Graveyard of Empires

June 30, 2011

(Editor’s Note: There is an old saying in politics: “If your opponent is burying himself with his own words, get out of his way and let him continue.” It’s the same in Washington’s foreign wars and quest for world empire. Washington is bankrupting the nation by prosecuting wars with no stated goal and no end game. And the other major world players are wisely stepping out of the way and allowing…even helping…Washington destroy itself.

Think about it. China is financing DC’s wars by buying Treasury securities. They already own nearly $1 Trillion in Washington debt. Washington is already functionally bankrupt but still borrowing and spending on war. Nations like China and Russia do not need to lift a finger in opposition to Washington’s actions. They are simply patiently waiting for Washington to destroy America and the US Dollar. Meanwhile, they save jillions of dollars in military spending by standing to the side and allowing America piss off the entire world and be its self-proclaimed police force. China can absorb the losses when DC defaults. In the meantime, China and Russia are consolidating their economic positions globally by skillful negotiations on commodities buying and selling. Russia supplies a large percentage of natural gas to Europe, which fills their coffers with capital. China has quietly made staggering deals for raw materials around the world. Meanwhile, Washington dithers and borrows and spends and allows America to become a Third World nation, the largest debtor nation in the history of mankind.

The nations of the world can see the inevitability of American economic collapse. The smart nations are preparing for the worst. But the question arises: are there any smart nations left in the world? The ONLY thing that a smart nation can do right now to prepare for global economic collapse is to switch to a precious metals money system. And any state of the American Union that contemplates secession must begin with hard money.

Here is an article about America’s military end, by my friend Eric Margolis.

Graveyard of Empires

by Eric Margolis

In his majestic poem “Recessional,” Rudyard Kipling was writing of the fading British Empire, but his words are as vivid and pertinent today as a century ago:

Far-called our navies melt away –
On dune and headland sinks the fire –
Lo, all our pomp of yesterday
Is one with Nineveh and Tyre!

The objective of war is to achieve political objectives, not to kill enemies.

Politically, the US has achieved nothing in Afghanistan after ten years of desultory, destruction, and titanic expenditure.

So in this sense, the United States has already lost the Afghan conflict, its longest war. Militarily its forces have been stalemated, meaning that it has lost the all-important military initiative and is now on the strategic defensive. We have seen this before – in Vietnam.

Once more, Afghanistan fulfills its grim title as “graveyard of empires.”

The US has failed to install an obedient regime in Kabul that controls Afghanistan. It has made bitter foes of the nation’s Pashtun majority, and, in pursuing this war, gravely undermined Pakistan. Claims that US forces were only in Afghanistan to hunt the late Osama bin Laden were widely disbelieved.

Last Wednesday, President Barack Obama bowed to public opinion, approaching elections, military reality and financial woes by announcing he would withdraw a third of the 100,000 US troops from Afghanistan by the end of next summer. Pentagon brass growled open opposition. Obama should have smacked them down, but did not, adding to the growing belief that he is weak and overawed by the military chiefs.

US allies France and Germany announced similar troops reductions. All foreign troops are supposed to quit Afghanistan by the end of 2014.

This staggered withdrawal will take the US garrison roughly back to the size it was before President Obama sent 30,000 reinforcements to Afghanistan. This means enough soldiers to hold the main urban centers and connecting roads, but not enough to defeat Taliban guerillas in the field, or to block the Afghan-Pakistan border.

Washington currently spends at least $10 billion monthly on the Afghan war, not counting “black” payments, CIA and NSA operations. The US has poured $18.8 billion in development aid into Afghanistan since 2001 with nothing to show for the effort. Pakistan has been given $20 billion to support the Afghan War. Each US soldier in Afghanistan costs $1 million per annum, not counting full support costs.

None of these costs are covered by taxes; all are piled onto the gargantuan national debt.

The US deficit is heading over $1.4 trillion. The national debt, when unfunded pensions and benefits are added, is likely $100 trillion, according to the chief of PIMCO, the world’s largest bond trader. This means America, top-heavy with unsustainable debt, risks capsizing financially.

Forty-four million Americans now receive food stamps; the national infrastructure of roads, airports, bridges and schools is crumbling from neglect. Unemployment, officially at 9.5%, is probably closer to 20%.

The cry is being heard: “Rebuild America, not Afghanistan.”

In spite of intense pro-war propaganda, over half of Americans now oppose the Afghan War. Even US-installed Afghan president Hamid Karzai calls it, “ineffective, apart from causing civilian casualties.”

So will the US really pull out of Afghanistan? That remains to be seen. There are many contradictory signs.

Mid-level talks between the US and Taliban have been conducted for over a year. Washington’s plan was to try to split Taliban through such talks.

US Afghan supremo Gen. David Petraeus tried to buy off Afghan resistance in the same manner he had bribed Iraq’s Sunni tribes into quiescence. This gambit did not work with Taliban’s hardened warriors, for whom honor holds as much value as money.

The US will probably keep a sizeable number of its remaining 66,000 soldiers in Afghanistan after 2014, rebranding them training troops. The huge US bases at Kandahar and Bagram will be retained as permanent US fortified enclaves.

Billions more will be spent on the Afghan government army and police. They have so far proved ineffective because most are composed of Tajik and Uzbek mercenaries who are hated and distrusted by the Pashtun.

A similar process is underway in Iraq where “withdrawal” means keeping combat brigades in Iraq, renamed “training units” and “counter-terrorism units,” thousands of mercenaries, and mobile US combat forces in neighboring Kuwait and the Gulf.

New US embassies in Baghdad and Kabul – huge, fortified complexes with their own mercenary combat forces – will be the world’s biggest. Kabul will have a staff of 1,000 US personnel. Bin Laden called them “crusader fortresses.” Fortified US consulates are under construction in other parts of Afghanistan.

In addition, the US will still arm and finance allied Tajik and Uzbek militias in Afghanistan, and CIA-run mercenary forces. Financing Pakistan’s US-backed regimes and Uzbekistan, Kyrgyzstan, and Tajikistan must also continue at around $3 billion yearly. What political concessions the US is giving Moscow to allow passage of war supplies through its territory remains a secret.

The US appears to be going and staying at the same time. By contrast, Taliban’s position is clear and simple: it will continue fighting until all foreign troops are withdrawn. US special forces, drones and hit squads have been unable to assassinate enough Taliban commanders to make the mujahidin stop fighting.

Americans never study history, not even their own. We don’t recall founding father, the great Benjamin Franklin, who said, “there is no good war, and no bad peace.” Or that the Pashtun Taliban and its allies are dedicated, undefeated warriors who fight where they live, and have all the time in the world.

I’ve been in combat with Pashtun fighters and remain in awe of their courage and love of combat. The Pashtun mujahidin will keep fighting as long as their ammunition lasts.

America, for all its B-1 heavy bombers, strike fighters, missiles, helicopter gunships and drones, armor, super electronics, spies in the sky and all the other high tech weapons of modern war has failed to defeat some 30,000 tribal fighters armed with nothing more than light weapons and legendary valor.

The US has lost the political war in Afghanistan. It may linger there, but it cannot win.

Eric Margolis is the author of War at the Top of the World and the new book, American Raj: Liberation or Domination?: Resolving the Conflict Between the West and the Muslim World.

Copyright © 2011 Eric Margolis

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

Homosexual Marriage And Individual Liberty

June 28, 2011

by Russell D. Longcore

We can only hope that in a seceded state, the new lawmakers would have sense enough to stay away from this issue and allow people to live as they choose.

Homosexual marriage, or civil union, has always been kind of a mystery to me.

When I moved to Atlanta from a small town in Michigan in 1992, I had never even met a homosexual. Once I got here in Atlanta, I auditioned and was accepted into the Tenor section of the Atlanta Symphony Orchestra Chorus. Out of about 30 tenors, there were only two or three of us that were not gay men.

Quite a culture shock for me…the conservative Christian who was always told that homosexuals would burn in hell. But I met and became friends with individuals, not a group. They were kind, and warm, and caring, and genuinely wonderful people. My attitude toward homosexuals was forever changed. I don’t ascribe to their lifestyle, but neither do I stand in condemnation. That’s someone else’s job.

I’ve heard comedians say, “The homosexuals should have the right to be as miserable as the rest of us married people.”

Why should homosexuals want the blessing and licensure of the State on their relationships? What’s the big draw… the big benefit?

It doesn’t appear to be that the homosexuals want to be taken too seriously. The folks that march in Gay Pride parades don’t appear to be concerned with the straight world’s acceptance of their chosen lifestyle.

Could it be that they are looking for a legal status that will provide them monetary benefits that they cannot get today? Like Social Security, Medicare, pension and health care benefits?

The LGBT (Lesbian, Gay, Bisexual and Transgender) communities already have the right to have any kind of legal relationship they choose.

The Evangelicals who spend so much time denouncing homosexuals say that licensing homosexual marriage will undermine the “sanctity of marriage.”


First, if you have a faith or religious tradition you follow that prohibits homosexuality, fine. Practice your own individual behavior within the confines of your own conscience. But the states and the Federal Government of the USA are secular in nature, not Christian. Don’t presume to force your beliefs onto others.

Second, marriage got its start as a religious ceremony. And marriage should remain under the auspices of a religion. The State has no vested interest in marriages per se.

Third, if marriage was as sacred as our society tells us it is, the state legislatures would not have passed laws that made divorce so easy. Besides, why should any state have any licensure of a marriage? Is it only for the easy fees it generates? Is there any real difference between a marriage license and a dog license or business license?

Seems to me that the essence of this issue is the sanctity of contracts, not the sanctity of marriage.

There is nothing I know of that prevents any two or more people from entering into contract with each other. Two people can go to an attorney and have a legal document drafted that deals with: legal duties to each other, community property and the disposition of assets, legal duties to children of the “union,” procedure for dissolution of the agreement (kind of a civil divorce), and any other contractual terms the parties desired.

When the contract was acceptable to all parties, it could be signed and notarized. No preacher or judge would have to officiate…that’s just the romantic myth that accompanies the process. And, there is no license fee for executing a contract.

This should be the normal procedure for two people, regardless of sexual preference, who wish to be married. EVERYONE should draw up contracts for their non-religious civil unions. The prenuptial agreement is just such a contract. Isn’t it amazing that the “pre-nup” seems to be only used by those with considerable assets to protect? This speaks to the ridiculous romanticism surrounding religious marriage. I’m all for romance, but marriage is supposed to be a religious ceremony. What happens in a divorce is the legal part of civil union, and should be planned before the union occurs. Anything else is a denial of reality.

If the partners of a civil union want to have a little ceremony and a celebration following, great! Nothing prevents it but their budget.

You never see two guys, going into business as a remodeling contractor, draw up a partnership agreement, and then go get a pastor or priest to bless their partnership. Homosexuals don’t need it either.

If homosexuals would stop thinking about being slaves of the State, they could actually become leaders to the rest of the population. They could enter into their own legal relationship agreements, and completely forsake the blessing of the State. Tell the bureaucrats to stay out of their relationships, as well as their bedrooms.

Homosexuals, stop trying to curry the politicians’ favors, and show the rest of us a little taste of individual liberty.

Forsake state-approved “marriages” forever! Utilize contract law for civil unions, and enjoy your lives together in whatever form you choose!

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.

The Criminal Congress Of The USA

June 27, 2011

by Russell D. Longcore

(Editor’s Note: In light of the Congressional impasse on budget, coupled with the impending Presidential election season, I have updated this April 2010 article and am reposting it.)

Today I want to offer a very provocative proposition. Many of you are going to bristle at this article, and I’m pretty confident that the knives are going to be sharpened and pointed in my direction. But, before anyone begins slicing and dicing, I want you to refrain from ad hominem attacks and prove to me exactly where I’m wrong.

Here it is: I submit to you that all persons in Congress are criminals.

Let’s follow the trail of evidence to determine if any individual member of Congress may be exempted from this indictment.

Question 1: Who do you work for?

Answer: If you are a Congress-person, you are a Federal employee. Even though you are elected to Congress from your state to represent your state, your state does not pay your salary. The current salary (2010) for rank-and-file members of the House and Senate is $174,000 per year plus expenses. The paychecks come from the US Treasury and are administered by the US Office of Personnel Management. You get a killer benefits package and a Federal pension, and are fully vested after only five years of participation.

Question 2: What constitutes an unlawful and/or illegal act for a Congress-person?

Answer: If you still believe that the US Constitution is the highest law of the land, then any law passed by Congress that violates the Constitution is a criminal act. It could also be argued that any vote made by any member of Congress that violates the US Constitution is an unlawful act and therefore a crime, regardless if the law passes or not. Compare this to an attempted burglary or attempted murder, which by definition are not successful but are still crimes.

If you believe that the US Constitution is a dead document with no authority, then you will likely believe that Congressionally-legalized plunder and the authorization of murder (deadly force) are crimes against natural law, the rights of individuals and State Constitutions. It could also be argued that any vote made by any member of Congress that violates natural law or the laws of a State Constitution is an unlawful act and therefore a crime, regardless if the law passes or not. Compare this to an attempted burglary or attempted murder, which by definition are not successful but are still crimes.

Either way, ALL members of Congress are guilty, either as an accessory, or as an accomplice, or as both accessory and accomplice.

Question 3: What is the definition of an accessory in criminal activity?

Answer: At law, an accessory is a person who assists in the commission of a crime, but who does not actually participate in the commission of the crime as a joint principal. All Congress-persons may be accessories to the crimes committed in and by Congress as they are all participants in the commission of the crimes as they pass laws. Wouldn’t the members who vote in the majority on any given bill be considered joint principals, and the rest mere accessories?

So, even if your Congress-person abstains from voting on any given bill, or votes ‘No’, he or she is still an accessory, since he or she is a member of a criminal entity engaged in criminal activity.

Question 4: What is the definition of an accomplice in criminal activity?

Answer: At law, an accomplice is a person who actively participates in the commission of a crime, even though they take no part in the actual criminal offense. Unlike an accessory, an accomplice is usually present when the crime is committed. So, the members of Congress who are not present in the chamber during a vote are still an accessory to the crime, since they participate in the process. An accomplice is guilty of the same offense and usually receives the same sentence as the principal.

And now for the compromise part…

To be a politician is to embrace compromise. And compromise can be an acceptable method of societal interaction. However, in Congress, compromise regularly requires forsaking ethics, morals and principles of both law and honor. I have no problem with a member of Congress compromising on procedural issues. But when Congress-persons ignore the law and do what they want, only arguing over the broad details, compromise become a despicable act of cowardice. Is there ever a line that a member of Congress will not cross?

For example, Congress is presently stewing over this year’s budget, future budgets and raising the Federal debt ceiling. Both Republicans and Democrats are in favor of more borrowing, but Republican leadership says that Congress should find a way to slash Federal spending or Republicans will not vote for the bill. As a matter of practicality, this is what Congress is saying:

“We agree that we would like to steal money from some Americans and give it to other Americans. However, at this time, some of us think it would be OK to borrow the money now and then steal the money from you later. A minority of us don’t want to borrow the money, but just want to steal it directly. At no time in our debate will we consider the morality or legality of stealing from you. Our only concern is the method we use for the theft.”

No consideration of the underlying crime is considered…only how to do it.


Some of you will protest loudly about my position. You will try to tell me how your favorite member of Congress is different, a patriot, a lover of liberty…fighting for the Constitution and fighting against special interests. But I still challenge you to prove me wrong. Tell me how your favorite Congressman would escape prosecution if the acts of Congress were ever prosecuted in a court of law. Remember the Nuremburg trials. Ten men found guilty danced at the end of a rope.

All members of Congress are criminals, in the employ of “The United States of America,” a 234 year-old criminal entity that perpetrates theft, plunder, murder and counterfeiting on a worldwide scale.

Secession is the hope for humanity. 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.

The USA: Too Big NOT To Fail

June 26, 2011

By Russell D. Longcore

Washington DC doesn’t have the “Midas touch,” where everything they touch turns to gold. Washington has the “Merde touch,” where everything they do turns to shit.

Since 2008, we Americans have heard a new meme enter our lexicon. That new phrase is “too big to fail.”

The George W. Bush administration trotted out this phrase with its first stimulus plan and the bailouts of insurance, Wall Street and the car companies. We were all told that these companies were too big to fail, or too big to be allowed to fail.

In economies where the government doesn’t interfere, corporations that mismanage their assets and liabilities declare bankruptcy. The bankruptcy process either liquidates the business and pays off creditors, or allows the corporation to reorganize the company, renegotiate their debt and move forward with a new business plan. But the corporation is allowed to bear the weight of the choices they made and live with the consequences of their failure.

All the companies/entities who got bailout money should have been allowed to experience free-market consequences. All of them. Instead, Washington placed the market risk squarely on the backs of the American taxpayer.

Let’s not forget the $3 Billion “Cash for Clunkers” program, in which over 690,000 new cars were purchased, and about the same number of perfectly serviceable vehicles were destroyed. Once again, America….YOU got stuck with the bill to help your neighbors buy a new car. The destruction of used cars distorted the used car market, driving up used car prices while creating used parts shortages. Thanks, Congress.

All we’ve heard for months…years…even today…is that some business entities and government programs are too big to be allowed to fail. The licitness¹ of an activity is being determined by its scale. But no entity is too big to fail. However I can think of one entity that is too big NOT to fail.

That entity is The United States of America.

All of Washington, regardless of party affiliation, only makes decisions that perpetuate Federal power. If an action doesn’t directly benefit Washington, it does not occur. Washington doesn’t care if it destroys the purchasing power of the Dollar by printing paper money and causing hyperinflation. They just don’t want to have unemployment spike over the bankruptcy and reorganization of big employers.

When the US Constitution was written and enacted, it planted the seeds for massive Federal power. The nation/states of North America were actually better served by the Articles of Confederation. For most of the time between 1777 (A of C drafted and used to govern) and 1789 (new constitution), the New Federal Government was ineffectual and got little accomplished. That is because the nation/states were sovereign and acted based upon their sovereignty.

But even under the inferior US Constitution, the nation/states of North America which comprised the United States of America, could have controlled the new Federal government by nullifying and interposing on behalf of the individual states and The People. But the states and The People allowed themselves to be enslaved by Washington.

At this time in our history, most Americans consider themselves to be Americans, not Virginians or Floridians or Oregonians or the like. Washington has exhibited genius in convincing Americans that they are ruled by Washington, and that their state capitols are inferior and subordinate legislative bodies.

But the US Constitution was never meant to be the organizing document for a nation of 306 million people. Apportionment for Congressional representation, done correctly for our population, would result in thousands of Congressmen in the House of Representatives. Yet we’d still only have 100 Senators. And that would be even more ineffectual than the DC mess we have at present.

A fifty-state confederation, adhering to the strictures of the original Constitution, would be capable of governance on a local level. However, we do not have such a confederation today. The USA is a kingdom with 50 county-like jurisdictions.

So the United States of America exists in a condition that is unsustainable. The founding documents have been…and are presently…merely iconic parchments kept under glass that have no bearing or influence whatsoever upon the machinations of the US Federal Government.

The United States of America is too big NOT to fail. Small government is manageable government.

Secession is the hope for humanity. Who will be first?

DumpDC. Six Letters That Can Change History.

¹“Licit” means authorized, sanctioned or morally permitted, as opposed to “illicit.”

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

Social Security and Medicare: Ponzi’s Dream Scheme

June 25, 2011

By Russell D. Longcore

Charles Ponzi, the con man of the early-1920s, was the man who perfected the financial “pyramid scheme” that now bears his name. And Washington, the theft and fraud capital of the planet, took the “rob Peter to pay Paul” blueprint and perfected it in the Social Security and Medicare systems.

Ann Barnhardt released two short videos this week about Social Security and Medicare. Her analysis is spot on, but her solution is completely wrong. She correctly states that ALL the politicians who support and want to save or fix the Twin Pillars of Ponzi are criminals.

But then Ann suggests that we all continue to pay into the systems, knowing full well that most of us will never get a dime. She says this is the only chance to “save the Republic.”

Bovine Merde.

First, we here at DumpDC don’t want the Republic saved. We want it to meltdown ASAP. We want secession and states to become nations.

Second, we cannot abide the notion that any of us should continue to fund the greatest system of fraud ever developed by the human mind. Not for one moment.

Ann offers two choices. The first is to “sunset” the two programs by continuing to fund them for a while. The second is to allow the United States economy to implode, thereby destroying ALL Federal spending.

The latter is what is going to happen. There is not enough time…or money…or political will in Congress or America itself to save the Republic.

Still, I want you to watch Ann Barnhardt make her case. Here goes. Enjoy.


DumpDC. Six Letters That Can Change History.

Dreams of the Gold Standard

June 24, 2011

by Linda Brady Traynham

We all have daydreams that aren’t going to come true, ranging from fanciful ones like trying to talk my dear Charles into riding shirtless ten or fifteen minutes a day until he is a rich, mahogany brown so I could photograph a Texas version of my Duke emulating Vladimir Putin, racing down a mountainside like a centaur, his AK-47 held as though it had grown from his right hand, his face alive with sheer animal joy, still brawny bare chest making the Babushkas’ hearts go pit-a-pat. Charles declined, and on his head be it if I start having fantasies about Vladimir. One more appropriate for this site is the dream of a gold-backed currency. I’d do better imaginaing Vladimir coming to visit and riding my horses because it is vaguely possible that could happen. Or buying a tanning bed. A Gold Standard cannot happen under the current political regime, and it couldn’t happen if we threw all the rascals out, rescinded or repealed every law and regulation written since 1913, and elected someone as sensible as I am Empress of the Twin Universes. The story of mankind is colonization, stabilization, rise, empire, decay, fall, dark ages, and repeat–and we’re approaching the fall, having spent ourselves into penury and been regulated into near helplessness. If they are more careful than they have been thus far and lucky the future belongs to BRIC…although I consider worldwide depression and famine more likely.

The political impossibilities are quite enough since overturning the Fed would require revolution a doubtless unpleasant way to change the monetary system. More to the point, we cannot go back on a gold standard because far too much fiat currency has been created, we hold too little gold, and we have far too many debts. If we go look we’ve still got some gold in the ground, but even that isn’t a permanent solution, as Spain discovered when treasures ships in profusion arrived from the new world. Ironically enough, gold and silver themselves in over-abundance functioned exactly the same way today’s Bernankes ($100 bills) do: too much money chasing too few goods. The Fed doesn’t even know how much increasingly useless paper is floating around out there! It is anyone’s guess if there is actually gold stored in Fort Knox. For the purposes of demonstration, and not counting what it would cost to mint those purported gold bricks into coins, let us stipulate that the USA holds…it really doesn’t matter; as Congress said, “Think of a really big number.”–ten million ounces of gold. If we stipulate fancifully that there are only five trillion dollars in USA currency extant, what will an ounce of gold be “worth” in a forced domestic trade? What about gold in private hands, either as coins or jewelry? Do we count that? It doesn’t matter. Go get your calculator if you must and figure out what the exchange rate would have to be to collect all the dirty, worthless paper with little silk threads in it and exchange them for thin disks of gold and silver.

THEN what do we do about our foreign creditors? They are going to want gold for their USD, and they aren’t going to like the exchange rate. Neither would you and I! If it were set at $5,000/ounce, and you make $90K, your new salary would be an ounce and a half of gold a month–and not only would it be a nightmare trying to pay your bills (for two reasons) but the logistics would be disastrous. What could be done about the trillions of “entitlements?” Even by debasing the currency in the swap from USD to gold governments would not make enough to pay the bills. We have already established that if every cent the top 10% makes or has were confiscated it wouldn’t be enough to cover current expenditures and no force short of barbarians through the gates has ever caused governments to reduce expenditures more than very briefly. Bernanke has managed to hold the interest rate at incredible lows for some years, but he isn’t going to be able to do so forever. I’m still astounded he took a second term; a less rash man would have sidled gently out from under. Real disaster would be refinancing at 5-7%.

It doesn’t even help if new currency is issued and exchanged (at great expense) because paper money is only more convenient to carry around. It has no intrinsic value, and we’re back to the “full faith and credit” that the issuing body will actually hand us an ounce of gold in return for the correct paper receipt. Amazing what can be done with paper currency. I still have some silver certificates (worth more as curiosities than they are in silver), and some left over from Hawaii during WWIII which are stamped in red stating that they can only be spent in the Islands, not taken back to the mainland. In theory that was to keep Japanese counterfeit confined to Hawaii, but who knows.

Chuckle…I had a long conversation with a landman today finalizing paperwork so that an oil lease can be activated. She was gleeful over having sold her SLV at $45, as well she might be. Letters of credit and cashier’s cheques are very useful for transporting large sums. In theory, so are digital transfers, but I always wonder what would happen if your electronic money just…disappeared. I had an interesting case about six months ago when I used an on-line form to send about seven thousand dollars, and discovered several months later that the firm had not done what it had been paid to do. They insisted they hadn’t been paid, the computer insisted they had, and the sole saving grace was that my bank agreed the money had not been withdrawn.

I agree completely with all the reasons we should not be using funny money; it is unconstitutional, it permits the “creation” of money and accumulating enormous debts, it is resented increasingly by other nations, it makes possible a culture of “entitlement,” it allows manipulation of figures to present long-term costs as less than they ever turn out to be, it tends to promulgate trade deficits, it can be counterfeited, and so forth. We still cannot go back. It is not possible politically, and an attempt would be roughly like pulling down every dwelling in America and building yurts and cliff dwellings.

I have noted that more and more professionals advice holding cash because stocks and bonds (as purchased by most) are too dangerous, although an expert I usually consider extremely sound is talking about getting back into bonds. Umm…no. Can’t buy that one; a bond is a promise of future payment, not COH. In case of default or the dollar losing the status of the world’s currency reserve, green backs will retain some value perhaps a month, but redeeming bonds will be impossible for anyone without serious connections in international banking.

There aren’t any good solutions, including having every nation on earth agree (hysterical laughter) to default at once. Default on what? What we owe each other? Insane promises the US has made to foreign nations? Disastrous promises made to citizens for political reasons? How do we stop and start over? Will we go through monetary musical chairs? There is no fiscal equivalent of the “no fault” divorce and bankruptcy only works if it gets rid of all debts and allows the person or entity to start clean with basic housing and the ability to earn living expenses.

I knew I should have written about Coronal Mass Ejections! A nice little article on man-made and “act of God” EMP, talking about solar cycles , discussing claims that “a severe solar storm would be much worse than a 9.0 magnitude quake and could leave about two-thirds of the country’s nuclear plants without power for one to two years.” Gee, we could be having fun considering 130M people without power and how next year is the end of an eleven year cycle and we’re about due for the “once in a hundred years” storm. No need to worry; on average we have 18 hours from the time the sun belches an enormous bubble of highly charged gases that can travel up to six million miles an hour. Chances are we’ll do better solving that problem than wriggling out of the financial messes caused by corruption, vote-buying, deliberate waste, and pretty fairy tales that everyone can lead a nice, safe middle class life like the Cunninghams on “Happy Days.”

What we really want is a stable currency along with a stable interest rate, traditionally 4%. What are developing are panics, lengthy recessions, stagflation, and growing fright and anger. I pledged to think of something “nice” that could happen, and I can only think of two. First, I could be wrong. Who am I to think I know better than the self-proclaimed “best and brightest?” Well…to be brutally blunt, I think I’m a very nice lady who has had a long, pretty priveleged life who is concerned about the future and usually calls a pig a pig, although I do know how to concoct sentences such as, “As always, it is not the case that stochastic analysis can compensate for human variability.” Meaning that in a world of random chance and individuals anything could happen.

Second, supposing that nothing drastic occurs politically here or abroad, I think it probable that we have between seventeen and nineteen months during which we can do our best to improve our financial positions and make decisions. For the simple reason that what most of at least America is going to be doing during that time is arguing about politics. Mr. Obama has never gotten off the campaign trail and the pack has been in full bay after Sarah Palin long after the first Tuesday in November, 2008. Times are going to get harder and we’re going to look at our belts wondering where a big nail and a hammer are to punch new holes. My best guess for August 2nd is that the Republicans will geek and raise the debt limit without getting anything of value for that concession. Expect higher prices, lesser quantities and quality, and inspect “special” offers carefully. I have a card on my desk from the local Chrysler-Dodge-Jeep dealer. It exclaims they will provide a free alignment inspection and rotate tires for a mere $14.95. The offer includes rotating four tires (since most of you only have a donut), inspecting them, and measuring the tread depth. That’s nice. However, if you don’t pay whatever else they demand to balance those tires and align the front end you may end up worse off than you were before. Of course I believe in such services. It’s just that I’d go look and see if there were at least one little lead weight attached to one of those wheels afterwards. Buy a fifth tire, too. The dinky donut is only good for a few miles and you might be a long way from nowhere when you had a flat.

It won’t hurt you to make a concerted effort to reduce expenses, pay more attention to your trading, keep an eye on the world around you in terms of social behavior and what is bottoming, and do your best to be in far better financial shape a year and a half from now. That’s a short term goal and you can do it. If there is a miracle and we’re almost over the hump, you’ll be in better shape than most and have learned some useful skills. If not…you’ll have a long headstart on those who did nothing. By the way; Mr. Obama was right. Get yourself a tire gauge and learn how to use it. Pick up an inexpensive device that plugs in to what I think is a cigar lighter and politically correct cars call a port that will air up a tire. Funny how frequently small precautions keep minor trials from becoming major difficulties.

Linda Brady Traynham is a deeply disturbed Texas rancher and writes for The Mesh Report.