Lehigh Valley Conservative

Jim Cook in his latest newsletter writes;

 “A recent article in the Sarasota newspaper advised that the IRS was aggressively hiring new people to become auditors.  No doubt the current administration will beef up the IRS to extract the last dime possible from those who work and invest.”

Now wouldn’t you figure that, they want the last drop of blood from the citizens but it gets even better.

 “Since there’s 10 times the money in circulation than in 2002, in real terms a dollar is worth one tenth of what it was then.  All the rhetoric coming out of Washington and Wall Street is designed to make us overlook that simple fact.”

It doesn’t matter if it was 1922 Weimar Germany, 1990 Argentina, or soon to be 2009 and the United States of America, only those who switched out of paper currency into gold silver or diamonds did keep or will keep their wealth intact. Governments that resort to the printing press to keep the economy from falling into a depression destroy their own currencies in the process.

You know Congress and the President must really have disdain for the country and the citizens.  Let me give you more if you don’t think we are close to major problems.

This comes from Greg McCoach in the Cook newsletter;

 “Looking at the dismal record of fiat currencies throughout history, no country that has disconnected their currency from gold or silver standard has ever made it past the 40 year mark before inflationary panic and disaster unfolded.  The United States is now in the 37th year of its fiat currency experiment since President Nixon took us off the gold standard in 1972.”

He goes on;

 “This next wave down is going to be a whopper because it will involves the popping of the commercial real estate bubble and its associated derivatives.”

Now the key words there are “—it’s associated derivatives.”  It might be argued that a normal down turn in the commercial real estate market would be weathered with its high vacancy and still have some room to do some creative refinancing and consolidating of loans to survive.  But all that juggling has taken place and the last bit of equity is out of the deal with no margin for error or down turn they have nothing left to negotiate away.  So it is perfectly understandable there would be no room for survival if something went wrong.       
 
Richard Russell’s  “Dow Theory Letter” who has lived through the great depression and combat in the 2nd World War says;

 “I see the months ahead as being very difficult—”

 He continues with this;

For decades the American punch bowl overflowed, with the help of the Federal Reserve and the creation of unconstitutional fiat money—.  Now we must pay.”

We are on the “Ship of State” similar to the “Titanic” and the orchestra in the lounge is playing loud, making beautiful music, all the while the ship glides through the icy waters of the “Economy” full steam ahead toward its destiny.  The mad captain does not see the danger in what he is doing.  What is wrong with us?  Can’t we see there are no lifeboats, called bailout for any of us to escape with?  None will escape, not on a lifboat called bailout.