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Cock O’ Doodle Doo: Chicken Little Government
The FDIC is out of money, depending on advance fees and a $500 B credit line that may disappear any day when the Treasury finally admits it is out of money due to falling tax receipts and people unwilling to loan Uncle Beggar money any longer than a two-year T Note.
The CA DMV did not improve service in 2009, but raised vehicle fees 65% anyway. States and Feds are legislating stealth fees and taxes on the middle class with empty promises of help while creating larger bureaucracies that average $100,000 a job and do not produce anything. Maybe we the people would like to support our families on foodstamps and part-time temporary Census worker jobs at $11 an hour?
Only deficit counterfeiting maintained the illusion of GDP solvency from 1984 until now, as illegals were deliberately imported for cheap labour with jobs shipped overseas on broken empty political free trade promises.
This collapse now is hardly inflationary.
Who can eat an IOU or spend a gold coin and get change?
Precious metal collectors are robbed by markup premium spreads, burglar thieves or handling, shipping, storage costs.
$604 Trillion OTC derivatives and $106 Trillion unfunded government agency mandated liabilities choked the world GDP to death to end the era of profligacy.
The BRICs, Euros and PIIGS are in worse shape than the USA, still the largest national economy despite productivity deliberately shipped overseas.
Now the Bankers, COP15, Euros, UN and WHO threaten USA liberty, prosperity and sovereignty with their socialist wealth confiscation schemes.
Beside the Dollar, there is only one other Currency in a bull market now, as Big4 subscribers know.
Those like Russell and Schultz who think gold will be the safe hedge against default-driven deflation may be living in the past, when the USA was on an official gold standard.
During the Thirties, Dome and Homestake paid higher and higher dividends and soared from monopoly profits selling gold to the government at a guaranteed profit with lower wages and a 69% higher gold standard price. Free market companies had a hard time and many went out of business like now, leading to monopoly conglomerates buying out their competition at pennies on the dollar. Hello GD, GE, GM, GS, GILD, HAL, JPM and others with no-bid government war-profiteering contracts.
