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Rise And Fall Of Nations And Reserve Currencies

March 17, 2011 by  

Rise And Fall Of Nations And Reserve Currencies

Among the “must reads” for people trying to gain insight into the long-term structure of economical developments is Mancur Olson’s book, The Rise and Decline of Nations, published more than 30 years ago. Olson was a great economist and social scientist who showed how interests and incentives of individuals drive and influence the development of a country. This often results in a less than ideal resource allocation and over time can result in very harmful effects for a country that can even lead to a complete collapse.

Olson’s findings help us to understand the problems of many Western nations today and how they will face a lot more headwinds in the future. Chronic overspending and changing demographics will cause many Western nations to “fall” or at least enter a period of deep structural change, thus bringing along many painful adjustments.

While today’s structural problems among Western nations are different than they were a decade ago or even centuries ago, the fundamental reasons that lead to a decline of a nation have not changed at all since the fall of the old Roman Empire,  the breakup of the Soviet Union or other troubled economies. However, today’s situation is more complex because of globalization.

Now the U.S. and Europe might be at the start of a long-term decline and with it their currencies, both of which are the world’s most important reserve currencies. The chart below shows that the importance of the United States dollar, measured as a percentage of global currency reserves, has been steadily declining since the late 90s.

Reserve Currency
*Source IMF

Almost 90 percent of the world’s currency reserves are held in U.S. dollars and euros, both of which are at risk to face a long-term structural devaluation. In light of this, it is obvious that a growing number of investors and governments with net currency reserves would like to diversify away from these two reserve currencies.

There are clear signs that this rebalancing has already started and that the combined percentage share of the two largest reserve currencies is going to fall further. How low can this go on in the next five or even 10 years is the question? My honest answer is that I don’t know, but I believe that even a shift of 15 percent to 20 percent would be enough to exercise serious downward pressure on these two currencies for years to come.

Besides the shift in the distribution of reserve currencies, which will have an impact on the value of individual currencies, there is another interesting development happening. The U.S. dollar seems to lose its role as a “crises” hedge; that means that even in times of falling markets or geopolitical turbulence, the greenback is not able to benefit, at least not as much as it used to, meaning investors are not looking to move funds back into the dollar in a flight for safety and liquidity.

Let’s look at the two recent examples: The first one is the situation in the Middle East and Asia, where tensions have been spreading in the last couple of weeks. The chart below shows the currency exchange rate AUD/USD. The Australian dollar is widely used as a carry trade by investors because of the significantly higher yields in Australia. So recently, despite the devastating damages by the flooding in Australia and the very serious tensions in the Middle East, the exchange rate AUD/USD remained relatively flat.

AUD

 The second example is from the terrible events in Japan in the past week. Despite the potentially far-reaching consequences of these events, the U.S. dollar has not been able to benefit because investors seem to be reluctant to move money to the U.S. dollar even when things look more uncertain.

And not to forget, in the case of the Japan earthquake, it was the third largest economy in the world that got hit along with the Japanese yen, one of the major currencies. It’s indeed very interesting and maybe even a bit surprising that the U.S. dollar has not been able to benefit much from this. It certainly tells a lot about the fundamental weakness of a currency.

USD

The Chinese Premier Hu Jintao recently said that the era of a U.S. dollar-dominated currency system is coming to an end and that this will force a change to the international currency system. The recent structural weakness of the U.S. dollar and the euro shows that we are moving in this direction and that we are probably in a late stage of development of today’s world currency system.

The rise and fall of a nation and its currency follows a very long and powerful underlying cycle with very unique dynamics. While sound economic and political leadership can certainly dampen the negative effects, each prospering society will eventually enter a period of slow growth or even stagnation.  Also with the rise and fall of nations comes the structural appreciation or devaluation of these nations’ currencies. Depending on where they are in terms of their long-term economic cycle, it has very important implications for investors.

Today’s problems in Japan, Western Europe and the United States have a lot in common and, while we all hope for things to change to the better, it’s wise to prepare for the worst. In this case, that means a prolonged period of disappointing economic growth, large and growing debt burdens and increased social economic tensions between different nations and even within each nation. Even the tensions and the political turmoil in the Middle-East and the Northern African region can, to some extent, be attributed to such an underlying structural cycle. Things can only get so bad until people have nothing to lose anymore and start taking control of their own destiny.

In light of the comments above and the lessons learned from history, today’s financial and economical problems in the West need to be seen in a different context. The weakness of currencies like the euro and the U.S. dollar might not just be a temporary phenomenon, but much more likely the early phase of a long-term structural adjustment that will include below average growth and a devaluation of their currencies versus many other major currencies, including many emerging market currencies.

In regards to all of this, I think the question that we need to ask today is whether the current debt crisis in the U.S., Europe and other major economies is really indicating that things will worsen from here and that we have moved beyond the point of no return.

I think the problem today is that governments have spent way too much money in the last couple of decades and that today’s highly alarming debt burden in many countries are only the tip of the iceberg. Some people might argue that the debt in percentage of gross domestic product is really quite manageable but the problem is that on top of the current debt, we need to take into consideration unfunded future obligations that will drive up the government’s debt level even more. This is especially bad for some Western nations like Spain and Italy, who have a rapidly aging population and therefore fewer and fewer young people that can support retirees.

The conclusion of this article is that investors need to rethink their investment strategies, especially with regards to their currency allocation. The two dominant reserve currencies in the world, the U.S. dollar and the euro, are both showing signs of structural weakness, might both face significant devaluation in coming years and this will result in increasing money flows to countries that experience faster economic growth and lower debt levels. This will clearly be a benefit for emerging market currencies and currencies of major economies that have less structural problems.

Daniel Zurbrügg

is the Managing Partner of Alpine Atlantic Global Asset Management, a Swiss-based independent investment management firm. The firm provides clients with independent investment management, asset protection and family office services and is the issuer of the global investment newsletter Echo From The Alps. With a global network of partners, Alpine Atlantic's aim is to provide clients with true "turnkey" solutions for global investing. Prior to setting up Alpine Atlantic, Daniel held various positions with other banks and financial companies. Daniel is a Chartered Financial Analyst and regular guest speaker at international investment conferences.

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  • Wild Bill

    My contention for at least the last 25 years is that we need a Constitutional Amendment that permanently eliminates unfunded mandates at every level of government. The need to fund all government activities is already in there so the shady accounting must be addressed. We pay SS & FICA tax and expect those taxes to be applied ONLY to the designated use, not the general fund to cover payments to countries who want to do us harm.
    Since politicians have no qualms about using shifty accounting practices they need to have restrictions as to how they can destroy this country.

    • BigBadJohn

      1994 Republican revolution – remember they promised us a balanced budget amendment??? That was the primary reason I was registered as a republican back then. Of course it was just more BS to elected….

      If anyone doubts that a balanced budget is more important than tax cuts, look at the first chart. Clinton raised taxes in 1993 and what happened to the dollar? It gained strength when it looked like the USA was serious about the debt.

      Then look at what happened when Bush cut taxes in 2001. We have been in a downward slope ever since.

      We need to cut spending and raise taxes at the same time if there is any hope of saving the USA.

      • Jim Skala

        Good Cop – Bad Cop. That is the only difference between Republicans and Democrats. The whole system is as corrupt as the old Roman empire, and it will fall of its own weight — it is beyond saving because there is a critical mass of voters who are on the government dole, who will keep the current system going until it self-destructs.

        • Al Sieber

          Jim, I agree with that, it’s just history repeating itself.

          • s c

            Al, history is repeating itself, and maybe now some realize that one of the ways we got here is via an education system (yes, ‘public education’) that is a proven, monumental FAILURE. It works, but only in the negative sense.
            Even more important is the FACT that America is SCREWED as long as career politicians (aka career CRIMINALS) are allowed to be a part of American politics. Treat them like the scum they are.
            In this country, if people want an effective way to destroy a nation from within, you can’t “lose” if you rely on an inferior education system and an endless line of career criminals who pose as career politicians.

          • BrotherPatriot

            Their are many here who I agree with and S C is one of them that often speaks words of truth.

            I’m done pulling punches and speaking softly in order to be printed here…so I’ll spout what I know to be true in the hope to perhaps enlighten a few to what really is going on according to the research that I have done since Napoleon and even the connections that reach down into History even before him.

            I printed what follows before elsewhere recently but thought it had bearing here…

            THEY have engineered this all very much like a controlled fall…the controlled fall of America. It’s been a plan in motion for a very long time. They have been educating their children to THEIR truth and sending them off to Harvord (Skull & Bones). They then place them in key positions of power around the world to further their Agenda.

            We need to be rid of all the career polititions & elect those who have proven service and loyalty to the Constitution of the United States of America. This means END the Federal Reserve, leave the UN, reveal FEMA for what they are & who controls them (nice job during Katrina…huh), investigate the truth of 911 (trace & expose the Isreali connections), reveal the legacy of the Rothschilds & similiar familes (check out the Isreali Supreme Court & who built it and what the symbols are that’s in it…this tells you who is running things if nothing else does!) and that very familes proven history of metteling in History ever since Napoleon, reveal what Jon Todd & Capt. William Morgan died for…etc, etc, etc.

            Bring the light of GOD & truth to this nation that so desperately needs both for us to survive. We are in this Roman decline and the evidence shows it’s been a premanufactured event. Beware the Bilderbergs, UN, Council on Foreign Relations, Tri-Lateral Commission and the deep level Masonic Influence. Hollywood (saturated by the above organism) has been leaving their mark in plain site…you see their symbolism stamped all over the movies being pumped out now days. Look for the white/black floor tiles, the all seeing Eye, pyramids and the Knights Templar Cross stamped on satchels, taxi cabs, etc…American’s need the truth or the NWO final plans will attach their chains of bondage to the yokes that have already been planced on our heads through the control of the monetary system.

            Wake up AMERICA!

            God Bless.

        • Greg

          Very well said. No political bias and factual. And dead on !

        • TIME

          Jim,
          You’re dead spot on. How strange is it that people can’t seem to grasp that? We all know we have the dead beats, millions of them who saddly are so stupid and can’t quite grasp they will be the first to be eliminated.
          Yes all the Well Fair crew will be rounded up and removed from the living.

          As per the words of an old time progressive they are all “worthless eaters.”
          Then the old, will find their fate sealed just by age alone.
          Then they will come after those of us who had dared to speak out, as well all Artist of any kind be it music, Authors, etc.
          Then the educated, teachers, leaders etc..

          The only ones left will be the ones of us who can blend in or are so deep in to the woodwork etc..
          As well the new bread of SLAVES, strangly enough the Politicians who now think they will be in the same levels they are now, well they will be reomved until they exist no longer.

          In a way poetic justice. The Credo is quite clear; “One who would betray Freedom can never be trusted.”

        • Jay

          Dittos, Jim Skala. Since you bring up Roman history, Caesar came close to saving the Republic when he marched into Rome with his army. Rather then sending our military across the ocean looking for the enemy, we should help them realize that the enemy is here, and point them towards the White House.

          • BrotherPatriot

            Bingo. The wolves are in the hen house & have been so long they are breeding their right under our noses.

            (Good to see some of you that I call friends…TIME, etc.)

      • Bob

        We are already one of the highest taxed nations in the world. I’m reading a great book now that is making my blood boil. It is called National Suicide by his last name is Gross – forget the first name.

        We have a spending problem period. The trouble is we have federal programs that are started and they never end. We have duplication after duplication after duplication, etc. Fraud is rampant. There is no desire in Washington to control spending.

        One of many solutions that needs to start now is to review every federal program every four years. If it is not effective – kill it. TV shows are canceled if the ratings are low. The feds should work the same way.

        • Denniso

          You’re wrong,we have one of the lowest tax rates in the industrial world and that’s especially true for the wealthy. Taxes were raised under Clinton and there were no big spending cuts… Marginal cuts were made to the military, and the economy boomed and for a year we had a balanced budget. Then Bush cut taxes and acused Clinton of weakening the military,so increased the budget…the debt was doubled under his rule.

          The budget problems now are a result of the economic crash of ’08 that caused lower tax revenues and necessitated the gov’t bailouts of the fatcat bankers.

          • Bob

            You are wrong Denniso. I looked up the tax rates around the world and found that the USA is in the top half for personal rates and number two for corporate. Plus we have state and local rates, property, sales tax, etc, etc.

            The budget problems we have are PURELY on the spending side. Our founding fathers fought the Revolutionary War to break free from a country that had a government far smaller in scope than ours today. If they ran for office today, they would not be welcome by the left today. I can see the name calling now…

          • Pat

            It has been my experience that America has two answers to every problem. They are:
            1. Overreaction.
            2. Throw money at it.
            We are so far down the slippery slope that I fear there is no turning back. God help America

          • Vicki

            As with most economic systems the truth is far more complex than Denniso alludes.

            http://www.cbo.gov/ftpdocs/69xx/doc6902/11-28-CorporateTax.pdf

          • TIME

            DennisO,

            Have you ever been out of the USA? Perhaps lived in say, France? Italy? The UK? Germany? China? Japan?
            I have, as well I even have offices in some of these wierd lands that you seem to think are way over taxed.

            So Big DenO whats your backround again?

      • http://Illinois'17th Old Henry

        Yep. Look at the current House. The Republicans screamed into power by pledging to cut at least $100 billion from the CURRENT budget that never was due to Democrap scheming. They have already backed off to $61 billion and can’t get that done.

        Boehner and McConnell are both carreer politicians. The TEA Party Republicans will remain true to their pledge, but electing a carreer politician to be Speaker derailed any chance of real change in spending. H*ll, Boehner is even fudging on defuding ObamaCare.

        • Richard Pawley

          You cannot elect anyone and then just let them ‘do their thing’. You have to watch them, keep tab on how they vote, and vote them out if they don’t do what they said they will do. Sadly, many are not interested and would just as soon have someone do it all for them. The ‘elitists’ or Marxists, or Progressives are all to willing to do so. All you have to give up is your freedoms. I can’t tell you what life will be like in 15 years but I can guarantee it will not be anything like you would recognize today. Less than 20 months to the next election!

        • ONTIME

          Removing the $ from the anals of history would go along ways in the lefts agenda to remove America from the anals of history also.

          Our esteemed leadership on the right, to whom we gave a astounding victory recently at the polls cannot remember who we are, again. They are RINOED UP and hell bent on making fools out of the constituents, voters and taxpayers who banded together to frigging near have speaker blow out yelling at them to cut the damn budget and stop spending all the dman loot. They ain’t just deaf, dumb and illiterate, the damn fools in congress can’t remember to even flush the mess in the crapper.

        • http://none Jay/Ray

          Big Bad John had it right but should have gone further. Aside from rasing taxes and cutting spending, the U.S. should withdraw from the
          IMF, were we are on the hook for 20% of what they spend and discontinue all forms of foreign aid. Let the Arabs fight among themselves until they become intollerable then send them to Allah on
          a mushroom cloud, as often as necessary. That also goes for China or
          any other country that threatens our existance.

          Enough with the nice routine. The world doesn’t care that much for us
          why then should we give a fiddle or a fig about what they find offensive? Let them fend for themselves and we’ll do the same.

          And now a word from the bleeding hearts who will probably characterize my response as “insane, insensitive, crule, unwise,
          unworkable, tra la, tra la. Haven’t we heard all of this before and still little if anything, has improved. “Beware of foreign entanglements”. George Washington had it right and so should we.

  • james karalis

    We need to stop giving foreign aid to rich countries like israel .

    • SteveB

      “Rich Country”…..Israel???? When was the last time you were there Mr. Karalis. Because of continued terrorist attacks and being completely surrounded by enemies, do you have the slightest notion of how much their defense budget is to keep their people safe. People are starving there because of it, in spite of their resolve and ability to be highly productive. They’ve taken a tiny piece of the world….nothing but sand and dust…and made it into something beautiful. A place where people from around the world used to come to as a center of Christianity….until rockets started raining on them constantly. Before you start clicking away on your keyboard so stupidly you should get all your facts.

      • Tom Anderson

        Whenevere I see ANY suggestion of “supporting” Israel I always remind people that Israel attacked and murdered our US Sailors
        on the USS Liberty — Until Israel fesses up to THAT I don’t want a PENNY of my tax going to those murderers.

        Also, the evidence is not all in yet, but I am convinced that the MOSSAD knew and assisted the terrorists on 9/11. 9/11 has “ISRAEL” stamped all over it!!!

        The horrendous events of 9/11 turned out to be the VERY BEST THING that has ever happened for Israel. Then BUSH et. al. removes Israel’s worst enemy in Iraq.

        The JEWS are God’s Chosen, but that doesn’t mean that we should allow them to murder our sailors and citizens.

        • Richard Pawley

          I went into this a bit in my autobiography. I wasn’t there so I can’t speak with authority on it but I do not think that “Isreal” did this. I think it was a small group of people in Israel. We had a William Calley and a few others who committed what is known as the My Lai Massacre, 43 years ago yesterday. Several hundred unarmed elderly men, and women and children were all killed and then it was covered up (for a while) during the Vietnam War. This was not done by America but by a couple of individuals. You can’t alway blame a country for what some of it’s people do. Since the Universal Law of Reciprocity is in effect, as much as gravity, all that anyone does, countries or individuals, will be done to them. The popular saying is ‘what goes around, comes around’. Jesus said it a bit more eloquently, “As you sow, so shall you reap” and “he who kills with the sword will be killed with the sword”. It’s why He said you shouldn’t even hate your enemies. Ultimately no one gets away with anything.

          • Tom Anderson

            The comparison with the massacre in Nam in interesting. But I think a LOT MORE than a “couple” were involved in that massacre and the ensuing coverup. In fact, nearly the ENTIRE CONGRESS of the USA refused to investigate it properly and to compensate the victims or families of the victims. It is an ugly stain on the honor of our military which the military only tried to cover-up. Shame on us for allowing such crimes to go uninvestigated and unpunished.

            I understand that there was ONE (only ONE) chopper pilot who did HIS VERY BEST to prevent the massacre and save babie(s) who survived the first murderous attack. HONOR to THAT man!!! A TRUE MENSCH!

            Likewise, the USS Liberty attack was done by only a few Israeli’s YET the country of Israel refused to allow its pilots to be deposed properly for a full investigation. And there were never any trials or convictions. And, again, SHAME ON US for funding a country which encouraged and harbors murderers of our sailors and civilians.

            I understand that ONE (JUST ONE) of the Israeli pilots refused to bomb the Liberty (when he saw it flying the US flag) and he was arrested and punished for his disobedience.

            Israel was formed as a TERRORIST STATE!!! The official gov. of Israel continues to celebrate the bombing of the King David Hotel which killed innocent English women and children. That bombing led to the formation of the state. The Palestinians LEARNED terrorism from the Israelis. Why do we financially support a terrorist democracy?? Jews or no Jews !

          • Richard Pawley

            Like I said, Tom, I don’t know all the facts, nor does anyone else, but I do know that God said, “Vengeance is mine I will repay,” saith the Lord. It was Lyndon Johnson who clamped down on that case and after all this time it is unlikely to be reopened. God will honor the Israeli pilot who refused to fire on our ship and He will punish those who knew better. That’s just how the universe works. You don’t even have to believe to be punished or rewarded but of course it helps greatly if you do. We won’t be giving anyone foreign aid in a few years as we are in dire need of it ourselves. Congress doesn’t seem to have the guts to make all the cuts in spending that are necessary to save the dollar and the economy and when our currency tanks we are likely to take the world with us. This could happen quickly in a year or two or it could take most of this decade. I have long predicted that food would triple and chapter four of my last book was “Gasoline or Milk, $10 a gallon”. It’s why people around the country are building up a supply of non-perishable foods and anything else they might need in the mini-Dark Age society that will exist before the real NWO establishes a world currency and economy that will start to rebuild the then collapsed world. I will not be surprised to see NYC look like Sendai in Japan but from the riots and fires of those who realize there are no more taxpayers to fleece and all their grandiose schemes have come to naught. George Soros who runs a good bit of this county thru outfits like MoveOn.Org and NRP and so many more, recently got rid of a lot of stock and bought 350 million dollars worth of gold, which by the way, was the only currency for 300 years after Rome fell. In my autobiography, LEAVING SOUTH CAROLINA, recently updated, I told how we are copying them in all they did that led to their demise. God often has to punish Israel but He also punishes those countries who hate and attack her, His chosen people. Fortunately the world in under His new and better covenant and according to what the Bible says both Israel and the world are going to go through an almost literal hell sometime in the future. Some believe we are on the threshold of that. I cannot say but I can tell you that because of all that congress has squandered we are heading for at least 260% inflation and food will actually be scarce in the future, even in The Great United States. It’s why people in many places are building up a supply of non-perishable foods. In fact so many are doing this there is now a two to six month waiting period on such things and prices are significantly higher than they were a year ago (and before the destruction of Sendai which was a city of one million before the tsunami). There are already shortages in the whole world system and all nations are nearly broke, not just the USA. I don’t know the solution but I’m glad I have a spiritual Father in Heaven and that I know that Jesus is Lord. However, even knowing Him does not mean that we will escape being affected by what is coming. With His help perhaps we can push it down the road a ways the way congress has been doing the debt for years. The new Tea Party people in Congress must be protected so they are not corrupted by those who are already there and who don’t give a #@&$ about what happens to the country, only about their own little fiefdoms. We don’t have a lot of time Tom, I hope you are one who is preparing as you can. As I said in both my books what is coming will make the Great Depression look like a walk in the park, and no government is going to be able to help. That alone should give you an idea of the magnitude of what is going to happen. Beyond that I don’t know, except something is better than nothing and may God bless all who read this.

      • Jay

        SteveB, thanks for shedding proper light regarding the plight of the Israelis. The truth about the horrendous conditions in Israel is seldom spoken. James Karalis, is obviously clued out.

    • Al Sieber

      james, we need to quit giving Foreign Aid to any country and take care of our own.

      • Scott

        Start with de-funding the U.N.
        Last I heard, that was $6 billion/year. What a waste of money!

        • Jay

          Scott, you’re right, a useless organization if ever there was!

      • Bitter Libertarian

        No more WELFARE by ANY name! Grants-aid-loans-support-stimulus-war-public employees-public schools-etc..

        • JIBBS

          Very well said, i’ll buy that for a dollar !

        • Richard Pawley

          All our foreign aid is a drop in the bucket of what we spend but we certainly should review who we give it to and why. If congress doesn’t cut back spending ON EVERYTHING, then the result is going to be more inflation than any American born and raised here has ever experienced. I’m convinced that prices will triple based on what congress has already been spent ON EVERYTHING over the past four years, but it could be a lot worse. Does anyone want to hear this? Of course not, not even congress, and so, although they should know better, they are not taking all the cutting necessary to save either the dollar or the economy. This is why wise people are doing their best to prepare for the coming inflation in food prices and everything else, with the possible exception of homes. Better to be years to early than one day to late.

      • JC

        From a tune I heard that was actually pretty funny….
        Youtube “I could be wrong”

        “I’d like to be the first to second tellin the third world where the F- they can F-n go”

        • Jay

          JC, the third world needs a hand up, not a hand out! They also need a responsible and honest government, and the globalist elite should not be part of it.

          • JC

            Fair enough.
            So we show them how to build a hospital, bridge, road etc….at THEIR cost and leave them to their OWN initiative.
            If they are too lazy or stupid to follow through…tough.

          • Jay

            Ditto, can’t argue with that!

    • James

      James K., I agree. Our foreign aid to Israel is nearly $3 billion annually, that’s more money per person than Americans make. More importantly, there is no constitutional power for Congress to tax Americans for the benefit of foreigners. All foreign aid is unconstitutional.

      • JC

        And further to that, sinse the Camp David Peace Accord (Carter) we also give the same amount to Egypt in order to maintain “balance” in the name of American Interests…

        What this country takes from your pocket and distibutes around the world is not just irresponsible, it’s criminsl.

        • JC

          “criminal”

    • JIBBS

      We need to stop wefare for lazy people that don’t want to work, and all the other freebie’s that are givin “way” on our dime.

    • http://Illinois'17th Old Henry

      Actually, Israel is the ONLY country we should be giving foreign aid to. The rest of the list either hates u or does not need it.

      Israelies are God’s chosen people. We turn our back on them, God will turn His back on us.

      • Al Sieber

        Old Henry, they are not Gods chosen people now, those people are long gone. this is a sore subject on this website, because some people are brain washed.

        • Jay

          Al Sieber, you’re brain dead!

      • Tom Anderson

        Israel was formed thru an act of terrorism (bombing of King David Hotel). The “founding fathers” of Israel were mostly bombing terrorists.

        Yes, Jews are chosen but that does NOT mean that we should continue to finance murderers.

        Their brazen daylight attack on the USS Liberty has gone uninvestigated and unpunished. YOU can send YOUR money to a terrorist state which murders our sailors, but NOT me!

        Andy 9/11 has “ISRAEL” stamped all over it. It is NOT a coincidence that the GREATEST beneficiary of 9/11 and invasion
        of Iraq was Israel.

        There was ONE jewish pilot who refused to bomb the Liberty when he saw our flag – he was arrested and punished for his insubordination. God will reward him, NOT the state of Israel.

        • Jay

          Tom Anderson, before I ask you to back up your allegations, I must, with all due respect, say that you sound like a disgusting anti-semite. The way you fail to make the distinction between the people of a country and their administration, is the same way people all over the world, that hate us, fail, as you do, at making the same distinction. And since when, is self preservation considered terrorism. Since the Muslims started the rumour?

    • TIME

      James,

      Israel is our only friend in the Middel East, we must look after our friends as well we can never allow what happened to them in the late 1930′s – May of 1945 ever again.

      We must also help our Japanese Brothers & Sisters now too.
      They are our friends also no matter what any you may think. Try and think about this its snowing there, its 20* – 30* during the day and at night its from 0* – 8* – countless hundreds of thousands are without a home, we have no idea how many thousands have died.
      Try and think about what they are going through, these folks are good hard working people not unlike good hard working American’s.

      • libertytrain

        With what is going on in Japan, I can’t help but feel almost guilty as I am warm in my comfortable house – It is heartbreaking to think how difficult it must be for so many of them at this moment in time.

  • Warrior

    Actually, we don’t need to hear stories from our parents or grandparents about the 1930′s. We’re going to be able to experience the same things they did. Super!

    • Patty

      Looking on the bright side. That could end up being a good thing. The generations since have no clue of sacrifice, work ethics, entitlements, etc. including myself. I have a little better clue, but I have not really had to suffer a shortage of anything. Of course, except when Carter was in and there were gas lines. I know parents who have lost their homes because they could not let their children go without, cell phone, car, expensive clothes, college tuition, going out to eat, etc. The time is almost here.

      • Jay

        I see what you’re saying Patty, hard times, are a way to bring out the best in us, during which, we realize what’s really important and of good value. Times of plenty seem to have the reverse effect.

    • Richard Pawley

      Sadly, when it all hits the fan, it will be far worse than what we call the Great Depression, but no one wants to hear that. They (congress) would prefer to go on spending and pretending all is going to be OK. If we could cut spending on everyone and everything a full 10% – no exceptions – we might prevent this but no one has the stomach for that, so all will suffer. Those who are preparing may suffer less than most, but all will be affected.

      • TIME

        Richard,

        TRUE & WISE Words. Graet Post.

      • http://DNA Buddy

        Richard:

        I was a child during the depression. My father lost his business. However, he got work with a former competitor, so we had food on the table. But, as I grew older, I was no longer able to plan on going to college because I was destined to be a “basic soldier” in WWII.

        Now, adding up present events which are leading up to a very uncertain future, I believe that we, collectively, will experience much worse than during the depression. The boobs who have gotten themselves in high political positions have virtually no idea of what their actions are causing.

        I fully expect a breakup of the USA union during the coming presidential term. Ultimately that will be good, but the interim will rain all kinds of problems upon us. I plan on surviving, as usual.

        • Jay

          Buddy, the reason the boobs you mentioned have no idea what their actions are causing, is because they dismissed the ultimate reference, and by that, I mean God, and His principals, that our founding fathers took great care in applying when they first formed this country. The people at helm today, do not have the common sense that God gave to an animal

  • http://www.easyinvest.co.za peter

    Well said Wild Bill,however we all know that not only in the USA but everywhere else on this planet, trusting that our taxes will be applied ONLY to the designated use is just dreaming. The governments do not see it that way at all. Our taxes are simply their private piggy bank!

    Until these rodents are made to realize that they work for us and not the other way round, we are surely at risk of losing everything that we hold dear and they care not one whit!

    The entire world is being held hostage by the elitists (bankers)and their controllers in chief (dictators and empty suits) and we are their slaves.

    The meek shall inherit the earth; such a pity there will be nothing left.

  • Tazio2013

    For those PLD readers interested in a related POV:

    http://www.thedailybell.com/1882/Lew-Rockwell-Monetary-Lunatics-Is-QE3-Ahead.html

    Sad to say; no more than one percent of America understands the value and objective reality of Austrian/Misesian economics. And here is another item worth reading:

    http://www.telegraph.co.uk/finance/economics/5050407/US-backing-for-world-currency-stuns-markets.html#

    • http://DNA Buddy

      Yes, the two references include a lot of truth. Thanks for the references.

  • Bus

    Until Americans are willing to give up the gravy train and elect people who are serious about dealing with the problem it won’t go away. Rather than a balanced budget amendment I would propose a term limit for Congress, they have created too many perks for themselves and their main job is to get re-elected by offering more “bread and circuses”. If the American people are too stupid to vote them out then an amendment would at least push them out before they do too much damage. They should also be stripped of all retirement benefits and return to the world as regular citizens that have to live under the laws they crafted. Finally after each elected official is “retired” a grand jury investigation should be held on them to determine what crimes and corruption they need to be punished for.

    • JR

      That is a dream,

      You can’t elect anyone that is honest and upstanding and stands for your ideals.
      By the time you “”Joe Blow all around American”” get a choice, all that is left are pre-screened puppets that are already bought and paid for by the elite.

      Anyone that is upstanding and not corrupt will NEVER ever even be known to the public neither will they ever appear on any ballot …….ever.
      Politician is the same as corrupt liars. And there is NONE out there that is not already bought. You don’t even win a local Majoral race without the approval of the corrupt power brokers.
      All you can do as “”Joe blow American”” is to chose one corrupt person from a list of corrupt persons.
      And in the end, it makes absolute no difference as the only difference between them all is the method they use to destroy this country….Democrats, Republican, Tea-party there is no difference in the outcome…just a difference in the way they go at it to appease the followers.

      • Bitter Libertarian

        It amazes me how some Tea party supporters support the wars in Afganistan, and the occupation of IRAQ! All in the name of their own FEAR.
        “To hell with the Constitution I’m afraid!” should be the cry of some…very foolish…

        • Teresa

          Sadly you are right. What is the old saying, “if you can’t clean your own house, don’t go tryin to clean someone else’s house!”
          If everyone did research they would find who owns almost ALL the oil in the world…can we say Rockefeller family.

          Many world oil companies such as Exxon Mobil, Chevron, BP, Amoco, Conoco, Arco are from Standard Oil Company. An oil company owned by the Rockefeller family.

          These oil companies exploit oil and gas all over the world including Africa and Indonesia. Sometimes they make US president that they help in presidential campaign to make “War for Oil” such as to Iraq. They also try to attack Libya to get its oil but fail until now.

          The Jewish oil companies monopoly the world oil. They forced people to buy oil with a very expensive price.

          Antitrust law violations

          In 1911, the Supreme Court of the United States found Standard Oil Company of New Jersey in violation of the Sherman Antitrust Act[12] and held that Standard Oil, which by then still had a 64% market share, originated in illegal monopoly practices and ordered it to be broken up into 34 new companies. These included, among many others, Continental Oil, which became Conoco, now part of ConocoPhillips; Standard of Indiana, which became Amoco, now part of BP; Standard of California, which became Chevron; Standard of New Jersey, which became Esso (and later, Exxon), now part of ExxonMobil; Standard of New York, which became Mobil, now part of ExxonMobil; and Standard of Ohio, which became Sohio, now part of BP. Rockefeller, who had rarely sold shares, owned substantial stakes in all of them.

          Our nation has been on a course set by the elite for a while in their pursuit for their NWO and they have the chess board set. They have used the Federal Reserve..(their banks over the world) to monopolize and destroy this nation and our freedoms. I encourage you all rather you agree w/me or not to please watch the judicial system, our Constitution for they will go after them will all they have. Above all Keep faith for they ARE and WILL destroying Family and Christian values.

          • FireFly

            First I’ve ever heard that Rockefeller, John D., was Jewish. I always thought he was Baptist, though some of his offspring joined other protestant churches.

          • Bruce D.

            FireFly says:
            March 17, 2011 at 5:18 pm
            First I’ve ever heard that Rockefeller, John D., was Jewish. I always thought he was Baptist, though some of his offspring joined other protestant churches.
            Rockefeller’s mother was a devout Baptist and John D. Sr was also a devout Baptist. Conspiracy books like to claim he was Jewish so they can claim a Jewish conspiracy.

          • Al Sieber

            He might of not of been Jewish, but he was New World Order and a piece of $hit like his sons.

      • Don

        JR, I have to agree with you, just look at Harry Reid, piglousy, and a few others and they are not all DemoC,

      • Jay

        JR, is it possible that their intention is to bring us to such despair and mistrust in our present political system, that we will willingly accept its complete dissolution, and embrace a new and foreign system?

    • BigBadJohn

      The problem with term limitations is that after the first term, politicians are automatically lame ducks so they set about to feather their own nests – even more wasted spending.

      We need that balanced budget amendment, if they want to spend they have to have the funding for it first. Not very many people would stand idly by when congress wants to increase their tax for another welfare program!

  • http://WeThePeople Jean

    I say go down to Rio and bring his royal butt back – that would save a large sum of money. And also instruct his royal side kicks that they need to stop spending America’s money. If they want to go someplace – then get an advance from Kenia.

  • http://WeThePeople Jean

    I say go down to Rio and bring his royal butt back – that would save a large sum of money. And also instruct his royal side kicks that they need to stop spending America’s money. If they want to go someplace – then get an advance from Kenya.

    • JR

      Instead focusing on your hate and making nonsense statements why don’t you use the energy for something productive?

  • Truth Seeker

    In my opinion, the current U.S. financial status will not change but will continue on the trend toward complete debasement of the ” Federal Reserve ” notes. The corruption in DC and our state capitols is a reflection of the corruption in the people of our nation. The small remnant percentage wise who still hold faithful to the ideals and beliefs that made this country great is slowly shrinking as they die off and a new generation that grew up under the brainwashing of the state education system is now becoming the driving force. Believing the lie that the state is the all powerful and submitting themselves to its control. Neverminding that our freedom and liberty comes from our creator. Thus the effort to remove God from every part of our existence is constantly being forced upon us. Does any of you out there really believe things are going to get better for us here in the U.S.? I wish I had the faith to believe so. God help us all.

    • JR

      Zeus did not help the Greek, Ra did not help the Egypt although they believed as much and more in the existence of they’re God then we believe in the existence of our God.
      The Roman Empire started to decline after the conversion to Christianity, The Aztec empire vanished after the conversion to christianity by Spanish and Portuguese invaders. And the Russian empire declined and changed to communism even though it was a devout christian empire.

      God does NOT care what political system we have or use, neither does he care how many rights we ascribe to HIM. Jesus never said you have the right to freedom or the right to land or the right to firearms. Those are man made and man given rights period.
      God does not care about our worldly woes, He cares about our spiritual well being and our faith.
      Read the bible and expand your knowledge to the oh so convenient left out gospels, left out for pure political not spiritual reasons.Expand your horizon and free yourself from the slavery of organized religion, one of the biggest frauds ever perpetrated on human kind.

      • Truth Seeker

        To J.R. Really, The Romans converted to Christianity? I respect your right to dissagree with my opinion, but please don’t confuse people with Constantine’s quest of merging paegans with Christians in a completely paegan union for his personal political self interest as anything that Yashua ( Jesus ) would have approved. J.R., please help me understand. Exactly what would you consider people do right now to help reverse the crises situation in the U.S. right now? As individuals, what is your answer to our dilema? Sincerely, Truth Seeker.

      • Jay

        Sorry JR, I have to agree with Truth Seeker, God does care about our plight concerning our rights to land and, as well, life’s necessities, but, with the condition to not disregard our spiritual commitments. You’re correct, when you say Jesus never stressed that we concern ourselves with our rights, but rather, seek the Kingdom of God first, and to commit ourselves to the needs of our neighbour, as in that way, so to will our needs be met. He also said, not to love the world, or the present system, which is satanic, and is the hands and power of you know who. This does not mean that God has no say, in fact, He will soon destroy it, the present system that is, and usher in His Kingdom. Until then, the labor pains will, increase, and the Promise will be delivered!

    • Moonsi

      Great fact. You are right on the spot. God has His plan for all these.

  • http://elliesmiles@hotmail.com Stuck in NY

    All that’s left is our faith and we need to cling to it all the more particularly now.

  • Les

    The average American doesn’t care about anything other than their comfort & entertainment. They act and live exactly like the federal and state governments. They don’t care about the future until it runs over them. What percentage of America is up to it’s eyeballs in debt? Politicians, people that can’t run a business or balance their own check books, have bankrupted the greatest nation on the planet. Their underlying political agenda is always to their benefit, not yours. That’s how they all end up as millionaires and you end up poorer. When this all collapses they will cut and run with their fortunes. They are just too stupid to realize when the collapse comes they will have no where to run and their wealth is just paper. That’s what happens when you hire stupid people to do a job where they get all the benefits and you get the bill.
    The Roman Empire didn’t see the end coming either. We are following in the footsteps of Rome, Mercenaries, Gladiator sports (minus the deaths for now), free stuff for the lazy, etc. Only thing we haven’t done is vote a horse to the Senate, several hundred jackasses but no horse.

    • Mick

      Les
      I couldn’t agree with you more, our society’s mentality has deteriorated to such low standards , they don’t know which way’s up.
      Hope is great but the more I look at the population around me that hope is fading at a rapid pace.
      Normal folks have to act like tards in order to get along when it should be the other way around..
      When we have a guy like Eric holder ordering Dayton Ohio to lower the test standards to become police officers so more dumb asses can pass the test, it’s really reassuring, dumb asses with questionable mentality with guns …Wow….. we’re definitely heading for disaster…

    • Chris

      Yes, Les, it is called “bread and circuses” just keep the populace fed enough and keep them entertained so they won’t realize how bad off the politicians are keeping them.

  • http://com i41

    JR, and what would you consider somethingb productive? Jean’s suggestion was quite productive, and take Onumnutts golf clubs away and sell them to China for scrape. Give Big Mamee a sewing machine to save on those million dollar flights to tent and awning shops.

  • Howard R Gray

    Mancur Olsen, along with Schumpeter and Kondriatev understood the cycles in economic fortune for nations. Olsen looked long term much as Gibbon did over a vast stretch of history of the Roman Empire. The question is why do nations decline, you can take the view that a quasi biological entity such as a human economy will go through a life cycle often longer than individual life spans thus the full import is missed by most in government who choose to ignore reality or you can see it all as in the moment and that is all that matters as this government seems to be doing, along with its representatives in Congress.

    How many of the turkeys are voting for thanks giving here? Olsen is very relevant, not that that is surprising. No one in government wants to hear it. Spend and be damned. The trouble is that the “be damned” bit is about to arrive. The Michael Moores of this world see wealth as illegitimate for the most part, it is to be commandeered for the public good, just so long as no one touches his pile of gelt. The natural forces of spite and envy are always abroad, grabbing someone else’s chips is fair game. Robert Ringer’s long suffering tortoise gathered this one years ago.

    Usually I write at length on non state currencies as a solution to all this in advance of the inevitable melt down of the dollar. I doubt for one moment anyone takes it seriously as most have not had a significant experience of hyper inflation. I have and I know it is real, it can and probably will happen. For those who game the system and believe in the fates, 2012 would be as good a year as you could choose for a meltdown.

    The magic of investment advice is that it usually missed the big one. Since this government was put in office retirement accounts have halved in substance, how many people have prorogued retirement for years to come? No one appears to know about that one. Have you seen a figure for the still trying to be employed? If things had been OK perhaps there would have been a few more vacancies in the market place to keep younger folk employed as the more senior folks retired. The ecology of our society is out of kilter, there are so many of these overlooked factors that must have some effect on employment and wealth creation. These are the unseen entities that affect the outcome of and economy often below the radar of our dear leaders and political masters.

    Wisconsin is just a simple example of those on the government dime feeling aggrieved that those who they voted for lost an election and now they have to face the fact that there never was enough of other people’s money to pay their wages and perks. In come the labour combines to extort their wedge from the commonweal in the hope that reality can be suspended. The hatred the democrats have for republicans in this situation is faintly absurd. Imagine, if you will, a socialist governor facing immanent financial disaster, if history is to go by such a governor would not hesitate to act and cut wages and fire large swathes of workers. If the weathermen had a say in it all those who did not comply with social directives from the dictator of the proletariat would be eliminated. Another slightly silly point is the pandering to what the Unions call the middle class, by big labour. What happened to the bourgeoisie so beloved of communists and socialist anarchists? There is nothing more bourgeois than teachers and public servants. Those demonstrating in Wisconsin might need to reflect on the history of what they are supporting. A democrat of the more socialist stripe might turn against their aspirations more so than any budget conscious Republican. It might be most unwise to assume that the left have a benign intent towards the bourgeoisie claiming their stake of public funds.

    I will pull down my copy of Mancur Olsen’s book perhaps I missed something.

  • Bitter Libertarian

    I think of that old Crysler TV Ad with Ricardo Montelbon ” I Like what they did to my Cordoba!”

    I HATE what they did to my Dollar!!

    Fricking Woodrow Wilson, Traitor, SOB, bastard, criminal coward..I hope he rots in HELL for allowing the FED to come to life!

    • BigBadJohn

      “Fricking Woodrow Wilson, Traitor, SOB, bastard, criminal coward..I hope he rots in HELL for allowing the FED to come to life!”

      UH – What about Nixon for tasking us off of the gold standard? If we were still on the gold standard, we could not just keep printing and printing.

      • Bitter Libertarian

        Some dont like when I say this, but IMHO its true..EVERY president who allowed the FED to perpetuate this “brand” of Tyranny on the American people is a TRAITOR and GUILTY of TREASON!

        • BigBadJohn

          A little over-the-top, but I agree with the sentiment.

          • Bitter Libertarian

            Maybe-Maybe not…elect me and I will treat the Federal Reserve as the Criminal parasitic, corosive, leech it is with full military action.

      • Richard Pawley

        “What about Nixon for tasking us off of the gold standard? If we were still on the gold standard, we could not just keep printing and printing.” In the 1950′s we had about 790 Million ounces of gold in the treasury but we kept buying foreign goods, VW and Mercedes, Renault and Telefunken, and even some Japanese goods. By the 1970′s when Nixon closed off the gold for payment, we were down to 267 Million ounces. This was because we didn’t want people to buy gold and maintained the fiction that it was only worth $35 an ounce. My cousin and her fiance bought an ounce of gold in late 1969 or 1970 for $35 from the government although the world price was close to $44 and when we bought a foreign car and they took payment in gold at our fictional price of $35 they then sold it for $44 an ounce and profited twice. If Nixon had just let things continue we would have been broke and bankrupt by 1980 or maybe 1985. We would have continued to print money and then gone bankrupt (which I believe is still coming after the great inflation). By now we would already have the new system or the new dollar and be almost back to normal. As it is we will still have to go through years of chaos and suffering after congress (I refuse to capitalize the word) crashes the dollar and the economy by their incessant spending. The sad thing will be that they will all say they didn’t know this would happen when it happens and Americans might buy that lie too. That is, of course, all irrelevant. What is important is that no one will escape. All will be affected. In both my books I called it the ‘Greater Depression’ but it could be worse than that. A few ten thousand got ready for the last Great Depression and I’d say that’s probably true today.

  • NT

    There are no employee protections presented by the unions in China. The unions are ran by the government. Workers receive 40 hours pay for working 60 hours that should have been covered by import duties. The Republican proposed changes in unions will match the government’s union management in China. Why are you yelling just the opposite? What seven years working in China demonstrates is that the Republicans are really not telling the truth. Basic union rights to organize are supported by the present national laws and that many of the state changes will not be upheld. There has been too many politician dealings with unions that backfired and have come to hurt the state governments. Should the taxpayers be responsible for the past union deals of the politicians, both Democrates and Republicans.

    Adjustments need to be made to correct the bad deals of the past, just like the need to retreave the past theft of financiers, bankers and insider information to judges, mostly REPUBLICANS. How can one support loud mouths that do not understand accounting and finance? The rape of the financial system took place with President bush and the Republican Party looking the other way while the party supporters raped our economy.

    Now they want more control to keep the poor without a method to support itself. Their are too many foreigners taking large company jobs at 25 percent less wages thAT Have to be trained at the same level as American workers. There is nothing like having a foreign worker, in the background, “Hang up. that is a cheap product that did not last six months.” “Hang up. We have lost him already.” Calling for repair of computer, “He sounds like he has money. Charge him more.” Facebook, Google, Norton, etc. have programmed their help modes to answer a group of questions not pertinent to the situation and takes one in circle. One can not understand the titles of offered software and possible overlaps. Google can publish false information about a person that is by a member and say, “We are not liabel. You have to contact the responsible party yourself.” Of course one must then pay Google for membership to protect oneself by printing a negation.

    The main purpose is to get money through non-service of products and cheap labor from foreigners, too hell with American workers. The Republican Party gives bad mouthed lack of knowledge that the Americans do not understand. Teaching Accounting and Finance in Middle Schools will teach the minorities that they need more education to protect themselves. They can not continue to steal from their own people.

  • Moonsi

    The trouble we have is an indebted dollar, not a productive-based-dollar. Pray that God will have mercy on us all.

  • Dingle

    Concerning the dollar; it is a “temporary” holding device for the work we do for each other. The basic form of exchange is “barter” where I do an equal value of work for you that you do for me. Barter is very difficult to manage. The dollar allows the transfer of owed labor, and, outsiders to come in and extract a portion of that work in the form of services that may be of some value to us.

    The government has a small value in offering those services however, when they become dominating and growing beyond a small percentage, the true value of the work you and I do for each other becomes lost. The economic system fails.

    Additionally, service that you add with “supernumeraries” (a person without any apparent function) such as accountants, lawyers, etc., if maintained within a reasonable proportion can be beneficial too. How many supernumeraries actually stay within a reasonable level? When such persons believe that their service is worth more than the original work that you and I provide to each other, the math does not add up.

    Technically, there is a small degree of room for welfare for those strictly deserving of it however what the government has forced upon us including foreign aid becomes a deal breaker.

    Now add the greed and corruption where some of that dollar is stolen outright or by stealth and you can see that it is impossible to sustain the equation (economy.)

    How can printing more dollars whom nobody worked for possibly improve anything? It can only further dilute it!

    The government has the responsibility to protect our system however, over and over they have only been totally destructive. The only thing that has slowed the inevitable failure is technology where we can do more work for each other more efficiently.

    Here is the bottom line: Daniel Zurbrügg is correct in this article because as the graphs show, all of the corruption, greed, and illegal theft of dollars is CUMULATIVE! It can’t just go away by printing more dollars. The only thing that can go away is the value of our work to each other. We reach a point of no return where it is no longer worth putting in more good work to chase the bad. Overspending by trillions of phony money is a game changer. The only possible answer is to quit, give up and start over. Thus, the failure of Reserve Currencies.

    • Richard Pawley

      You say “The government has the responsibility to protect our system however, over and over they have only been totally destructive.” Sadly true! You also said, “Overspending by trillions of phony money is a game changer. The only possible answer is to quit, give up and start over. Thus, the failure of Reserve Currencies.” In “THE LAST DAYS OF THE LATE GREAT UNITED STATES and the Great Famine that Followed” I quote many people wiser than myself and that is exactly the conclusion that one of them has come to, that all currencies will be affected. I am convinced it will be a once in 500 year change in how the world works, a complete collapse of the world economy and eventually after a lot of chaos and suffering the world will insist upon a new world currency and it will be inaugurated, probably by the same people who control world banking now, the owners of the central banks of the world. The world has spent to much money no one has. In this country if we don’t stop the insane squandering we may go down in history as the ones who started it all. Many are convinced that our standard of living is going is going to greatly decrease within this decade.

  • Bob

    The author tried to present the case for the problems we will have when the rest of the world will not accept the dollar as the currency for international payments any more. It was not presented well.

    The enormity of the problem can only be estimated. It will be catastrophic to us in the USA. Our prices for products and services will rise. Interest rates will go through the roof as foreigners won’t buy our debt. We will have a depression that will rival the 1930′s most likely. Millions more will be out of work. Gold and silver prices will go sky-high. The stock markets will plunge. How bad will it be? We don’t know, but it will be very bad.

    • Don

      Bob you are probably right, and obama goes golfing

    • Bitter Libertarian

      I agree 100%…and to every Obama hater, Bush Lover…let me assure you EVERY POTUS is Guilty for allowing the FED to exist.

      I know..Kennedy Died Trying…But that would have made me be even more resolute & crafty in how I would do defeat the FED.

      • http://DNA Buddy

        Yes, you’re so right. JFK was the only POTUS who saw that the root of the financial disaster was the FED. He was stopped dead by those who needed the FED to do the dirty work. And wasn’t it convenient that the suspected assassin was done away with? – no trial, no investigation!

        It is almost beyond understanding how easily we collectively are manipulated!

  • Les

    “Chance favors the prepared mind”, are you prepared?

    • Bob

      I’m getting there.

      • Marty S.

        Im stocking up stores and supplies now with these soon to be bogus dollars.

  • Robin

    So many of you are right on target! I don’t know how we citizens are going to fix this situation other than another revolution. Except this time it won’t be England, France, etc. It will be a revolution against our on Government. Can someone come up with a list of these complaints, alternatives to solutions [like term limits, SS & FICA going to those exact designations, transparency in government], etc. Obama had a good list when he ran for President but there is not one he has accomplished]. I didn’t vote for him….in fact, I am Independent. Let’s set up a march on Pennsylvania Ave [like the African Americans acccomplished]!!! Does anybody know of someone who is trying to set up a march for US?

  • KEN BOYCE

    AS LONG AS PEOPLE ARE TOLD THEY LIVE IN A DEMOCRACY, THEY WILL EXPECT THIER VOTES AND THIER VOICES WILL BE HEARD.

    WILL SOMEONE IN GOVERNMENT TELL THE MASSES…. WE LIVE IN A REPUBLIC.

    AND THE REASON THE GOVERNMENT ACTS THE WAY IT DOES, IS BECAUSE WE LIVE IN A REPUBLIC. NOT IN A DEMOCRACY.

    WAKE UP EVERYONE.

    • Bitter Libertarian

      We may live in a republic but it operates like a democracy. Thousands of laws that currently are in place would NEVER fly in a Republic.

      It ALWAYS bothered be how the Communists corrupted the word “Republic” when they attached it to their nations Titles…Republic of Korea, Republic of China…how revolting and misleading! They are no more a republic then the earth is FLAT!

      Twits all of them…

  • Robert

    Why do we have such a huge population of dependent people? The “education” system has completely failed to prepare the next generation to be independent, thinking, functioning adults. Ever since the universities were taken over by Marxists, which then started to churn out “graduates” who have a socialist mindset, whether they know it or not.
    America will collapse into civil war and anarchy for a time…then break up into several smaller nations.

  • Mike

    Folks, what is happening to this country is just the inevitable. People have always been the same. Just because they were born into this country does not mean they give a hoot about what this country was founded on(and for many, where it is going). They only care about “me” and not some greater principle. I’m not talking “rugged individualism here – I’m talking about lust, sloth and hedonism – living for today on credit! When times are good, people get fat and happy and they don’t care at all. Oh, yes, they love war because it is like a video game to them. It’s fun to watch the bombs blowing up as long as they’re not in their backyard. It’s nice getting revenge. Who cares about the bill or the consequences – not us. When things get bad they look to the government to fix the problems. Lose a couple of rights? Who cares. It’s for the greater good. They blame someone else for their problems (usually someone with more money than them – the “rich” or maybe someone who looks different). Most people never look in the mirror and ask the question: “Am I the problem?”. If they do vote, most vote out of selfishness and what government will “do” for them. As long as they do not have to write out a check they think it is free. With a smaller and smaller portion of the population footing the bill, the majority will be voting themselves more “freebies.” What they don’t get is they will pay for it, one way or another. Instead of asking the important question of why the government would need trillions of dollars per year in the first place, they give government a pass and just say “raise taxes”. It’s like the public schools – just given em more money. The state is almost a God like deity to them. Instead of looking at bureaucrats as a bunch of self interested, flawed or even diabolical fellow citizens who are out to get what ever they can for themselves and use the ignorant masses to get it, they think these people actually care about them. I’m afraid that the American experiment is a great concept but will never work in a country of hundreds of millions of people who think they are owed something by their neighbor or owed by the dead guys that came before them. “I’m an American!” How will we ever all agree? These people do not want the same country we want. They don’t care about your republic, constitution, liberty and ideals, etc. They want Democracy. And if it does not go their way, they just want the government to take it from you. Stop blaming the politicians. They are “us”. They just happen to have more power. The politician just does what the American would like to do to their own neighbor but can’t do legally – steal. Many people would love to have that power.(This does not include many of you)I’m not worried about a terrorist. I’m more concerned about the jerk next door.

    • http://DNA Buddy

      Indeed, Mike, you have put the pieces together just right.

      It just like that old saying, “Will success spoil ________” (put the name of your typical voter).

  • chuckb

    mike. great comment, you hit right where it hurts. we have not only the americans that feel that way, but millions of illegals wanting their piece of the pie and the politician up there who is willing to turn his head and allow these people to keep coming, just for the vote.
    i don’t see anyway to change it after watching the protestors in wisconsin, that kind of shows you where america is standing, just for me and the hell with you.

  • shellyd

    I am 41 and I am reading all these post and I am thinking to myself. What did I ever learn in history class about any and I mean any of what is going on or what will come or what already has happened. Schools no longer teach about our history. We are failing in so many areas. Dieing a slow death and I worry about humanity and what will come for my kids. Close our borders stop letting people get free money. Cut them off!! I am sorry if you have to eat you will get any job. But, if the govt. says no you don’t we will feed you…then why would anyone say no. We have to make hard choice that will affect our quality of life, but we need to make some sacrifices like our for fathers. I am not sure many people have the will until face to face with the storm that is brewing.
    I will not live in fear as God gave me a fighting heart, but I do fear we are sinking and most have not been taught how to pull themselves out.

  • WayneT

    Please check out this video where Obama admits he is a Muslim. http://www.youtube.com/watch?v=iQqIpdBOg6I

    • Jay

      Slip of the tongue? If he’s not muslim, as he claims, why is he in bed with them? If he’s a christian, as he claims, why not denounce, even the consideration, of mosque at ground zero and sharia law?

      • JC

        “The sweetest sound in the world is the call of the Minaret”
        ~ Barack Hussein Obama

      • WayneT

        Jay, who did Obama have at the Whitehouse celebrating Ramadam?. A lot of his Muslim buddies. Who cancelled the fly over recognizing “God and Country” rally in Utah? This rally has had a flyover for the last 42 years. I supposed Obama did not recognize it since it was a Rally celebrating God, and our soldiers. Obama does not like Christian folks. Who sat in a church for 20 years who pastor blasphemed the United States. Who was Obama’s friend who bombed government building in late 60′s to to early 70′s. This was Bill Ayers, Obama’s Buddy. We need to clean out the rat’s nest on Capital Hill next election.

        • Jay

          WayneT, no doubt, the man is trying to change everything America stood and stands for. I believe he’s also trying to change Her identity as well. He’s not an American, not only in citizenship, but also in heart. Rumour has it, he’s being blackmailed by the wall street globalist elite regarding his birth certificate, and by that, using him to pass and enforce destructive and anti-American policies. Wether he’s being black mailed or not, what he is doing is nothing short of insane!!! Is he a muslim? No doubt! The islamic religion condones lying to the infidel.

        • Jay

          WayneT, have you heard of Alex Jones? Check out infowars.com or prisonplanet.com

      • WayneT

        Jay, I cannot believe anyone could ever make a mistake such as this. There is not any doubt in my mind he is a Muslim, and nor is he a US Citizen. There is not anyone in our government who has the courage to do challenge him. We have a bunch of gutless folks in our Congress.

        • Jay

          WayneT, that appears to be case. It amazes how this man goes un challenged. Main stream media would have us believe he has no equal. Don’t under estimate the power of main stream media, to create a delusional and inaccurate picture, regarding this despot. I think its very important that as many people as possible become aware of this fraud, and become more involved in politics, especially when it comes to the VOTE!!! God bless!

  • http://GodsVerifiableTeaching.org Facilitator PeterW

    We as citizens of Democracies, have refused, to control our Governors.

    For this lack of responsibility, Gods structural punishment, is being administered. Gods structural Punishment and Rewards are cumulative.

    It is unfortunate our Traditional Religions, have not shown and proven this lesson to their followers via using Logic, instead they have only been seeking Power.

    We as Man, were designed, to be affected, via Gods structural Design(Hardware).

    Gods structure provides Man with software, to allow creativeness.

    Either we take Control of Government, or the Punishment will get worse.

    The Swiss control their Government, every four months they go to the polls and either pass or reject proposed legislation. DONE DEAL. NO EXCUSES.

    Without taking to the Streets. change will not occur. IT IS YOUR CHOICE.

    Facilitator Peter W

  • jopa

    WayneT:The reason most members of congress don’t bring up this birther and Muslim issue is they are not simpletons.In reality they take the people with these notions as just a bunch of idiots and could never take them seriously.Even Karl Rove is embarrassed by these folks and claims the administration likes to hear these claims rather than focus on the real issues.I myself think they are a little goofy but they have their right to their opinion.(OMG I almost said a bunch of Kooks).

  • carl junjulas

    Hi everyone, Its sad that this Great Country is going down the tubes, Whats said to me is we point the blame on Dem s or rep s this that or the other!!Its greed and money hungry people who put themselves in power and sell the people out.this country is controled by the Corportions,they he be out sourceing our jobs and factories,for 30 years now.30.the senetors are there high price lawyers that we put in dem or rep there the same sell-out artists looking for money under the table!!!Our system is crupt 100%,lets face it.Since im getting started the Banks and finece companys,created the messes with wall-street,and guess who bailed them out the peoples Social Security money.Who is helping the people who cant get a loan or save there house from foreclosure,or the high intrest on there cruit card payments. Lets face it every investment vechile that they put together so we put our meger earnings into for retirement they build it up and rip it from us in one big scam,always using some excuse. Its the people who run the goverment that want our souls. .LOOK up aliens under-ground THATS WERE OUR WEALTH IS GOING

  • http://charden@neo.rr.com Charles

    Look at every currency that has failed in the last 30 years, you will find George Soros and his mentor, Jacob Rothschild (Of England),near by waiting to pick up the spoils.They have helped crash more currency`s of other countries than anyone. Now, they are trying to crash ours. If they succeed, this will be one big step toward one world goverment, if not the final peice of the puzzle. Tell me something, we have gone to war with Libya, why isn`t Obama in our country instead of Brilzil, when something this big and important is
    going on. This man could give a shit less, about this country.

  • http://charden@neo.rr.com Charles

    jopa,
    I don`t give a damn where Obama was born and wheather he is a Musilim.
    I do care what he is trying to do to this country. jopa you better thank God, even if you don`t believe, that the Republicans took back Congress in the 2010 elections.They at least slowed him and his Marxist buddies down A battle was won, not the war. The war will be won
    when Obama and his thugs are ran out of Washington and hopefully from
    the very shores of Americain in 2012. I told you before I`m an Independent and have voted for many a Democrat in my life,however,I
    will never vote for a Progressive,Socialists,Marxist, or a Communist.

  • http://charden@neo.rr.com Charles

    jopa,
    Is Van Jones a Communist?

  • jopa

    Charles:Never met the guy.This is starting to sound like the Mccarthy era all over again.

  • http://charden@neo.rr.com Charles

    jopa,
    I think you better do your homework. It has nothing to do with
    McCarthy. I don`t think you have a clue what Obama and his people
    stand for. You seam to know more about McCarthy, than you do about
    Obama and his jolly bunch of merrymen. I give you one name and you can`t answer one question about him. I didn`t say one way or the other
    if he was a Communist or not. It seams like you want to keep your
    head in the sand and don`t want to know, or your hate for Bush is
    so great, you just don`t give a damn. I`m glad that enough people
    woke up by the 2010 election, that a lot of Progressives, were driven
    from office. Didn`t you ever wonder why this happened? It wasn`t just
    because of jobs, a lot had to do with people finding out what Obama
    really stood for. jopa, you really need to know who he hangs his hat with, past and present. In some respect, I feel sorry for you. On the
    other hand,I think you are very lazy, however, I do think you are
    probley a good person,just misled. You wouldn`t believe what I know
    about Obama and his people.You would`t believe me if I told you,you need to find out for yourself.

  • http://charden@neo.rr.com Charles

    Carl …… > GOOD POST >>> A lot of truth in what you had to say.

  • http://charden@neo.rr.com Charles

    People >>> there is no longer a Democrat party. It was hijacked
    by Obama and friends and now is the Progressive party. The Progressives, still hide behind the name Democrat.They are no more Democrats than the man in the moon. You people, who still think you are voting Democrat are in for a big let down.These Progressives are
    nothing but a bunch of Marxist. Please do your homework and find out
    what they stand for. We can`t tell you,you would`t believe us anyway,
    you have to find out your self.

  • jopa

    Charles;In the McCarthy era everyone that didn’t have the same political agenda was considered a commie and every one was looking at each other “oh is he a commie or is she a commie”?All the posts you have on here I don’t even know if you are a commie or not.If you are perhaps if you listen to my messages we can get you back on the right track.

  • http://charden@neo.rr.com Charles

    jopa,
    Once again, I ask you. Is Van Jones a Communist? You have had plenty
    of time to find out since I asked you the first time. I would like
    to also know, who Valerie Jarrett is and what her and Van Jones and Obama had in common? Please find out for me,because you are the only
    one that can give me an honest answer.Find out what the Apollo
    Alliance is and what part did Van Jones play in it and who put him there to begin with. Your a good man jopa, thanks.

  • http://charden@neo.rr.com Charles

    jopa,
    Do me a favor, get off the McCarthy era. I know who he is. This
    has nothing to do with what is going on in this country to day.
    Please stick to the present. Please answer my last post.Remember,
    you are the only one I can trust with the answer.

  • jopa

    Nope he isn’t a commie.The three are from Chicago, they are Americans and then Glen Becks name pops up and that was the end of my reading that crap.You are also a good man Charley Brown.Thank you.

  • http://charden@neo.rr.com Charles

    jopa,
    You didn`t do your homework. Shame on you,why are you so afraid of
    the truth? You answered my questions of your cuff. All I want is
    the truth. Please take the time and find out the truth, if not for me,do it for yourself and if you have kids and you love them,then
    you owe them. I didn`t ask you where there from,I asked you if
    Van Jones was a Communist and what was the conection between him and
    Valerie Jarrett and Obama.I wanted to know who Valerie Jarrett is and what is the Apollo Alliance. I understand Van Jones came out of
    Oakland Cal.Tell me what he did there and tell me about a org.
    by the name of Storm, also in Oakland. jopa you are a good man and I know you mean well.Please work with me on this and I`ll give you
    some deeper things than this to check out.

  • jopa

    Charley Charley Charley:I really don’t know what your point is when you wouldn’t know the truth if it smacked you on the side of the head.I realize you are a follower of people like Beck and if you find him credible there isn’t much hope for you.I really do not have the time to bring out the truth to anyone individually on this site so you will have to be patient like the rest of the folks and learn reality as my time permits me to offer it to you.All of the info you are looking for is easy to find if you just google it.If I have to start tutering you on an individual basis I would have to charge you with consultation fees and I don’t come cheap.

  • jopa

    I should have hit spell check-tutoring.OOps

  • http://charden@neo.rr.com Charles

    Jopa,
    I don`t know many people like Beck. I do know, he proves everything
    that he brings to the table. He either has it in writing or on tape. Now, as far as you are concerned, you never said you had kids or not.
    If you do have children, you are doing them an injustice by not
    teaching them the difference between the truth and a lie. You must have fund out the truth about Van Jones,Valerie Jarrett, and Obama
    and hate to admit how wrong you are. I will tell you one thing,I do
    my homework and I said to you. Don`t believe what I say,find out for
    yourself. Don`t run your mouth unless you have proof and can back
    it up. Everything you say, is what your left wing nookies tell you.
    All I want you to do is think for your self and thats because I
    think you are a good person who has been missled by a silver tongue.

  • http://charden@neo.rr.com Charles

    jopa,
    You are right.All you have to do is google it to find out about
    anyone or anything.Then what is you problem? Do you have a hard time
    reading? Every thing about Van Jones is right there and the rest
    of what I asked you to check out. You didn`t give me one true answer.

  • jopa

    Charles: The information on Wiki portrays them as outstanding Americans.The only negative was the smear campaign brought on by Faux Not News.As I have said before your head is so far up Becks and Limbaughs butt you can no longer see daylight and the truth for what it is.Sorry if this is not what you wanted to here but that’s the way it is.Kids, that I do have.Six kids all grown and doing very well, five with college degrees and and fourteen grandchildren.Life is great.

  • http://charden@neo.rr.com Charles

    jopa,
    You must have missed what Wiki had to say about Van Jones being a
    Communists in 1992,and leading Storm a radical communist origanization
    with ties the South Aferican Communists party. (SACP) He also had ties to a Marxist- Lenin group led by Amilcar Cubral who was the revolutionary leader in Gunies- Bissauand, also in the Cape Verde Islands. Storm fronts also encluded the Marxist Training Organization School of Unity
    and Liberation(SOUL). It also enclude the People Organized to WIN
    Employment Rights and Power(POWER).This is what Wiki had to say.I think I would go one step further and see what Snopes has to say about
    Van Jones.Oh! by the way, Van Jones named his son after his hero, CUBRAL. This came from your friends at WIKI. I can go on and on about Van Jones. It`s for very interesting reading. By the way, Jones was born in Tenn. and wasn`t from Chicago. He was picked by Obama and Valerie Jarretta, who is a senior advisor to Obama.He had done most
    of his work in the Bay area of San Fran. and Oakland Cal. before he
    was called to the White House by Obama and Jarrett. Jopa, I don`t know what in the Hell you read or even if you can read. This has nothing
    to do with Beck and Fox news.The thing that Beck did was to expose Jones
    for what he is.The information I gave you did not come from Beck, It
    came from your sourse, Wiki. He was forced to resign as the Green Szar because of his past as a Communists. When Obama appointed him
    to the job, Obama and Jarrett knew this. They claimed they had been watching him for a long time, for the job he was doing in Oakland. They
    said, they really liked the job he was doing. I can continue this and
    tell you what he is doing, since he left the Green job. This is your
    answer, not mine. I just went to your soruce. Please read with meaning,and dig past what you think is the good part. What you have given me sounds like it`s good. jopa I`m begining to wonder if you
    have a brain in your head. I would want to find out the truth about
    Obama and his Marxist friends. Since you seem like you don`t want to
    know, you just might be a Communist or at least a Marxist Socialists
    yourself. I`m just about ready to give up on you.There just might not be any hope for you and your beyond repair. I hope not,but I`m afraid we
    have lost you. You don`t know between the truth and a lie or evil and good. Even if something says the truth,you try to make it say something elese. You want it to mean, what your mixed up mind wants
    it to mean.

    • BrotherPatriot

      Wikipedia is not a valid source for information. It corrupts the truth & History all the time. Obviously controlled by those who continue to further their own goals & mislead. The same can be said about the former History Channel now called History (“Where History is MADE every day.”)

      God Bless.

  • http://charden@neo.rr.com Charles

    Robin,
    I hope when the wheather get warmer the T Party will hold a march.
    They will let know if they do. Pray to God that he continues to bless
    our country and if he dosen`t, we have little hope.

  • http://charden@neo.rr.com Charles

    jopa,
    I`m happy your kids are doing great. I have five and they are also
    doing great. I just hope your kids don`t think like you.I hope a year
    from now we still will be saying the same thing about the kids.Not if Obama has his way, this won`t be a country that we will be able to
    do this. Obama not only wants to spread the wealth with in our borders, but he wants to spread our wealth all through the world. Think about it, if he would have signed the treaty on climate change in Copenhagen, we would be giving just about all our money to the 3rd
    world countries, that omissions, they claim, have hurt them health wise. He came close to
    signing this treaty and no doubt it would have broke this country.
    God bless China,England, Japan, India, and Russia, they refused to
    sign it. One thing for sure, we wouldn`t have to worry about Obama
    care breaking the country,this would have done it with out a doubt.
    Of course jopa, you don`t know about these things. Hey! I hear there
    are some kooks that want to take his phoney Nobel Peace Prize back and there is a Democrat(Progressive)Congressmen in Ohio that wants
    to impeach him.Good luck my friend,I just hope we haven`t lost you.

  • jopa

    Charles;You have so much fear within you about Communism which hardly even exists anymore.You spend too much time watching fox and now they have you scared sh—ess.Wake up and smell the coffee the boogieman really does not exist but in your mind he does and I would bet you check under your bed every night before you retire for the evening.I at one time counted sheep to go to sleep now I see how many republicans I can name and I am out like a light.Try it, it works.Sweet Dreams.PS: Why do you waste so much time on silly propaganda??Not only that you are in the home of the brave so be Brave.

  • http://charden@neo.rr.com Charles

    jopa,
    Since you aren`t going to believe your own resource`s, I give up.
    You are a lost soul and no one or anything is going to change your mind. You have a one track mind and it`s headed for the edge of the cliff. I hope you remember me when you fall off the edge. I know
    someday you will be thinking, I only wish I had listen to Charles.
    Sorry old friend, I tried so hard to save you from yourself. It seems
    like I have known you forever and at times I did see some hope.

  • http://charden@neo.rr.com Charles

    jopa,
    You are right about one thing. I have done my homework,and yes
    I`am afraid, because I know whats comming down the road and it`s not to far off. I hope I`m wrong, but we might not reach 2012, and we might have seen our last election for some time.

  • jopa

    Charles: Claire had mentioned the Barry McGuire song” Eve of Destruction” a few weeks back and the lyrics from back in 1965 are what you are singing today.You know what?People are going to be singing that song 50 years from now and thinking.What was Barry afraid of and what was Charles afraid of, and we are still here singing this song.FDR probably said it best,”The only thing we have to fear is fear itself”.Time for you to switch the channel and get a life.Spring is in the air and it is going to be another beautiful summer so enjoy.Thank you.

  • http://charden@neo.rr.com Charles

    jopa
    Claire is alright.Maybe she can teach you somethig,however, I
    kind of doubt it.Thank you, and you have a great summer.It`s still
    like winter here in Ohio ,15 degrees last night and 31 degrees to-
    day. It`s going to be cold all of next week,maybe after that it will warm up.

  • jopa

    Charles;I just checked the Ohio weather a couple hours ago and looks like rain mid-week and cold.Going to Elyria on Monday for a few days to visit but summer is still around the corner.

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