Robert Kiyosaki: Rich Dad Author Is Now a Prepper

June 29, 2011

from Economic Collapse Blog

Are you familiar with Robert Kiyosaki? He is best known for the “Rich Dad, Poor Dad” series of books. Over 26 million books authored by Kiyosaki have been sold and he is recognized as a financial expert by millions of people across the globe. Well, guess what? Even Robert Kiyosaki is warning that an economic collapse is coming. In fact, Kiyosaki and his team of financial experts are encouraging Americans to stock up on food, guns and precious metals. This is yet another sign of just how close we are to the total collapse of the U.S. Economy. Kiyosaki, who once co-authored a book with Donald Trump entitled Why We Want You To Be Rich is now a full-fledged prepper. As even more prominent Americans start warning that an “economic collapse” is coming do you think that the American people will finally wake up and start paying attention?

The statements that Robert Kiyosaki makes in the video posted below are absolutely jaw-dropping. Once upon a time he was all about teaching people how they could get rich, but now he is talking about storing food, buying guns, investing in precious metals and preparing for the coming crash.

The following are 11 of the best Kiyosaki “sound bites” from the video below….

#1 “when the economy crashes as we predict”

#2 “the crowds come rushing in to buy gold and silver”

#3 “we could either go into a depression or we go to hyperinflation”

#4 “or we could also go to war”

#5 “buy a gun”

#6 “I’m preparing”

#7 “I’m prepared for the worst”

#8 “so come to my house and I’m armed and dangerous and I’ll welcome you”

#9 “we have food, we have water, we have guns, gold and silver, and cash”

#10 “the credit card system shuts down, the world shuts down”

#11 “the supermarkets have less than 3 days supply”

If you have not seen this video yet, it is definitely worth the 8 minutes that it takes to watch it. Robert Kiyosaki seems to be extremely alarmed about the future of the U.S. economy….

It certainly seems as though the entire financial culture in America is changing.

Once upon a time everyone wanted to know how to get rich.

Now everyone wants to know how to survive the collapse that is coming.

As I have written about previously, even people like Tony Robbins and Donald Trump are warning that an economic collapse is coming.

Economic pessimism is seemingly everywhere and almost every recent survey indicates that the American people are losing faith in the U.S. economy.

For example, in a recent article I noted that 48 percent of Americans believe that it is likely that another great Depression will begin within the next 12 months.

According to Gallup, the percentage of Americans that lack confidence in U.S. banks is now at an all-time high of 36%. Back in 2007, just 14% of Americans lacked confidence in U.S. banks.

In order for society to function correctly, people need to be able to trust each other and they need to be able to trust the major institutions that hold society together.

Once confidence in our major societal institutions is gone, it is going to be incredibly difficult to get it back.

Sadly, the reality is that many of our major financial institutions have been untrustworthy for a very long time. It is just that the American people are only just now starting to wake up to that fact.

For example, the Federal Reserve has been at the heart of our economic problems for decades but most Americans have not realized it.

But now that is starting to change. According to one recent poll, only 30% of Americans currently view Federal Reserve Chairman Ben Bernanke favorably.

The American people are becoming increasingly dissatisfied with an economic system where the vast majority of the rewards flow to Wall Street, the big banks, the biggest corporations and the ultra-wealthy.

According to the Washington Post, the top 0.1% of all income earners in the United States took home 2.6% of the nation’s earnings in 1975. By 2008, the top 0.1% were taking home 10.4% of the nation’s earnings.

The Washington Post also says that after adjusting for inflation, the average income of the top 0.1% of all Americans jumped by 385 percent between 1970 and 2008 while the average income for the bottom 90 percent of all Americans actually fell by one percent.

The sad truth is that income inequality in the United States has become a major problem. A very small sliver of the population is reaping almost all of the rewards and the middle class is being ripped to shreds. Conservatives, liberals, Democrats, Republicans and libertarians should all be alarmed by this.

Meanwhile, the national debt continues to explode. Right now, U.S. government debt is expanding at a rate of $40,000 per second.

Every single minute we steal another 2 million dollars away from our children and our grandchildren.

But if we stop this theft it would throw the U.S. economy into a horrible economic crisis that would be far worse than what we are experiencing right now.

That is why the vast majority of our politicians do not have the guts to do it.

We truly are caught between a rock and a hard place.

But people like Robert Kiyosaki can see what is coming, and they are getting prepared.

Are you prepared?

Many of our young people have come up with their own versions of an “economic stimulus plan”. In past articles I have documented many of the signs that society is collapsing, including the disturbing rise of the “mob robbery” phenomenon.

Well, just the other day there was another very shocking mob robbery in the city of Philadelphia.

On Thursday, a mob of 40 teens and young adults invaded a Sears department store on 69th Street, grabbed all of the merchandise that they could carry, and stormed right back out again.

We are starting to see these kinds of large scale crimes happen from coast to coast.

So what is going to happen to America if the economy experiences the kind of full out collapse that Robert Kiyosaki is talking about?

We live in very interesting times.

I hope that you are getting prepared.

Copyright © 2011 Economic Collapse Blog


10 Tipping Points

June 11, 2011

Could Potentially Plunge the World Into a Horrific Economic Nightmare

from Economic Collapse Blog

The global economy has become so incredibly unstable at this point that it is not going to take much to plunge the world into a horrific economic nightmare. The foundations of the world economic system are so decayed and so corrupted that even a stiff breeze could potentially topple the entire structure over. Over the past couple of months a constant parade of bad economic news has come streaming in from Europe, Asia and the United States. Signs of an impending economic slowdown are everywhere. So what “tipping point” will trigger the next global economic downturn? Nobody knows for sure, but potential tipping points are all around us.

Today, the global economic system is even more vulnerable than it was back in 2008. Virtually none of the systemic problems that contributed to the 2008 collapse have been fixed.

Mark Mobius, the head of the emerging markets desk at Templeton Asset Management, was recently was quoted in Forbes as saying the following….

“There is definitely going to be another financial crisis around the corner because we haven’t solved any of the things that caused the previous crisis.”

The “financial reform” law that Barack Obama and the Congress passed a while back was a complete and total joke. They might as well have written the law on toilet paper for all the good that it is doing.

We did not learn from our mistakes and our future economic lessons are going to be even more painful.

The world is drowning in a mountain of debt, the global financial system is packed to the gills with toxic derivatives, everyone is leveraged to the hilt and the dominoes could start falling at any time.

I am not the only one that is warning that another financial collapse is coming. In fact, a whole lot of people have been warning about the next financial collapse lately.

So what will the tipping point for the next collapse be?

The following are some potential nominees….

Tipping Point #1: Syria

Syria is a situation to watch very, very closely. The Syrian government is in a lot of trouble right now. Sadly, the instability inside Syria probably makes war with Israel even more likely.

Make no mistake – a war between Israel and Syria has been brewing for a long, long time and at some point it will happen. When it happens, the entire Middle East may erupt in warfare.

Just the other day, a very troubling incident happened in the area around the Golan Heights. The following is an excerpt from a report by The Daily Mail about the incident….

“About 20 pro-Palestinian demonstrators were killed and 325 injured yesterday when Israeli forces opened fire on them as they crossed the border from Syria into occupied territories, according to reports.”

At this point, the Syrian government is probably glad that the attention has been taken off of them at least for a while. The Syrian government has been getting a lot of bad press lately. The following is an excerpt from a recent report by Human Rights Watch about the treatment of protesters inside Syria….

“The methods of torture included prolonged beatings with sticks, twisted wires, and other devices; electric shocks administered with Tasers and electric batons; use of improvised metal and wooden ‘racks'; and, in at least one case documented by Human Rights Watch, the rape of a male detainee with a baton.

“Interrogators and guards also subjected detainees to various forms of humiliating treatment, such as urinating on the detainees, stepping on their faces, and making them kiss the officers’ shoes. Several detainees said they were repeatedly threatened with imminent execution.”

So in light of the “precedent” that we recently set in Libya, does this mean that we will be “forced” to conduct a “humanitarian mission” inside Syria as well?

Syria is one tipping point that we all need to keep a close eye on.

Tipping Point #2: Iran

The Iranian nuclear program is in the news again. A new report by RAND Corporation researcher Gregory S. Jones claims that Iran could have a nuclear weapon within 2 months. His report is based on recent findings by the International Atomic Energy Agency. According to Jones, airstrikes alone would be incapable of stopping Iran’s nuclear weapons program at this point. Instead, Jones says that a “military occupation” would be required.

It is a minor miracle that a war with Iran has not erupted yet. It seems almost inevitable that at some point either the United States or Israel will use military force to try to stop Iran’s nuclear program.

When that happens, it is going to cause a major shock to the global economy.

Tipping Point #3: Libya

NATO has made it abundantly clear that Moammar Gadhafi will no longer be tolerated. In fact, NATO apparently plans to reduce Tripoli to a heap of smoking ruins if that is what it takes to bring about the fall of Gadhafi.

What a “humanitarian mission” we have going in Libya, eh? It turns out that NATO believes that the United Nations gave it permission to bomb television stations and to make attack runs with helicopters.

Russian Deputy Prime Minister Sergei Ivanov recently said that by using attack helicopters, NATO has moved dangerously close to turning the Libya operation into a ground invasion….

“Using attack helicopters, in my view, is the last but one step before the land operation.”

So why is Libya a potential tipping point?

It isn’t because Gadhafi is a threat. He is toast.

It is because the rest of the world is watching what is happening in Libya, and that is raising global tensions.

Even if Gadhafi falls, the Libyan operation will still be a failure because it has brought us all significantly closer to World War III.

Tipping Point #4: More Revolutions In The Middle East

The revolutions throughout the Middle East earlier this year sent oil prices absolutely skyrocketing and they have remained at elevated levels.

And in case you haven’t noticed, revolutions continue to sweep the Middle East.

Have you seen what has been happening in Yemen lately?

Yemeni President Ali Abdullah Saleh has burns over 40% of his body and he has suffered a collapsed lung as a result of a recent attack.

If violence and protests throughout the Middle East become even more intense as the weather warms up this summer that could have a very significant impact on world financial markets.

Tipping Point #5: Fukushima

The mainstream news has gotten a bit tired of covering it, but the situation at Fukushima is still a complete and total disaster.

Japan’s Nuclear Emergency Response Headquarters admitted on Monday that three reactors experienced “full meltdowns” in the aftermath of the earthquake and tsunami in March.

Did it really take them nearly three months to figure this out, or were they lying to the rest of the world all of this time?

The truth is that the nuclear disaster at Fukushima is far worse than the mainstream media has been telling us. If you doubt this, just check out this excellent article or this article by Natural News: “Land around Fukushima now radioactive dead zone; resembles target struck by atomic bomb”.

The economic impact of the Fukushima disaster is going to continue to unfold over an extended period of time. It turns out that Japan is now officially in a recession. Their economy contracted at a 3.7 percent annualized rate during the first quarter.

Look for more bad economic numbers to come out of Japan for the rest of the year. Considering the fact that the Japanese economy is the third largest economy in the world, the fact that they are struggling so badly right now is not a good sign for the rest of us.

Tipping Point #6: Oil Prices

The price of oil is going to continue to be one of the biggest economic stories for the rest of this year and for 2012 as well.

The last time U.S. energy expenditures were over 9 percent of GDP was in 2008 and we quickly plunged into the deepest economic downturn since the Great Depression.

Well, we have reached the significant 9 percent figure once again in 2011, and many fear that once again high oil prices will cause another major economic decline.

Tipping Point #7: Government Austerity

In the United States, it is not just the federal government that is drowning in debt.

All over America, there are state and local governments that are financial basket cases.

I don’t always agree with the time frames that Meredith Whitney puts out there, but she is absolutely correct that we are going to see a massive municipal bond crisis. The following is an excerpt from a recent report about Whitney’s predictions on CNN….

“Meredith Whitney is issuing a fresh warning to mutual funds, banks, and politicians: The state of state finances is far worse than what you think, or at least than what you’ve been willing to tell the investors and taxpayers who will eventually carry the burden.”

Many state and local governments are attempting to get their budgets balanced by making huge budget cuts. But most of the time these austerity programs also include the elimination of a lot of government jobs.

UBS Investment Research is projecting that state and local governments will combine to slash a whopping 450,000 jobs by the end of next year.

So where will the half a million good jobs come from to replace all of those lost jobs?

Tipping Point #8: The European Sovereign Debt Crisis

Greece is just the tip of the iceberg in Europe.

Moody’s downgraded Greek debt again last Wednesday. This time Moody’s downgraded Greek debt by three levels all the way down to Caa1. At this point, the yield on 10-year Greek bonds is over 15 percent.

The EU has been going crazy trying to deal with the Greek debt crisis. The truth is that a default by the Greek government would be absolutely catastrophic. If you do not understand the kind of chaos a Greek default would set off on world financial markets, just read this editorial.

But Greece is not the only major European nation with a massive debt problem.

The government of Ireland is already indicating that they may need another bailout.

Portugal, Spain and Italy are also on the verge of collapse.

So will the EU bail all of these nations out for years and years to come?

At some point will the whole house of cards come crashing down?

Everyone needs to keep watching what is going on in Europe. The status quo is not sustainable and it cannot go on forever.

Tipping Point #9: The Dying U.S. Dollar

The euro is not the only major currency that is in trouble.

The U.S. dollar is also slowly dying.

On April 18th, Standard & Poor’s altered its outlook on U.S. government debt from “stable” to “negative” and warned that the U.S. could soon lose its prized AAA rating.

The sad truth is that faith in the U.S. dollar and in U.S. Treasuries is rapidly declining. The mainstream news is not reporting on it much, but right now the Chinese are rapidly dumping U.S. government debt.

As the dollar declines, so will the purchasing power of average Americans. We are already seeing a tremendous amount of inflation in 2011.

But this is just the beginning.

A lot worse is going to be coming down the road.

Tipping Point #10: Drought

A lot of people that read my articles doubt that we will ever see a major global food crisis.

But one is coming.

It is just a matter of time.

Even now, many areas of the world are experiencing very serious droughts. The following is from a recent Bloomberg article….

“Parts of China, the biggest grower, had the least rain in a century, some European regions are the driest in 50 years and almost half the winter-wheat crop in the U.S., the largest exporter, is rated poor or worse. Inventory is dropping 8.8 percent, the most in five years, Rabobank International says. Prices will advance 20 percent to as high as $9.25 a bushel by Dec. 31, a Bloomberg survey of 14 analysts and traders shows.”

Are you concerned yet?

You should be.

But if you prefer some mindless pablum that will make you feel better, we have some of that for you too.

Larry Summers, the former director of the National Economic Council under Barack Obama, recently told CNBC the following….

“We definitely hit a slower patch, but I think the basic fact that the terrible financial strains we had are abating, remains in place, and I expect this recovery to continue for a substantial period of time.”

Does that make you feel better?

Larry Summers says that everything is going to be okay.

It would be great if Summers was actually right, but sadly he is not.

In fact, the worst economic times that America has ever seen are ahead.

The following is a brief excerpt from a recent interview with Dmitry Orlov about the coming economic collapse that was posted on shtfplan.com….

“First you have financial collapse, which is basically the volume of debt that has to be taken on in order for the economy to continue functioning, cannot continue. We’re seeing that right now in Greece, we’re probably going to see that in Japan, we’re definitely at a point now in the United States where even if you raised the income tax to 100 percent, there’s absolutely no way of covering the liabilities of the U.S. federal government. So, we’re at that point now but the workout of the financial collapse is not all quite there. We don’t quite have a worthless currency but that’s in the works.

That, of course, is followed by commercial collapse especially in a country like the United States that imports two thirds of its oil. A lot of that is on credit and if a little bit of that oil goes missing then the economy starts to fall apart because nothing moves unless you burn oil in the United States and, of course, a lot of goods that are sold everywhere are imported again, on credit.”

When the U.S. dollar dies and our financial system collapses we are not going to be able to get all of the things that we need from the rest of the world so cheaply any longer.

That is going to cause fundamental changes inside the United States.

Right now, the economic news just seems to get worse and worse, but this is just the beginning.

What is eventually going to happen in this country is going to be so nightmarish that most Americans could not even imagine it right now.

So are our leaders doing anything to prepare for the coming economic crisis?

No, they are too busy with other things.

The big political news of the day was U.S. Representative Anthony Weiner finally admitting that he sent out lewd photos of himself over Twitter to women that he was not married to.

We have become the laughingstock of the world and the economic collapse has not even happened yet.

Copyright © 2011 Economic Collapse Blog


A Review and Discussion of “Patriots”

June 4, 2011

A novel by James Wesley Rawles

Reviewed by Russell D. Longcore and Linda Brady Traynham (Part Two)

This book was released by Ulysses Press in its most recent revision in 2009, having been first released in 2000 as “Patriots: Surviving The Coming Collapse.” So, I’m guessing that when Rawles wrote this, he was looking ahead a decade to a likely scenario. Here we are, eleven years later, and the collapse could happen literally overnight.

My friend, Chuck Donovan, a Senior Captain for Delta and a Libertarian, strongly recommended that I read this book. I was already very familiar with Jim Rawles, since he hosts a very popular and valuable website at www.SurvivalBlog.com. So, I had Amazon send me a copy. It took me about four days to finish it.

The story is set in today’s America, as the economic collapse has already taken place. America descends quickly into lawlessness. Looting, robbery, rape and murder are standard operating procedure. And a few couples from the Chicago area relocate to Idaho, where they hunker down and try to survive and stay alive in the Mad Max world they find themselves in. The main characters are Todd and Mary Gray, who had relocated to Idaho earlier and had established a rural stronghold, and had spent nine years in preparation for the collapse.

If you like the writing style of Tom Clancy, you will enjoy this book. Rawles goes into minute detail on each page about survival equipment, tactical weapons, communications procedures, military strategy, military training, cooking, survivalist preparations, 4th Generation Warfare…and just about every other thing that could be discussed in such a book as this. If nothing else, this book is a treasure trove of “prepper” procedure and life in a post-apocalyptic America.

The book’s climax comes as a newly self-appointed Federal government in the East tries to regain control of the United States through the use of UN troops and repression of dissent. Which side wins? Read the book.

I cannot imagine a scenario in which you would consider your time reading this book wasted. I say that because the very people that would spend money on this sort of book are already predisposed toward survivalist topics. Seldom does a novel do more than entertain. This one also educates.

Rawles takes the story into the scenario in which Washington and the internationalists fight hard to regain order, even if that “order” is as totalitarian as the USSR at its zenith. And I believe that is a reasonable scenario. The author does not broach the subject of secession, and the possibility that some individual states leave the Union to plot their own courses in the world. In Patriots, all 50 states remain serf states.

We here at DumpDC are of a different mindset. We entirely concur with the author that the economic collapse will occur, and that hyperinflation will be the result. But we believe that after the collapse, some states of the Union will secede and become new nations. We believe that Texas, the second most populous state in America, is likely to be the first to leave the Union. America needs Texas, but Texas does not need America. Texas can be entirely self-sufficient living cheek-by-jowl with America and Mexico. Texas is still a Republic and Texans revere their culture and heritage. Other states may secede, but they will not do it in an effort to preserve their culture and heritage. The other states might secede simply because depending upon Washington is no longer a viable option.

Another thing of which I concur with the author is how desperate and dangerous America will become in only a few days following the collapse. Over 150 million Americans die of starvation, crime and disease in the short span of years of this story. Even in states that secede, it’s going to get real ugly before anything resembling a real economy is restored. And the deaths will occur in the new nations also, as the numbers of people actually prepared for economic catastrophe are so few.

I continually look back to the collapse of the Soviet Union as an example of another totalitarian, authoritarian superpower that died in a whimper, not in a bang…and did it less than 25 years ago. The Kremlin had no ability to muster the mighty Red Army to stop the secessions of their states. Moscow stood by and watched as the fifteen former nations broke away and resumed nationhood.

The fact that the US Dollar is the world reserve currency turns the American collapse into a global collapse. The collapse of the USSR did not send the world into a tailspin…but the collapse of America will. There will be no nation on earth that is not negatively affected by this collapse. Who knows what nation will be the first domino to topple over, taking the rest of the world with it? Only time will tell. What is certain is that nobody gets out of this whole and intact.

Only fifteen American states ever enjoyed nationhood status…the original thirteen nations of the post-Revolutionary War of 1776…Texas and Hawai’i. All the rest of the states of the Union were territories that eventually earned statehood. You may not consider that to be a big deal. And it may not be a big deal in the states of the Eastern Seaboard. But I promise you that returning to nationhood is a HUGE deal for Texans and Hawaiians.

Read Patriots as soon as you can. The clock is ticking, and there is no time to waste.

* * * * * *

(Editor’s note: My buddy Linda Brady Traynham wrote such a terrific comment about this book that I pulled her comments OUT of the comments and placed them here as a “Part Two” of the review of the book. Enjoy!!

I concur. Well, mostly. James-Wesley-Comma-Rawles’ “Patriot” contains a few glaring (and I think extremely funny) errors (which I may tell you about), but basically it is a splendid book, and very useful. Well, it is a splendid half book. Even I can’t come up with the “willing suspension of disbelief” sufficient to believe the heroes manage to defeat UN forces, but if you’ll just slog through the first half you’ll be glad you did.

“Patriots” is a VERY information-dense work which I wouldn’t call a light read, and I taught myself to read at three and have rarely gone to bed without finishing my current book in the 68 years since. It isn’t nearly as bad as Thomas Dewey, but it isn’t USA Today, either.

A bunch of college kids in 2000 become convinced (reasonably sensibly) that we’re going to have TEOTWAWKI, so they decide to set up a redoubt in the west and one couple agrees to live there and begin the preparations. You may not have any problems with what I consider a major flaw, how the 8 or so left not only buy the place and support Todd and Mary during their first decade out of college but come up with staggering sums for supplies, but hey, we can accept that they did, somehow, if they wanted to enough. Money is always a problem, and my site will begin publishing a fine new work of apocalyptic fiction in the next couple of weeks, and our author’s solution was making his hero an expert in finance and the market so he makes the fortune he needs in gold options. Whatever, everybody’s got to have money. (Russell, dear, I really cannot write quickly, fluently, and easily, when stuffed into a box this size.) We’ll forget how they paid for all that barbed wire, zillions of rounds of ammo, and steel doors and shutters while accumulating their own individual food supplies.

The value of this work lies in showing what is likely to happen and how to offset it. As I remarked to Russell yesterday in private correspondence, “They dig great spider holes!” If you don’t know what a spider hole is…see? You’ve already got a useful fact from the book. They do well in reconnaisance, guard duty, and cooperating with neighbors for patrols. They will lead you to the site cited above which would probably take twenty years to cover adequately. The book really, really is a major work and well worth your money and time.

I will stipulate gladly that the author covers some of his goofs by pointing out that he has discussed better practices endlessly in his writing and that I only manage eight to a dozen articles a week, not popular works of instructive fiction. Even so, I think it is worth your time and mine to consider where the illustrious Mr. Rawles and the insignificant Mrs. Traynham disagree on principles. Some things we need to decide for ourselves because there are arguments on both sides.

Let’s start with…calibers. JW,R is quite correct that it is easier if combatants/defenders (however you chose to think of them) can swap ammo. From that viewpoint, his characters’ decisions to stick to .45, .223, and some .22 for trade goods is very sensible. On the other hand, .45 and .223 are very expensive rounds (something most of us have to consider), and females do not usually do as well with miniature cannons. Even under the conditions envisioned, the goal isn’t going to be shooting Big Bertha across the English Channel. Out to 300 yards, maybe, but basically home defense and close infighting. Suit yourself. If the lady in your life can handle the recoil of a shotty gun or is happy with a big wheel gun, it’s your money. Chuckle. Who was it who annoyed me recently, not an easy thing to do–ah. Darling Fred Reed; his article up here on girly men and manly men–that I very nearly challenged him to come visit and we’d have a little shooting match, me with my cute little .22 and him with his weapon of choice. I couldn’t lose, because either I can take him or (riotous laughter) my mate is such a splendid shot that if we only had one gun in an emergency and it were mine, I’d hand it to him, although we would have a serious discussion about preparations later. Morals: Females attract males to handle such things, and gun control is a steady hand and careful shot placement. Put a nice little .22 slug through an eyesocket or sinus cavity so it can racket around cheerfully…I think having reloading supplies is important, too, and I’m so obsessive I police up useless .22 brass. Good habits are good habits, including not leaving trash on the range or in the pastures.

You’ll have fun checking out if I’m right! Okay, the deal is that each couple is responsible for their own food supplies, but that–in turn–each will feed the whole group. Breakfast, universally, is the ever-popular wheat berries. (Whatever those are. Sort of like groats, I think, dried, reconstituted [in water] hunks of wheat.) With nothing on them. No butter, milk, sugar. Lunch, without variation is a nice, big pot of plain rice. (I’m really not up to this.) Dinner is the MRE or the elk/deer du jour. This is ridiculous–no matter if JW,R stresses variety and nutrition on his site. All of them are coffee drinkers…and within three weeks they’re out of coffee. My dear Charles and I are always on the lookout for new ingredients, spices, recipes, and substitutes. You cannot provide adequate nutrition on the sort of diet given and you certainly cannot hold on to the comfort and civilization of eating well.

Again, Rawles points out that he has been discussing food preparations since who flunk th’ chunk. My question is, other than keeping nesters away and putting up stainless steel shutters…what were Mary and Todd doing? Okay, about a third of the way through the book the author adds they had put in a few little fruit and nut trees to supplement what was on the place. They have NEVER started a garden other than a few herbs. Three years into TEOTWAWKI there STILL isn’t a garden. To the best of my memory–it’s been a couple of years–they don’t even have a tractor. Tractors are very useful, and so is other big machinery, like bucket trucks and bulldozers.

There is NO livestock, although they finally get around to thinking about buying a dairy goat (they don’t) at the first swap fair to be held, about the same time. Uh…the FIRST thing I bought was French Alpines to assure my supplies of milk and cheese. It would upset me badly if you behaved as stupidly.

I raise two kinds of cattle–and I started with Black Dexters, charming little cows from Ireland that stand only 4′ at the withers (shoulders) instead of five or more. They are placid, sweet-natured, calve easily, prefer a diet high in brush and tree limbs (extremely handy in drought), dress out significantly higher than their long-legged kin, AND can be milked! With cream and butter, which goats don’t give you. True, they don’t produce as much as Guernseys or Jerseys, but they cost less and (as I say with possibly tedious frequency) if you had two that you bred six months apart you could pretty much count on all the beef, milk, cream, butter, and cheese even a moderately large family could use. Cows (and goats, for that matter) can be milked 300 days a year.

They don’t even have any chickens laying an egg each every 26 hours and providing meat to go in the dam’ boring rice every noon. No swine. No sheep, even. (Sheep are very low priority. They’re hard on pastures, don’t produce much milk–good cheese, though–and a lamb isn’t dinner for 10.)

There are two imperatives: to be able to protect the colony from raiders (government or private) and to be self-sufficient.

What really drove me around the bend was their habit of VOTING on things that are not candidates. Well, one problem is that they don’t have a military expert, but even so. Votes are fine for “what’s for dinner?” (subject to availability) but we do NOT vote on plans to rescue the little town overrun by bikers. By the time they get around to agreeing, being overly cautious, and implementing the plan there is one traumatized six-year-old left alive.

So far as I’m concerned, this isn’t going to be a representative republic of a colony and it most certainly is not going to be a democracy. We will have a benign dictatorship. Why? Because this is MY land and these are MY preparations and I have enough sense to know that (a) we need rules and (b) when I am She Who Stands On The Right Hand Of God and when I am scut labor, a warm body, suitable for peeling potatoes. Anyone allowed in has to be worth what he/she consumes AND be an ethical, cheerful, reliable, and so on individual. My husband is the military expert, engineer, and problem solver because he IS competent to do all those things. This isn’t a dude ranch, and first principles: if you don’t work, you don’t eat. Four people can run everything fine, but they can’t do that and stand guard duty, too.

Oh…when they trade off to go to the first fair? Three of them come across a fellow who has supplies to trade that are really needed, and he wants something they have already learned to make. Does anyone bother to tell this to the rest going in to visit the next day, far less the guy who makes the widjets? No. Fortunately, they shoot pretty well and have lots of ammo, and innumerable miles of barbed wire. Bought a mile of it myself this week; cost me $125.

No…I couldn’t have written that book. Yes, it has good technical information. No, I would not be part of such a colony, because they haven’t planned a lot of things well, the food is lousy, and they don’t have any fun. They pray a lot. They don’t read cribbage, converse, or have a library.

We all have our funny little notions, and one of mine was that I may have to live through TEOTWAWKI, but I refuse to do so without butter and cheese and I have GOT to get the spores ordered to grow mushrooms. In theory I can grow/process tobacco with what I have, although I haven’t solved the menthol problem yet. We have older vehicles that are EMP proof, just in case. I don’t have any steel shutters, but we picked up older motor homes and RVs so that there are “guest suites” and a little privacy for everyone. I’m up to a big kitchen/family room, but I’m not up to being surrounded by noise all the time.

You’ll have to make your own call on something else I doubt I would do. The young people are…they have scruples and would really be happier being liberals, I think. They have to kill some people who are a threat and need killing, but they can’t bear the thought of being “thieves.” Their solution is to bury the bodies and set aside anything of value, which they give to refugees they decide are worthy. THEY decide. That is not only not sensible, but it is a very “progressive” idea, that it isn’t really “theft” if you do not profit personally but pass on what you took to someone else.

Otherwise, Patriots is probably the best book written on the subject. William Forstschein’s “One Second After” is entirely different and just as scary. “The Day the Dollar Died” and “Lights Out” by “Half Fast” can be accessed for free on the ‘net, and C. S. Stirling has written a gorgeous half dozen volumes on how the US might break up and what sort of governments could emerge (religious, mafia, feudal, and so forth) after a disaster.

Makes secession sound even better and far simpler if it is possible to defend your borders, doesn’t it?

Regards, Linda
* * * * * * * * *
Secession is the Hope For Mankind. Who will be first?

DumpDC. Six Letters That Can Change History.

© Copyright 2011, Russell D. Longcore. Permission to reprint in whole or in part is gladly granted, provided full credit is given.


A Polity of Castrati

May 31, 2011

Soprano Nation

by Fred Reed

(Editor’s Note: I, too, am one of these knuckle-dragging testosterone-transport systems. After reading Fred’s column, think about secession. I contend that secession will not occur until AFTER the economic collapse. America could very rapidly degenerate into an 18th century scenario. That could mean that a huge number of the femgals Fred talks about…in addition to the feminized males that lack even Boy Scout preparedness…will die of starvation, disease and crime. That will be the historic legacy of feminism.)

“All of the world’s problems are products of the male ego,” said a swaggering bulldagger she-cop in Law and Order the other night. Average gringa. Actually, only some of the world’s problems, as for example wars, are products of the male ego.

Of course, a curmudgeonly male—though I don’t know any of these—might respond, “Woman, everything that keeps you and your sisters from squatting in caves and crushing lice is a product of the male brain.”

Which is true.

It is curious: Women seem to have no idea how profoundly they depend on men, and not just to fix thingy-whiches that make cars go. The pattern is that men invent and women use. Men invented cars, and women learned to drive them, usually without having the foggiest idea of how they work. Men also invented refrigerators, television, aircraft, hair-dryers, and tampons. Since women with few exceptions do not think technically unless they have to, they are unaware of the inordinate amount of inspired brainwork that led over millennia to computational fluid dynamics, band theory, the double helix, and TCP/IP.

We hear much triumphalism from women these days about the “male malaise,” the poor performance of boys in class, their depression and inattention in school, their declining presence in the universities. Why are these thing happening?

It is not that girls are doing better. They have always been dutiful, have pasted pictures neatly into projects, and have done their homework on time. Rather the boys have gone downhill. Why?

Much of it I think results from the relentless imposition of female values on all of society. Once, boys were boys and girls were girls. Now all must be girls, or nearly so.

This matters. Males value freedom over security; women, security over freedom. Men love venturing into the wild, whether in Silicon Valley or unexplored jungles, if any; women do not. Men are fiercely competitive; women, concerned with order and comity. Men are physical, enjoying, even needing, rough sports; women are not. To a man of my generation the country today is unbearably controlled, restricted, safe, and feminized.

This ought to be worrisome, even to women. When men are free, they prosper. Time and again, bright males drop out of college and found Google, Microsoft, Dell, Yahoo, FaceBook, Intel. They go at it with single-minded determination and not a whole lot of humility. This balls-to-the-wall ethos, wing it and see what happens, screw the PhD, eighteen-hour days of frantic programming on Jolt Cola and Cheetos, we’ll slit the competition’s throat with this new app—this is guy stuff. Men like these have made life comfortable enough that feminists have time to complain. Constantly.

The qualities that make life bearable for males have been squeezed out of society by angry women. In the schools, dodgeball is violence, and must be replaced by a cooperative game led by a caring adult. If a third-grader draws a soldier, he is led out of school in hand-cuffs. If he is bored to suicide by some witless gal from a “teacher’s college,” he is drugged. This compulsory niceness is sheer female passive-aggression against males. It works.

The anger of women is real, easily noticed in the frequent snotty remarks and the portrayal on television of men as boobs and louts. Yes, there are among women exceptions and degrees. The anger remains. Why?

I suspect that that the reason is the abrogation of the implicit no-compete clause that once existed between the sexes. In the past, boys were certain things and did certain things; girls were other things and did other things. The girls didn’t drag race against the boys, or think of challenging them at basketball. A girl would try to be valedictorian, but she saw herself as competing against other contenders, not the male sex.

Then came femlib. Women now explicitly saw themselves going head-to-head against men as a sex. It wasn’t a wise fight to pick. Women of ability went into all manner of fields and performed well, as doctors, dentists, editors, reporters, and so on. But it wasn’t enough. Since they were competing not as individuals but as a sex, it was crucial to them that women equal men arithmetically in everything. They couldn’t.

In sports it was hopeless. If there is an Olympic sport other than perhaps nymphette gymnastics or synchronized swimming in which women best men, I am unaware of it. NASCAR would dearly love to have female drivers to encourage women to buy tickets,but it can’t find any who amount to anything; Formula One is worse.

Intellectually things were not so stark. Bright women abounded, and it was easy—thank god, think bright guys—to find women who were smarter than almost all men. Yet it remained that males outperformed females by a large margin on the SAT math section and by a lesser margin, but still a margin, on the verbal. The imbalance occurred on GREs, National Merit, and tests of IQ. Worse, at higher and higher ranges of intelligence, the men outnumbered the women by larger and larger amounts. This is settled science among psychometricians. It is also the glass ceiling. It was, further, the impetus behind affirmative action.

Affirmative action theoretically was intended to give the under-performing classes initial entry, after which they were expected, or said to be expected, to catch up. In fact it quickly became the equivalent of a golf handicap on the able.

Since affirmative action is patronage exchanged for votes, and unrelated to ability, we began to see female ambulance crew who, though perfectly good medically, could not carry stretchers. There were—are—female fire-persons who can neither carry the unconscious nor handle hoses.

Women had found that they could get by political means what they could not on their merits. While many women could compete at most levels on their ability, not enough could do it to produce the desired arithmetic equality. Ah, but women are the backbone of a consumerist society, the buyers, the shoppers. Thus television began pitching ads to women, and telling women what they seem to want to hear, namely that men are dull-witted slugs. Cop shows became populated by unsmiling pistol-toting robo-dyke detectives who confused chronic PMS with manhood. While surveys show that women know less about politics than do men, they vote in larger numbers, and thus could demand special preference. Here we are.

It isn’t going to stop. The country daily becomes more authoritarian, watched, feminized, regulated, and pervaded by disguised hostility that seeks to avenge itself on others. Advancement today depends on race, creed, color, sex, and national origin instead of an ability and drive. In the schools boys will continue to be drugged, repressed, and made into puerile eunuchs.

The question becomes: Where is this leading? What does feminization accomplish? What can we expect of a nation run by and for women?

Fewer wars, just possibly. Declining international competitiveness as schools focus on therapy instead of integration of hyperbolic functions. Miserable little boys gagging down totalitarian niceness and Ritalin. Young men who see no point in going to fifth-rate universities rigged against them. And boredom. Oh god, the boredom.

©Fred Reed
www.FredOnEverything.net


The End Of The World As We Know It

May 24, 2011

TEOTW Is Foolishness – TEOTWAWKI Will Happen Soon

by Russell D. Longcore

The world media was all abuzz last weekend with the prediction of an event known by evangelical Christians as “The Rapture.” Seems a radio preacher named Harold Camping, head of Family Radio International in Oakland, California (what a surprise…California) made a prediction that Jesus Christ would descend from Heaven on May 21, 2011 and call all Christians…dead or alive…up into the sky to meet him, then going from there on the speed-of-light express directly to Heaven. This prediction is based on various Scriptural references to this event, most notably I Thessalonians 4:17, although most biblical scholars agree that the date of the event is unknown. The term “Rapture” is not found in the Bible, but is a term attributed to 18th century American Puritan preacher Cotton Mather. It is based upon the Latin word “rapio,” which means “to take up.”

Can you blame the media, though? I mean, throw the dice on this one. What if the guy had been right? The video footage would have been the most remarkable footage in the history of mankind. Billions of humans disappearing into the sky in an instant? And all of those billions simply disappearing would have caused complete chaos on earth for those who remained earth-bound…”Left Behind,” like the series of Christian novels by Tim LaHaye outlined. News stories ad infinitum!

But Mr. Camping was mistaken once again. No, this is not his first time making this prediction. Still, it was very entertaining while it lasted.

Let’s drop back a little and discuss The End of the World.

In previous articles, I have written about “connotation words.” They are words with an emotional association in addition to the literal meaning of the word. In today’s world there are many words and phrases for which the literal meaning has been lost and only the emotional association remains. Examples? How about love, liberty, freedom, conservative, liberal, racist, faith, belief, Christ? All emotionally charged, yet their meaning is subject to private interpretation. Also consider the word “nigger.” There’s a word so charged with emotion that white people are deathly afraid of using it, replacing it with “n word.” Of course blacks call each other “nigger” all the time. Try watching a black comedian do a standup routine and play a drinking game while you watch. Do a shot every time the comic says “nigger.” You’ll be passed out before he finishes his routine.

But I digress…

The phrase “The End of the World” is just such a connotation phrase. No one ever seems to define it. The term “End of Days” is used interchangeably. But whatever they mean, they do not mean exactly what they say. The end of days would literally mean that time stood still, the earth stopped spinning on its axis and there were no more days. No one believes that will happen. Even if Harold Camping would have been right, the world would not have ended. Even the Mayan predictions of the “end of the world” do not include the destruction of the earth in 2012.

So what is TEOTWAWKI…the end of the world as we know it??

Here is my explanation, and no supernatural event need happen for the end of the world as we know it to occur. Hang with me, this might take awhile.

This really should be known as “The End Of The Global Super Bubble.” Issuing counterfeit money in conjunction with fractional reserve banking created a super bubble that has distorted nearly every human activity worldwide. And every time throughout history that a government has issued counterfeit money, it has created a bubble that eventually bursts. Seems human beings don’t learn from the past.

All of the nations of the earth have conspired together over the last 70-plus years to use counterfeit money and to inflate their currencies. They have chosen one particular nation’s money as the world reserve currency…the money they use to settle debts between nations. That nation chosen for reserve currency status is the United States of America. In fact, America kind of chose itself. After WWII, America was about the only economy not left in tatters. Great Britain, whose Pound Sterling was formerly the world reserve currency, had been pounded to dust. And at that time, the Dollar was backed by gold.

No nation’s currency is backed by gold now. ALL nations have printed fiat money. The world economy of late has been entirely debt-driven. Between the ever-growing worldwide public debt and the steady inflation of currencies fueled by that public debt, money is becoming more and more worthless. And in a few locations, the money actually completely failed. Remember Weimar Germany, Argentina and Zimbabwe? Their currencies became entirely worthless, and they experienced an “end of the world” in their nations.

When the Confederates States of America was founded in 1861, the Confederate money was entirely based on debt instruments, as the Confederacy sold bonds to raise capital. Most of the gold the South could lay their hands on went to Europe to buy war materiel. As the war progressed, the Confederacy issued more and more paper money. Confidence in the money waned and the dates of redemption on the bonds were extended further into the future. By the end of the war, Confederate money was already worthless. So this is the perfect example of secession that failed because the seceding states got money creation all wrong.

The USA’s dollar cannot continue much longer as world reserve currency. This simply means that of all the criminal nations of the earth that have stolen from the population of the earth, the USA’s level of theft has been the most egregious. Some nations have stolen from just their own people, but the USA has robbed everyone. Washington has borrowed trillions of dollars that it can never repay. Combined with a central bank that has printed additional trillions of dollars with no hard value behind it, the dollar’s value is rapidly eroding. So, in a world where many nations hold US Treasury bonds, those nations face the real possibility that they will either be repaid in dollars of drastically diminished purchasing power, or simply left holding Treasury bonds of no value whatever. That is what’s known as “monetizing the debt.”

There is talk worldwide of replacing the Dollar as reserve currency. China’s Yuan is the most likely candidate. China’s economy sits in the catbird seat, much like the US enjoyed after WWII. When the American Dollar collapses, China’s economy is so vibrant…and China’s government is so robust…that it will be able to absorb a complete American collapse in which Washington defaults on 100% of its debt. But most other nations will suffer greatly. Let’s turn our attention now to the suffering that WILL occur after the collapse of the US Dollar.

When Zimbabwe-like hyperinflation occurs, DC will revalue the currency. The Federal Government will have a redemption period, in which you can bring your old Federal Reserve notes to the bank to receive the new money. After that period, your old money will be entirely worthless. It may add a zero, or two zeroes, or six. Two zeroes would mean that your ten dollar bill will only be worth ten cents. To buy a $2.00 loaf of bread you would have to present $200.00 in new money notes. Hyperinflation burns through your cash like fire.

When the dollar collapses, the banks of the world will shut down their Automatic Teller Machines (ATMs). The banks and credit card companies will also shut down the point-of-purchase machines, otherwise known as credit card machines. That means that unless you have cash on hand, you will not be able to buy anything using a credit or debit card. That will also mean that those on government assistance who receive a pre-loaded debit card will not be able to buy food or anything else.

The banks will declare a “bank holiday.” Sounds fun, but nobody will be smiling. A bank holiday is the bank shutting down and not doing business with ANYONE. So, if you’re checking or savings account has money in it, you will be unable to make a withdrawal. The holiday will likely last indefinitely, or at least until the US Treasury prints up the new money to replace the old failed fiat money. Banks might allow customers access to their safe deposit boxes, but that will depend on the physical risk the bankers must assess.

Legal tender laws will be entirely ignored as people understand that the value of the money is evaporating. Merchants will see that currency values are so volatile that the dollar value at 8 am could be higher than it is at close of business. Why should a seller accept “money” that is decreasing in value? So, many sellers will demand either gold and silver, or some other form of value as payment.

The black market of goods and services will spring into life rapidly after the crash. If you have hard money, or if you can barter goods or services, you will have a chance of survival. If you do not have gold and silver coins…real money…you will not have much chance of survival. And naturally, if you have set aside survival stores, you have a chance of coming out the other side alive and in one piece.

Crime

Within hours of the collapse, looting of stores will begin. The looting will begin in inner cities, where the greatest concentration of poor, desperate people live. Then the looting will spread outward from there, eventually spreading to the suburbs and out into the countryside. But don’t think that the looters will only be from the inner cities. There are lots of your neighbors who will become looters too. And once stores have been looted, suppliers will be unwilling to re-supply since their trucks will be targets for highjacking. Envision a beer truck or a bread truck with heavily armed men “riding shotgun.” Just like the stagecoaches of the Old West.

Armed thugs will fill their gas tanks for free as an accomplice holds a gun on the gas station cashier. Gasoline companies will only roll their tanker trucks and refill the tanks with armed escorts. But that only happens if the gas station owner can pay for the gasoline. He’s going to be in the same no-cash boat as most other people.

Those people who are not armed with firearms and a mindset to use deadly force to protect themselves, their families and their property will be victims. It’s not an issue of whether, it will be an issue of when. Almost no one will avoid roaming looters. The question will be who is the greater threat to whom. Thugs only respect superior force. Be sure that your force is superior.

Communications Breakdown

The Internet may be interrupted by your government. Cell phones may stop working, because how are the cell companies going to get paid for service when the money’s no good? And don’t forget radio stations. Most radio stations operate from advertising revenue. The public broadcasting stations operate from donations and government subsidies. After the dollar collapses, and people are scrambling to survive, how many businesses will slash their advertising expenditures? How many people will stop making contributions to charities? So expect to see the majority of radio stations shut down very soon after the collapse. Television stations, cable TV and satellite TV will follow suit, as their revenue is primarily from advertising. We recommend that you become a HAM radio operator as well as CB radio operator.

Hunger and Death

The poor and aged will suffer first and most. Those without food or the means to buy it will die of starvation…a long painful death. Millions will die, and a great many of those millions of bodies will not be buried. Think about it. Who will have money to pay for a casket, burial or cremation? Rotting bodies left unburied always facilitate disease epidemics. Cholera, tuberculosis, HIV, staff infections, Hepatitis B and C, bubonic plague, typhoid and other epidemics regularly occur as the result of mass casualties. So if starvation doesn’t kill you, a plague might. Rapidly, there will be geographic areas you shouldn’t go into because of plague.

People who are weakened by lack of food are also susceptible to a disease epidemic. So it won’t just be the aged or poor that die like flies. People who are on maintenance medication who cannot pay for their medicine will die too.

Law Enforcement

Law Enforcement Officers (LEOs)will face challenges and dangers never before witnessed in the history of this nation. There are already far too few LEOs to effectively prevent crime. After the collapse, it will get worse. LEOs have families too, don’t they? Remember what happened in the wake of Hurricane Katrina? Most of the New Orleans cops didn’t show up for work because they had families to protect. If you dial 9-1-1 after the American economy collapses and the money hyperinflates, you should not expect to ever see a cop at your door. They will only respond to the most serious and grave law enforcement issues. Or, they may be busy enforcing martial law. In my opinion, the functions of the police that we take for granted will be a memory. You will be entirely on your own to protect yourself, your family and your property.

The ONLY human action that can rescue humanity from TEOTWAWKI is the re-establishment of gold and silver-backed money. Simply anointing another nation’s fiat currency as the new world reserve currency may kick the can down the road for a short time, but it won’t fix the worldwide problem. That is, unless a nation like China converted its currency to hard currency and then refused to accept any other currency than the Gold Yuan or gold itself. Remember that the international bankers and the International Monetary Fund are closely allied to Washington. If DC dies, the IMF dies. And if the Yuan becomes the new hard money world reserve currency, the international bankers are stripped of their power to steal. So expect the international bankers to fight Chinese supremacy unless they can continue to inflate and create money from thin air.

We here at DumpDC believe that the gold that is purported to be in Fort Knox is likely long gone. So the statistical chances that Washington could revert to a gold standard are zero. The ONLY logical place that hard money is likely to occur in North America is inside a US State that secedes from the Union. That state will see the hopelessness of central banking, legal tender laws, fiat money and fractional reserve banking and deduce that only hard money can save them from destruction. This must be the first and most important priority for any seceding state. Nothing else will matter if a seceding state gets this wrong. If a seceding state gains its independence from the USA, only to buy into another world currency, it will simply join all the other failing nations in a “me too” effort.

The End Of The World As We Know It is just over the horizon. And it’s true…the world will never be the same once the Dollar collapses. The carnage around the world will be horrific and historic. I sincerely hope that you, dear readers, survive. But individual liberty and property rights could be the phoenix that arises from the ashes of the global financial meltdown. That is, if JUST ONE AMERICAN STATE secedes and establishes gold standard money. If JUST ONE nation of the world makes a decision to fight for its own survival with gold money instead of being dominated by the internationalists and one-worlders. Make sure you place yourself and your family in that sanctuary.

How about a little music that talks about living when “the money’s no good?”

Secession is the Hope For Mankind. Who will be first?

DumpDC. Six Letters That Can Change History.

© Copyright 2011, Russell D. Longcore. Permission to reprint in whole or in part is gladly granted, provided full credit is given.


They Are Bringing It Now

May 22, 2011

by Hellesponte & C. Kerodin

(Editor’s Note: Dear Readers, do you know anything about exponential growth? An acorn becomes a tree…a tree becomes a stand of trees…the stand becomes a forest. But it also works in human events. A small amount of money will grow to a fortune over time. But a small seed of tyranny will also grow to totalitarianism given enough time. And toward the end, the compounding effect gets faster and faster. The world powers are accelerating their tyranny and doing it now in plain view, daring patriots to stop them. Eventually, there will be a fight and blood will spill.)

The Indiana Supreme Court ruling, followed by the SCOTUS 8-1 in support of broadening warrantless search powers should clearly delineate for Patriots who is on what team.

Badge & Gun = Team Tyranny.

Black Robe = Team Tyranny.

Elected to Office = Team Tyranny.

Appointed to Office = Team Tyranny.

Bureaucrat in any capacity = Team Tyranny.

You think I paint with too broad of a brush?

I’m not done yet.

Anyone who donates money or time to anti-Liberty groups or campaigns = Team Tyranny.

Any neighbor who votes for D or Establishment R candidates = Team Tyranny.

I will grant you that the last category of people are the least malicious of the Team Tyranny Idiots…but you’d better understand that they are NOT on your team, and some are in this category only because they are too lazy to work up into the active ranks of Tyrants.

And do not bother me with arguments of Who am I to judge my neighbor for voting for Ted Kennedy…

That is garbage, and if you don’t know it then please stand down and get out of the way. There comes a moment in life when you must rely upon your internal moral compass and do the hard things, and leave the philosophy to others once you have made the world safe again for their pontification.

I challenge anyone to identify any single elected or appointed member of the Political Class today who examines every issue through the lens of Constitutional Authority before acting on your behalf in the capacity of their office. You can not name one single announced or potential Presidential, Senatorial or Congressional candidate for 2012 who campaigns on the statement that: Social Security, Medicare & Medicaid are unconstitutional and must be stopped.

Tell me how “fixing” Social Security or Medicare is anything but unconstitutional?

Tell me just how much unconstitutional behavior you are willing to tolerate before you push back with the means Tyrants understand.

Better yet – don’t tell me, it was a rhetorical query. I don’t want to know your inner intent. That’s your business, and the fewer people you let know your intent and tripwires the safer you will be.

Your enemies are dropping the pretense.

The balloon is going up.

They are bringing their fight to you…right now.

Can you identify it for what it is? Or will you look back soon and realize that you missed the window of opportunity?

The time of Mencken is washing upon our ankles. His quote:

Every normal man must be tempted, at times, to spit upon his hands, hoist the black flag, and begin slitting throats.

Resist! Reinforce. Reload. Ruckus. Restoration.

Now!

Copyright 2010 & 2011 Christian Kerodin ©

Kerodin.com


Party Like It’s 1929

May 11, 2011

Economy Hanging by a Thread

By Mike Whitney

(Editor’s Note: You’d think that governors and state legislators would read the constant flood of information about the American economy and have a mind to avert the tragedy in their own states. But I guess once a leech, always a leech. It doesn’t occur to a leech that he could be anything other than a leech. Leeches are not leaders…they feed off others. They don’t create…they drain. And leeches don’t usually let go of their host voluntarily…right up to and including the host’s death. America is slowly dying from the effect of the government leeches. The American economy will die soon. We can only hope that the leeches will die with it.)

A bleak jobs report sent stocks and commodities tumbling on Wednesday, while new signs of distress gripped the service industries index. An updated report from the ADP showed that private sector hiring slowed more than expected from March to April as companies struggled to meet rising raw material costs and flagging consumer demand. The service industry index (ISM)…which “ranges from utilities and retailing to health care, finance and transportation”…slumped to its lowest level since August signaling widespread deceleration and a progressive deterioration in the fundamentals. The turnaround has forced economists to rethink their projections for 2nd Quarter GDP and to watch more vigilantly for signs of contraction. This is from the New York Times:

“The economy lost steam in the first quarter. Growth in personal consumption — the single largest component of the economy — slowed markedly. Business-related construction cratered and residential construction fell. Exports stumbled. The only unambiguous plus was continued business investment in equipment and software, which is necessary but not sufficient for overall growth.

In all, economic growth slowed from an annual rate of 3.1 percent in the fourth quarter of 2010 to 1.8 percent in the first quarter of 2011….

When lauding the economy, Mr. Bernanke and many other economists and politicians point out, correctly, that the unemployment rate has declined from a recession high of 10.1 percent in late 2009 to 8.8 percent now. That would be encouraging news if it indicated robust hiring for good jobs. It does not.

Over the last year, the number of new hires has been outstripped by the masses who have either given up looking for work or who have not undertaken a consistent job search, say, after graduating from high school or college. Those missing millions are not counted in the official jobless rate; if they were, unemployment today would be 9.8 percent. The rate would be 15.7 percent if it included those who took part-time jobs in lieu of full-time ones.” (“The Economy Slows” New York Times)

So, even the New York Times agrees that unemployment would be nearly 16 percent if the figures were correctly calculated. Those are Depression numbers. 14 million people are out of work and record numbers of people are on food stamps (44 million).

Wednesday’s down-market sent commodities plunging as signs of emerging deflation pushed investors into Treasuries. Gold and silver fell sharply. Troubles in Japan, China and the eurozone have intensified fears of a global slowdown and perhaps another bout of recession. The dollar strengthened for the third straight session, in spite of the Fed’s zero rates and $600 billion bond buying program. Trillions of dollars in monetary and fiscal stimulus have jolted stocks back to life, but debt-deflation dynamics in the broader economy are as strong as ever. Unemployment remains stubbornly high, consumer retrenchment has reduced discretionary spending, and housing continues its inexorable nosedive. The stock market continues to inch higher buoyed by central bank liquidity and margin debt, but investors are increasingly skittish and searching for direction.

The soaring price of gas has shifted consumer spending from retail to energy consumption, the opposite of what the Fed had intended. This from Early Warning:

“I doubt energy prices can go a whole lot higher without triggering another recession, so it depends on whether the world can scrape up a few more mbd of oil to keep growth going without prices rising too much more. We will be watching oil production statistics closely…

…We are in an era where the availability of natural resources is not sufficient to support the wealth levels that the developed world has grown accustomed to, along with the speed of growth with which the developing world is trying to approach those same levels….. the global economy keeps trying to grow in a way that is inconsistent with the resource constraints, and then some part of the system tears and gives way….

I would argue that this data is at least consistent with the narrative that, in the post 1973 era, energy is consistently in somewhat problematic supply, and you can think of many of the recessions as showing a pattern in which energy prices are rising as the world overshoots what can currently be supplied, or what can currently be supplied drops as a result of geopolitical events, and energy prices rise until some pre-existing weakness in the global economic fabric tears in the course of a recession, and prices fall back again….” (“Energy prices and recessions”, Early Warning)

Welcome to Peak Oil; the era of resource scarcity has begun. Today’s troubles will to be a recurrent theme in the years ahead as the economy goes from boom to bust and previous levels of growth become more short-lived and unsustainable. Naturally, our leaders have settled on a strategy for addressing the impending energy shortages; endless war disguised as humanitarian intervention. This is the type of shortsightedness that passes as policy.

The main economic indicators are still turned up, but just barely. The economy is hanging by a thread. Loan demand is weak, wages are flat, and markets are on a knife-edge. Here’s a clip from The Big Picture:

“…the real problem is loan demand (confirmed while speaking to bank organizations in half a dozen states over the past year). Loans have to be repaid, meaning that the money must be used to finance the acquisition of employees or equipment that will “pay back” the loan. Common sense. But record numbers of owners (as high as 28%) have reported that “weak sales” is their top business problem while only 4% reported “financing” as a top problem….. Ninety-three percent reported all their credit needs met in March, including 53 percent who said they were not even interested in a loan. No customers means no need for a loan to finance hiring, inventory purchases or expansion (only survival – not a good bank loan!).

But they don’t get it in Washington D.C. And not understanding the problem produces bad policy, and there has been plenty of that. If lending is picking up, it is because customers are showing up and there is a reason to invest and hire. The reverse doesn’t work – you can’t force feed the credit to owners and have more customers suddenly show up ….That’s “pushing on a string”. Just ask the banks.” (“Loan Demand, Not Credit, Is the Problem”, The Big Picture)

There’s no demand for credit because consumers are in the red and need to balance their accounts. (“93 percent reported all their credit needs met in March.”) It’s pointless to focus on getting the banks to lend, when people are broke and don’t want to borrow regardless of rates. Just like its pointless to dump monetary stimulus into the stock market if it pushes up food and energy prices (headline inflation) reducing consumers ability to spend on other things. This isn’t hard to figure out; it’s Econ 101. So, why is the policy upside-down?

That said, the stock market should continue to trend upward for another couple months until the Fed’s bond buying program ends and investors realize that the real economy is stuck in the ditch. But, for now, it’s “Party like it’s 1929″. Bernanke’s punch bowl is overflowing and there’s still plenty of time to make money. The hangover comes later.

Mike Whitney lives in Washington state and can be reached at: fergiewhitney+at+msn.com


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