has declared that the leftwing progressives “are responsible for all that’s good in America, 100%”. Does she mean the shrinking dollar? $112 TRillion in UNfunded liabilities just courtesy of Social Security; Medicare; and the federal side of Medicaid (not to mention that the new Obamacare legislation will, via the state side of Medicaid bankrupt every state but Utah and Texas by 2022; and all fifty by 2024)? Government and unionized government pensions bankrupting 43 of our states right now?

“(By her description of the left), every single breakthrough in American politics from the Emancipation Proclamation onward was a left-wing initiative and espoused by the left,” Huffington declared this week on her website.

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

Economy Falters: Dollar store closes due to economic failure

Posted by Stanley Bolten on September 4, 2010 at 12:43pm

Mighty Dollar In Trouble

Mighty Dollar Madison NC Franchise closes due to continuing economic failure throughout America

Author: Brian D. Hill

Source: USWGO Alternative News

Note: This is a exclusive special report by USWGO

Many that thought dollar stores will actually do well in a depression style economic collapse is sadly mistaken. According to Brian D. Hillthat is not just a founder of USWGO but also a skilled photographer,and a reporter, he found out after wanting to take a trip to MightyDollar that's located in 706 Rockingham Square in Madison, NC 27025,is unfortunately shut down due to the increasing economic failures.

After seeing that it was closed the USWGO Founder decided to take pictures of the closed down store to show the world how bad Americaseconomy is getting. The official website of Mighty Dollar is at www.mightydollar.org.

USWGO hasn't yet contacted Mighty Dollar company for comment regarding the Madison NC franchise shutdown or found a reason why theshut down has occured but further investigation finds that it is theeconomy that gut Mighty Dollar from Madison NC.

In the parking lot at the shopping center where Mighty Dollar is located the pavement in the one area is degrading while not receivingany repair.

So while President Barack Obama says that he will not rest until he brings more jobs, which would restore the economy, the economy isslowly sliding from a Recession, to a Depression, and maybe to the endof the United States of America.

Also before the store had went out they used to sell everything as a dollar including First Aid ointment which would be mainly $2 to $3 inmany other places, then merchandise was not being stocked as well, tosome merchandise not being stocked anymore, and then well you know theyclosed down.

So why would dollar stores go out of businesses since they would sell more due to the fact that prices are going up everywhere? Becausethe price of raw material is being inflated due to the economic failureplus the Federal Reserves excessive printing of money thus causing adevaluation of the dollar next to it's competitors the Yuan, Yen, andEuro.

If raw materials go up then either prices must rise, packaging must be reduced, quality of the product must go down, or quantity of theproduct has to go down.

Already gas stations are reducing their bottled drink sizes from 24 fl oz to 20 fl oz while keeping their prices the same or little bithigher.

Even at Walmart it is now a memory that you can buy a good priced drink that would be 24 fl oz.

If raw materials keep going up in prices then the people may start rioting in the United States over their standards of living and/orquality of life slowly faltering into the dirt.

If seeing a Mighty Dollar being closed down including a Martinsville VA Restaurant hardly getting any customers isn't a sign that theeconomy is falling and that we are in a Depression then we don't knowwhat is.

In the news other countries have either riots or massive revolts over the massive inflation of prices on everything. The same thing ishappening to America so dollar stores all over America may bethreatened by the fact that raw materials can go up in price.

Here is another picture showing even closer how the great Madison NC Mighty Dollar isn't Mighty anymore.

once another great mighty mega store along with many carts for shoppers to use is now another closed down economic tragedy not tomention more jobs lost.

Does it just look like the economy keeps getting worse? Please add your input to the comments below.

Sources include:

Martinsville VA Economy falls: Rise in food stamps usage while Restaurants hardlyget any customers

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Food riots erupt in Mozambique

Riots, instability spread as food prices skyrocket - CNN.com

The World's Growing Food-Price Crisis - TIME

FOREX-Dollar falls vs euro, higher-yielding currencies‎

Rajjpuut's Folly: Obama Aims to Imitate Spanish Green-Economy Model

Posted by Bob VanDeHey on June 4, 2010 at 5:30pm

"SIGH-PIE-B" R Us? Euro in Big Trouble

Take a closer look at the economies of eight European countries since the Greek bailout by the European Union (EU) and International Monetary Fund** (IMF). Specifically examining, Spain, Italy, Greece, Hungary, Portugal, Ireland, England and Belgium -- the lot of which can be abbreviated “SIGH-PIE-B” – gives one a sad, sad view. Belgium and Hungary are the latest to disappoint and still have hopes. England also could make it and avoid bankruptcy and fiscal collapse, if they get out of the European Union (and their currency is still separate). But let NOT Americans get too complacent.

The Debt/GDP ratio (Gross Domestic Product) which we Americans are burdened under is worse than seven of these eight troubled nations (all but Greece). Additionally, our Federal Reserve Chairman Ben Bernanke has inflated our circulating currency to a level fifteen times where it stood in September 2008. Since our president is also willfully adopting policies far worse than any of these countries now have in place and is confounding and obstructing our economy’s chances at recovery by leaps and bounds when will we here in the United States suffer their fate?

If we didn’t have an extremely resilient capitalist economy as our foundation and a relatively low level of unionized labor, we’d already be feeling much of the pain Greece has suffered, but Barack Obama’s moving quickly to cure us of those impediments to financial Armageddon . . . .

Right now one of the great anomalies, and the only thing keeping the Obamunistic American economy afloat is the fact that 98% of people who look at investing in the dollar see a mysteriously rising currency . . . more fools they. Because conventionally people only compare the Dollar to the Euro and vice-versa . . . investors worldwide are not seeing the obvious and clear collapse of the once mighty dollar right befor our eyes but only an artificial bull-market in the buck which is all that’s keeping us afloat. And where, pray tell, should they be looking? They'll undoubtedly soon look at gold, look at platinum, look at palladium, look at silver, look at copper and pretty soon start looking at the prices of ALL commodities such as food, gas, electricity, electronic goods, etc.

When the true nature of the inflating dollar and the weakness of the American economy starts to become obvious, say about September . . . the Chinese, Japanese, Russian, Korean, Indian and Brazillian investors holding rapidly devaluing greenbacks will sooner or later come to their senses and start buying up hard currency, oil and precious metals with dollars and the Obama daydream will vanish into thin air as funds loaned to us by other countries will become very expensive (say at 10-12% interest). Not satisfied with this state of affairs, however, Obama is seeking to inflict the coup de gras upon our troubled economy with “America’s Power Act,” a slimy euphemism for cap and trade or cap and tax legislation.

The quickest collapse in Europe happened to Spain, which was the poster boy for European economic-soundness around ten or eleven years ago with a booming economy and a miniscule 3% unemployment rate. Spain then, however, adopted a green-jobs^^ economic policy and now has 21% unemployment and is rapidly moving toward Greece’s level of unsoundness. Just two days ago, Barack Obama praised the green economy of Spain and said he intends to “break our dependence upon oil once and for all" (not foreign oil – but all oil). Yep, SIGH-PIE-B R us!

Ya’ll live long, strong and ornery,

Rajjpuut

** $70 Billion from American Taxpayers went into the Greek bailout fiasco

^^subsidizing each green job cost $677,000 in dollars on average and cost 2.2 real jobs from the wider economy; most were temporary; only 10% proved permanent; pay typically ran from $10-$14 per hour . . . . The sad end result : 22 real permanent jobs were lost for every permanent government-created green job and green-tech is actually marginally better in Spain than it is here in America. Green jobs killed Spain. The current Spanish slang term for curse words is not “4-letter words” as Americans say it, but “palabras verdes” . . . green words.

dollar (15)

The collapse of the Dollar

Who Needs The United States? Not Russia And China

Pay Attention to this... Be ready for the vanishing DOLLAR!!!

Rajjpuut's Folly: Forget 9/11, Pearl Harbor, 1929: Danger Most Dire Coming Next

Who Shot The Dollar?????

Who Shot The Dollar?

Rajjpuut's Folly: Chinese Economic Hegemony Locksteps onto the World Stage

Rajjpuut's Folly: Is Obama-led American Economy Already at the Cliff's Edge?

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

Rajjpuut's Folly: Your Survival During Dollar Disintegration is NOT Obama's Concern

Rajjpuut's Folly: China Wants Yuan to Replace American Dollar Internationally

Rajjpuut's Folly: Bid a Fond "Adieu" to the Once Almighty Dollar

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

Rajjpuut's Follies: Tough Times Demand Total Renewal of the American Dream

Rajjpuut's Folly: Three Shocking Tales of Obama's Trickle-Up Poverty

Economy Falters: Dollar store closes due to economic failure

Rajjpuut's Folly: Obama Aims to Imitate Spanish Green-Economy Model

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