Sunday, September 13, 2009

Obama - just does not get it - trade war with china?

Lets analyze this. He hires the most wall street executives into his cabinet in the history of any president. Comes up with a plan that is about as good as turning under crops in order to fix prices - calls it Cash for Clunkers. Gloats about it being green - which it is most definitely not. Comes up with stimulus plans that are not stimulus - but wealth transfers. Designs a health care plan that "...will not add one dime to the deficit". Now, mind you this plan costs roughly 2 trillion dollars. That is 14% of GDP. If you believe this can be implemented without increasing the deficit then there are only two options...fuzzy math or delusion.

Clearly, though Obama may attempt to back up his rhetoric with some numbers...I am quite sure those numbers are selective and that not increasing the deficit does not mean what any normal person thinks it would mean. Whatever the excuse, I do not care. The answer is simple - this health care proposal will increase inefficiency of the system and further bankrupt the country. And now just to make things more interesting...Obama apparently has decided to add tariffs on tires from China. Clearly, Obama's cabinet is misguided, has failed economics 101 and has no understanding of what is going on within the confidence game of the special interest fiat system that many including Obama  (just as bush) have abused to the detriment of our country.

The last thing we need is a trade war with China for several reasons. First and foremost, is the defaults that they are proposing on derivatives agreements with our largest banks. We definitely do not want to give china any additional ammunition to use to keep capital in their borders or renege on commitments that could collapse our theoretical money supply. This would result in driving the remaining money up in value dramatically. Quite frankly, there is no reasonable way to enforce those agreements. It simply has to be based on mutually beneficial relationships that promote fair business dealings and an honor system. War with china is not an option. So, what are we thinking? Please Mr. Obama give me the legal platform you are going to use to enforce financial agreements, that if defaulted, send our economy into oblivion? There is none. China is a separate country with the ability to print its own money and force their bankers who may not want to lend to do so anyway under threat of capital punishment. Their system can inflict quite a bit of damage on us right now. (see: All we need now is a big hit to theoretical money - derivatives anyone?)

I recommend that everyone read all the dollar related articles I have posted under the featured articles list at the right in order to understand what the shortage of cash dollars will do to our financial system.

Overall, I am very disappointed with Obama. (that is an understatement) I am even more disappointed that we were not able to get Ron Paul into Whitehouse now that we see how much we really needed him there. I think Ron Paul or his son will be elected to that office if the US does not descend into governmental destabilization. But Obama is making a big mess and bill that we or our children will not be able to afford to pay.

To me, republican or democrat is not the question...both represent the interests of the financial elite that fund their campaigns, get them media exposure and embody the system that creates the fiat money that furthers their ability to execute unreasonable plans that are perceived will impress their constituents but clearly can not be afforded.

Think about it...if you are a politician is credited with building a transportation system, governmental aid plan, park, school, bridge or casino that creates the perception of wealth creation, standard of living increase or general benefit for his constituents...the voters will most likely vote for him next time he runs. Since there is not enough tax revenue money to fund most of this kind of needs to float government debt using the fiat currency/fractional reserve system to enable the perception to be that the budget is reasonable and manageable. The idea is that the taxes for the benefits will not perceived by constituents at that time - but rather simply delayed - this is a deliberate misdirection and slight of hand. The logic is: they won't notice if the taxes are come later - so the politicians will get the vote they need and their jobs back if the constituents think they have been benefited in some way. This symbiotic relationship is enforced by the fed and the shareholders of the fed who are able to grant or deny almost tacit capability to elected officials to retain or gain their positions.

Do you realize that the Fed for instance has hired a staff of lobbyists to fight the HR1207 Audit the Fed legislation. They have already manipulated, Pelosi and Frank in an attempt to disembowel the legislation by incorporating it with other packages and that enable typical tit-for-tat vote buys that would neutralize the bill. Please explain to me why the Fed should be employing lobbyists at all Mr. Bernake?


The fiat money system is a political manipulation system guided by the needs to be ended.
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