Wednesday, October 7, 2009


The following items appear in the latest issue of The New American magazine [9/28/2009]. I figured I would share them with you because I know that left to fend for yourselves you’d never find them and be less the wiser for it. I don’t know why I watch out for you people, I really don’t - but I do.

An excerpt from Charles Scaliger’s review of
Ron Paul’s latest book, ‘END THE FED.’

Unfortunately, many people have allowed themselves to be persuaded that economics, banking, and finance are numinous, abstract disciplines best left to the experts. But we ignore these topics to our considerable detriment. Dr. Paul writes:

“Everyone should have an intense interest in what money is and how it’s manipulated by the few at the expense of the many. Money is crucial for survival. It is necessary for maintaining a free society. A healthy economy depends on it. Limiting political power is impossible without it. Sound money is essential for preventing unnecessary wars. Prosperity and peace in the long run are impossible without it. To understand money, one absolutely must understand what a central bank is all about.”

For you few knuckleheads who still believe that USAP is going to save this country and that we will be rolling in dough and swimming in champagne again soon, I give you this dose of reality. See if you can find your promised HOPE and CHANGE anywhere below:

By John F. McManus

“Imagine a team of doctors who think more poison is the solution to poisoning.” That’s the attention-getting opening sentence leading off an invitation to attend a conference exploring the disaster known as the Obama administration. Good analogy!

The team of experts currently running this nation has been administering its own type of poison to combat our nation’s economic downturn. Predictably, the recession isn’t ending. Instead, the nation wallows in a self-imposed and deepening quagmire.

If the Obama economic team (Geithner, Summers, and Volcker, along with recently re-anointed Fed Chairman Bernanke) really wanted to steer the United States out of the economic doldrums, they could learn from Japan’s experience over the past 17 years. The once-booming Asian nation saw its inflation-created bubble explode in 1992. Government program after government program has been tried to reverse Japan’s doldrums, but the nation is still stuck in its long-standing recession.

On August 30, Japan’s voters finally said they’d had enough of the ruling political party’s 55 years of almost uninterrupted domination. In a monumentally historic rout, voters awarded the Democratic Party of Japan (DPJ) 308 of the 480 seats in the Lower House. DPJ already has control of the Upper House via a coalition and is now assured of complete control. The victorious party’s leader, Yukio Hatoyama, will form a completely new government. Defeated Liberal Democratic Party (LDP) leader, Prime Minister Taro Aso, saw his Lower House representation shrink by almost two-thirds in the August 30 avalanche.

Viewers from afar surely wonder what happened. The answer is a combination of enormous debt and a procession of government programs that didn’t work, leading to failure to reverse serious economic stagnation. During the 17 years since Japan’s bubble burst, LDP political leaders had been insisting they had the answers to rising unemployment, the business slowdown, a rapidly aging population, and debt. They asked the people to give them more time to cure the nation’s woes. The people finally said no.

Japan’s defeated leaders insist they tried everything. And they really did except for the one solution needed above all: get the government out of the way and let the people solve the problem. Japan’s central bank lowered interest rates, increased the money supply, and issued loans to businesses. The government created massive public works programs. There were bailouts for companies and banks, and some were nationalized. And on top of all of this, stimulus packages shoveled money at the people. But after 17 years of all of this governmental action, Japan’s long stagnation continues.

It’s all there for anyone to see. Treasury Secretary Timothy Geithner could see it if he cared to look. So could the president’s Director of the National Economic Council Lawrence Summers and the Chairman of the Economic Recovery Board Paul Volcker. And we can be certain that Federal Reserve Chairman Ben Bernanke knows what happened in Japan. These key advisers to President Obama
aren’t stupid and aren’t denied access to factual information.

Yet, look at what America’s experts have done in response to our nation’s recession. In every detail, they did exactly what Japan has been doing for 17 years. They cut interest rates, launched public works programs, handed out business loans and bailouts, and created stimulus packages, while the Fed manufactured trillions [*STMcC: of "funny money"] out of thin air. The result: our nation remains mired in our own slowdown. What happened in Japan is being repeated here.

Various economists and media luminaries tell us that the United States is now “rounding the corner,” “pulling out of the doldrums,” and “poised for a return to prosperity.” But the best news they can produce is that unemployment hasn’t risen as much as they predicted. [*STMcC: Actually, they can’t even make THAT claim now!] We’re not supposed to note that jobs are still disappearing and the country as a whole is still suffering. Our nation’s only growth industry today is government itself.

In choosing an alternative to their long-serving political party, Japan’s voters have installed a possibly even worse choice. The DPJ wrongly blames free-market economics for Japan’s problems when true free-market policies have already been shunned. Attacking the government’s budget deficit by cutting waste, a DPJ claim, has been a minimally effective plan wherever it has been presented as a solution to indebtedness. The DPJ’s plans to subsidize farmers and cancel toll-taking on highways will be costly and costs will surely exceed whatever is saved by attacking waste. And the DPJ’s promise to deal with the declining birth rate by paying families $270 per month per child is hardly going to reduce government spending. Summing up: the Hatoyama government will no more spend Japan into prosperity than will the Obama government here in America.

America could learn from Japan’s woes. But there is no evidence that our current leaders have either the will or the desire to do the needed learning. Voters here must be made aware of the consequences of more government programs so that they don’t follow Japan’s lead by applying more poison when an already-applied dose has made the nation sicker.

Anyone with even half an ounce of grey matter in their head knows that our Eek!-conomy is five and ½ feet deep and USAP and his jolly band of Marxists are still shoveling their crap on top of it. None of this makes any sense until one understands that saving our system is not the real goal, but that sinking us monetarily while amassing more Federal control is the true End Game. And anyone who thinks that electing John McCain to the White House would have been a smarter move is a real schmo. The goal isn’t set by presidents; presidents merely follow orders from those who ensured their elections.

My suggestions to you?

#1: Get out of all debt as quickly as possible.
No, you don’t need the latest cell phone that wipes your butt for you after you’ve visited the john. And you need that new Chevy truck “like a rock” needs a new Chevy truck. Stop trying to impress yer “brainiac” neighbors who voted for USAP or McCain just like you did, and just get out of debt.

#2: Liquidate all the paper assests you can.

#3: Purchase semi-numismatic gold coins and circulated silver dollars. If you can’t afford the gold, then just stockpile circulated silver coins; they will come in handy when you need to barter for toilet paper. (Unless, of course, that butt-wiping cell phone you bought is still functional.)

#4: And most importantly . . . get right with GOD. Because in the final analysis, He and He alone can protect you through the cosmic dust devil that’s a-comin’.

I’m letting you know right up front that anyone who takes my advice is a fool, and anyone who doesn’t is an even bigger fool. And good luck to you, you’ll need it.

Me? I’m nearly certain that I will be martyred by good ol’ Uncle Sam. I only hope that my life will later be determined to have been of such sufficient character that the Catholic church will declare me a “saint” and make me the patron saint of something (even though I’ve never been Catholic). I’d like to follow in the footsteps of my hero, Yoey O’Dogherty, who is the patron saint of patron saint medals.

~ Stephen T. McCarthy


  1. Stephen T- Well writ, as always. The one point you raise, I'm not sure I agree with. I wonder if it may be time to incur AS MUCH DEBT AS HUMANLY POSSIBLE!!!!

    Wait-let me finish. You'll incur the debt at today's moderately inflated dollars, but you'll be paying it back with dollars that are virtually worthless.

    Better yet-incur lots of debt and buy precious metals with the proceeds.

  2. Hey, THANKS, TODDFAN! ~

    >>[You'll incur the debt at today's moderately inflated dollars, but you'll be paying it back with dollars that are virtually worthless.]<<

    This is true, however, regardless of their actual worth, you'll still have to come up with them somehow.

    >>[Better yet-incur lots of debt and buy precious metals with the proceeds.]<<

    Now, really, that is not a totally insane idea. If memory serves me, I think we may have even briefly discussed this "face to face" at one time.

    The price of gold is rising so fast these days that if one went into debt to buy it, he might actually be able to pay it off, with interest, and still come out way ahead of the game (not to mention ending up in possession of the only form of "Real" money).

    Very, very conservative, "anti-gold" sources state that they are certain it will climb to $1,500 to $2,000 per ounce. Reliable "pro-gold" sources say it will eventually reach anywhere between $3,000 and $5,000 per ounce. As I write this, gold has climbed $9.00 per ounce in today's trading; yesterday it went up $4.+ and the day before that about $23.00.

    So, yes, what you say is actually worth some serious consideration. To be sure, there is some short-term risk involved, because history shows that The Powers That Be have been able to suppress the price of gold for extended periods of time. But it seems to my poor, half-assed brain that this would be a no-brainer over the long-term.

    The only question is, how short is short and how long is long? But at the rate things seem to be going, the end appears to be near, so what we once thought of as short may actually be the new long view.

    But then what the hell do I know? I'm just blogger number seven hundred and fifty-three million, four hundred and eighty-six thousand, seven hundred and twenty-two.

    This much I DO know, however: During the Great Depression the saying was "Cash is king." But since we have been entirely removed from the Gold Standard for many decades now, in the second Great Depression the saying is going to be "Gold and Silver are king; Cash is doo-doo."

    ~ STMcC
    <"As a dog returns to his own vomit,
    so a fool repeats his folly."
    ~ Proverbs 26:11>

  3. Good advice STM! All the talk about the recession now ending and people getting excited about this rally in the market would be laughable if it wasn't so sad.

    Time will prove Mr. Paul (and you of course)to be right. Unfortunately it will be too late by then for most to do anything about it.


  4. Indeed, OL' WP.
    Your comment reminds me of a favorite passage from C.S. Lewis' MERE CHRISTIANITY:

    "When the author walks on to the stage the play is over. God is going to invade alright: but what is the good of saying you are on His side then...? It will be too late then to choose your side. There is no use saying you choose to lie down when it has become impossible to stand up."

    ~ STMcME
    <"As a dog returns to his own vomit,
    so a fool repeats his folly."
    ~ Proverbs 26:11>


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