THE FINANCIAL SYSTEM IS BROKEN

The financial system is now broken. The meltdown is underway. Our “buyer beware” form of capitalism has found the buyers to be totally unaware. But then most people living in “light coma mode” are not too cognizant of anything, really. For instance, they do not comprehend that we are living in the midst of an event that will go down in history right alongside the Great Depression and the Civil War.

To those of you who are conscious, I ask the simple question: are you mad, yet? Are you outraged to learn that our fractional banking system, based on pieces of paper backed by absolutely nothing and leveraged to the hilt, is self destructing? Does it make you mad that every bank in the country only has to keep 10% of its deposits on hand, thus assuring that it is essentially insolvent and could never stand a run on its assets? Does it make you furious that the FDIC, who is there to insure everyone’s bank account only has about 1% of the money necessary to perform its role? And finally, are you properly incensed that a private, unconstitutional entity, otherwise known as the Federal Reserve, has seen fit to bail out those who should be in jail and saddle their debts on the backs of the American taxpayer, you and me? Socialism for big institutions, dog-eat-dog for the American people.

The Feds will do whatever they can to keep the whole thing propped up until Election Day. That means they will crank up the printing presses to the speed of light in order to create more paper credit. They will intervene in our so-called free market system in order to “manage” the stock, bond, currency and precious metals markets as they have been doing for years. In the meantime, put on your helmets and keep your eye on the U.S. dollar. Think of dollars as the common shares of the United States of America. And remember, what is occurring now has always happened in the past. There has never been a paper currency that hasn’t been totally destroyed.

Finally, one last question: as much as I like Obama as a human being, do you really think he or McCain have the slightest idea what to do about the implosion of our financial system? Whoever wins in November, he might try a brand new concept: SELLER BEWARE.

09/21/2008