The Fate of Capitalism

Well it’s a cloudy gloomy day as usual in US markets with Dow Jones down 105.3 points, the US dollar down against the Euro & the Pound, Software Giant Microsoft announcing a cut of 5000 jobs nationwide, and a new report of on the US housing market in the east coast, west coast, and mid western states housing prices are at the lowest since 1991 with an estimated total number of foreclosures last year at 2.6 million. A grimmer picture was displayed on Capital Hill during the senate confirmation of Obama’s Treasury nominee Timothy Geithner who was charged with tax fraud of up to 40000 in the years 2000 & 2001, but even worse was the man was complete replica of his predecessor Henry Paulson who under Bush was given no limits of legal action to quell the the Mortgage, US banking sector, and loans companies debts by dipping Federal hands into commercial banks money supply, and in return literally compensating the bank and it’s depositors with US Treasury bonds. I

t was a day of infamy for Americans of all generations, their savings, checking accounts, and private banks were broken into to bailout firstly banks issuing loans who did not have enough customers to even pay off their loans, secondly the increase in the US National debt,
the value of the US dollar plummet against it’s counterpart the Euro, there for increasing company costs mainly in American based banks which were loosing foreign investment in their banks. Secondly when the Federal Reserve printed more increasing the amount of money in circulation thus giving more to US banks to loan out to Loaners AND companies, as the general rule of thumb is that the more money supply around due to many US labor laws, Unions, and the Federal minimum the US worker has his salary raised DUE to the amount of money the individual posses to buy services & products. Such as in Wal Mart or your typical Winn Dixie usually the Middle class worker who as an utter desire to buy more useless electronics, or new garden fixtures, or whatever has more money to spend due to the increase in amount so he can buy more things. The store generally realizes that they either don’t charge enough on exports from Chinese manufacturers or needs to raise the prices on their products and services. So thus driving up market prices, secondly your lose in purchasing power in your money due it the amount of it printed by the US government, thirdly a huge factor in DE valuation is the amount of expenditures that government spends on.

To upkeep the US military, make new advances in Medicare or Medicaid, keep supplying US Agriculture with Federal subsidies, and our biggest Abomination Welfare which cost’s in the billions must be be all payed for by Tax payers money or be printed out which only De values the US dollar, raises market prices, it’s just private market feeling the grim affects of government intervention. Our Nations GDP is almost at serious breaking point, the current numbers of debt exceeded over ten trillion last Christmas and if what the Fed’s say is true then our recent GDP which is estimated at 14.4 trillion a year is exceeded by our debt, it’s utterly mathematically impossible to pay it off. True our economic crisis is much more serious than our political leaders play it out to be, much more serious, but the affects nearly don’t have to be as horrendous unless we stop this utter madness of spending billions more to keep a few in jobs, companies just barley running, and supposedly keep a little Social security money for retirees. I believe recent my most favorite politician Ron Paul was the only hope left for this countries economic fate, he was for a sound stable currency, preached the Mises School of Austrian Economics principles of the benefits of Capitalism, only working unless government does NOT play a key in the markets, and if we have a dollar backed by gold and silver making our currency much for valuable. Sure to cut down on government spending would obviously make a huge drop in government employment significant and making a cut in money drastic, but for the good of the private sector also allowing it to expand in size to make more money, employ more people, and also allow an individual to maintain his purchasing power in a commodity currency.

Mr. Obama just the same as his predecessor’s Bush, Clinton, and Bush before did understand the principles to a sound money system, the after affects of the Ponzi scheme of Social security nor the cost of welfare, are now seeing the price this country is dearly paying for it’s entitlements. I would say Regan had good ideal principles for the nations economy and tried to sincerely to solve the unemployment issue, but did not cut spending due to trying to collapse the Soviet Union in military spending, and did realize the evil of the IRS. A central private bank, taxes, government bureaucracies, military imperialist ventures, and government Law enforcement agencies just all of the many bugs that have effected America’s former greatness, and have made also made it infamous as well hated. Histories after effects, it’s politicians decisions can never be solved nor our in our power to change, but if your of a strong faith it never does hurt to pray for better times. And if you seek the best financial advice in turbulent times such as these I would say one word, gold, or just maybe if the economy plummets completely, also silver. Gold and silver have stood the test of time, they have been accepted over fiat based currencies and credit based markets in debt ridden countries, good civil citizen, buy buy buy as much as you can now.

Everyday I look at the commodity market to see realize two things, one, if the dollar plummets as it does it increases the drive in gold and it’s price, or second if interest rates were up at all and if printing were halted then it usually makes gold fall thus the US dollar rises. I see the financial Armageddon coming, 1920s Germany coming down upon us, 1930’s China’s financial calamity is now becoming the same reality here in the United States. Be ready, be prepared, it’s coming any day, any month from now.