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Archive for March, 2008

The pessimism of an optimist

Oil is at an all time high, the dollar diving to new lows against the Euro and other foreign currencies. Gold meanwhile continues its surge despite attempts from the power brokers, Feds, and banking institutions to keep the price down.

I have realized for years that the global economy which has been built largely upon mere trust in the value of US dollar was one based on illusion. As long as almost everyone believes in the illusion it is perpetuated. It becomes apparent, however, when the cracks appear and the walls bow and begin to show signs of stress that something is horribly wrong.

For years the framing inside the walls and under the floor has been eaten away by termites while the keepers have continued to cover them over with layers of plaster, sheet rock, and particle board.

Why is the dollar worth anything? The feds print paper at will, why should it keep its value? It is only worth what most people believe it is; for years now that has been enough. The value of anything, however, is a perception. Even those things which have intrinsic value under certain circumstances may be worthless – A prospector dying in the desert of thirst may very well go in the direction of water rather than gold. What then is all that paper worth, much of which exists merely electronically and is never even printed?

The dollar has survived so long merely on the basis of trust. That trust was embraced by the world. However, in case you haven’t been paying attention, greedy people in the banking and financial institutions have destroyed that trust globally by making loans that were worthless and luring investors from around the world to buy them up and get burned.

At present the politicians and financiers are trying to simply put another layer of plaster on the walls, but the walls have become too heavy and there are no studs in them to hold them up.

What happens now? What happens is what is happening; people are getting out of the house before it comes down. At some point everyone else will notice how many people are leaving and panic will set in – when they stampede for the door the vibration will bring it all down.

Will another FDR arise to save us? FYI, politicians are all controlled by the the same systems, powers and people; there is no hope or salvation in any of them; FDR did not save us.

And what happened in the 1930’s after the depression set in? There was another world war because there was a global power vacuum. What do you think will happen if the US leaves a power void in the world today?

I really hate to be the bearer of such tidings, but this is what I see – I speak as I see.

I will venture to make a few predictions here.

The US economy will collapse.

This will create a global power vacuum in which Russia, China, and others will position themselves to take as much advantage as they can. They will work together to hurt the US and make sure the US does not recover as the major economic power.

Eventually China will move to take Taiwan.

Because of the waining power of U.S. there will be a surge in outbreaks of violence, conflicts, and war among countries. Within the US lawlessness will prevail.

There will be another war waged to eliminate Israel.

Europeans, who are dependent upon Russia for much of their energy will pragmatically determine that it is in their best interest to play ball with the Russians and will work to appease the ever-threatening Russian bear which will have reverted back completely to the ways it operated when it was the USSR. It is, therefore, possible that the Euro may replace the dollar for global trade.

Due to the failure of the global community and the US to confront terrorism adequately, there will be major terrorist attacks involving the use of WMD. Furthermore, the world will again experience use of nuclear weapons.

A leader will arise, who with his politico groupies and other world leaders will unite with promises of peace and to “save us” with global socialism – but socialism will not likely be called socialism – it will be called by other names, and acronyms and compassionate sounding slogans to sell government systems and programs which take power and rights away from the people.

Now, for those who have followed me this far, it may seem that I am not the most optimistic person you have encountered having fore casted economic disaster, global chaos, lawlessness, and world war. I would, however, take issue with the tag of “pessimist”, for, as I wrote previously, I speak what I see.

It is, therefore, that my last prediction is one of optimism: In the end, the good guys win, they always do.

RAS – 3-15-2008

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