Editorial
2010 Is Just Deck Chair Politics on the USS Titanic
"Every election is a sort of advance auction sale of stolen goods." – H.L. Mencken
The political consensus is following the 2010 election, the Tea Partiers and the GOP establishment will breathe a sigh of relief and celebrate their victory and our two-party monopoly system of government will continue as before. A GOP House majority will checkmate Obama and the Democrats in the Senate and political stalemate will result. Many conservatives and a few Washington pseudo-libertarians will claim stalemate is better than a Democrat landslide but they will be wrong.
Like the Titanic, the Washington/Wall Street ship of state hit a Federal Reserve created iceberg under the command of George W. Bush with the recession/depression. Again, like recent evidence suggests, the original Titanic hit the iceberg and sank so fast because of a steering mistake turning the ship in the wrong direction which could have been avoided.
In a similar fashion, both Obama and Bush, following the self-serving orders of Bernanke and Wall Street steered the nation directly into the current depression and coming national debt and dollar collapse by following Keynesian economic principles instead of letting the market quickly resolve the crisis.
Everything you read or see on the establishment propaganda news outlets is just a rearranging of the deck chairs on the Titanic as the ship of state is certainly sinking. The goal of productive American citizens should be to get as far away from the ship of state as possible to avoid the downward pull a sinking vessel exerts on everything in the water as it goes under.
The Establishment Political Consensus Is Dead Wrong
America today is a one-party state much like the Soviet Union, China or Nazi Germany and both nominal political parties are just facades presented to the public to create the illusion of competition and choice. The establishment leadership in both the GOP and the Democrats represent the goals of the same special interests.
Our ability to "throw the bums out" every two or four years is just a release valve built into the political system which guarantees the continued elite control of our political process. Although there are some patriots in national politics in both parties, they never are allowed to take control of either party or the closed political system.
Before the summer of 2011 is over, the Tea Party supporters will already be angry and disappointed as the GOP elites will maintain the status quo and there will only be empty rhetoric rather than political action to control spending, curtail the deficits and limit government. When the coming debt and dollar crisis takes hold, I guarantee the GOP will have an action plan supported by the Democrats which will pass with bilateral support to solve the economic crisis. The solution will be the theft of your private wealth and promised benefits all done in the public interest to save America.
Why Only Nixon Could Go To China
And only the Republicans will be able to steal most of your wealth and get away with it with the acquiescence of the Democrats. Only older readers will remember the above political metaphor as it suggests additional legitimacy for politicians making "tough decisions" can result when strong supporters of a political viewpoint suddenly change their views and direction always in the public interest for a crisis etc. In other words, only Nixon, perceived as a rightwing conservative could have opened the door to China in 1972 as a liberal Democrat would have been criticized, attacked and thwarted by the opposition GOP.
What Asset Will Be lost Or Auctioned?
As America goes under, here are 9 assets and guarantees likely to be stolen by the politicians and then auctioned off to buy more time for the Washington elites of both political parties. Do not believe anything anyone from the establishment tells you as it is always false information.
Social Security Theft - As we see today in France, Social Security retirement ages will be further extended into the future. Wealthy Americans will be "means tested" and entirely forfeit their benefits and Washington will eventually end cost-of-living adjustments for all but the poorest Social Security recipients.
Solution: If you are eligible for SS benefits start taking them as soon as possible even at the lower rate and age currently age 62.
Rising Income & Estate Taxes – This is already a done deal by the Democrats and there will be some minor temporary pushback by the GOP but nothing of substance.
Solution: You might get one more year of the Bush tax cuts so throw all income possible into 2011.
National Health Care Expands - Again, some minor changes by the GOP and Blue Dog Democrats but it will never be overturned and in a few years this travesty will be just as supported by the Republicans as they now support Social Security, the Department of Education and the Patriot Act today. There is no solution.
The Risk of Private Gold Confiscation Will Go Up – When the dollar and Treasury market crashes, Washington will enact legislation against gold investors to curtail your profits, add a confiscatory non-productive asset tax or confiscate your gold with some type of fiat currency exchange. In any case, they plan to end up with your gold as this will be the basis of a restored dollar.
Solution: Move most of your gold offshore in a legal and reportable manner but outside the threat of closed or paralyzed banks, US investment firms and desperate politicians.
Home Values Will Continue To Fall – The long-term effects of the Fed and Wall Street bank created boom and subsequent real estate bust along with the foreclosure crisis now beginning will likely continue to weigh heavily on home prices.
Solution: Wait to buy any property you need at a lower price and walk away from properties outside your residence now sinking further underwater.
Confiscation of Large Retirement Fund Accounts - The long-term confiscation and control idea is to eventually force all retirement benefits under the new automatic/mandatory IRA program where everything will be combined with and managed like your Social Security benefits. Wealthy and productive Americans will find their retirement benefits used to support the trillions in underfunded union, state and local government employee plans.
Solution: When possible, move your substantial retirement assets legally offshore to escape a future liquidity crisis when the theft will occur and drawdown your balances by taking withdrawals as soon as you can without an early retirement penalty.
A National Sales or VAT Tax - This will be a quick revenue generator for the Feds but will probably start out somewhere between 2%-5% and rising quickly after that to confiscatory levels. Americans in low tax brackets may initially be exempted from this tax.
Solution: Make any major purchases sooner rather than later.
An End to the Home Interest Deduction - Again, this will be a quick revenue generator for the Feds but will put additional downward pressure on home prices. There is no solution but never buy anything tangible or even an investment for tax benefits. as tax preferences always change and never in your favor.
An Organized Collapse of the Dollar - The Feds fully hope to get some control over the outstanding national debt externally and internally over transfer payments by depreciating the dollar. How they hope to accomplish this without creating a run and collapse of the dollar and Treasury debt is beyond me but this is their intention.
Solution: Diversify your wealth internationally outside the US in banks and annuities, equities, bonds and real estate not denominated in dollars. Buy gold bullion, quality gold mining and national resource stocks outside the US.
The Bottom Line
It really doesn't matter where you sit on the deck of the Titanic, you have to get off the boat quickly in a lifeboat of your own design. The call for "women and children first" and "there are plenty of lifeboats for everyone" will just be misinformation to enable the leaders of Wall Street, Washington and the Fed to hide their identities, assets and involvement in creating the crisis.
I can't wait to see Bernanke, Bush and Obama in a lifeboat disguised and dressed in women's clothing along with most of Congress and the Wall Street insiders. May the sharks not be too hungry and the water not too cold so they will suffer longer. Or as Jimmy Buffet put it so well: You got fins to the left, fins to the right and you're the only bait in town.
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Posted by Dan on 10/24/10 10:19 PM
HHmmm, the link should be good. It worked cut-and-paste;
Click to view link
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Posted by Dan on 10/24/10 10:12 PM
Bill, I do try to be objective, rather than sensational. I'm not certain what form a revolution would take considering that Food, water and energy are all subject to central distribution. Read what the British Raj did to India by controlling food distribution. The PTB have plenty of resources to protect themselves ...
Click to view link
They just can't really protect the infrastructure. Pray that Fulford's buddies come through (:
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Posted by Sharkie on 10/24/10 07:37 PM
World government as well as western elite have done themselves in. I know it is slow but a political awakening is happening as we are seeing historic events unfold on a weekly basis. (Euro unrest, French strikes,tea party politics, foreclosure fraud exposed, stock market fraud, record gold and silver prices, etc.)
The results of this will be the upheaval of policy makers of all stripes and colors. It is not going to be an easy or soft period ahead, but a much needed hard-rain that begins to wash away the corruption of one world order. A fantastic time to re-organize as human beings minus the trash of influence against the public good.
When you vote, make it a mark for understanding this historic time is amongst us, and you intelligently do so well informed and humanly correct because like it or not, we are all in this thing together.
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Posted by Bill on 10/24/10 07:06 PM
Wow-I hope this guy is planning to attend the MARCH TO RESTORE FEAR on 10-30-10. Economics aside-these are issues that might cause a revolution unless of course the military is called back from our 737 bases overseas to guard the elite.
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Posted by Dan on 10/24/10 06:53 PM
Oh Great Bell, another great article. I agree completely,,, of course. We've all heard the term "slow motion train wreck". I've prepared a place as far from the tracks as possible. I couldn't leave the country due to commitments to the young.
Adrian Salbuchi is a very prolific writer. He does seem to advocate non-violence only. It hasn't gotten the Argentines anywhere. G.Bush bought 100,000 acres in Paraguay so he can be neighbors with his cronies.
I'm sure that GOV would be delighted to pass a law making GOV stores the ONLY legal buyer of gold. It isn't that far-fetched. They can just print the bucks to make the purchase. They would have price control too. They just need to "sting" a few buyers and sellers and NOBODY would risk selling privately.
I'm betting on silver. There isn't any.
Click to view link
Click to view link
Silver was held flat while the PTB sold off the 4 Billion ounces that killed JFK. It has a long way to go before it joins platinum and palladium.
The deck chairs are starting to slide. Those with even a modest amount of preparation will be off to the sides [figuratively]. Those who NEVER gave a thought to personal survival at any level will have to deal with Darwin. GOV is going to have it's hands VERY full trying to dodge the slings and arrows of the disappointed mobs. Those on the sidelines need only take 2 steps back. This may sound brutal. How many of us have tried to sound the warning to those who had no idea? How many of these people ran away with their hands over their ears? Call them turkeys.
The turkey is quite happy until Thanksgiving day comes around.
To paraphrase; clowns to the left of me,, turkeys to the right,,, politicians/criminals, all around.
The EMU is on a reasonable track to preserve the Euro. Bernanke is on a certain track to destroy the dollar;
Click to view link
"Bernanke's inflationists out-number the Fed hawks, and the world economy should brace itself for a round of hyper-inflation."
The markets only need some indication of a safe haven and they will flee to it. China says that it will back Greece and the Euro. All that 90 day U.S. paper is going to find a new home. No worries,,, the FED will buy up all that debt. She's good mate.
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Posted by Bill on 10/24/10 03:43 PM
Excellent article Ron. But at this point, change will be hard to come by.
Reply from The Daily Bell
Edited.
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Posted by Twittering As Stocktradr on 10/24/10 03:32 PM
@ Ron: nicely written. good trading on you.
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Posted by Onebornfree on 10/24/10 09:53 AM
Another thought-provoking article from the Mr Holland and the Daily Bell- complete with a great Mencken quote, no less!
As he says, shuffling deck chairs on the Titanic,a "ship of fools" is [obviously] a fools game, and so looking for political solutions to one's own problems [or even political problems] is, as always, a complete waste of an individuals time [sorry, Tea Partiers and Ron Paulites] " time that could be instead be constructively used to find ways to increase ones own personal freedom.
For example, finding/using alternatives to "guaranteed" Social Security retirement benefits, or looking for reliable ways to prevent nasty things happening to that holy government approved and sanctified individual retirement account [IRA], or investigating legal ways to get some money offshore where it is harder [if not impossible] for the US government to seize it on a whim.
Mr Holland's Predictions
Coming from the same neck of the woods as does Mr Holland [i.e Austrian economic theory], I find it easy to both identify and sympathize with his predictions.
However, it is important for the casual reader to realize/understand, that there is no time scale or calender that can map out a schedule for any/all of these predicted "Titanic" events, and that can therefor serve as a reliable guide for the concerned individual to make important personal financial decisions with.
Not even the [newly revised?] Mayan calender:Click to view link
Some, or all of Mr Holland's predictions might occur during any of our lifetimes, and some or all might occur in the future, long after we've all passed on [effectively meaning that for the individual, none of the predictions will occur!]
There are and can be, no absolute guarantees that any of these predicted events will actually occur _ever_ and certainly no rules to say that if they do, it must be within our own short time on earth. Or even that these would be the only catastrophic events, or even that they must occur in a certain order.
Mr Obama may be the captain who finally steers the US onto the iceberg of its own creation; it could be a future administration, or it could be that we already collided with the "iceberg" many years ago and are therefor hopelessly sinking into the depths, still unsuspected by most.
A Recovery?
It could even be that , contrary to what most "gloom and doom" Austrians and others currently think, that the US economy will, after staggering around a while longer, make a nearly full "recovery"once more [comparatively speaking], by somehow successfully papering over its massive ongoing debt obligations and fooling almost everybody one more time, for another 20- 50, or even 100 years. [Hard to believe, I know, but not impossible!]
Who really knows?
No one, that's who. [Except perhaps "Nowhere Man" ,or "Misstra Know-it All"]
The parts of Mr Hollands comments I most agree with [outside of the general "Titanic" ship of fools comparison] are those concerning IRA's, Social Security, and moving at least some banking offshore while it is still legal in the US.
It is unwise to rely on _any_ government to keep its promises,and so even now, it is unwise to rely solely on either Social Security checks from the government for "guaranteed" future income , or on future income from a retirement account [IRA] that is also always at the mercy of politicians.
As to banking outside the US,[or whichever country serves as a readers home base], as Mr Holland says, you need that lifeboat should the ship go down- better get one ready sooner, as opposed to later!
The sooner the individual stops relying solely on government promises [Social Security and IRA's] to fund his/her retirement, or on the mistaken idea that their life savings remain safe within in the US banking system and cannot/ will not be confiscated at some extremely inconvenient time in the future, the better off and more secure/confident about that unknown future they will feel.
P.S. Food for further thought: not only do you need a lifeboat , as Mr Holland suggests, but you also need somewhere [a port " or preferably,several ports] to head for, otherwise you might end up just floating around in your open lifeboat in the middle of an ocean, at the mercy of "the elements", until you starve, die of thirst, drink sea water and lose your mind, get eaten by sharks, or, like the Titanic, hit some unseen, giant immovable object that rips your boat wide open below the waterline!
onebornfree @ yahoo dot com
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Posted by Roberto on 10/23/10 05:23 PM
@ Alan
Fascinating link. Perhaps time to question certain advocates of "silver" island investments in the area. Sorry Mr. Holland if this brave individual can fight the good fight for his country we should be able to resist offshore panic and "hang" together to reclaim ours.
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Posted by Thomas White on 10/23/10 05:19 PM
Many of our families escaped from tyrants to the New World, and threw them off more than once when they tried to rule us again, even though they burned our capital. Defend your property. Stand and fight for Liberty. Death is not the worst of evils.
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Posted by J.D.Beck on 10/23/10 03:46 PM
@ DB @ ALAN
IF NOT DONE ALREADY ...READ THE ABOVE LINK POSTED BY Click to view link IS RIGHT UP YOUR ALLY...
THANK YOU ALAN...VERY INFORMATIVE...A MUST READ!!!!
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Posted by Alan on 10/23/10 02:58 PM
Perhaps the elite will head for Argentina.
Click to view link.ar/2010/10/argentina-targeted-by-world-government-danger-over-patagonia/
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Posted by J.D.Beck on 10/23/10 02:17 PM
@ Ron Holland @DB
Who knows.... with people like you , who have the will to say it the way it is , perhaps America might still recover...my bet however is America is dying...Bush/Obama its all the same...I foresee the second American revolution on its way....James Hepburn correctly titled his book in 1968 "Farewell America"
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Posted by John Danforth on 10/23/10 02:12 PM
Click to view link
Another try at outsmarting the clever scripters who wrote this blog program.
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Posted by John Danforth on 10/23/10 02:10 PM
Mr. Holland is correct. But we will push back! We will name names and point fingers when they try these things. The effete bureaucrats will not want to have to go permanently into hiding, unable to show their faces on any street. Especially those who pose as small-government types, then reveal themselves as what they really are.
Click to view link
Even the Soviet Union went bust. Absolute power doesn't always get them everything they want.
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Posted by Sarah Lynn on 10/23/10 02:04 PM
...and Robert, I'll promulgate your slogans any day! "Since it takes a slow corruption of "Original" American values to create a populace sufficiently ignorant and selfish to elect the likes of "barry" and his "ilk" in the first place" Well said!! We only have ourselves to blame.
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Posted by Sarah Lynn on 10/23/10 01:51 PM
My sentiments exactly...thank you, Ron, for putting it in words so eloquently for me to pass on! I am part of the tea party movement here; I feel I have to at least try and help shake up (and out) our monopoly...but the outlook does look bleak, unfortunately.
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Posted by Bud Wood on 10/23/10 01:08 PM
Although Ron's comments are somewhat radical, he is probably correct. Seems that the USA empire is listing and will probably sink within my lifetime (I'm 84).
The suggestion of establishing overseas annuities is probably the best because they are, to date, non-reportable. My guess is that annuities in CHFs and AUDs will probably hold value best. Somewhat disappointing that there are no annuities in precious metals. Maybe I should figure out how to design one such annuity.
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Posted by Ron Holland on 10/23/10 12:55 PM
@ David,
I know you well and you certainly are not a "pseudo-libertarian". Actually I prefer a GOP landslide, not because they will solve the problem but rather because their political win will quickly turn to disappointment and disillusionment thus helping to repudiate the entire corrupt system.
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Posted by Robert on 10/23/10 12:50 PM
Great opinion piece but depressing; I am still hopeful that a "Vigorous" and angry rising 'Tea Party' will provide "effective" oversight and pressure to alter the current course, but unfortunately our system of government does not provide sufficient means for immediate, speedy removal of "corruption" from office. I too have been stocking my lifeboat and making plans for alternative action. I will always, however maintain Hope and Defiance!
Since much of the uninformed public responds to slogans, I would like to see the following promulgated throughout the media (yes I know that there are complicit Republicans, but I address the "instant" issue at hand):
1) Barry and his adminstration ARE part of the "failed past"!
2) Barry and the Dems. did not "inherit" the financial crisis; they are materially responsible for its creation!
3) Barry and his administration did not "pull the country back from the brink"; they have pushed the country closer to it!
And....since it takes a slow corruption of "Original" American values to create a populace sufficiently ignorant and selfish to elect the likes of "barry" and his "ilk" in the first place:
4) Socialist left wing Liberalism = Political Correctness = Thought Police = Tyranny!!
Good luck to all....and "Hang in There"!!
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