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Investment Forecast 2011: History And The Doomed Dollar

January 5, 2011 by  

Investment Forecast 2011: History And The Doomed Dollar

The administration of President Barack Obama continues to work furiously to float the U.S. economy in order to facilitate his re-election.

Pumping up the U.S. economy has been ongoing for more than two years. Trillions of dollars have been created out of thin air to offset the deflationary destruction of assets that began three years ago. But opting for inflation at all costs is nothing new.

Since the first civilizations there has been a need for money — an instrument which could be a store of value and thus used to expedite trade. Universally, hard assets, most notably gold and silver, have backed money.

But since ancient times there has been the temptation to debase the money in what seems to be an overwhelming desire to have something for nothing. Pontiffs and politicians have for centuries achieved their goals by creating more money. The tendency to inflate the money supply seems to be rooted in human nature.

Julius Caesar understood power came with money and that if he could control Rome’s vast stockpile of gold he would reign supreme.

It was a lesson not lost to his grandnephew, Octavian, who won a civil war largely because he secured Rome’s bullion. Unfortunately, the Empire would list and then sink because of overspending and progressive inflation.

Yet Ancient Rome was not the first great power to fall into ruin from inflation. A thousand years before Caesar, Babylon implemented hard-money and became the center of world power and wealth: A city of gold.

But eventually inflation brought down Babylon’s Tower. King Nebuchadnezzar leveraged the kingdom’s gold to create short-term wealth. He issued receipts — IOUs — and loaned out at interest the great wealth from Babylon’s treasury.

First he doubled and then tripled the empire’s money supply. There was no stock market, but if there had been, it would have soared.

Eventually, foreign claims exceeded the amount of gold in Babylon’s treasury.

Still, the money supply continued to grow. But just as is happening today with the dollar, the growing debt had people demanding more money for their goods and labor. Back in the days of Babylon, inflation went into high gear.

Yet the Babylonians remained undaunted. Their treasury still had lots of silver, so King Merodach-Baladan pulled an interesting trick: He declared that the value of silver equaled the value of gold. Eventually the King declared that copper had a value equal to silver, which had equal value to gold.

You can probably imagine this didn’t work too well. Copper was in far greater supply than silver, which was in even greater supply than gold. Money began losing its value and confidence began to crumble. So did the world’s first great empire.

Babylon’s wealth had been the foundation for its society. The economic crisis led to a civil war. Babylon didn’t fall; it was buried beneath an avalanche of worthless money.

Five hundred years later, the city-states of Greece were issuing metallic coins, the silver obol. Another historical record of monetary inflation soon followed.

After Sparta captured the Athenian silver mines around 400 B.C., Athens was faced with a grave shortage of coins. Over the next couple of decades Athens issued bronze coins with a thin plating of silver. The shortage was made even worse as citizens hoarded the old coins and spent the new. It was the world’s first experience of what has become known as Gresham’s Law: Bad money drives out good money.

Empires Come And Go
It is amazing to think that in 1490 Spain didn’t even exist. Yet within a century it was the greatest power on earth.

The discovery of new lands was the major factor in Spain’s success. In 1492, Christopher Columbus, exploring for Spain, discovered land in the Bahamas, which he named San Salvador and claimed for the Spanish Monarchy. His claims paved the way for future Spanish imperialism. With land came the most important of resources of the age — gold and silver.

The Spanish government seized all of the riches, including the silver mines of the Aztecs. In Peru the Spaniards tapped the richest silver mines in all of the New World.

But Spain would spiral down into decline. Riches from the New World poured into the port of Seville. Spanish expansion was based on finding and bringing precious metals back to the monarchy. Yet no matter how much was brought back, more was spent.

Inflation completely ruined the Spanish economy. Additionally, precious metals being shipped from the Americas often didn’t reach Spain because Spanish ships were pillaged by the English. King Philip had to pay debts to his armies and foreigners, but to pay them he produced more money, making the money worth less and less.

Creditors soon caught on and, when they refused to lend, the Spanish Empire dissolved.

Inflation Boils Even In The 21st Century
History has shown that manipulating the volume of money leads to hyperinflation and economic collapse. Consider what happened in Germany, Zimbabwe, Argentina, Brazil and Peru.

During the era of 1918-1923, the Weimar Republic in Germany began printing money at a dizzying rate, setting off hyperinflation. Prices were rising so fast that workers receiving their pay would immediately run to the store to buy foodstuffs before prices climbed again. Business and industry were paying their employees with wheelbarrow-loads of cash.

In trying to keep up with the falling currency rate, Reichsbank printed a 1,000-billion Mark note that was so worthless that when it was spent few bothered to collect the change. By 1923, with one dollar equal to one trillion Marks and inflation at 30,000 percent, the collapse of German currency was complete.

During the 1980s the South American countries of Argentina, Brazil and Peru all experienced triple digit annual inflation.

In Zimbabwe in late 2008, inflation hit 11 million percent. The government finally acknowledged that its own currency was done and began issuing licenses allowing stores and businesses to begin accepting U.S. dollars, South African rands and other foreign currencies.

The economy had to be “dollarized.” The local currency was worthless as legal tender. Barter trading took over, with the most prominent bartered item being a fuel coupon worth about $30 U.S.

None of these lessons have made an impact on the Obama administration which continues to use the Fed and the Treasury Department to create trillions of dollars in fresh money. The consequences for this reckless action will be felt this year beginning with the…

U.S. bond market, which has a gun to its head despite the fact that during the fourth quarter the U.S. government had no problem selling $36 billion in two-year Treasury notes yielding an unbelievably low yield 0.441 percent. To date, low yields have not fazed bond buyers. That’s because dollar inflation is still coming down the pipeline. This will change as the U.S. Treasury continues its massive sales program to prop up the Obama administration. Warren Buffett was correct when he said, “Debt is a four-letter word.” Once foreign investors, especially the Chinese, understand this it will have a devastating impact on the…

U.S. dollar, which continues to flounder. Last week the Aussie dollar broke above parity with the greenback while the Canadian loonie can almost be exchanged at a one-to-one ratio. A decade ago the Canadian dollar was under 70 cents U.S. and the only relief the greenback has had in a decade-long decline was during the deflationary scare that happened during the banking crisis in late 2008. A weakening dollar and accompanying higher U.S. interest rates will hurt the stock market and the end result will be a continuing bull market in…

Precious metals, which are showing new strength in the New Year. Silver, which has long been a laggard, is at $30 per ounce after reaching a high of $31.10 on Monday. Gold broke through $1,400 before giving up some of its gains. In many ways the precious metal markets are behaving the way they did in the 1970s during the latter part of President Jimmy Carter’s single term. My expectation is that we have yet to see the spectacular blow-off for either gold or silver. I think we will see it this year, with gold moving close to $2,000 per ounce and silver hitting $50 per ounce. Therefore there is more leverage in silver than in gold, but both are worth buying and holding.

Action To Take
Look for an investment crisis in 2011 as inflation makes itself felt on the bond and stock markets. Sell blue chip stocks and all bond instruments. If you want to hold large amounts of cash then do so only in the form of 3-month Treasury bonds. You can always roll those over. You are not losing any income in buying longer term Treasury notes or bonds, just incurring massive risk. Other than money necessary to pay monthly expenses and cover emergencies, I would not keep additional cash in U.S. banks.

Yours in good times and bad,

–John Myers

Myers’ Energy and Gold Report

John Myers

is editor of Myers’ Energy and Gold Report. The son of C.V. Myers, the original publisher of Oilweek Magazine, John has worked with two of the world’s largest investment publishers, Phillips and Agora. He was the original editor for Outstanding Investments and has more than 20 years experience as an investment writer. John is a graduate of the University of Calgary. He has worked for Prudential Securities in Spokane, Wash., as a registered investment advisor. His office location in Calgary, Alberta, is just minutes away from the headquarters of some of the biggest players in today’s energy markets. This gives him personal access to everyone from oil CEOs to roughnecks, where he learns secrets from oil insiders he passes on to his subscribers. Plus, during his years in Spokane he cultivated a network of relationships with mining insiders in Idaho, Oregon and Washington.

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  • sean murrey

    this is what happen in Rome,look what happen to them.

    • JRC

      Nothing more laughable then to make up “”facts”” to sell a product. Babylon fell because of inflation? Wow, just wow !! He should read some history books, not make up history. What will he come up with in the future to sell “”GOLD”” to the simple minded robots? Alien invasions collapsed China’s dynasties? Its about as true as this nonsense.

      • JC

        Paper with ink on it is more valuable than gold?
        Not when the lights go out it ain’t.
        And that’s what gold is about…personal security against
        a currency collapse, which is definately on the way.

      • chow

        You must be a historian or maybe re-incarnated to life and lived during the empire of Babylon. So tell me at least, how did Babylon fell? Was it from war against the Greeks? If so don’t you think war caused a lot of money?

      • Bruce D.

        While you have been ranting against gold and trying to discourage people from buying it JC it has gone up over double the price. You talk like inflation is not coming when in fact that is the goal of the Fed to help absorb its debt. The biggest problem is that inflation can be difficult to stop once it takes hold. It has a pendulum effect. Seniors will be hurt the most who no longer work and rely on their savings to survive.

        • JC

          Bruce, I think you may have missed my point.
          I am an advocate of precious metals “because” of the
          fluctuating(manipulated)fiat currency.

          • Bruce D.

            JC please accept my apologies. I meant JRC. I know you are a good man and I agree with your posts and thought process.

          • Al Sieber

            JC, I’ve always believed in precious metals because they always hold their value. people believe there’s a “gold” bubble like the “housing” bubble when Americans were buying houses and real estate and driving the market up, Americans aren’t buying gold so, whats driving gold up? I believe it’s the international market, and the scarcity of gold. most foreigners have been through hyperinflation and currency collapse, we haven’t because we’ve been lied to about the dollar. in Europe you can buy gold in a vending machine and a few places here also. people need to read the coinage act of 1792, the Founding Fathers knew this. I think JRC is a product of our present day educational system. if they raise the debt limit we’re screwed.

          • JC

            No worries Bruce, keep on truckin.

            Al it’s always good planning to hedge your bets against a fiat currency. History proves that out.

      • Al Sieber

        JRC, what are you talking about? “goggle” the History of the Money Changers”, A. Hitchcock. this article by John Myers is taken from historical accounts.

        • Dan az

          Hey Al
          When I was in thailand they had a buddha that was twenty feet wide and twenty feet tall that was made from solid gold.I wounder at todays market what it would be worth?

          • Al Sieber

            Dan, you should of had a hacksaw with you or a small cutting torch when you went in that temple.

          • Dan az

            No kidding Al I would have been happy with just a finger! or toe!

      • http://donthaveone Beberoni

        Babylon didnt collapse. God got tired of their perversion and decadence, and he literally destroyed them by His own hand. Just like the Medo-Persian Empire, the Greek Empire and the Roman Empire. Next in line, as we continually move away from God and embrace sex, sex, sex, homesexuality and other perverted behavior, is the United States of America’s Empire. We didnt learn from history, so we are doomed to repeat it.

    • Lewis Munn

      Nobody pays attention to History anymore! It is old hat, not taught, not even known, to most.

      Too busy learning new things in schools to bother with History! How to be a successful homosexual is far more important to teach children these days.

      I get the feeling even most of our Senators have been trained this way, based on their voting.

    • patrick H.T. paine

      Dept. of continuing Ed on the constitution

      Basically ignoring the BS here and directed at those of you willing to
      learn to resist without having some kind of death wish….

      Does anyone here know what this means?…………$

      Does anyone here knows what a dollar is?

      Has anyone here seen a federal reserve note which states the following

      “This note is legal TENDER for all debts public and private
      and is redeemable in LAWFUL MONEY at any FEDERAL RESERVE BANK,”

      circa 1955

      Does anyone know what the word TENDER means, when used in this context? ppssssssttt not a railroad term!

      Well hell I am an impatient tyke so I’ll give last for free….

      TENDER means “voluntary”…..

      as in “voluntary withholding agreements”

      aka w-4

      or 26 CFR 31. 3402 (p) FOUR WHOLE PARAGRAPHS LONG

      for a statute that runs twenty pages or more….
      and it is nasty…..and MEANINGLESS!!!!!!

      So what would happen if you asked a “judge” what the $ means?

      to be continued…..maybe

      patrick H.T. paine

      citizen at large and extremely dangerous
      until they pry my brain from my cold, DEAD head!!!!!

      • Dan az

        patrick H.T.paine
        14th: In 1962, considering the states were forced to carry out their business dealings in terms of Federal Reserve Notes (foreign notes), which is forbidden in the national and State constitutions, out of the necessity the states began protecting themselves from the people by forming corporations like Corp. U.S. Accordingly, those newly formed corporate state administrations began adopting Corp. U.S. suggested uniform codes and licensing structures that allowed better and more powerful control over the people, which thing the original jurisdiction governments of this nation had no capacity to do. Our Constitutions secure that the governments do not govern the people rather they govern themselves in accord with the limits of Law. The people govern themselves. Such is the foundational nature of our Constitutional Republic.

        • Dan az

          Corp. U.S. began issuing bonds to cover the expenses of running government. By 1912 there was more bond debt due than there was money in the Treasury to pay and the debt was called.

          Seven very powerful families had been buying up the bonds and in 1912 they demanded their timely redemption. When Corp. U.S. couldn’t come up with the money due, its owner (the actual government) was obligated to pay. The Treasury of the United States of America did not have sufficient funds to cover the bonds either but the seven families accepted all of the assets of the nation’s Treasury along with all of the assets of Corp. U.S.’ Treasury as a settlement of the debt saving the nation from bankruptcy.

          By 1913 there was still no money for operating the government/corporation, and if Corp. U.S. didn’t do something the people would revolt against them, so Corp. U.S. went to those seven very powerful families and asked if they could borrow money from them.

          The Federal Reserve Bank
          The heads of those families refused to loan Corp. U.S. any money because Corp. U.S. had already proven that it would not pay its debts back in full. They did however make arrangements and provisions to issue notes (Federal Reserve Notes) like letters of credit while they secured the notes for redemption with real money. On Jekyll Island in 1913 the Federal Reserve Bank privately agreed to so fund Corp. U.S. in their endeavors. Such an action would have been a gigantic violation of law if the government tried such a thing, but there is no law against private corporations making such arrangements.

          The real problem is in the name. How does one tell the difference between a corporation going by the name, ”THE UNITED STATES GOVERNMENT”, and the government of the Unites States of America?

          What’s worse, how do you tell the difference between the ”United States” [a Trust and the body of government that represents the Trust, as Trustees], and the ”United States” a trademark name for, ”The District of Columbia” [a private corporation]?

          The answer is simple, you can’t unless you can tell by the context of what’s being done.

          • Dan az

            Corp. USA
            Under The District of Columbia Organic Act of 1871 a private corporation named, ”The District of Columbia”, was formed. It trademarked the names ”THE UNITED STATES GOVERNMENT”, ”United States”, ”U.S.”, ”U.S.A.”, ”USA”, and ”America”. It should be noted that this corporation was not simply a reformation of the municipality as its Organic Act was chartered in 1808. Without amending that municipality’s charter, this 1871 Act marked the creation of a new private corporation known as, ”The District of Columbia” (hereinafter ”Corp. U.S.”) owned and operated by the actual government for the purpose of carrying out the business needs of the government under martial law. This was done under the constitutional authority for Congress to pass any law within the ten mile square of Washington, District of Columbia. In said, Act Corp. U.S. adopted their own constitution the (United States Constitution), which was identical to the national Constitution (Constitution of the United States of America) except that it was missing the national Constitution’s 13th Article of Amendment and the national Constitution’s 14th, 15th and 16th Articles of Amendment are respectively numbered 13th, 14th and 15th Amendments in their constitution.

      • patrick H.T. paine

        “to conquer, first divide.”

        Further adventures in low key rebellion.

        Once upon a time, I found myself stopped and arrested for driving
        an unregistered vehicle in the State of N.H. The car had Mass plates
        and the registration had been canceled by my ex. or soon to be,
        unbenownst to me.

        After being booked, I asked for and received forms to request
        representation by an attorney, and there were tons of $ symbols
        largely concerned with wages and expenses, etc. I entered all my
        expenses, rent and other things, and I listed my current employer,
        but failed to enter a number, regarding what I was “earning”.

        The clerk became upset ( they always do ) with this missing info,
        so I suggested we go before the judge….and said to him directly,
        that if he would tell me the meaning of the symbol $, I would be
        happy to put a number next to it. His reply was: ” I will appoint
        you an attorney.”

        Now the attoney was not cooperative regarding my intended defense,
        so I had to make it clear that she was only a co-counsel, and the trial consisted of two “defenses”. She actually got one of the charges dropped, but I lost overall, and was found guilty and
        fined $100. This was a de novo trail ( by judge ) and could be appealed to a jury trial. ( much more fun with a lot more opportunity
        for mischief ) This was the last actual district in N.H. that
        still used this process…and this required travel and aggravation,
        so I filed a prommissary note, using “lawful money” as cited in
        31 USC 371 which is no longer available ( redacted: as are many
        sections of the USC ) and not the revised an more direct version
        recently posted here.

        A dollar is a unit of measurement, equivilent to a pound, foot, yard
        etc. and the congress of the united States has the power (responsibility) to determine this in the same section of the
        constitution which deals with “coining money” and other things.

        While I unerstand the effect of incorporation of government entities,
        all of this is essentially bound up in the UCC connection, which
        came into force in 1939, but was initiated with both the Social Security Act, and the Postal Zip Code system in 1935, which altered
        States legal abbreviation to two letter uppercase designations
        without punctuation. Citizens went from John Doe, to JOHN DOE and
        all identification, legal forms, documents, tax forms, use
        upper case lettering. The United States is now the UNITED STATES
        and all of this is “contract law”….with citizens no more than
        chattel of the government.

        The original myth regarding S.S. was that it was requirement for seeking employment and teenagers dutifully signed up in the early years at the age of 16, and in fact this still works…….but rather than take any chances, the government started requiring children to have numbers at birth, in order to claim deductions for them at tax time. In fact at present, I do not believe it is possible to remove a
        new born from the hospital with having them assigned a number, or
        even if Birth Certificates are now issued with all upper case,
        name designations?

        Of course since wages are not “income”, and S.S. is volunatry
        31 USC 3402(p), one is not required to file since no
        w-4 is in place, no with holding has occured, and no w-2 is
        issued by ones employer. Who cares about deductions?

        But upper case designations are a direct indication that the UCC
        and contract law are in force ( where you have been fraudulently
        induced to volunteer ) just as the flags that fly in courtrooms,
        indicate the “jurisdiction” of the court as admiralty and/or maritime,
        also governed by the UCC.

        • JC

          Google: Capitis Diminutio Maxima

          As Black’s Law Dictionary explains, the full capitalization of the letters of one’s natural name, results in a diminishing or complete loss of legal or citizenship status, wherein one actually becomes a slave or an item of inventory. The method by which the State causes a natural person to “volunteer” himself into slavery, is through forming legal joinder, implied or stated, with the entity or legal fiction (name all CAPS). Of course, most natural persons wouldn’t willingly form such an unlawful but legally reductionist joinder, so trickery and obfuscation are used. The initial joinder is formed when a legal Birth Certificate is issued by the State, name in all CAPS. In fact, both the Certificate of Birth AND Social Security number, are for “inventory” control purposes, similar to the Amistad Schooner’s manifest or those numbers or records used by legal entities or Corporations to track, account for, use and dispose of inventory. It is under the Admiralty jurisdiction Terri Schiavo’s fate was determined, and under this alien fictional jurisdiction many of today’s legal or other fictional entities such as “gay marriages” are fabricated. Commensurate with color of law, they appear to “be,” but they are not.

  • wayne

    I don’t care how good the economy gets under Barack, I would suspect this man of creating a phony economic conditon, with the tax payers money, to get reelected again. Yea! I think that Obama will try to make the economy look better than what it really is just to get elected. The shame of it all is that there are a lot of stupid people who wuld fall for this crap. Obama is sly like a fox. I hope that the new House of Representatives sees Obama for what he really is, and explains themselves to the people what they are doing, and the reason for doing it. I think that people with common sense will realze that times are going to have to get harder before things get any better. Vote this man out out of office. If he does not destroy the nation in the next two years, he would surely do it if he is voted in fo another 4 yearss.

    • Mick

      wayne says:
      January 5, 2011 at 7:59 am
      Vote this man out out of office. If he does not destroy the nation in the next two years, he would surely do it if he is voted in fo another 4 yearss.

      wayne…I hope we have enough common sense people left to see that…
      Actually the whole democratic party needs to be dissolved in order to regain our core values that made America the greatest country in the world..
      You keep adding more and more ingredients and you will soon find out the recipe is ruined………

      • jimster

        The democratic party does not have the values of the past. It has been taken over by marxist and socialst. After all JFK fought for lower income taxes when he was president. Lets see a dem try that today.

        • Mick

          jimster says:
          January 5, 2011 at 8:44 am
          The democratic party does not have the values of the past. It has been taken over by marxist and socialst. After all JFK fought for lower income taxes when he was president. Lets see a dem try that today.

          jimster,,,,Couldn’t agree with you more and although I believe that corruption is everywhere the democrats have enhanced this practice for a few decades now, they are the champions for the defense of bad behavior and it makes no difference to them if you’re a law abiding citizen or a hard core criminal with a rap sheet a mile long,,it’s pass time for our elected officials to protect the honest fruitful citizen over the trash they call human beings, they need to go in order to restore sanity in this country otherwise the next generations will be outnumbered by the criminals, we’re damn close to it now.

          • bob wire

            and the GOP is a beacon of lofty values shinning thru the darkness of political discourse?

            I think your hypocrisy is stuck in passing gear.

          • hpinnc

            Bob Wire, the republican party may not be a beacon of light,but the are not trying to destroy this country by continuing to spend,spend,spend like there was no tomarrow.The democratic party has been hy-jacked by the liberal,socialist,communist,progressives like Van Jones,George Soros & others that I cannot call from the top of my head.Then you have Polosi,Barney Franks, Reid,Al Frankin,Rangal,& many more political followers in Congress who have studyed under these wierdos in the major Ivy League colleges & Universities who promote & teach this BS.I can remember back in the days of McCarthy,who claimed back in his day,there were communists in Congress.He never found any that were true blue,back then,but I don’t think he would have any trouble now.The thing I can’t comprehend is what is so wrong with Capitalism? It seems to have served this country quite well for the last 240 yrs.We have seen how well socialist communism has worked,& the millions of people whom have lost their lives as a result of the wierd ideas of a few elitist gurus who think they have found the answer to all of mankinds problems.It is here people,if we don’t wake up & vote these idiots out of office.Obama is not a real American.He was not born here,he does not know our culture,our way of life.He believes in taking from those who have worked & giving to those who have been leeches on the government all their lives.He & ALL his GURUS needs to go & I intend to do what little I can in 2012 to make that happen.I hope many millions more will join me.

        • wayne

          Jimster, you are so right. The Democrats of today are not the true Democrats of the past. This party, like you said, have been hi-jacked by the Communist, and Socialist parties. The Democrats (Socialist and Communist) are trying hard to wreck our economy and destroy this nation. A true Democrat would work with the Republicans to make things better for the folks. I can vividly remember the Russian President, Nikita Kruschev, saying that they would bury us, meaning the working class would bury the United States, appears to be coming true. This nation had better wake up fast, or we are finished.

          • Dick Gazinia

            That goes both ways – Th Republicans are in danger of becoming so right wing that they will make the Taliban look like flexible, open-minder thinkers. The GOP has shown little inclination to cooperate and have been obstructionists for slavishly clinging dogma that has not always been for the good of the country.

            The current crop of politicians from both parties are cause for concern. When people look up[on Palin, Bachman, Jindal, Rand Paul, etc. as serious intellects it is as frightening as the left looking on Pelosi and Reid as great thinkers. Then we have a mass audience that allow their thoughts to be guided by Beck and Limbaugh – just as bad as Maddow and Oberlman.

            We need more civil rationality in approaching our nation’s problems. Stubborn bone heads can’t help. Let’s stop the polarizing name-calling and deal with the real problems that face us.

          • kate8

            That’s not my take on the Republicans. It seems to me that they’ve fallen over to the Left, not gone further right.

            What we have now is the Left and Far Left. Then there’s the radical Left, like Pelosi and Ried.

            There are a few new conservatives in the House, but we’ll see how long they last.

          • Kim Wedgwood

            My thought is, Obama is part of the same crew that took out the world trade centers. His training started back in the 80′s. His perpose is to take out our nation. This guy needs to be ousted. This guy is not a natral born American and prays to a false god, and he would want to take the words from our money “in god we trust” away. But insted he will destroy our money, making it worthless.
            Another thing, I can’t find hardley any thing at Lowe’s or Home Depot that is made in America! I still have my Plumb framing ax I bought in the mid 70′s, I thought I would replace it, I did in the late 80′s and the new one was crap! The wofel went flat in a week. It was made in Korea or some other place. I bought two new sticks for my ax and filed the head 20 years ago, I still use the one that was made in America and need to install my last stick. Lets build it at home.

          • GaryTraditionalUltraConservative

            I’m a Republican and that is why I never voted for George Walker Bush junior during the Presidential elections of 2000 and 2004 because I new George W. Bus junior was not qualified to be elected Dog Catcher for the local Humane Society or the local Animal Shelter or the local Department Of Animal Control and instead I voted for Presidential candidates of slightly more traditional conservative moderate leaning third parties and any of those slightly more traditional conservative third party Presidential candidates were not anything truly desirable, just slightly less nauseating to vote for. However, I do like Republican Congressman Ron Paul as a good traditional conservative Republican Presidential candidate in 2012 but Congressman Ron Paul will probably not ever consider throwing his hat into the ring for the 2012 Presidential candidacy. I did however vote for George H. W. Bush senior back in 1988 and 1992 because he was a more traditional conservative Republican who also happened to have a brain unlike his own son, George W. Bush junior, who seemed to never inherit the family brain cell. I thought the George W. Bush era tax cuts were a completely illogical and a very immoral and unjusified act by President George W. Bush junior during a war and during the threat of another terrorist attack, however, right NOW is exactly the correct time to have a George W. Bush era tax cut across the board for everyone and especially for all small to moderate business owners regardless if they are incorporated or privately owned businesses. Of course Obama is not qualified to be elected President, however, both the stupid and Anti-Constitution or Ignore the Constitution criminally corrupt and criminally inept and crminally treasonous sell out cowards and crminally treasonous sell out hypocrites have allowed that unqualified Presidential fraud, Presidential impersonator and Presidential imposter and political usurper named Barack Hussein Obama II to be elected Pseudo-President and to remain a Pseudo-President who is technically squatting in the White House and who is also illegally receiving subsidized public welfare support from and at the unjustified expense of the much too overtaxed honest, Law abiding and hard working U.S. American Citizen Tax Payers, millions of whom never voted for Barack Hussein Obama II, AKA “The Shining Radiant Brilliant Shooting Star Son Of Kenya In All His Holier Than Holy Majestic Third World Multi-Cultural Anti-American Anti-Constitution Extreme Leftist Ultra Liberal Socialist/Communist/Marxist Tyrannical Political Autocratic Despot Usurpationist Imperialism And Fascism”.

          • DaveH

            Both Bushes were RINOS.

          • JC

            Hey dave,
            Here’s Daddy Bush using terms like “Credible UN” and “New World Order”


            The Bush’s are as bad or worse than any other regime has been.

    • eddie47d

      ALL world leaders and US Presidents “are sly like a fox” I doubt if Obama can be picked out as an exception. That goes for Conservative leaders also. I’m sure China’s leaders are the slyest of them all.

    • Lewis Munn

      He can easily do it in two years…just blunt a few laws and disregard others, and we will be overrun with criminals and illegals, and American Citizens will be destitute.

      Then a few thousand fully armed and well fed soldiers can put down any rebellions sith unbridled savagery and we are gone.

  • BigBadJohn

    Welcome to the new world order, which really is the old world order where Kings and Noblemen own everything.

    Good article from:

    I still like the Wall Street Journal.

    While they often infuriate me with their new editorial policies and slanted news coverage, they still have some of the best reporters and best graphics people out there. I think it’s because so many people over there really “get” economic reporting. Most newspapers have reporters who know the economy and then they have graphics people who know how to draw, but the WSJ has graphics people who clearly understand the markets and it brings a lot of fine color to the articles – I can only hope Uncle Rupert realizes what he’s got there and takes care of the rarely-recognized team.

    Isn’t that nice? Notice that we still have that WSJ/Top 1% slant on what’s good for the economy, but it’s a very useful springboard for discussion. I will never forget my meeting at Treasury when I said (and I was joking) to Geithner “So, does the US still have a strong dollar policy?” and the Secretary of the Treasury laughed so hard he almost fell off his chair. We are not allowed to quote people directly so I’ll just leave Tim’s answer at the time (Aug 16th) as “no comment.” The Rich (who control this country) do not want a strong dollar – only people who get paychecks in dollars want them to be strong, but the people handing them out in exchange for labor are perfectly happy if Treasury Notes are as worthless as toilet paper because they generally run their businesses with debt financing anyway and at no time do they have significant cash assets.

    It’s very hard for workers to get their head around this concept. In grade school, we all laughed at the silly Indians who traded Manhattan Island for about $24 worth of beads and trinkets but, like US Dollars, they were plentiful and easy to get for the Dutch traders but very difficult to obtain for the Indians as the Bedazzler had still not been invented. Of course the Indians also had no concept of land ownership so the whole contract was a sham, but that’s an essay for another day. Getting back to US workers – they exchange their valuable labor for essentially worthless bits of paper that are relatively easy for their employers to obtain – as long as we have a weak dollar, of course.

    What else do the top 1% want? They want commodity prices to rise. That may seem counter-intuitive as they should be input costs but, in practice, consumers are charged on a “mark-up” pricing system and companies make a percentage of profits on sales so, if input costs go up, they simply raise prices and rising prices mean rising profits as long as they avoid margin compression – that’s why “slightly” rising commodities are preferred as sharp rises can cause dislocations in pricing.

    The top 1% don’t want GDP to grow too fast (although at their outsourced factories in China, they seem to do quite well with 10% growth) and they and they don’t want Unemployment to come down too quickly – otherwise the workers may get uppity and ask for higher wages! They want inflation but not too much and they want higher borrowing rates which again is based on the fact that they have easy access to money and they don’t want the bottom 99% (which includes smaller businesses) playing on a level field. So that sums up very nicely what will make the markets happy in 2011 – the question is – how likely are these things to happen?

    We have the November Factory Orders Report at 10 am and we’ll see Auto Sales numbers for December throughout the day, which should be strong as Toyota (TM) just raised their forecasts. Tomorrow morning we will get the MBA Mortgage Report, ADP Jobs and ISM Services and Friday we get December’s NonFarm Payroll numbers so we’ll have some hints there but the real key to sustaining 8.5% unemployment (and thus low wages and benefits) while the economy recovers to 3.5% growth is going to be Productivity, and we don’t see the Q4 numbers until Feb 3rd but it’s a big one, with the entire “hotness” of the economic recovery riding on its back.

    As you can see from the chart above – the trend was not looking like our friend in Q3 as Unit Labor Costs were coming back sharply while gains in productivity that were driving the recovery were trailing off. We don’t have to worry about Unemployment falling too quickly as job growth has been anemic and, as I pointed out last week – American companies are hiring 40% more workers overseas than they are in this country and there’s no danger to the top 1% that that is going to change soon, as all fears of legislation that would encourage the growth of US jobs vanished in the last election.

    So the biggest danger to the Goldilocks scenario for the investing class is that pesky dollar, which has been holding up surprisingly well, no matter how many of them Bernanke creates out of thin air. Printing money is supposed to raise commodity prices and that part is
    working as we’ve got TREMENDOUS rises in commodity inflation. Forget crude’s little 14.1% run in 2010 or heating oil’s 19% gains – it’s the little things that meant a lot in 2010 like Cotton’s 91.5% increase, a 75.4% rise in the price of coffee with corn, lumber, wheat and oats up in the 50% range as well. By comparison, copper and gold are fairly tame in their 30% runs.

    All this, according to our government, translates into a 2.2% rise in consumer prices – the lowest on the planet according to the Ministry of Truth, which price-weights inflation as if you are buying a house and a car every day along with your groceries and gasoline so the $10,000 drop in the value of your home wipes out $833 a month of increases in other things you also might buy this year like food, fuel and clothing.

    What is going to happen when home prices head higher (and what is the deal with lumber up 50% with no homes being built?) and we still have this insanity with food and fuel? Will the government then admit that inflation is in double digits or will they then decide to change the measurement to accommodate the new reality?

    So – the Dollar. It’s “too strong” and is stopping the market from going higher (when priced in dollars). I often point out that we get a very different chart picture on the markets when priced in other currencies andthe action of the last 4 sessions really took the proverbial cake when priced in Yen as we dropped like a rock to the 200 50 dma and then bounced right back to the 20 dma in one mighty session yesterday – a very different picture than we got from looking at the dollar-priced charts:
    What is reality? Is reality what 300M Americans see or what 3Bn Asians see when they look at the charts? Why is it a surprise that emerging markets are so popular when they look so much safer and stable than the US? Yesterday I went out on a limb in my first post of the year and called the action manipulated as we simply fail to see the fundamental underpinnings that should have led to a 2% reversal on the first day of the year (and see yesterday’s post for chart of the same nonsense from last January).

    We might be wrong (especially with the very strong historical Presidential 3rd-year performance by the market) but, as we discussed in Member Chat over the weekend, the cost of NOT being cautious enough in a long-term investing portfolio is 35 TIMES more than the cost of being too cautious. We will maintain a cautious short-term stance against our bullish long-term plays until we are satisfied that 2011 is on the right track. Europe needs to be “safe” for the Dollar to remain weak and, of course, our own Government needs to be able to pay its bills past March. Unemployment does need to come down below 9% (and certainly not go higher) and the combination of falling home prices and rising gas prices is not likely to end well either. Barry Ritholtz has his own concerns, saying:

    Broad consensus for strong gains always makes me nervous, and that is what we have at present. Sentiment is frothy. Government policies have been key drivers of gains, and everyone now knows that zero percent Fed fund rates are unsustainable. Organic growth is required for a self-sustaining recovery, and there is little of that to be found. Underemployment is a significant headwind, as is the sorry state residential real estate. Banks remain in mediocre financial condition, still under-capitalized and over-leveraged; the bailouts papered over the structural issues, and moral hazard all but guarantees a crisis in the next decade. States and cities are in a financially precarious position, and the GOP may very well force a shut down of government in Q2 when it comes time to raise the debt ceiling.

    Meanwhile, kudos to the current President, who has pulled off the greatest first two-year market rally in modern history by a pretty wide margin. As Barry says: “If this is Socialism, call me Comrade!”

    • Al Sieber

      BBJohn, make your money as fast as you can in the stock market, it’s a suckers rally, the market is manipulated by those who run it.

      • BigBadJohn

        Which is exactly what this article implies, the rich are getting richer and workers are getting crushed.

        The trick is to play along with those same big boys and not get burned.

        • Al Sieber

          BBJohn, got yeah! that’s what I implied, get it while you can.

      • Richard Pawley

        It’s easy to run up the stock market or depress gold when you can just print money ($70,000 MILLION a month right now) our of thin air. In 1990 I published a 16 page report entitled “The Coming Financial Crisis” and in it I predicted that there would be more than 300 percent inflation when it all hit the fan. Two years later I was praying and I clearly heard the Holy Spirit say to my spirit or inner mind, “There will be more than 300% inflation, more like 450%”. Well, last month the FED told me that we have had about 57% (?) inflation since 1992. If that be so then I fully expect another 250-275% inflation to come. Gold and silver have already done that, soon it will be things we use on a daily basis. Hyperinflation? I hope not, but prices of things we really need tripling? A slam dunk in my opinion, although it has already taken longer than I thought it would. Still as I pointed out in my last book, even The Bible Code indicates that there is a very high probability that Obama will go home to Chicago, blamed for the economic chaos the country is in – but remember, that congress is the one who approves the spending. It is unlikely Obama will change his philosophy but representatives who won’t can be replaced.

        • Al Sieber

          Hey Richard, where can I get a copy of your book?

        • Bruce D.

          Hi Richard,
          Inflation has hit food and gas too. The things we need the most besides a home. It is my understanding they do not even show up in the governments calculations. The Fed has opening stated they want inflation but not hyperinflation. They know they are playing a dangerous game printing all that money. On top of that China and India have an expanding middle class which naturally make commodities more expensive.

  • jim delaney

    Economic principles and commonsense aren’t driving fiscal policy– socialist ideology and parochial political self-interest are. The stupidity and shortsightedness are breathtaking, but not at all surprising. Man is preordained to repeat mistakes of the past. And, of course, in the e-n-d we will ALL pay the terrible price.

    • BigBadJohn

      “The stupidity and shortsightedness are breathtaking, ”

      Like extending Bush’s tax cuts?

      • Al Sieber

        BBJohn, Bush’s tax cut’s gives employers more money, to hire more employees and to buy extra equipment.

        • BigBadJohn

          Al, Bush’s tax cuts give the ultra-rich who inherited multimillion dollar trust funds the sweetest tax breaks of all. They only pay 20% on their income, regular income tax tops out 39%. Those who do not HAVE to work are the ones who made out the best.

          • meteorlady

            Bush’s tax cuts helped me survive these past 4 years. Without them I would be out of business. I can invest my short term money without losing gains through taxes. I can claim a fair depreciation for my equipment. Still, I am not doing all that well right now so what’s your point about the bad “rich”? I bring in six figures but still am not rich as I have to pay for the cost of government regulation and taxes. Trust fund? What the heck, I don’t have enough money to put money in a trust fund. I need to support my family, my business and my employees.

          • eddie47d

            Thank you Meteorlady for not gaming the system but from what we have seen over the last few years the wealthy did just that. Another point is that Americans spend too much time and energy looking for that next hot item. They want rapid growth and big profits. We need steady growth instead of creating the next housing bubble. Keep a keen eye on who is manipulating all the markets whether it is government,banks or private business. Don’t let them sucker us into the next panic.

          • Mike In MI

            eddie47d -
            May it come as a surprize to you? Most of the “really-rich”, “super-rich” and “sloppy-rich” are democrats, socialists and liberals of one shade or another from light pink to deep marroon. Like Harry Reid, to them, the working people of America “stink”. They think they are superior and outside the constraints of the laws of life us rabble need to observe. But without us they inevitably collapse. Liberals are like the old Dodo birds of New Zealand. The flightless things were fine as long as they lived isolated from reality. Too bad…in time the realities of life finally caught up with them and they went down with a whimper…exstinkedified.

          • Karolyn

            Mike – “May it come as a surprize to you? Most of the “really-rich”, “super-rich” and “sloppy-rich” are democrats, socialists and liberals” Oh, really? Have anything to back that up? Or is it just your perception, as so often is the case here?

          • Al Sieber

            BigBad, I’m in the mining business and Bush’s tax cuts allowed me to buy extra equipment and hire 2 extra people. no matter what you think of George Bush,it helped out a lot of small businesses.

          • Bruce D.

            BigBad John to say that the rich only pay 20% in income tax shows that you absolutely do not know what you are talking about. The bottom %50 do not pay anything in income tax. Who do you think is paying all the taxes in this country. The problem with socialists besides wanting something for nothing is that they do not realize that once government destroys business and those with money government ends up with full control of the population. The working person ends up with less than he ever had and people from government become the upper class with their perks and benefits.

          • Al Sieber

            Karolyn, have you ever ran a business? do you know about economics? tax cuts, payroll etc.? or is it that you didn’t like George Bush? I didn’t agree with 95% of what he did, Patriot Act etc.( which Obama renewed), but I agree with the tax cuts.

          • Karolyn

            Yes, I have run or been in on running several businesses. I recall upon hearing of the Bush tax cuts that I thought to myself “What is he, nuts?” To me it seemed like pandering.

          • Bruce D.

            Karolyn I do not think you have made all that much money in your internet business and only lust after other people’s money who have the intellect to know how to make a real business work with employees.

          • eddie47d

            Yes, Mike L. I’m well aware of the Hugo Chavez’s of the world. They love to extend their powers and control everything. I really don’t like government getting too big for their britches anymore than Corporations who do the same. It’s become a two sided battle and especially with the healthcare issue. I support it because of what big insurance and big pharma did to us and our economy. It would have been a nice little world if they had played by the rules but they got sticky fingers. Some will say government can’t be trusted either but take a look at the private contractors in our wars. They can get paid 4-5 times more than a soldier for doing the same job. I’ve read stories from troops who don’t like the disparity one bit. So it doesn’t give them much insensitive to re-enlist but to quit and “join the other side”. We need to check into those in Congress who authorize these private contractors.

          • Bruce D.

            All government contracts need to be looked at closely as do government pensions and pay. They are both equally corrupt. Those who are in the military are the exception as they put their life on the line and allow for a voluntary service. That being said we need to examine closely our need for wars in the future. I am concerned about nuclear proliferation as we should all be so isolationism in my opinion is no longer an option. It is a small world and getting smaller.

          • Dan az
          • Dan az
          • Karolyn

            Bruce – You said: “I do not think.” There is your problem. You don’t really KNOW anything.

          • BigBadJohn


            If your point is that the richest 10% pay the brunt of taxes – you are exactly correct. However,

            The top 1 percent own 43% of financial wealth in the usa.
            The top 5% own 71% of all of wealth.


            Just by percentages alone they should be paying most of the tax.

            But looking at your chart the top 5% pays 59% of the tax bill but they own 71% of the wealth???? You tell me are they paying their fare share?

            I am or was somewhere in the top 2%, do I want to pay more tax – hell no. But that is how our system works, those who can afford to buy votes – do! Everyone who voted to extend Bush’s tax cuts were bought and paid for!

        • Mick

          Al Sieber says:
          January 5, 2011 at 8:59 am
          BBJohn, Bush’s tax cut’s gives employers more money, to hire more employees and to buy extra equipment.

          Good morning Al !
          Trying to pursuade people like BBJohn is as useful as pissing in the wind, they will never get it.
          On another note , how cold is it in your neck of the woods, we’re freezing our asses off over here.

          • BigBadJohn

            “Trying to pursuade people like BBJohn is as useful as pissing in the wind, they will never get it.”

            Get what?

            That tax cuts create more jobs – sure they do. However, spending increases do the same thing.
            This discussion is about printing money to pay off the debt with cheaper dollars. The MAIN reason that we even HAVE to monetize, is because of Bush’s tax cuts which DOUBLED the national debt.

            You CAN NOT cut taxes without also cutting spending and not run up the national debt – period!

            If you believe otherwise – you have been sold and swallowed, a huge lie.

          • wayne

            Mick, no, you can’t mean that. Remember Al Gore and his warning on Global warming. Al Gore would not want to hear you say this. It is supposed to be getting warmer, not colder. Let’s face it, Al Gore is nuts. I have never believed in this global warming bull crap, and never will. I think the climate is controlled by nature, not by what we do, or don’t do. It’s for certain people to get rich off the poor man’s back.

          • William

            Actually it does not work this way.
            Money, that employers spent on employee’s salary and equipment are business expenses and NOT taxable. So reducing taxes for rich allow them
            to spend LESS on salary and equipment and put more in their own pocket.
            So don’t believe that tale that cutting taxes for rich will help economy. But cutting taxes for middle class and pure will help, because
            people will afford to by more goods – this is direct impact on economy.
            And different between Bush and Obama that Bush bailed out Banks and Obama bailed out industry, home owners, and pump a lot to country infrastructure.

          • Bruce D.

            Al Gore is trying to sell cold air as his Eco businesses would have made him one of the riches people in the world. Unfortunately for him we have been getting all the cold air we can handle for free.

          • Al Sieber

            Mick, all I know is I was able to write off a lot of equipment I needed, and hire extra people. it’s not something I’d lie about, it’s how it is.the temp. here is 55 F. in the day, and 39 F. at night.

        • meteorlady

          I’m an employer and I’m glad they extended the tax cuts but not because I plan on hiring, it’s because at least I will be able to make some money to support my family. Really the only thing that happens is that I can depreciate my equipment more favorably and I stay about the same on my taxes. The government and their incessant regulations and taxing are slowly running me down. Then add city, county and state governments to the equation and it’s getting hard to make it anymore.

          Fact is we have the second highest corporate tax rate in the world and it’s not getting better. Until we stop tacking on taxes every time the government is irresponsible and spend more than it takes in, we will continue to see businesses moving to other, more tax friendly, countries.

          • eddie47d

            Sounds like that means business taxes should decrease and personal taxes of those making over $250,000 should increase.

          • Doug Rodrigues

            People who have never had a business don’t have a clue of what it takes in time and money to get it going and keep it going. My day would begin at 6 a.m. and often extend until 10 p.m. sometimes 7 days a week. I had to scrimp, save, and do without many of the things that employees take for granted, because they only know of a paycheck. What do they know of their employer who has to give them that paycheck? Sure, I had a fairly nice home and drove a new Corvette, but considering all of the time and money I put into the business, that was little compensation for the long hours and mental stress that goes along with running any business and dealing with all of the various personalities who think that you “owe them.”

            I would imagine that most employees assume that their boss is only exploiting them. So bosses do, but I didn’t. If those employees want the few perks that go with being the boss, then they should work 12 hours a day or more, contribute a large chunk of their paycheck to paying the company bills, chipping in to pay the federal taxes, absorbing the losses of the dead beats who don’t pay for services or bounced checks, paying for the screwups of other fellow employees who just shrug their shoulders when they stupidly creat additional costs for the company, ie.forgetting to turn the alarm off when entering the building each morning. The City charges $75 per each false alarm to the plice. If any employee wants to do all of the above, they may discover that although their boss has a fairly nice house and drives a nice car, that there isn’t much left over in his personal bank account! After three years of doing that, I said, Screw it! I became an employee for somebody else, working 8 hurs a day, and lead a more relaxing life. No more worries about how the bills will be paid. And yes, the house is gone. Down sized to a much smaller place. No more Corvettes either. I switched to a Toyota. For those in big business that succeed and make a ton of money, I say, more power to them! They deserve it.

          • TIME


            Man I hear you loud and clear.

          • Bruce D.

            The left is very short sited making it a hostile environment for business. They are not smart enough to understand they are promoting their own destructing as well because they do not understand the consequences of their actions.

          • Christin

            So True, Doug, so true.

            I am a wife of a small business owner. My spouse started his own business a few years ago and all that you have stated we, too, have gone through. A couple years ago he took on a partner and they grew the company and many people are earning a living and providing for their families there (but the company could not give employees health insurance, instead paid them more to buy their own like we do.) Well, my spouse just sold his half of the company to his partner and he is out from under the lengthy office hours, over-paid sales staff, and financial responsibilities… I guess he had enough. He comes home at 8 or 9 or 10 PM and I have been raising my boys alone for the most part.

            This administration is NOT business friendly (over taxation and over regulation …for years) intentionally to collapse the middle class financially.

        • Dick Gazinia

          Nonsense- “Trickle down economics” has been discredited. If the ultra rich were eager to create jobs they would be doing so as most have been insulted from the economic crisis. There has been no time in US history in which our nation’s collective wealth has been in the hands of so few. Where are these rich patriots?

          • Karolyn


          • Vicki

            Doing what THEY want with THEIR money. You want some of it then invent a better mousetrap. Stop demanding that government STEAL it for you.

          • Dick Gazinia

            I am NOT demanding that the government “steal it for me”, but that they pay their fair share. What they created should be rewarded, but those who benefitted most from American should be willing to help the country that blessed them. An extra 1% of taxes will not mean they get one less Bentley or one less yacht, but what it would mean to the poor is considerably more. The ultra rich also have ultra creative accountants who can hide an elephant in a tea cup and frequently wind up paying less than the honest working person.

            Taxes, since time immemorial, have been the price of civilization. They support what makes any society great. Granted, our government can spend more wisely and more efficiently, but every loyal US citizen should not be so tax-phobic. If our brave young people can volunteer to lay their lives on the line to defend our country (as I did years ago) the rest of us can volunteer to help with a little change.

          • eddie47d

            Good comments from both sides of the business perspective. Bless all who are honest,hard working and concerned for Americas future.

          • Al Sieber

            Well thanks a lot for the nice comment eddie.

          • Dan az

            read it learn it and sit down and shut up!

          • Vicki

            Dick Gazinia writes:
            “I am NOT demanding that the government “steal it for me”, but that they pay their fair share. ”

            But you ARE demanding that the government steal what YOU think is their fare share. The very statement says that YOU think they are NOT and that you want the elite in government to decide what is fair.

            How about we all pay a nice round 1% of all of our purchases (no deductions for any reason). NO special perks for doing something the government wants because some liberal thinks that green energy is “better” to purchase than some other kind.

            Now is that not fair? Well at least I am deciding what is fair rather than telling some representative to tax them whatever is “fair”

      • taxpayer

        BBJ are you saying the government knows better than you on how to spend your money?

        • BigBadJohn

          Never said or implied that.

          We were CLOSE to a balanced budget before Bush’s tax cuts. But his tax cuts changed all of that.

          The definition of stupid is someone who keeps doing the same thing over and over again but expects a different result – Bush’s tax breaks fall right into that category. You CAN NOT cut taxes without also cutting spending and not run up the national debt – period!

          • SunnieDee

            DUH!! So cut spending. Pork abounds every time a spending bill is presented and the last one was “filled to the brim” with it!

          • taxpayer

            BBJ that is the definition of insanity, by Einstein. I am not sure how well it would work to tax the top 2% of Americans to pay for trillions in over spending. The problem will not be resolved as they have the money to move, invest, hire tax accountants and still make much more money. Looking back on human nature and this same thing has been done and is being done yet our government is doing the same thing that has taken down most great nations. Yes this is insane to believe taxing the rich will solve our problems. I am not rich and may fall into the entitlement group because income is not keeping up with government inflation. This is the result of government spending and the fall of America as we know it. What will our new government look like as this happens? Dictator? States forming their own counties? Take over from another power? We may not see this for years or it could happen soon. Obama has an agenda of reducing all Americans to depend on the government for all things, the rich are in his way.


            Bush added 92% to Budget and 100% to Debt
            Since 1980–3 Conservatives for 20 years did what?
            600B Budget to 3600B
            907B Debt added on 9000B in 20 years.
            Got 21.5 new jobs in 20 to Clinton 23 in 8 years
            Got us into 8 International conflicts in which millions of innocents were killed.
            Since 1921 Democratic presidents created 1,800,000 jobs per year to Republicans 800,000.
            Stock market gained far more under D presidents.
            Tax & Spend was Pay Our Way the Democratic way
            Spend & Borrow the Republican way to let kids pay.

            Republicans win big in promotions attacking opposition with LIES.
            Republican attack machines are well organized.

            Six years of Total Conservative Control gave us the Second Great Depression which has directed America into a less powerful economic power.

            In 2009 federal took 17.5% in taxes of total income.
            Lowest taxed in major nations.
            Yet! Scream cut spending. No one says PAY OUR FAIR SHARE.
            To balance our budget requires WEALTH pays FAiR % % % OF INCOME

            It is not fair when top 20% pay almost same % of Income in ALL Income Taxes as Middle 20%. 30% to 28.5%. No progressive taxation here.
            In top 500 Corporations over 200 pay no income tax. 79 got a refund some on revenues in billions.

            Tax book loaded with exemptions gained by K-street lobbying over 30 years.

            Wall Street owns our Elections after ruling they can give unlimited.
            Koch brother Billionaires spent millions backing groups to target specific congressmen. 2010 election was a buyout by big $$$. Nothing else.

            2012==$$$$$$$ will buy the candidates. Wall Street has the $$$$$$$$

            Today-America ranks #1 in Inequality among rich nations.

            Major studies have shown–Equality=Happier people
            Inequality=Dissatisfied people–revolutions

            olduglymeanhonest mad mad mad

          • BigBadJohn


            I agree cut spending. But the size of government doubled in the 2000′s, just where do you cut that much fat and waste?

            As far as pork – Bush and the republicans hold that record. Notice what happened in 2006 when the democrats took over the congress.

            2004 George W Bush $22.9 Billion
            2005 George W Bush $27.3 Billion
            2006 George W Bush $29 Billion
            2007 George W Bush $13.2 Billion
            2008 George W Bush $17.2 Billion
            2010 Obama – $16.3 Billion
            2011 obama – $8.6 Billion


          • meteorlady

            BBJ – we have the second highest corporate tax rate in the world. How does that encourage businesses to come back to this country? If they suddenly raised your tax rate 50% would you stay here or move out to a more tax friendly country?

          • JC

            Bush this, Clinton that…blah blah blah.
            Are we having a political history debate?

            Our problems are NOW. The Kenyan is accelerating our demise NOW.
            The need for a complete AMERICAN OVERHAUL is NOW.
            The need to eradicate Cronyism and Communism is NOW.

            Why is anybody wasting time and or space debating on history?
            It’s gone! It’s over! It ain’t coming back and nothing is going
            to change it.

          • BigBadJohn

            Bush this, Clinton that…blah blah blah.
            Are we having a political history debate?

            Our problems are NOW. The Kenyan is accelerating our demise NOW.
            The need for a complete AMERICAN OVERHAUL is NOW.
            The need to eradicate Cronyism and Communism is NOW.

            Why is anybody wasting time and or space debating on history?
            It’s gone! It’s over! It ain’t coming back and nothing is going
            to change it.
            JC – I agree but look how this article starts out – The administration of President Barack Obama continues to work furiously to float the U.S. economy in order to facilitate his re-election.

            Pumping up the U.S. economy has been ongoing for more than two years. Trillions of dollars have been created out of thin air to offset the deflationary destruction of assets that began three years ago. But opting for inflation at all costs is nothing new.

            This started WAY BEFORE Obama,yet there you see it in black and “for more than two years.” This has been going on since Nixon took us off of the gold standard, ya that’s more than two years. Both Clinton and Bush were printing money fast and furiously but according to John Meyers this all happened in the last two years….

          • Al Sieber

            BBJ, that’s the definition of insanity, like our Govt. no matter who’s in charge.

          • Al Sieber

            BBJ, Obama voted for the “Bailout” when he was a senator, a lot of them voted for it under threat of “Martial Law”. you can’t blame Bush, Clinton etc.. it goes back to the Fed. Reserve.

          • Dan az

            another miscumseption try this for the facts!

  • Robert Palmer Smith

    Dear Mr. Meyers,

    How do ‘we’ get your message out to the voters who support Obama and Mr. Bernake of the Fed? With apologies, please note the use of the pronoun ‘we’. I have been sending the same message for the last six months to all of my family and all of my friends (preaching to the converted).

    The basis on which I claim to have some experience for my stand against inflation is the fact that I believe that I am one of the few Americans still alive today who has written a personal check in the amount C$700,000.00 for a temporary membership in The Shanghai Club in Shanghai.

    In my message I cite the experience of ordering two beers at The Shanghai Club at the sme time because I knew the price of the second beer would rise before I had finished the first.
    In my book, DARKET TRUTHS OF BLACK GOLD, I quote a number of prominent individuals who were adamantly opposed to ‘printing money’,
    Peter F. Drucker: “…..inflation is the systematic destruction of wealth by government.”
    James F. Byrnes – November16,1942 – “If anything like inflation happened, our people would not be ready to take the part which we are pledged to take to organize the world for peace. There would be no greater tragedy.”
    Pierre Beregovoy – French Finance Minister during the 1980′s – “Inflation, a tax which hits the poor.”
    John A. Pugsley – economist and investment advisor – “Without question, inflation is the most deadly of economic evils. It knows no geographical boundaries. It respects neither sex, nor race, nor creed, nor state of health of wealth. It has a more destructive effect on the lives of individuals than all other forms of plunder put together.”
    I, also, have some very penetrating comments in my book about our ‘mutual friend’ John Maynard Keynes.

    Are there no loyal Americans in the main media who are willing to stand up and tell the voters what Obama and the Fed are doing to their country? I live in France so it is difficult for me to be an active, vocal opponent against the inflationary policies of our government. If you have any suggestiions on how I could help get your message out, I will be only too pleased to undertake them.
    Respectfully yours, Robert Palmer Smith

    • Al Sieber

      Robert, Gerald Celente, , Bob Chapman, are but a few in media that speak out. with Russia and China deciding not to trade in U.S. dollars, other countries will follow suit.

    • Mick

      Robert Palmer Smith says:
      January 5, 2011 at 8:11 am

      Are there no loyal Americans in the main media who are willing to stand up and tell the voters what Obama and the Fed are doing to their country? I live in France so it is difficult for me to be an active, vocal opponent against the inflationary policies of our government. If you have any suggestiions on how I could help get your message out, I will be only too pleased to undertake them.
      Respectfully yours, Robert Palmer Smith
      Robert… Where do you live in France ????.
      Glad to see that you’re interested at what’s going on over here, many French people i know already have their minds made up about America although I know a few feeling the same way you do…..

    • John Myers

      Dear Robert,
      Thank you for your thoughtful comments. I think the only way we can do more is what you did right here; by telling others the truth.
      John Myers

      • Dan az

        The time is right for taking out the feds and doing so by way of law!
        The U.N., IMF, & World Bank
        So we jump from 1913 and the setting of the Federal Reserve Bank as the financier of Corp. U.S. to 1944 and W.W.II. The war was continuing and the United States was not fairing too well until the formation of The Bretton Woods Agreements and their new players—”The International Monetary Fund” (a.k.a. the ”Fund”, hereinafter ”IMF”), and ”The World Bank for Reconstruction and Development” (a.k.a. the ”Bank”, hereinafter ”World Bank”). Make sure you’re sitting down for this one.

        The United States Code (USC) Title 22 § 286 reads:

        Ӥ 286. Acceptance of membership by the United States in International Monetary Fund.
        ”The President is hereby authorized to accept membership for the United States in the International Monetary Fund (hereinafter referred to as the ”Fund”), and in the International Bank for Reconstruction and Development (hereinafter referred to as the ”Bank”), provided for by the Articles of Agreement of the Fund and the Articles of Agreement of the Bank as set forth in the Final Act of the United Nations Monetary and Financial Conference dated July 22, 1944, and deposited in the archives of the Department of State. (July 31, 1945, ch. 339, § 2, 59 Stat. 512.) Short titles: … May be cited as the ‘Bretton Woods Agreements Act’.
        ”Other provisions:
        Par value modification. For the Congressional direction that the Secretary of the Treasury maintain the value in terms of gold of the Inter-American Development Bank’s holdings of United States dollars following the establishment of a par value of the dollar at $38 for a fine troy ounce of gold pursuant to the Par Value Modification Act and for the authorization of the appropriations necessary to provide such maintenance of value, see 31 USC § 449a.” (accents in red added).

        [It should be noted that recently, to cover-up the Bretton Woods Agreements (hereinafter ”BWA”) control and the quitclaim of the United States Government to the IMF, the United States Congress abolished the references in the USC referring to the BWA. Other than removing such references that abolishment had no effect on the BWA.]

        The Quit Claim Deed
        The agreement further transfers the assets of the United States Treasury to the IMF by stating words to the effect of: ‘the United States Treasury is now the Individual Drawing account of the IMF’.

        Think about it.
        “The President is hereby authorized to accept membership for the United States in the IMF”

        The President is authorized by whom? By Congress? No. According to the Act the authorization came from, ”the Articles of Agreement of the Fund and the Articles of Agreement of the Bank as set forth in the Final Act of the United Nations Monetary and Financial Conference dated July 22, 1944”, a.k.a. The Bretton Woods Agreement’s final act.

        Even if Congress could have authorized such a thing, where would they get the authority to so do? Certainly not from the Constitution, and Congress can’t lawfully do anything the Constitution doesn’t authorize them to do. Even under the President’s dictatorial authority of martial law, the President cannot lawfully do anything not authorized in the Constitution.

        The Constitution plainly states: ”The enumeration in the Constitution of certain rights, shall not be construed to deny or disparage others retained by the people.” Ninth amendment; and, ”The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.” Tenth Amendment

        Further this joining in the IMF is obviously an international agreement; and, any good dictionary will define, ”an agreement between nations” as a, ”Treaty”. The constitution is very specific on how treaties are to be engaged in with this nation — First, the President signs the treaty; and Second, the Senate ratifies his signature with a two-thirds majority vote. That didn’t happen here.

        • Dan az

          I feel that it is time for all of us to learn the laws and start applying them if you want to change the outcome of the NWO!

        • JC

          Outstanding work Dan.
          If it’s alright with you I’ll be passing this around.

          • Dan az

            No problem JC

  • Doc Sarvis

    “Unfortunately, the Empire would list and then sink because of overspending and progressive inflation.” Many on this site seem to think it was homosexuality that brought down the empire. Thanks for setting the story straight.

    As for President Obama, he wanted to begin to address the deficit by rolling back the tax cut on those in our country who have benefitted the most from our economy/markets. He also tried to address both jobs and the deficit by eleminating the tax breaks for corporations who export American jobs overseas (1.5 million new jobs last year as I recall hearing). Both of those efforts were wholly rejected by the Republicans and a few Democrats. Discraceful.

    • Doc Sarvis

      Sorry, that last word was supposed to be disgraceful.

      • Mick

        Doc Sarvis says:
        January 5, 2011 at 9:01 am
        Sorry, that last word was supposed to be disgraceful.

        Doc,,,,how amazing you would make a mistake on the word that describes the party you defend so well to a “T”

        • Doc Sarvis

          So you must approve of our giving tax incentives to companies to send our jobs overseas.

          • Mick

            Doc Sarvis says:
            January 5, 2011 at 9:31 am
            So you must approve of our giving tax incentives to companies to send our jobs overseas.

            Doc…………………..I think the greed and disregard for our nation by the Unions are mostly responsible for this total fiasco………

          • Doc Sarvis

            I would say the exact same thing (in fact I think I have) of the corporations.

          • Bruce D.

            Doc now that Japan has lowered their corporate tax rate the U.S. has the highest in the world and you want to raise it. It does not occur to you that this might be part of the problem for businesses who go overseas. It occurred to Japan. The main reason businesses go overseas is that the U.S. over regulates business and makes it impossible to compete with those who do not over regulate. Really the Fed is driving business out of the country. Much in the same way California drove business out of that state into Texas. You must be listening to Socialist news stations like MSMBC not to understand that.

    • Azcharlie

      What is truely “disgraceful” is the theft of wealth in the form of taxation, regardless of how much wealth a person has, in an attempt to tranfer it to another. Instead of wealth transfer, we need wealth creation in the form of new ideas and products that create new jobs. The government cannot improve the economy by transferring wealth to another. It’s like trying to fill a swimming pool by pumping water from one end into the other. If you truely want the government to create wealth from taxation, we need to go back to programs such as the CCC camps where those that need the money actually have to build or create something. Of course, the big unions wouldn’t like that, would they? Taxation is not the answer. We must cut government spending and it’s size. Period.

      • eddie47d

        No,it’s the conservatives who are against CCC camps and any other government program on infrastructure.


      have yet to meet and discuss our situation with a person who realized how we got to this point.

      The answer is just a few simple facts
      Decade of 1990′s were great years.
      Full employment. Pay our way. Peace. Admired.

      Let us tell the people these facts Obama and D leaders will not.
      (rounded numbers)

      Clinton left Bush 240B Surplus
      Bush added on 6000B of Debt (more in 8 than we had at end of 225)
      Clinton left Bush 1800B Budget
      Bush took to 3600B
      Clinton left Bush a creation of 237,000 net new jobs per month.
      Bush took down to 31,000 or worst since Hoover
      Clinton left Bush Prosperity
      Bush took to a Great Recession
      Clinton left Bush Peace on Earth
      Bush took to Hell on Earth with two wars of choice.
      Clinton left as most admired leader in the world
      Bush left as most hated leader in the world


      easy to recall six items tell a story
      Prosperity-Great Recession

      tell the people

    • meteorlady

      Again – we have the SECOND highest corporate tax rate in the world today. Ya think that might be a problem for getting and keeping corporations and businesses to stay here?

  • Doc Sarvis

    This is interesting; seems several incomming Republican freshman congressmen/women are already raking in their money from lobbyists for their next campaign – and they have not even been sworn into their first term!


      Funny–North Carolinan won seat in congress on attacking big money influence. Second day in Washingto he held a fund raiser for big donors. Lost re-election.

  • JC

    “Quantitative Easing” – “Monetizing Debt” – “Economic Stimulus”
    are all DoubleSpeak terms for printing fiat currency.
    And printing currency has been the last gasp of every failed Keynesian based economy. It is symptomatic of the failure of a Keynesian system combined with the (privately owned) Federal Reserve’s ability to print money at will and it is the end result of a collapsing Ponzi scheme.
    We The People have allowed this criminal system to rob us blind for far too long. End the Fed.

    • Vicki

      For any 1st year econ student the situation is clear. A massive increase in the supply of something causes a rapid drop in its worth. Supply/Demand not just a good formula, its the LAW (of economics).

    • GaryTraditionalUltraConservative

      Yes, agreed that most regular people with normal intelligence are truly “FED UP” with the Fed but just who are the people who are responsible and accountable for continuing to allow this ravenous and insatiable rabid foaming at the mouth monetary monster to be fed at anytime that the Federal Reserve cries out for more paper to print out more counterfeit bills or play money??????????? Who is ultimately repsonsible for this snake oil sam let me sell you the Brooklyn Bridge Alice In Wonder Land fantasy charade???????? Anyone care to volunteer an answer? Anyone at all.

      • JC

        Many theories there Gary. It’s probably the most closely gaurded secret in history. Conventional wisdom says that the Rothschilds are at the root of it along with about a dozen other “nameless” families like the Rockefeller’s. I personally believe that whoever they are, they are an organization of Zionists bent on world control.

  • bob wire

    “The administration of President Barack Obama continues to work furiously to float the U.S. economy in order to facilitate his re-election.”

    “Pumping up the U.S. economy has been ongoing for more than two years. Trillions of dollars have been created out of thin air to offset the deflationary destruction of assets that began three years ago. But opting for inflation at all costs is nothing new.”

    Hmm? First off, It’s not now or ever been about Obama but North America and her people. But I will admit that from the beginning the “far right” has attempted to make “Everything” about Obama and how incompetent, ineffective and damaging he has been.

    That he has set the course early and held firm when it was unpopular even to those inside inside his own party doesn’t sound like a person that personal ambitions and political aspirations are interfering with his position of sitting President.

    This characteristic is common among Presidents, as we’ve seen though out history, many Presidents have done things that was seen as very unpopular, for we should all know,~ Hard decisions are rarely are popular. At the end of the day it’s not a popularity contest and left for historians to judge years from now.

    I’m not sure what makes anyone want such a job, but yea! I’m sure “O” would like a second term, but he’s bright enough know everything he does is being watched and recorded and there is little doubt in my mind, that on a personal level, he’s has a “greater interest” in how history will read 15 years for now and the part he played, for better or worse.

    Worries about inflation are valid ones and like every President that came before has found, the USS America is a huge ship of state and doesn’t respond well to quick and rapid changes in course. She’s a floating brickyard, loaded with huge cargo and 320 million souls.

    Over steering is very easy to do! Especially when some many thinks they know more then the Captain and fight for rudder control as they cry for mutiny.

    I think “43″ had a belly full and glad to be down in Crawford today,~ to chop a little cedar in the morning, play with the childern’s momma in the afternoon, then to chill out, munch corn chips on the couch and watch “Ban of Brother” after feeding stock and evening chorus.

    I glad he made it and still healthy from the experience.


      No one will tell?
      Bush put out Guarantees of Bailouts of 8500 Billion in 2008.
      8500 Billion takes printing money

      Horrid details at Google: Kathleen Pender + Bailout
      Writer with San Francisco Chronicle

      Big Banks? over 500 Banks got bailout money many have gone bankrupt.

    • Karolyn

      Bob, you said “Hmm? First off, It’s not now or ever been about Obama but North America and her people. But I will admit that from the beginning the “far right” has attempted to make “Everything” about Obama and how incompetent, ineffective and damaging he has been.”

      How I so agree with this and find it so frustrating that so many want him dead or gone. He is only ONE MAN, who I believe is totally committed to his job and making this a better country. Why else would he push so hard right from day one? Most new presidents have taken the first six months of their presidencies to just get the hang of things. Obama did not do that but went right to work.

      • Phil

        Oh c’mon…..Obama has been “committed to his job” mostly on vacations and the golf course. For a communist…he’s sure living the good life off of our government.

        • Karolyn

          Have you ever seen a President who didn’t take vacations? I think they deserve every day they can get. They are on call 24/7. Do you really think it’s such an easy job?

        • kate8

          Yep. Obama had to start ramming things throught before the people could catch up with what he was doing.

          When they did, they loudly screamed NOOOOOOOOOOOO!

          But he didn’t listen. In fact, he just pushed harder. He has a nation to bring down.

          Funny how the Left whines about how the right dislikes Obama. Kinda sounds exactly like the way the Left treated Bush.

          They still can’t figure out that it makes no difference who the POTUS is.

          • Christin

            Yep, Kate8, that’s what he did… obama just rammed all those “unnecessary progressive agenda bills” down the American people’s throats when we said NNNNNOOOOOO!

            “It was the Economy Stupid” (aimed at government) NOT Stimulus (Debt), Omnibus (More Debt), Cap and Trade (Global Warming Hoax), Financial Reform (Over Regulation of Business), Health Insurance (Tax/Depopulation/gov’t ownership), and Net Nuetrality (Tax Websites & Control of Info).

            All we needed was to CUT the SPENDING and CUT TAXES and relieve businesses from over burdomsome regulations so America could “produce” something again and grow jobs to restart the economy again after the man-made Bubbles.

            If I remember correctly Americans said “If you jam obamacare down our throats we’re going to shove it up your _ss on Nov. 2nd.” Done.

          • bob wire

            “If I remember correctly Americans said “If you jam obamacare down our throats we’re going to shove it up your _ss on Nov. 2nd.” Done”

            NO Christen! it’s for you to attempt and that is a cold hard fact.

            If you kept as tight of control of your mouth as I do my A$$ maybe this unwelcome things might not be placed there.

            Another Fox junkie with illusions of a majority. You need to get out more.

          • bob wire

            “Funny how the Left whines about how the right dislikes Obama. Kinda sounds exactly like the way the Left treated Bush.”

            No Katie, it no a whine , but a statement of simple fact and we really enjoy it almost as much as you seem too!

            I love to hear about how Naughty Nancy & Horrible Harry and the “O” team packed GOP fudge. ~ Mean ole democrats! How dare them take advantage of a majority vote while the Fox hounds squealing and howling NOoooooo! a passing legislation that a majority of us Fox Hound despise just because they can!

            Katie, I enjoy hearing all about it ! But that I tell you about what you’ve been doing since February 20th 2009 doesn’t mean I tie of it.

            It’s not about “O” but America and political process of free men and women and how to best address the problems we face.

          • Christin

            Bob Wire,
            I saw the quote posted above on a Tea Party sign.
            The “shoving up your _ss” was not meant literally, but to inform congress they would be voted out.

            I probably do need to get out more, but I am busy rearing my sons and helping with homework and only venture a couple hours from home. I have been all over North America before kids. Plus, if getting out in the world now will make me more like you… I pass.

            You, sir, probably need to go to church more to learn how to politely speak with ladies and to school to learn how to write with accurate and intelligable substance. We can do with out the filthy rants.

  • Teresa

    It does not matter how much cuts they do in the spending, how much they brag on the tax cuts they comprimised on, how much job increases they “say” they will produce….they have killed our economy w/regulations….The Obama EPA has nationalized the permitting process for all new energy-related construction projects.
    In another regulatory jihad, the Department of Health and Human Services under Secretary Kathleen Sebelius in December issued a 136-page federal decree essentially nationalizing the process of setting insurance premiums (historically a state-level decision).
    On December 23, the Interior Department issued Secretarial Order 3310 giving itself more power to end energy development on all public lands.
    Then we have the re-introduction of government end-of-life healthcare rationing. Section 1233

    In 2008, a credible analysis in the Wall Street Journal by economists Nicole and Mark Crain suggested that then-existing levels of regulation were consuming a whopping 14% of Gross Domestic Product. But those numbers, while compelling, still understate the magnitude of regulatory overreach, especially when you factor in “green” lawsuits which have further inhibited the modernization of energy infrastructure and the launch of new industries which cannot be born (or reinvent themselves) in the current environment.

    • meteorlady

      You are correct. As a business owner I know about regulation. Here’s a little example….

      I needed propane. I used my own tanks. Then the industry that manufactured propane tanks decided that the older ones were unsafe and called for regulation. The older ones that I used were EXACTLY the same as new ones I was required to get from them, except for the filling apparatus which was changed slightly and painted a different color. Since I used to periodically replace my older ones with new, I was appalled that they would have the balls to take this issue to the government and get a law passed to protect their profits. They made money, I paid more thus cutting into my bottom line.

      • bob wire

        I understand meteorlady, but that not so much government as Insurance Companies.

        If they fill your tank and it blows up, ~ you have grounds for a law suit.

        I know it sucks, and I agree , I think it’s overdone and done for profit, which really hurts people that’s running on very small incomes.

        I’ve been hit with this myself.

  • LiarsMustBeDefeated

    Spend your money while it still has value. Spend it for stuff that has real value. And, if you have some left over, Spend it on education for yourself and others. That has REAL value, too.

  • Mick

    Doc Sarvis says:
    January 5, 2011 at 9:46 am
    I would say the exact same thing (in fact I think I have) of the corporations.

    Doc …The difference is that corporations provide jobs while Unions collect dues and sock it to the tax payers to bail out the pension plans they promised their members and before you get on your high horse about some corporations being bailed out by the tax payers, I was and am against it, can you say the same thing about YOUR party ?
    And another thing, if I was head of a corporation i would close shop before I let a Union squeeze me.

    • Doc Sarvis

      You distort what unions are about. I know that not everything about unions is right but they do also advocate for fair treatment of workers and demand a safe working environment. These are things that were rarely provided to workers prior to the evolution of the unions.

      • wayne

        Doc. the Unions originally started out being good for the workers. To protect them from unsafe conditons, and slave labor. As time went on the Unions became too greedy and demanded too much from the corporations. I think this is exactly what is driving all th big corporations over seas. Of course, we can leave out all th stringent reglations that the government has imposed on them. So therefore, I think it is the combination of these two things that is driving those folks overseas so they can reap the slave labor of the poor countries.

        • Doc Sarvis

          And as time went on corporations became too greedy and demanded too much from their workers for an ever shrinking (relative) compensation for their efforts.

          Also, if there are no regulations imposed by the government (or even not enough – see BP in the Gulf) corporations are free to expolite workers, the environment, and the economy. This is another reason (besides the tax break) they are going to third world countries to exploit people and the environment in other places. Criminal.

          • meteorlady

            No you are wrong. As time went on the government got more and more greedy and taxed the corporations out of the country. The unions are a non-event in that I pay union wages to my employees even though we are in a right to work state. I also pay less taxes in Texas than I did in Washington state, hence I am now located in Texas, for now.

          • JC

            What you completely overlook in your scenario is that while Corporations may have gotten “too” greedy, the Government itself was complicit every step of the way. They to got “too” greedy.
            So don’t be so naieve as to expect Government Regulation to fix anything. They are not benevolent…they are MALevolent towards the people. They are a controlling entity riding the gravy train and they don’t want YOU screwing with their arrangements… “Cronyism” is the problem, not “Capitalism”.

          • meteorlady

            On more thing. I went out an surveyed my workers. They do not feel exploited by me, just the government that represents them. They choose to work for me and they said that if I did not pay a fair wage, they were FREE to move to another employer. Hence I treat them fair because it’s to my benefit to do so as a business owner.

            I worked for a large corporation – Boeing – and they treated me more than fair and I was non-union. I made a great salary, had health care and a VIP program where they matched dollar for dollar. If that’s big corporation exploitation, then I’m nuts. With the money I made there I was able to start my own business and have been fairly successful until the latest government and Wall Street rip off and the Democrat’s failed Fair Housing Act.

          • eddie47d

            Thank you for being an honest employer. All unions ask for is an honest days pay for an honest days work. If they ask for more than an honest living then they are as greedy as corporate greed. You seem to have found a workable agreement with your employees and I applaud you.

          • Vicki

            Eddie. Why do you think that you know better than Meteorlady what an honest days pay for an honest days work? Employers and Employees should be free to make contracts with each other. Government and Unions do nothing but interfere with that.

            Even the claim that unions where good for workers in the early days totally ignores that the workers were free to NOT work for bad employers. They could even go to a bank and get a loan to start their own business in direct competition with their ex-employers.

          • eddie47d

            Vickie; When unions first started almost all major employers were on the selfish or bad side. Few workers had enough money to live on and it was almost impossible for them to start a business. Unions brought a positive change to this country and everyone benefited. It may be different now but a good employers who has a union shop needs to teach economics to the employees. Nothing wrong with either side letting each other know the reality of the business they are in.

          • Vicki

            Eddie47d writes:
            “When unions first started almost all major employers were on the selfish or bad side.”

            According to whom? Marxist or socialists trying to rile up the proletariat?

            Eddie:”Few workers had enough money to live on”

            Change jobs. Band together and start your own business.

            Eddie:”it was almost impossible for them to start a business”

            Why? Government regulations perhaps? Try starting a lemonade stand.

            Eddie:”Unions brought a positive change to this country and everyone benefited.”

            In the early days Unions MIGHT have been a good thing. They certainly were initially a proper use of the freedom of association. Then they crossed the line and started forcing people to join and or forcing people to NOT cross some line to go to work. It was all down hill from that moment.

            The of course the government became involved. Had the government done its job and protected the individuals (employer and employee) I would have no problem. But instead the unions went to government and forced their opinion on to the employers using government power.

            Fortunately I work in an industry where 12 hr work days are not denied me because of some government regulation. I can, have and will again move to a new company if the current one fails to pay well for those 12 hr days.

            And of course if I were in the shoes of the small business owner a 12 hr work day would be a luxury.

        • Mick

          wayne says:
          January 5, 2011 at 10:22 am
          Doc. the Unions originally started out being good for the workers. To protect them from unsafe conditons, and slave labor. As time went on the Unions became too greedy and demanded too much from the corporations. I think this is exactly what is driving all th big corporations over seas. Of course, we can leave out all th stringent reglations that the government has imposed on them. So therefore, I think it is the combination of these two things that is driving those folks overseas so they can reap the slave labor of the poor countries.

          BINGO wayne…………….it’s not that hard to grasp but somehow it flies over the liberal…………

          • meteorlady

            Add the second highest corporate tax in the world and it’s a perfect storm.


          Corporations go to China for:

          New ,modern Chinese subsidized plants. Very cheap labor.
          Largest hosiery manufacturer this year moved into huge very modern low rent plant Profits will be huge for Hanesbrands.

          40% of Imports from China are from American owned plants.
          Most of those USA Plants were not unionized.
          Since 2000 we have had 40,000 plants close.
          We have lost many dozens here in a small city.
          None were unionized. Out-sourced apparel and textiles and furniture.

          Wall Street rich own us. They will do anything for profits.
          Maximize not optimize profits is motto on WSA.
          I have been involved in closing many operations. It was rarely labor cost as the main cause.
          Revenues and Expenditures–Most closures were decline in Revenues ,not increass in expenditures, due to bad decisions by top man.

          80% China-Mart sales from China.

          Union is scapegoat nonsense.
          The firms are paying $2.00 and selling here for $3.00–$4.00
          How else can they be reporting such huge profits?????

          Low cost labor=CAUSE

          How soon we forget the exodus of Textiles out of New England to the South. It was not Unions. It was Labor Cost.

          Capital – Labor There must be an equity sharing.
          Capital=thousands of humans —-Labor= Millions of humans
          comments welcome

  • http://yahoo Lyon

    Of course I hope that people can see that this is not about the Left/right paradigm of Republican democrat control..This entire situation in the World is all about CONTROL..Those with all the money make the rules..The U.S. Government is working for the World bank and it’s owners, the banksters..The Military continues to build bases all around the world that cost BILLIONS of dollars so that they can control foreign OIL/Opium or anyother resources they feel equitable.Our so called president and Congress is owned and controlled by the Big Corporations that are basically owned by the banksters, and they are manipulating behind our backs the Constitution which is the LAST hurdle for them to gain full control of Our nations Wealth/Freedom/ and Land..The communist Manifesto is being followed by these tyrants, and most people are sitting around arguing about which Party is right or wrong, and this is exactly what the Banksters and Tyrants want from the Population. I really hope some of you guys look into the “ONLY” politician that has the Huevo’s to stand against these tyrants… RON Paul

    • Will-CA

      I agree and would like to ask you and the rest that post here to please check this site out I read this pamphlet about 30 years ago and was awakened. It is said the truth will set you free and that may be but I tend to think the truth hurts is more appropriate.
      This so called national debt is a lie it doesn’t exist. It’s one of the biggest scams ever pulled on us. Taxes are not even needed taxes are nothing more than a part of the elites tool chest. We can argue about Republicans/Democrats, unions, illegal aliens, military, religion, until we a blue in the face and we won’t ever solve these problems until we ALL realize the root cause of the problem. FEDERAL RESERVE!
      It is the most powerful weapon ever used against US by the World Bankers/Elites. If we could triumph against these criminals we would once again be the shining light of the world again. Be the example not the victim/problem.

      • Teresa

        very good….can we all say “the love for money is the root of all evil”….

      • http://yahoo Lyon

        Thanks for the site Will…I’m tuned in man and I’m glad you are as well. I love America and my neighbors, and i think we can All see that the criminals are not the People, which the Police are being trained to believe.I’m also redundant in saying that the only man to defend us is Ron Paul, here’s what he has to say for our future.. I hope everyone will listen and support this True American..

  • http://non don b

    “those who do not learn the lessons of history are doomed to repeat it”. we do this at the lowest level. even though we know that lack of exercise, heavy food and drugs and alcohol ruin our health, we do it anyway. then, we complain when the doctor bills are high. same thing with money. people in positions of power are willing to forget history for short term greed, or some kind of fantasy that grabbing as much as they can will somehow allow them to win their war.

    men are like this. they are conquerers, even to their own peril. enough is not enough. they have to have more, until, before they realize it, they are destroying many lives through their stupidity. somehow, women are different. they are not conquerers, they are nurturers. stealing, killing and maiming are not in their makeup. except for american women of course. we have tried to make them into independent drones for their own bidding, unable to cook, clean or rear children. but for most other countries, their women would make excellent leaders. it’s all about restraint. of course, people don’t respect history, so there you go.


    Meteror Lady pay attention
    Corporate top rate is 35%
    HI High HI

    But But—what do they pay?

    Top 500. Over 200 paid none. 79 got a refund some with sales in billions.

    Pay in taxes one of Lowest. 22%. 22% on rate of 35%.

    Since 1980 each industry has gotten loads of exemptions.
    K-street Power.

    In 2009 our Federal Government taxed all our income at 17.5%
    On of lowest in industrialized nations.

    17.5% is not high. 22& is not high in world comparisons

    Out rates are meaningless. Burn the Tax Book start over.

    FLAT TAX. I wish. But what would we pay?
    Try taxing all individuals and all corporations at 30% of Total Income. No deductions.

    Numbers are simple.
    12,000 Billion is Total National Income.
    3600 Billion is Budget.
    3600 is 30% of 12,000.

    Corporations go from 22% to 30%
    Individuals like 400 top income go from 18.8% to 30%

    Sorry Meteor that is outer space taxation and will never sell.

    What do you suggest?

    p.s. In 2009 we taxed at 17.5% but needed 30% to cover our budget
    Sad. We borrowed 1400B. How much longer can we do it?

    What did we do in 1990s that were so successful???
    What did we do 2000-2010 that was so unsuccessful?

    comments welcome

    • http://personalliberty-bobLivingston Rob

      Everyone seems to forget that Clinton reduced the deficit by closing military bases and cutting the defense budget.

      Plus he had the benefit of the “’ boom which brought in billions through stock trade profits. The dot com bubble started to burst just before W took office.

  • da norseman

    The point is this! It takes working people such as business owners to create a booming economy. It takes bureaucracy to screw everything up. Business owners throw in a lot of capital to make business work while bureaucracy takes it all away with help from the Internal Revenue Service and union bosses.

    The weak economy, of course, is attributed to the weak dollar, thanks to the meddling of DC politicians, especially over the last four years under such amateurish leadership of the 110th and 111th Congress where they came first and the People second. Other bureaucrats such as these same union bosses also played a role in worsening the economy when government gave them more power to intimidate and bully business owners by demanding more money. This is all through government greed, especially for big government!

    Teddy Roosevelt signed into law during his presidency making gold available to the public to invest, which was later repealed by his distant cousin who made it illegal to own gold. The repeal was overturned by the Nixon Administration, making gold available once again. With the falling dollar and weakened economy hastened by Congress over the last four years, it makes sense to invest in gold to protect assets since gold never goes down in value.

    We should learn the lessons of the Stock Market Crash of 1929, which can be traced as far back as the Woodrow Wilson Administration who signed into law the Sixteenth Amendment to the U.S. Constitution in 1913 that created the Internal Revenue Service. As taxes got higher and higher, once successful businesses foundered into bankruptcy and some went out of business. Others decided to relocate to other countries to protect their assets.

    To make matters worse, California, once considered a dream state, has imposed ridiculous business laws and higher taxes over the years through the greed of Sacramento lawmakers that caused a mass exodus that began when Jerry Brown first took the governor’s office in 1975. The state budget fell over the next eight years as Brown watched businesses leave the Golden State in large proportions while he just waved and said, “ta-tah!”.

    The economy of the state was stabilized once George Deukmejian assumed office as governor and remaining businesses stayed, but the state legislature with all their greed made the state economy a lot more worse during Pete Wilson’s watch that, when Gray Davis became governor, the economy was at an all time low. Businesses left in droves to other states during the early 1990s. California surpassed states like Massachusetts, Connecticut and New York to become the most expensive state to do business and to reside, turning it from a dream state to a nightmare state.

    The solution to bring this nation’s economy to healthy levels is this: reduce the size of government; repeal the Sixteenth Amendment and fire the unions!!!

  • Bitter Libertarian

    Inflation and deflation are a direct result of Criminal manipulation of Monatary policy and the federal reserve Act of 1913.

    How many people realize that every loan that you take out you directly contribute to Inflation? Fractional reserve Banking allows this and this system is what has given the Criminal Elites the framework to beguile the American people into believing that the “American way of Life” RE: Mortgages, auto loans and any other business loan is “OK”.

    I wonder how many people understand what a debt based system really means.
    I wonder how many here understand that when you take out a Loan for say, $30,000 the bank need only have $3000.00 in deposits in order to write the ‘note’ for the $30,000.! Where is that other $27,000 come from and where does it go? I’ll tell you where, since most institutions keep those “notes” between themselves, they “print” it and use it for their own ventures, schemes, and investments.

    • Will-CA

      Wow someone who understands the system. It’s amazing how simple it all is and how so many are missing it. I loved your example but you left one thing out not only can they loan 30,000 from the 3000(which by the way I learned during this last bailout some of the banks were as high as 70 to 1 with their loans) now they can loan 270,000 on your promise to pay them the 27,000 plus interest. Man what a scam. Keep up the good post.
      Thanks Bitter Libertarian
      Again to all that post here check this site out
      Please forgive my redundancy I really think it is important for all Americans to know this info. It trumps all of our other problems.

  • http://yahoo Lyon
    • Will-CA

      Thanks for the site Lyon. It’s refreshing in these hard times to know there are other people on the same page.
      I now live and work in SoCal at my family’s 73 year old small/failing business. In other words trapped. Sometimes I feel like I’m all alone trying to tread water in a sea of Drones.
      Keep up the good fight.

  • Porta

    We are talking to be ready for hyperinflation etc for 3 years now. Nothing drastic! If anything, is a period of deflation (price of houses etc)….
    The mass of people seams clueless of the dangerous up and down that is happening with the global economy, and the dangers rest ahead for US, by printing money and accumulation of debt. And if we pretend to know, then why nothing and nobody changes ? Is that because we are not enough ….. to matter …

    • Will-CA

      If you put a frog in a cool pot of water and then turn the heat up he will boil to death. Put him in a hot pan and he will jump out. Were the frog and we need to jump out of the pan.
      Again we all need to wakeup. Those who put us in the pan have been doing this for years now and we are just beginning to wakeup. Hopefully not too late.

  • Porta

    Unless is done by the FROG, nothing will be changing by the Feds.
    Are you ready ? Is anybody ready ?

    • Will-CA

      Yes I’m ready you apparently are not. I’m tired of watching my country and loved ones being robbed and abused. Unfortunately if and when all us frogs wakeup the Feds will not lay down it’s going to be ugly, but not as ugly if we stay asleep.

      • Porta

        I guess you are right, I don’t see a clear way to fix the things, easy or hard …..
        Te enemy is not clear. I know, “The System”, “The Big Banks” ! But WHO specifically ?
        We are to blame not to elect President somebody like Ron Paul who thinks straight ? The Federal Reserve Bank, who prints money out of thin air is so wrong ! Is not Federal, but private, owned by some big sharks in London England. Is not Reserve, does not have GOLD, but printing machines. It is a big lie, and they are hand in hand with our election choices ! And only THEY have the right to print the American legal tender, the Dollar !
        Is the present choice the best we can come up with ?
        But not even him, can do too much, because at the end of the day, the System will eliminate him one way or another.
        We keep on electing Reps and Dems and we get all the same !
        So, what is your first action ?
        Please, GO AHEAD ! I will follow you ……

        • Will-CA

          I’m with you Porta and I’m sorry for my last post I really didn’t mean to implie that it is and would be easy for us to fix this mess. In fact I feel just like you I see so much wrong around us. But that is the fix for the elites turn us against each other, keep us distracted American Idol, Reality TV, Oil spills, wars, make your rent, pay your taxes, etc… and all along these people have been focusing on keeping their power. Again the biggest tool/weapon they have is the Federal Reserve. If and once enough or all Americans knew the truth we abolish the Federal Reserve. Without the Federal Reserve it will take the wind out of their sails.
          With that said I wish I had the knowledge and resources’ to take care of it myself, I don’t! So until something better comes up I’m going to keep researching, communicating, and supporting the few that seem to know what’s up. Like Ron Paul and more importantly people like you. We the People are the only ones that can get it done. Don’t know if you saw my earlier post so I apologize again this is the 3rd time today I posted this link check it out it will open your eyes.

          • kate8

            Will-CA – Check out this article on California.

            This is what happens when liberalism runs amok. Too many taxes, too many regulations – but only on hard working citizens.

            You’ve seen what happened to Detroit at the hands of democrats. Well, look at California, and see where this nation is headed.


          • Porta

            Will-CA, thank you for your comments ! I was not crossed by anything.
            Nothing what is going on right now will be accepted at the time the Constitution was written. Not the FIAT money and the rest.
            Fed is the start, and the rest follows. That policy is wrong and rotten. Unacceptable in the 21 Century. But don’t fool yourself, it will be hard, and maybe not in our lifetime.
            We live in a global economy, and everybody is hurt by this !
            The greatest wealth transfer in the history, takes place right now under our noses, and the folk was no idea because they watch the Idol.
            Eventually in will be hyperinflation, and the things will sort hopefully. If you have any money left, hide in the gold, or silver.
            Nice talking to you, and thank you for the link.

  • chuckb

    until we change our energy policy and cut off the stranglehold the commodities market has on us we are headed for a crash, the oil companies and the arabs, the futures market= high gas prices which radiate thru the economy and will cause super high inflation. you can see it growing by the day, check your food prices and the local one armed bandit the gas pump. there is no reason whatsoever for the high gas prices other than that caused by barry and his admin and the enviro lobby. they refuse to let us drill for our own oil and the environmental lobby in my belief is owned by the oil companies themselves. congress allowed these major oil companies to merge knowing full well what the initial outcome would result in. the oil companies are just as much to blame as opec, in fact if the truth was known they are all in bed with each other.

  • DaveH

    A bit esoteric, but worth reading:

  • Will-CA

    kate8 Thank you for the link on Central Calif.
    It’s a crying shame.
    I see it here I’m located right next to Cal State LA just a few miles from downtown LA. I can see the High-rises from office and home. It’s like a foreign country here. I was born in SoCal 1959 lived here until 1974. It was wonderful never had to lock our front door had great neighbors you know USA the way it’s meant to be. Then I was blessed with living in a wilderness area NW Colorado (a little bias GOD’s country) boy what a shock went from Jr High class of 305 to my grad class of 26 did I ever get a culture lesson. I returned to Los Angeles to go to work for my family business that has been struggling ever since 1984. As they say back in the jungle.
    We have delivery business our primary deliveries are US Mail & Courier for commercial accounts. Everything from Insurance Companies to Window Manufacturers. Our business was actually the first of it’s kind we had fight the congress to even operate in 1938. It has grown and shrank many times in 73 years. Largest 200 employees to now 20. So much is leaving CA and for good reason we are 10 times smaller today than we were 10 years ago. It’s sad most people can’t see it even here. Watching the mass exodus of business and the mass intake of illegals is so painful.
    I know your all thinking why the hell don’t I get out of here. I won’t because I can’t move my family business my customers that I have left is our business. Also I’d be dumping on my family and the 73 years put into it.
    Oh by the way to the libs out there I and my family are some of those so called rich people you want more from. For the record my Father {still the Boss), my Uncle my boss hasn’t received a paycheck in 4 years now. Me I only receive enough for a truck payment and a little to eat.
    If you have not guessed I’m white and here in CA that’s the enemy. Everywhere I go I get horrible service, the filth. I can tell I’m hated by most of these so called immigrants I see it in their eyes. I’m no bigot I’m a God fearing American. And it just infuriates me to see how I and my fellow Americans are being treated. For being kind, generous, and forgiving we get kicked in the teeth.
    If you connect the dots economy, illegal aliens, anti-God, Big Gov our future doesn’t look too bright.
    I know after living in Colorado for 10 years there is hatred of Californians and for good reason Californians can be and allot are arrogant jerks. Hell look at the mess that’s us Californians made of such a great state (Still love Colorado more). We have everything here mountains, beaches, desserts and their resources. But as it seems it’s being invaded and raped as we speak.
    Please to the rest of America look good and hard at California it’s just the beginning of what’s to come to rest of America. And most importantly please here in California there is still a few Americans left some trapped like me. We need you to stop this from spreading further.

  • chuckb


    good article on california. as a life long resident of so. cal and nor cal i can relate to what the web site commentator is saying and what will-cal describes.
    i’m probably negative in my assessment, but i don’t think it’s possible for california to pull out of this mess. i see california going bankrupt and pray that the u.s. gov. doesn’t bail them out, moonbeam brown will most likely be the straw that broke the camels back and the people who voted this jerk back into office deserve him, he has lots of company in the stste legislature.
    i’m surprised spanish isn’t the language of choice.

  • http://com i41

    chuchb, what do you think the Nazi Traaitor Socialist Soros is buying up, all grain commodities and gold stocks. Also since he is a major player in the big hedge fund racket, he got the rules relaxed on that segemnet of the Wall Street crap game. I see Onumnutts is appointing his new economics advisor, another Wall Street inside scammer like pay no taxes Geithner. Daschle is still on the Wall Street board and would of had Kathleen Sevlious job if his longer than a decade tax paying problems hadn’t surfaced. The socialis Democraps better shut up about what party that is bunk buddies of the Wall Street and pay no taxes or fines organization. Kind of a inner elit mob of mobsfrom Chitcago and NY. The unemployment will stay at over 9.5% till the banking reform get dismantled and local banks get to have a say in making loans, not the Washingtomn beltway wonks. Seeing how the EPA and the f–king greenie electric global warming smucks keep stalling progress on on exporting our own crude oil to sell on the open market to pay off China. There will be even more people out of work, and inflation is already growing on just grociers alone, because of freight increases. In Sept 14 last year EPA stopped theTransCanada Pipeline from proceed ng on down to the gulf, to send oil from the Baaken-Williston Basin to the open market. Over 8,000 operators were to start showing up in Dec 2010. At it peak over 50,000 people would have been working and making 25-75 dollars an hour to get it planted and working to say about an equal amount of drivers and support personal, so what bunch odf socialist sorry bastards do the unemployed thank, idoit of the dumbocrap party and morons like blanket butt eddee, Onumnutts and his radical pukes, Socialist Soros, Karloyn and the pipedream team. Normiee and any other couch lizard book trained idoit of Gores ilk. I realize tyhe logistics of a giant operation for socialist to wrap their pea brains around is a convolted maze, but it is way easier than building a interstate high way. Colleges sure will not have people in the hall ways smart enough to fill the needed operators, so I guess the blue collared lads will make more than the book trained jackasses.

  • http://com i41

    That is unless the sociast democraps and Onumnutts don’t sub it out to the Gooks and the goat herdering pedofiles. The Chinese are going to bring in their own engineers and builders to put in Dingy Harry Reid light rail from Cal to Nevada. Any surprises China got the contract for the windmill build and now own the largest uranium mine in the world in Wyoming, as well a a planned windfarm in Texas ans iol patch ground there too. Think the gook bastards will obey EPA guidelines?

  • i sterry

    Bought a 100 oz bar of silver in the 70′s during the last big run up in the price of silver. (Unknown to me and most others the Hunt Bros. attemptd to corner the market). The price collapsed. I kept that 100 oz bar of silver in my pencil drawer on my desk for MANY (about 15?) years before I finally sold it. I sold it for less than I paid for it!! It was a very heavy paperweight reproachiong me about my stupidity for all that time. wasn’t much of an investment!


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