It Can Happen Here

As of Friday, February 15, 2013

After World War II, the United States became a world leader because we had a select place on this planet.

We had the climate, the geographical protection of being bordered by two oceans, the natural resources and the right attitude of a population supported by a constitution and rule of law, second to none.

The economic encouragement from the entrepreneurial drive-based capitalistic system worked.

Capitalism flourished because of low taxes, sound money and minimal regulation. Now, we practice the dead opposite of what made us great. Our country is in the grip of a false doctrine. Socialism and intervention have replaced capitalism as the dominant economic philosophy.

To quote James Cook, president of Investment Rarities Inc., “We’ve seen the mess that socialism left in Russia when capitalism died.

Nevertheless, our so-called intellectual leaders have sold the public on the idea that capitalism harms them. The end of capitalism means the end of Western civilization. The anti-capitalist trend in America means the end of America.”

With the blessing of this president and the spendthrift Congress, Ben Bernanke is debasing our currency in order to maintain the fiction that trillion-dollar-plus annual deficits and a more than $16 trillion national debt don’t matter.

To keep us floating, the Federal Reserve is purchasing our own debt (to the tune of about $85 billion per month). We are just printing more money without any backing! This approach has always led to hyperinflation followed by depression.

Please do not think that it can’t happen here, the greatest, financially strongest country in the world. It certainly can and almost certainly will.

You should prepare yourself for the day that comes when dollars will be totally worthless. It can’t be far off now.

Tom Anderson

Pinehurst

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OldPilot 3 months, 1 week ago

First, the United States was, is and always will be totally different socially, politically, geographically and economically than the Soviet Union from the time of the Russian revolution until the time the Soviet Union collapsed; two entities which can not rationally be compared. Second, the reality is we are not suffering hyperinflation and we are coming out of a substantial recession. Third, our leaders are neither anti-capitalism nor anti-capitalists, quite the contrary as anyone who listens, thinks and refuses to join the ignorance caucus understands.

The_AnonymusProfit 3 months, 1 week ago

thats one of the first sound things I think i have heard you say oldpilot.

Yukonjohn 3 months, 1 week ago

Just another reason to not live in the cities of America. I firmly believe that our system is going to fail. Partially or totally, but fail none-the-less. When it does, living in the cities is not going to be a very pretty sight. Dr. Benjamin Carson addresses the Fed Reserve and the situation we are in very succinctly. It won't be long now until we are living the nightmare of Greece unless we change our ways, which it appears we will not.

Nezumi 3 months, 1 week ago

What a great comparison, because Tsarist Russia was a capitalist paradise before the Bolsheviks.

Themis 3 months, 1 week ago

Get'em Yukon!!!! I have cleared all of my small debts, buying gold and silver, and other things for trade as well as food. I talk to my dad all the time who was 9 when the great depresson hit. He says they all said it couldn't happen either. My wife's Grandmother was Polish and survived a cancentration camp in WWII, they assured her it could never happen. If you had asked anyone that worked in the world trade towers on 9/9/01 if it could happen, and they would have said "No Way." Ask the ghosts of the Greeks, The Romans, The Azteks, The Mayans, they would tell us as Patton said, "All Glory is fleeting."

Yukonjohn 3 months, 1 week ago

Themis, we have room up here if you can stand the coolish weather and the distance from family and friends. We are free up here, a lot like America used to be. We do not believe in a bunch of rules and regulations that restrict personal freedom. We love liberty, and govt that interferes very little in our lives. If this is something that you yearn for, l would be happy to try and help you get here and survive. We need more that think like we do, and once a person gets through a couple of winters, hell, they are on their way. You can be as "big" as you want, or as "small" as you want, it is up to you.

clarabelle 3 months, 1 week ago

Yukonjohn - I really have to remark - I feel as "big" as I want, or as "small" as I want.

I feel free here ............ and wonder just why you are always demeaning the US!

I also wonder just what rules we have here that you don't have there - please expand!

dustyrhoades 3 months, 1 week ago

Capitalism flourished because of low taxes, sound money and minimal regulation.

Actually:

Between 1945 and 1960, the gross national product more than doubled, growing from $200 billion to more than $500 billion. Much of this increase came from government spending: The construction of interstate highways and schools, the distribution of veterans’ benefits and most of all the increase in military spending–on goods like airplanes and new technologies like computers–all contributed to the decade’s economic growth.

And: The G.I. Bill subsidized low-cost mortgages for returning soldiers, which meant that it was often cheaper to buy one of these suburban houses than it was to rent an apartment in the city

Also: the top marginal rate in the 1950's was over 90%.

So if you're looking for the type of boom we had in the postwar era, you're talking high taxes on the wealthy and massive government infrastructure and loan programs. Wow! Sounds familiar?

Yukonjohn 3 months, 1 week ago

OMG ClaraBelle, there are not enough pages for me to expand on this. Probably governmentally, we live by referendum style of govt. If there is a law we do not like, we get our buddies to fill out a petition, and if we have enough names on it, it will show up on the next ballot for the people to vote on. We are not taxed, unless, again we choose to be. We personally know most of our politicians, and as such, we feel a closeness to them. We can catch them in town and speak about problems, or perceived problems. They listen to us, because word of mouth is huge here. If they do not at least listen to us, they will loose the next election, and they know it. We can pick up our phones and talk to them almost at any time. We are not restricted, except by federal laws, in our lifestyles. As long as what you are doing does not affect my lifestyle, we are happy for you. Live and let live. We are very fortunate to have so many natural resources that we have a very large surplus of money. That makes a huge difference. On the socialist side, we collectively OWN our resources. I am a 1/600,000th owner, and as such, l can make a difference in how it is doled out, and how it is utilized. Like l said, there are not enough pages to explain what l had said. And, by the way, l am NOT anti-US. I am a veteran of ten years in the AF and honorably discharged. I am very patriotic, it is that l just disagree with what the US has become.

fugitiveguy 3 months, 1 week ago

I continue to be amazed, maybe dismayed may be a better word by the number of apparently educated people who think 17T debt is no big deal, that printing more and more $$$ is no big deal. Unfortunately we will all will suffer for their folly. Look at Greece and other European countries. Better yet, look at California.

Spocks_Brain 3 months, 1 week ago

QE3 is destroying the signaling capabilities of markets; junk bonds trade at 5 per cent yields; we have a guy that has about as much economic sense as a 5 year old as President, except he has and is and will make millions if not billions for himself. Since we are more interested in gays getting married, we ignore what is going on, we have nice little girls like Clarabelle and and DR, who are the ultimate bleeding hearts bloviate froth constantly on here look we are sinking fast. There is no stopping the slide..my take is after it all crumbles we out all that voted for this clown and drag them off to concentration camps

Spocks_Brain 3 months, 1 week ago

Read zerohedge.com to keep up with the madness going on financially in the US

fugitiveguy 3 months, 1 week ago

spock-I must say I have agreed with much of what you have written in the past but I cannot understand the recent emphasis on gays. I can't concern myself with what 2 people do in private. Bigger fish to fry.

Spocks_Brain 3 months, 1 week ago

fugitiveguy not a day goes by that I'm not abused by headlines that constantly harp on this issue; You must admit enough is enough....

dustyrhoades 3 months, 1 week ago

No one has yet been able to "cut" their way to prosperity. In 2010 Ireland was held up by the European Central bank and the Cato Institute as a "model" for cost cutting and austerity policies. They still have as of November 2012, they still had 14.4 percent unemployment. Britain: same thing They were undergoing a modest recovery, started cutting in 2010, their economy's now stalled. Greece cuts and cuts and cuts (what do you think all the riots are about?) and they're still dead in the water.

OTOH, look at Iceland:

„… We were wise enough not to follow the traditional prevailing orthodoxies of the Western financial world in the last 30 years. We introduced currency controls, we let the banks fail, we provided support for the poor, and we didn’t introduce austerity measures like you’re seeing here in Europe. …“ -President Olafur Ragnar Grimsson

They're at 5% unemployment as of last month.

These are facts.

Austerity doesn't work.

dentman65 3 months, 1 week ago

As much as I'd like to disagree with DR, from most all I can find available to read lately he seems to be on target. For some reason I am starting to figure out that when it comes to politics - if you do the opposite of what you think you should do , you will always be right. At least that is the way it seems sometimes. I'll never understand how you can "spend" yourself out of debt but it seems to have worked in the past. I read the articles on England and other countries and austerity did not seem to work at all there, in fact,as Dusty said, it stalled. This world just continues to just not make much sense to me anymore.I am sure someone will correct me for all I have said that is mis-informed, and hopefully explain it better than the dictionary did on austerity.

Yukonjohn 3 months, 1 week ago

Dentman, l know exactly how you feel. DR knows that him and l disagree on many, very many things. Lately, we have been moving closer. Alot of it is me moving in that direction, but l still think our fiscal house is constructed on very shaky ground, and that ultimately it will fail. I also believe as some economist do, that the great depression would not have lasted as long, or been as severe, if not for the policies of FDR. Others hail him as saving our nation. I went to school when that is what ewas taught. I kind of believe the former, instead of the latter opinion of him. He did lead our country in a very pivotal time. We got through it then, but l believe that is because of our founders and their wisdom. It is all confusing sometimes, even to us baby boomers.

dustyrhoades 3 months, 1 week ago

Light breaking through the clouds? Stay tuned.

Yukonjohn 3 months, 1 week ago

Dangit DR, now don't you go thinking that we are agreeing on stuff now!!! But all jokes aside, we have moved closer in what is going on. We will never agree fiscally, or probably on discretionary spending, but on several social issues, we are probably very close to agreement. Hope your weekend is going well.

samosamo 3 months, 1 week ago

News Flash:::::: Ben Bernake is debasing our currency, look at a Dollar Bill (Federal Reserve Note), A private bank that lends to the US at interest. A worthless piece of paper that is only used as a debt insturment. The Fed buysTreasury Bonds through Goldman-sachs ( another cut) at the taxpayers expense. The funds from the treasury bond sales are put into the system.(quantative easing) Note: see fractional banking. What makes a dollar worth more or less is the number of them in circulation, Enter inflation, it's the only way the Fed can pull all those extra dollars off the street. Oh those Treasury bonds are redeemable for land.

Themis 3 months, 1 week ago

According to The Washington Post - As the decades passed after World War II, $16.7 billion worth of bond certificates were either forgotten in dusty attics or thrown out in the trash. Hard to believe huh.

LadyLynda 3 months ago

"Politicians will blame each other but the fact is both parties have enough blame to go around. Even the most conservative presidents have increased the debt ceiling and all found a good excuse to do so, this administration is no different. No currency as dominate as the US Dollar has defaulted but never before has so much inflationary pressure been on such a currency. Everything has a breaking point and the dollar certainly is no different." Ron Paul says "Debt is Unsustainable." I doubt anyone here will argue that the dollar does not buy as much as it used to. I do believe things are getting better in the economy. Either that, or Americans are tired and weary of being afraid and cautious and are simply getting on with their lives. Banks are loaning again to some degree, and I see some new construction popping up here and there. People don't seem to be talking the doom and gloom of 2-3 years ago. I have friends in the car industry and other high end retail items and they say sales are improving. I am in great hope that there is a light at the end of the tunnel regardless of what politics you may follow, I just hope it is not a train!

packwilleat 3 months ago

It can happen here. And it will. We are repeating every failed economic theory since the beginning of keeping records. But somehow the liberals have found a new way to stick your pecker in the blender without any ill affects.

http://dailyreckoning.com/fiat-currency/

Middleman522 3 months ago

Themis, your words are true and sail right over the socialists heads. They are so sold out to big government, facts do not mean a thing! It's really sad!

Hey Rhoades, Where does all that wonderful Government spending come from, unemployment checks, disability checks, food stamps?? No it come from working folks taxes. Sooner or later one runs out and we start borrowing. Oh S... it's already started. Spend and borrow more to pay off debt??????? Until we create more tax revenue, we have to stop spending more. Why don't you get that!

It Can Happen Here

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