Capitalism is Dead in the USA

I hear many people speak of Capitalism and saying that capitalism in the USA is alive and well.

Well, have people stopped to think what Capitalism really is? I believe what we have in the USA is what many have already called “socialism for the rich”.

This is evident everywhere, bankers being bailed out at the expense of tax payers, White collar criminals stealing countless millions and even billions and doing a relatively small amount of soft time, etc. This is not Capitalism.

Capitalism is a system where there are checks and balances, a system where the government makes the guidelines fair and equal for all and not slanted to the side of the wealthy and powerful. It is a system where the financial markets are allowed to move up or down naturally without government interference, other than the guidelines already in place from the beginning. Any government bail outs amounts to Socialism. Capitalism is a system where market forces unfold without interference or manipulation from the government.

Many may say that if the government does not bail out the troubled sectors then it will be dooms day, well if the government was not interfering and manipulating to begin with we would have never been in this position.

Again, Capitalism is a system of checks and balances and market forces unfolding in an organic way. What we have in the USA today is not Capitalism. Capitalism contracted cancer in 1913 with the creation of the Federal Reserve and died in 1971 when the Gold backing for the dollar was removed.

The only honest checks and balance vehicle is gold and until we go back to an honest gold backing for all currencies then we will go through this situation again and again, the next time worse than the last.

The problem with the Gold Backing is that with it the Wealthy and powerful will no longer be able to rig the system by creating money out of nothing and using it to acquire real assets and also enslaving us by chronic debt. With gold backing we will be playing on a fairly even field but that is no good for the monsters that control our lives today.

If one were to go back and check the check the CPI from 1800 to 1913 you would see that it was basically a flat line from 1913 to 1971 there was a gradual rise, however, from 1971 to today the increase is basically a vertical line.

What we have in the US today is not what the founding fathers had in mind, it is NOT Capitalism. Citizens of the US must demand a rebirth of Capitalism by starting with a return to a gold backed currency.

Massive inflation ahead

Many believe and have been taught by our educational institutions that inflation = increase in the price of goods, commodities and services. However, that is only the result of inflation and not inflation itself.

There is only one type of inflation; monetary inflation. Therefore, inflation is the increase in money supply and deflation is a decrease in the money supply.

As it stands right now, there is a massive increase in the money supply and, therefore, look out for massive inflation in the future. You will see this reflected in gold price.

As a matter of fact over the past 6 yrs gold has doubled in price and still has a long way to go.

I expect Gold to hit at least $2000.00 by the end of 2011

Don’t do it

Becoming the government of Canada at this time is the worse thing that can happen for any political party.

The world is heading into a depression and Canada will not be spared. There is no one in Canada at this time who can avoid this. In the end the party in power when this unfolds will pay for years for the crisis. As a result; they will be kept out of government for a good three terms after that.

I am not sure if the Conservatives saw, or was told recently, that this was coming and decided to find a way out or is just getting lucky, but it would be the best thing for any party to not be in power at this time.

My advice to the opposition parties at this time would be – don’t do it.

Markets not for the weak hearted

The stock markets have been very erratic over the last year. Some have been advising individual investors that:
1) It is always best to stay invested
2) It is too late to get out
3) The markets have bottomed.

I do not subscribe to anyone of those statements. As a matter of fact the market has not bottomed as yet and I believe that it will bottom somewhere in between Dow 4200-7000. At that point I think if one gets in, they need to do so slowly and dollar cost average.

Based on my own charting there is at least a 70% chance that one will lose money in these markets if they are using the generic methods and advice.

These are not markets for the weak of heart and the inexperienced, it is best to hold your money than to invest with no idea. Do not get caught up in the hysteria dished out by some of the media networks; “these are the best values you will ever see” etc, they are talking out of their hats.

These are the same people who were telling people to invest in Real Estate when the bubble was bursting, these are the same people who were saying “the paradigm has shifted, this is a different time” and “stay invested in Tech” in 1999 when it was clear that the tech bubble was about to pop.

If one still wants to get into this market, then get in slowly and dollar cost average as I stated above. Be careful and trust no one with you money. Good luck.

A sad time for Blacks in America

Well the euphoria of the elections have come and gone and time for people to get back to reality or perish. I did call this victory since Jan 2008 on my blog: Scapegoat Obama

Anyway, many people seem to think that Barack Obama is the messiah, and things will change for the better, this is doubtful. It did not matter who was elected, the problems would still be the same and it will be a while before things turn around. How much worse it gets will depend on the direction this presidency takes.

Obama is a great politician and maybe be great initially for the poor but in the end all will suffer. Most of Obama’s experience has been in government and none in business, I mean even George W for all his failures did come in to the presidency with some business experience, even though his presidency was a colossal failure. No business experience will be bad for Obama.

In the presidency most of the big decisions are not decided on by the president anyway, however, power can be intoxicating especially when you have overwhelming support of the people. This I believe will make Obama’s failure worse – I believe that he was set up for failure anyway. And the power brokers will quietly sit back and let him fail. No one can get the US out of this mess created by the White power class of America.

With the huge support that Obama got, he and his administration will feel that they know what is right and they will do that. There will be bigger government, more bailouts, and tax cuts for the poor and working class and/or increased taxation for the wealthy. This will lead to the printing presses continuing to run overtime, this will lead to massive inflation and worse failure for his presidency.

Like it or not most of the taxes are paid by the wealthy, and trying to tax them even more, right now, may just drive them away to other countries, in a utopia that may be good but there is no such thing and never will be so cutting off one leg of a chair will lead to its total collapse.

The other alternative Obama has is to let these failed businesses and corporations collapse and let the market correct itself. This will lead to even more people losing jobs very quickly but the presidency will see this as bad for the next elections; the Wealthy make up only a small portion of the voting base anyway and as proved by Obama their contribution is not greatly needed if you have the masses on your side, so expect the former to be the hallmark of his presidency and not the latter.

Obama’s presidency will be a big failure but how badly it fails depends on the choices they make. I actually think that after all the celebrations, Obama’s election at this time is sad for Blacks and all other minorities in America. I wish him well and hope that by some miracle his presidency will be a great one or else we will all be affected by this economic crisis – no one will be spared. However, I do not believe in miracles, but I believe in reality and reality bites real bad sometimes, get ready for some blood.

Note: The reason I am saying that it is a sad time for Blacks; they will all be held culpable, by White America, for a disaster that neither they nor Obama are responsible for. Read my Scapegoat Obama for more detials.

What’s Next

The US government needs money and one of the things they are looking at is taking money from your IRA and 401K.

There is a very real possibility that they will make it law that 5% of your retirement money will have to go towards purchasing government bonds or else you will have to cash out your retirement accounts and fulfill the tax obligations. The government will pay 3% interest on these bonds.

Stay tuned.

New world currency

There will be a new world currency soon and it will not be the USD. People are fed up of the US currency and the strong arm tactics the US has used in the past to force countries to trade in its currency. This time this new world currency will not be backed by a military but by something much more substantial – GOLD.

Expect this currency to originate in an Arab country and will be backed by gold, if not fully at least partially. Dubai is looking to become the gold trading capital of the world and it will be a win win situation for them.

The US will not like this, however, they are currently being placated by military arms contract to keep them happy. The entire world have been conned and coerced by the US but they will take it no longer. Why would anyone believe the country that ripped them off will now all of a sudden become honorable? Not gonna happen!

These same countries that got us into this mess are meeting to come up with another world currency to force down the throat of victimized countries. The currency they want to create still has no gold backing, do you believe that the countries who have been victims will accept this? No way!

They are just standing by to tell these countries thanks, but no thanks. Word is that Europe will be divided, one block of countries that will have a partial gold backing and the other half (crooks) with no backing. Also, the Gulf Dinar will be gold backed.

Yes the world is changing and the US will no longer be at the top, they will go through some very tough times and will never be the same. Expect the USD to tumble, it is making its last fight and then that’s it.

Diplomacy and brains will be better for this world than brawn and idiocy. Welcome to a better new world after it is all said and done.

She will be loved.

This is my version of this song. I started out doing it like the original song, however, in the process I changed it up and came up with this version of it.

Darker clouds ahead

I generally take a dark view of the current global financial situation based on the facts at hand. However, after thinking about the financial crisis we are in, even I was not ready for the cold dark reality of what could possibly unfold before it is all said and done.

Many, who know me, say that I am too pessimistic and doom and gloom, some even thought I was nuts. Earlier this week a colleague of mine said:
“You know, when I met you one and a half year ago I thought you were nuts, but, now I know you were ahead of the crowd”.

What he was referring to was my view, since back then; that the financial system will collapse. As you can see my blog is filled with the essays I have written about the crisis even before it became one. Well last night, after looking at some additional data, the cold dark reality hit home for me even harder; things may get much worse than even I, “Mr Darkness”, thought possible.


I expect:
The financial system to almost totally collapse, this is already happening.
Many more banks to fail
Some industries to grind to a halt
Massive unemployment
Wide spread poverty
Food shortages
Governments to basically go bankrupt and services to be at a minimum at best
Utility companies will not be able to reliably deliver products and services
Blackouts and brown outs
Massive Riots
Martial law declared in many cities

This could all unfold within the next 5 to 7 years. Many of these problems will result from the global real estate bubble, estimated at $30 Trillion, collapsing. I thought that was the biggest problem however, the derivatives market is even bigger, estimated to be about $54 trillion, when this starts unraveling in a big way then the dark clouds will really descend upon us.

There is, however, one saving grace and that is the compassion of the wealthy and ruling class, if they are willing to give up 25% of their wealth for the benefit of the poor and working class then the impact will not be as bad. The ball is in their court; let us see if they are human after all.

The Greater Depression

The huge bail out passed by the US government in an attempt to stave off disaster and a possible depression will not work; why would the same thing that brought us here now get us out of it? Not gonna happen

What brought us here is the easy money policy that the US has practiced for years, and as we all know too much supply with not enough demand leads to failure. There is just too much US currency (IOU) in the world and none of it has any fundamental backing. The US is headed for failure and life as we know it will never be the same in our lifetime.

In the great depression the government did not provide liquidity quick enough, according to the “experts”. Now they are acting very quick and injecting as much as is needed. However, IMO, the end result will be the same.

By not acting quickly enough, it is claimed that credit came to a halt and the financial markets and economy halted during the great depression. Now, the pundits say that we need to inject liquidity as quickly as possible to avoid the same thing happening. There is however one big problem with that:

0% liquidity – 0% inflation = 0 (great depression)
10% liquidity – 10% inflation = 0 (currently)

The bottom line is that no matter how the US Fed or government slice it or dice it; it amounts to the same thing.

For those who may not understand inflation I will express it as I see it:

Inflation is not the increase in price of goods, instead, that is a result of inflation. In fact, there is only one kind of inflation and that is monetary inflation. Any increase in the money supply without any backing amounts to the roughly the same amount of inflation.

Therefore, in the great depression people had little money but it was probably worth something because of deflation. However, now people will have money or access to it because of an increase in the M3 supply but it will probably not be worth as much as it did during the great depression because of monetary inflation, possibly leading to hyperinflation. We will then end up in the same place at best and the current crisis will come to be known as the greater depression.

my version of heaven's door

I was having some fun and decided to do this tune...

Love, Hate; the paradox of life

It is said that hate will kill, and this is true.

When one mass of energy is diametrically opposed to another mass of energy it can be detrimental to one or both. This opposition can have varying degrees of effect and we as humans may call extreme opposition, hatred.

However, one can be opposed to something but not strong enough to the point of hatred, as we know it, and it will not have any significant effect on any mass of energy. But any degree of hatred that leads to physical actions can be harmful to one or more forms of energy.

Opposition in mathematics as we know it will lead to equal values on opposite ends of the spectrum canceling each other out; 1 + (-1) = 0

Hate will kill, and this is true. It can kill you a little bit at a time or all at once, but over time it will kill you – or cancel out your mass as it is.

This is one of the reasons if you hate someone it is best to physically avoid being around them. In an extreme sense, think of it in scientific terms; if you were to ever meet the anti-you, do not make physical contact or else both of you will disappear on account you have cancelled out each other because every element of the two would be directly opposite.

But at the same time what is life without passion? Well it would be a bowl of soup because in science no two things are the same mass and velocity - in other words the same – in the universe. If they were, then everything would just be one big bowl of liquid and that would be no fun. So while we try not to hate we still cannot be all the same or in agreement all of the time or else the life as we know it would not exist – pretty dull eh!

Love, hate, what a paradox! :)

Golden opportunity

Wow, are people starting to believe what some of us said would happen? Well be prepared because if this is a 9 innings baseball game we are only in the third inning.

The scam continues as the ruling class continues to bail each other out at the peril of the poor and middle class. The masses can pontificate all they want, however, unless they understand the scope of this thing and what brought us here, they will just be lambs waiting to be slaughtered.

I said before that gold will hit 2k by 2011, well many laughed, where are we now? I will make a bold prediction now that should now make them hysterical; gold can go as high as 40k an ounce.

Here are the possibilities:
1) Depression = 2k to 5k per ounce
2) Stagflation = 5k to 8k per ounce
3) Hyper inflation = 8k to 40k per ounce

Those are the golden opportunities. But the most likely scenarios are 1 and 2, heaven help us all if it is 3.

The only thing that can save this financial system from a total collapse and future collapses is a gold back currency.

How can a stock market be actually said to increase in real value when the currency of that market has decreased 60%, in some cases over 70% relative to other currencies.

Everytime an institution is bailed out, everytime interest rates fall, the currency is further eroded and the poor and middle class see their net worth shrink or debts increase relative to income.

All the fools who cheer when the Dow goes up in nominal value need to get their heads checked, it only results in further inflation.

Does it not strike people as inorganic when stock markets all over the world go down but the country in crisis actually sees its stock market go up??? If it looks too good to be true then it is absolutely a big lie. Stay tuned and buckle up, its gonna get much more rough.

Oh, and don’t throw out that wheel barrow yet, you may need it to go to the corner store to buy bread.

Americans should push to scrap the Fed and demand a gold back currency, that is the way the founders of the US wanted it, but somewhere alone the way some greedy murderous bastards took control and created the biggest scan in history; a currency without a gold or silver backing

And not just the US currency is at risk of collapse, all fiat currencies are at risk. Anything without a gold or backing is garbage and the whole world is at risk, including Canada.

Scapegoat Obama

Obama will end up being the biggest scapegoat in history and you will never see another Black president for another 50-100 hundred years if ever..

I believe that Obama will win; the history of the White ruling class American politics point in that direction.

You see, the ruling class will give the people what they want when it is convenient. The way history is going right now if they do not let a black president in at this time it will eventually happen naturally. They want to prevent that from naturally happening.

They will do that by letting it happen now because if, instead, it happens naturally, then, White ruling class America will not be able to prevent it happening again and again, that is not good for them. The best option then is to let it happen now.

With the economy in such shambles the Republicans know they cannot win, therefore, they along with the Democrats will see to it that Obama wins the nomination and presidency to stop a Black man from ever winning the presidency for another 50-100 years, if ever again.

It is like stopping a wild fire from spreading by lighting a controlled fire before the wild fire gets there. That way by the time the wild fire arrives, there is nothing to feed on to continue burning because it was already burned by the controlled fire, therefore, it dies.

After Obama wins, the economy will get much worse than it is now, it will happen regardless of who is president, but, it is much easier to blame a Black for the corrupt and greedy policies of the White. The crisis that is unfolding, when it is all said and done will be worse than anything ever in history and yes the Blackman will be blamed, orchestrated by the Demopublican coalation.

This all could apply to Hilary also, but I believe not this time, however, in time it could happen to silence the female presidential threats, if required.

Nothing this big happens by accident; and the band plays on.