Before You Vote, Know That "It's NOT The Economy Stupid!"

The Presidential candidates are remarkable in their ability to convince Americans that the economy and taxes are the biggest issues at stake on November 6th.  The reality is that regardless of which candidate wins, the economy will react to global market forces similarly.  Demanding that the candidate focus on "creating jobs" in the private industry is based on a pipe dream.

For men, this election is really about seeing the Supreme Court (and other federal courts) continuing to be occupied by Sonya Sotomayors and Elena Kagans who have been programmed since undergraduate school to advance the feminist legal agenda.  Keep in mind that for every feminist Justice on the US Supreme Court, there are hundreds more working as judges in the Federal District Courts, and Federal Circuit Courts of Appeal.  The President appoints ALL federal judges, so keep that in mind before you actually vote.

This election is really about ending the fiscally parasitic wars that sap the strength from this nation, and kill off or maim thousands of our best and brightest men.

This election is really about a Department of State that finances with your dollars male circumcisions, women's health clinics, micro-finance loans for female businesses, and other discriminatory feminist initiatives that Hilary Clinton oversees.

This election is really about allowing the Obama-signed FATCA law to remain intact so that internationally-minded men like you and me are prevented from legally storing wealth abroad.  FATCA is so onerous, that many foreign banks are now beginning to refuse new American clients!  This benefits the US federal government so wealth stays here.

This election is really about immigration amnesty which would allow undocumented immigrants to be permitted to stay thereby deflating wages and displacing native-born American workers.

This election is really about getting America back to where men were men, or moving America forward to where men are indistinguishable from women.

The choice is yours, but don't let anyone tell you the candidates represent the same interests or that this election is all about the economy.

Vote to reignite manhood in America!  No excuses.........

New Book: Why America Failed

Morris Berman has been a critic of America's current downward spiral.  In the below link, he talks about it in depth.  I feel he is right on the mark at a time when most Americans are oblivious to what is going on.

http://www.c-spanvideo.org/program/WhyAmer

American Exceptionalism Has Become American Deceptionalism

By Paul Rosenberg

From the dawn of the colonial era, long before they even had a national identity, Americans have always felt they had a special role in the world, though the exact nature of American exceptionalism has always been a matter of some dispute.
Many have taken it to be a special religious destiny, but Alexis de Tocqueville, the first to consider it systematically, affirmed the exact opposite: "a thousand special causes ... have singularly concurred to fix the mind of the American upon purely practical objects." Ironically enough, the exact term "American exceptionalism" was first used by Joseph Stalin, in order to reject it.  And yet, for 70 years American exceptionalism has been most prominently and consistently associated with imperialism ("benevolent", of course!), via the phrase "the American Century". It was coined by Time-Life publisher Henry Luce in February, 1941, 10 months before Japan's Pearl Harbour attack drew the US into World War II. The history of Luce's coinage provides a depth of resonance for a recent twist: a not uncommon, but particularly telling juxtaposition of four Time magazine covers from around the world this week.

In three editions - Europe, Asia and South Pacific - Time magazine's visually hot, tumultuous cover featured a gasmask-protected Egyptian protester, upraised fist overhead with a chaotic street background behind. The headline: "Revolution Redux". Not so in the exceptional American edition. There, the visually cool, wanna-be New Yorker-ish cover was a text-dominated cartoon against a light gray background: "Why Anxiety is Good For You."  Clearly, Time is whistling past the graveyard. As mostly Democratic mayors clamp down hard on Occupy Wall Street outposts across the land, it's obvious that the US' political class is having none of it. They do not believe that anxiety is good for them and they are doing their darnedest to keep a lid on things. Agitated citizens out in the streets are bad enough. Pictures of agitated citizens are simply too much.
Once upon a time, those pictures coming from a Third World dictatorship in a (hopefully) democratic transition would have been comfortably distant, even reassuring - exotic, other, subsumed in history, striving to become more like us, the transcendent ones at the "end of history."  That, after all, was part of the message of Luce's "American Century". But nowadays, everyone knows that the differences between Zuccotti Park and Tahrir Square are increasingly less significant than their similarities. They are matters of degree more than kind. There is no such place as "outside of history" anymore. Those making history know it, and those fighting history know it just as well.

Democratic mayors to the 99 per cent
In the US, the message from the mayors is simple: You've made your point. Now go to your room and shut up. We've got a lawn to keep up, and you've spoiled it. America's "grown-ups" as the political class likes to think of itself, have never had much patience when it comes to the "children", as its mere citizens are known. And yet, America's democratic revolutionary origins are at the very centre of a radically different vision of what American exceptionalism is all about.

The situation in Los Angeles is particularly exemplary. Although city officials welcomed Occupy LA at first, for weeks on end Mayor Antonio Villaraigosa and others have been saying it's time to leave. Villaraigosa - like Obama - is a former progressive organiser turned neo-liberal politician. He was a teacher's union organiser when I first met him in the 1980s, as part of a progressive precinct network aimed at getting disaffected progressive voters to the pols.

Also within the coalition's core was the LA National Lawyers Guild's executive director. When Villaraigosa first took office in 2006, his first big battle was against the teacher's union he used to work for. He took them on with the backing of billionaire real estate developer and education "reformer" Eli Broad. Five years later, as he faces off against Occupy LA, the current NLG executive director, James Lafferty, is one of his major opponents.

With no sense of irony, Villaraigosa thought Thanksgiving weekend was the perfect time for an eviction. "It's clear that this mayor cares more about dead grass than a dead economy," Lafferty responded at an Occupy LA press conference. "The 99 per cent that have been thrown out of their homes, jobless, without proper healthcare and all the rest seem to be less important to him than that lawn."

America's exceptional democracy
As indicated above, the idea of American exceptionalism was always a contested one. But it's hard to deny that the New World in general was seen as a land of opportunity, and the American colonies were the place where the most opportunity was seen for people to actually settle in significant numbers. Yet, the way most people managed to get to this new land of opportunity and freedom was through indentured servitude, and when that failed to provide enough labour, the African slave trade was "Plan B".
The land itself came courtesy of the earliest stages of America's centuries-long series of genocidal wars. And when the American Revolution came, it was lead in large part by slaveholder advocates of freedom - men like Washington, Jefferson and Patrick Henry, whose influence only expanded as the new nation was established.
Although their primary arguments were grounded in universalist appeals, the actual rights-holding subjects of their political system were a relatively tiny minority of well-to-do white males. The promise of rights-based liberal democracy was intoxicating to all, but forbidden to most. Equality was for gentlemen only. And yet, those excluded would not be denied. Scattered state and local battles coalesced into a national abolitionist movement by the 1830s, which in turn spawned a women's rights movement in the 1840s.

In Europe, the US example spawned the French and Polish revolutions, followed by more than a century of struggles in which the example of the US' existence powerfully transformed the Old World in combination with Europe's own internal modernising forces.
And even though the United States itself embarked on an imperialist course sparked by the Spanish-American War in 1898, its example as the first anti-colonial revolutionary regime inspired colonial revolutionaries as well. It was no accident that Ho Chi Minh approached Woodrow Wilson for his support at Versailles after World War I, before turning to communism as his second choice in seeking to rid his country of French colonialism.

From exceptionalism to deceptionalism
But the US had a hard time keeping up with itself, or with the world that it helped create. The European welfare state was a direct response to popular demands for a better, more just, less arbitrary life, demands that were sparked in part by the very existence of the US as an alternative.
As the US itself became more like Europe - more industrialised, more urbanised, less composed of small farmers and more composed of urban workers - the resistance to learning from European advances became increasingly irrational, and at odds with American pragmatism. Our political system lagged behind as well, lacking the fluidity and inventiveness that made parliamentary systems the dominant form of democracy elsewhere around the world.

This perverse refusal to learn from others who have been inspired by us in the political realm is strikingly at odds with Americans' grassroots improvisatory traditions. From food to music to everything in between, Americans have always adopted diverse influences, mixed them together and made them their own, based on the sole criteria of what works.  Yet, with far too few exceptions, we Americans have spectacularly failed to do this in the realms of economics and politics, where powerful elites have emerged to repeatedly stifle the US' spirit of ingenuity. Not only that, they have successfully blinded us as well. Under the growing influence of the 1 per cent, American exceptionalism has become American deceptionalism: a perverse refusal to see what others have done - often inspired by our own earlier examples - and use that knowledge to continue advancing ourselves.

The US' patch-work welfare state is the prime example of this dysfunction. But our lack of industrial policy is even more bizarre, given that we used to believe in it so. Indeed, the same could be said about the welfare state as well. Universal public education was an American idea - outside the South, of course - before catching on elsewhere around the globe. What's more, most of the US was homesteaded through a subsidised process of free or cheap land, supported by public infrastructure - or, in the case of railroads, publicly-subsidised infrastructure.

But when it came to an industrial welfare state, suddenly, everything changed. It's not so hard to understand why: the original industrial workforce was largely immigrant and culturally "other" - Irish at first, then central and southern European, predominantly Catholic or Jewish. It was not until the Great Depression pushed the US economy to the wall that we began to even partially catch up with Germany, which had created its welfare state half a century earlier.  Even then, it took another 30 years for us to add universal health care, but only for senior citizens. The results of creating Medicare were dramatic: Within a decade, American seniors went from being the age-group with the highest poverty rate to the lowest. But that was nearly 50 years ago, 130 years after Germany established its universal healthcare system. Since then, conservative resistance to America's welfare state has stiffened dramatically. Cultural differences between whites of European descent are nothing compared differences with people of colour - which moved dramatic to the fore as legal segregation was finally being dismantled.

Welfare in the US
A 2001 paper from the Brookings Institute, "Why Doesn't the United States Have a European-Style Welfare State?" found a direct correlation between welfare state spending and the size of minority populations - the more minorities, the lower the levels of spending. This held true both internationally (comparing more than 60 different countries) and nationally (comparing all 50 states). The paper did not argue that racial animosity was the sole reason for the US' fragmented and under-sized welfare state. It also cited the US' backwards political institutions - such as our lack of proportional representation - which in turn have roots in our history and geography.  The report stated, "Racial animosity in the US makes redistribution to the poor, who are disproportionately black, unappealing to many voters. American political institutions limited the growth of a socialist party, and more generally limited the political power of the poor."

Among other things, the report offered comparisons across time, which showed the US lagging decades behind Europe throughout the 20th century. The size of subsidies and transfers in the US in 1970 was roughly the same as that in the European Union in 1937. US figures in 1998 roughly matched the EU in 1960.
While American conservatives have long been hysterical about the welfare state in the US, two major points need to be stressed.

First: German conservatives established the first comprehensive welfare state, under Chancellor Bismarck in the 1880s. Second, the American welfare state is the smallest and least comprehensive in the Western world. While American conservatives denounce the welfare state for supposedly strangling capitalism, Germany's welfare state has been crucial to its long-term prosperity, even as the US' incomplete welfare state has harmed us considerably. For example, without a national system, healthcare costs built into American cars were a crucial factor leading up to the bankruptcy crisis of 2009.

Nearly a half-century after Medicare, the US was finally ready to take a modest half-step forward toward expanding healthcare coverage. But President Obama's approach was so compromised, and so poorly argued that it's now opened the doorway for a massive reversal that could actually eliminate Medicare - a major decimation of the US' welfare state that would plunge millions of seniors into abject poverty, deprive them of healthcare and subject them to premature death.

Grand bargains
Obama is obsessed with trying to strike a series of "grand bargains" with conservatives, even though they keep rejecting him. As a consequence, he repeatedly begins his negotiations with positions that conservatives have supported in the past, hoping they will support those positions again. At the same time, he refrains from making energetic arguments for the liberal position.
As a result, his stimulus programme was roughly 40 per cent tax cuts (even though they're less effective in creating jobs than direct spending is) in a vain attempt to get Republican support. And when it came to health care, his approach was based on Republican proposals from the 1990s, developed by the conservative Heritage Foundation. It was the same foundation used by Mitt Romney when he was governor of Massachusetts.  Obama never used the popularity, efficiency and overall success of Medicare to argue for a government-centered approach, either an immediate full-fledged socialisation, aka "Medicare for all", or a gradualist approach - a public option for those currently without private insurance. Indeed, Obama collaborated with conservative Democrats in the Senate - most notably Max Baucus - to silence those who advocated for these approaches.  Medicare-for-all advocates were reduced to shouting from the audience and getting arrested, despite representing a substantial body of public opinion. Support for the more gradual public-option approach hovered around 60 per cent or more throughout the year-long legislative process. And yet, these proposals - tried and true in the rest of the industrialised world - could not even get a serious hearing.

Such is the power of American deceptionalism: No one else's experience in the world matters to the American political system.  Less than two years after Obama's Republican healthcare plan passed, its very modesty is being used against it. Although it did involve considerable long-term cost reductions, it was nothing remotely close to reducing costs to full-fledged welfare state levels. For example, calculations by the Centre for Economic and Policy Research show that, for example, if we Americans could get our per-capita health-care costs down to the level of most central European nations, we would have a budget surplus of around 10 per cent in 2080, rather than the current projected deficit of over 40 per cent.
By ignoring the example of other countries, the American political class has spun itself off into an alternate reality in which nothing short of catastrophically bad choices remain. (The situation of global warming denialism is an instructive parallel, in which facts have become entirely irrelevant.) And so, fuelled by an obsession with long-term deficits decades in the future, and ignoring the sky-high level of the unemployed, the US congress may well be about to drift toward abolishing Medicare as its so-called "solution".

Of course, Republicans like Congressman Paul Ryan, who originated the plan, won't come right out and say that. And neither will Democrats, now rumoured to be thinking of joining them in search of yet another "grand bargain". Ryan and company say they want to "save" Medicare by replacing it with a voucher system. As one wag put it, it's like killing my dog named Spot, and giving me a cat named Spot instead, then telling me you haven't killed Spot. But a variety of studies have stripped all the pretense away.

Most significantly, the vouchers ("premium support" in Orwellian Newspeak) would come nowhere near to paying the cost of health insurance for seniors, and the shortfall would only grow more severe over time. So instead of the government going broke, the people would. That's the anti-government Republican plan! But at least the plan would keep the private insurance companies making money hand over fist as they deny you coverage.  And since they're private companies, that counts as a win, according to the rules of American deceptionalism. Even if there is no real competition involved, and Adam Smith would have a heart attack if he saw what was being done in his name.

I've concentrated here on healthcare as a key welfare state component. But the same pattern of delusionary grand bargaining can be seen wherever you care to look. Consider "education reform". "America's schools are failing!" we're told. We have to privatise, voucherise, give parents more choice - that alone can save us.
But none of this is supported by evidence, certainly not the evidence of other countries, whose systems are more centralised and less privatised than those of the United States. The US accounts of nearly half of military spending worldwide. The only folks whose overspending ever came close to us was the Soviet Union, and we sure didn't learn anything from them. On the drug war? Don't even think of thinking about it!

The list could be extended indefinitely. There is not a single area in which Republicans won't condemn anything foreign just for being foreign (unless, for some reason they like it, the way Michele Bachmann likes Chinese slave labour). And there's not a single area where Democrats won't be defensive about thinking outside the box that Republicans have put them in.

If all this leaves you feeling anxious, relax. After all, as Time will tell you, "Anxiety is good for you!"
 
Paul Rosenberg is the Senior Editor of Random Lengths News

Wall Street Protest Is Pure Hypocricy In Action

This photo says it all about the "Occupy Wall Street" hypocrisy. They organize themselves on Facebook, record everything on their Apple iPhones, relax for coffee at Starbucks, make lunch runs at McDonald's, and buy more protest supplies at OfficeMax, yet they protest against the evils of corporate America. Will someone please give them a clue?

Reflections on the Impossibility of Government

By Fred Reed - July 30, 2011

God it's wonderful—really diverting in a macabre sort of way, at least if you have a diseased sense of humor and enough Padre Kino red. Which I do. As I write the world's only delusional superflower, perennially in love with itself, navel-gazing as narcissistically as ever, ignorant, self-indulgent, gurbling like an insane relative in the attic and fondling electro-trinkets from Japan, is broke. Yes, we see a beautiful dive from the high board, two somersaults and a half-twist, into the Third World. And so richly deserved.

Congress, a collection of whores, con-men, and penny-ante sharpers from East Jesus, Nebraska, ponders the Great Question: Default now, and admit manfully to being the economic lepers everyone else already knows we are? Or raise the debt ceiling, keep spending like a spoiled Swarthmore sophomore with daddy's credit card, and collapse a bit later?

It's just lovely. The World’s Greatest Economy holding out the begging bowl to China. “Alms? Alms for the poor?” Maybe I don't have enough Padre Kino after all. Maybe there isn't enough.

On the lobotomy box, congressmen come and go, not talking of Michelangelo, like mayflies but without the brains, calling each other names. They seem to think that they are in an off-year election. I mean, it's only the future of the country. What, me worry? What if a huge cosmic flyswatter came down on Cap Hill and turned them into barely historical smears? How the hell do you start a cosmic flyswatter?

The Republicans want to protect the wars, the rich, and the military companies. The Democrats want to protect the entitlements. Well, ok, I guess killing Afghans matters more than feeding Granny in Spokane. Unless of course you are Granny. Who really cares? I mean, how many “defense” contracts does she have?

But actually the Dems have the best of the argument of national security. Entitlements are our friend. Welfare is the price we pay for not having the cities burn. Mailbox money is our protection, not gaudy aircraft carriers like the USS Thundertrinket, zooom-kerpow.

It's the Empire, stupid. You want spending cuts? Easy, if you don't want to rule the world for three more years before going down history's cloaca. Pull out of Iraq, Afghanistan, Korea, Japan, and NATO tomorrow. Pull out. Pull out. Coitus interruptus. Stop wasting precious engineering talent and non-existent money on pointless funsy weapons of no utility: the F35, the Airborne Laser.

Come to think of it, don't bother. It's too late. The only sensible answer is cheap Mexican red. The US really is poised to enter Central America. You know, continental drift. It can't be stopped. South Korea and Finland among others are far more advanced in their internets. Health care in America is first-priced and second-rate. The country is thirty-third in infant mortality. Schooling would be pathetic if we could raise it to that level, the universities largely farces. The Russians and Chinese have manned space programs; we don't. Industry flees Gringolandia or has fled. The great moiling gerbiltry out there hasn't figured it out. Wait.

I hear babbling about “the recovery.” Which recovery is that? There ain't none, boys and girls. There won't be one. We are not in a temporary recession or correction or what have you. We are going poor. The last dance just finished, and the band is leaving.

And it is self-inflicted. There is, I grant you, a pleasing monumentality about truly phenomenal stupidity. A certain brilliance is needed to be so witless. In this sense the American political system is a work of genius, relying on the principle of Sufficient Ditz-Rabbitry.

You don't need to fool all of the people all of the time. Enough of the people, enough of the time is entirely adequate. Lincoln knew this but, being a politician, didn't point it out. Here is the basis of what Americans believe to be a democracy. Curious: Mexicans know they have a corrupt government, but Americans don't. In the US, books are written about the scams and cons and rips practiced on the public. Few read them, though, and those who do already know what is in them. Enough of the people, enough of the time. If the talking heads on the blinking hamster-diverter don't talk about the swindles, the rubes never know.

The country is in fact ruled by the interlocking directorates of Wall Street, Washington, and the media, Triamese twins joined at the head and aimed at sucking money from the easily fleeced. We're not talking Senior Civics and the Federalist Papers. It's straight drain-the-dullards. And it works. Boy does it.

Can you name anything in America today that is not a disguised fraud? Credit cards are not a convenience, but a way of luring suckers into borrowing crippling amounts of money at usurious interest. The sub-prime circus was carefully designed to do just what it did. There's the student-loan racket, and Big Pharma: A tiny bottle of ophthalmic salt water from Bausch & Lomb, called Muro, costs $23 in Washington, and about $6 in Mexico. That's our government, fixing prices that weren't broken. Pure Third World.

I dunno. What's going to happen when what's left of the cream-flow dries up? Maybe it's the Padre Kino, but...in the last depression of '29, most of the country was rural or close. People, many of them, lived on farms, and didn't need much money.

Today most of the population is utterly dependent on remote mechanized farms winch are dependent on supplies of gasoline and chemicals and then on trucks to take the crop to cities that, if the foregoing chain broke down, could not possibly support themselves. The discovery that food doesn't really come from Safeway will astonish.

I guess I'm paranoid, and no real unrest and disruption could really occur. I guess. I mean, probably. I think. And that's a good thing, because with so many people dependent on entitlements, to the extent that they can't eat without them, and everything dependent on intricate systems that can't handle chaos—hooboy. Think: What happens to skyscrapers if there's no electricity for elevators?

I say invest in drug cartels. Some say gold, but you can't smoke gold. When times get bad people want booze, grass, crack, scag, crank, Oxys, and maybe shrooms for the more advanced. Investment is low, and governmental interference has proved minimal.

I hope I'm crazy. I'd better be.

The IMPERIAL SUICIDE of America

By Bill Bonner

Now, what we see is the whole kit-and- kaboodle of life in the US giving way to desperation, delusion and an irresistible impulse to commit imperial suicide. The economy turns sour. The military becomes malignant. Households are corrupt, bankrupt and dependent. Even the churches sing their hallelujahs to Caesar now.

What's "imperial suicide?" It's what empires do. If no other empire arises to kill them...they kill themselves. China will probably eventually crush the US militarily. But that is far in the future. The US can't wait. It lets the zombies run wild.

At home, Congress debates a "debt ceiling" measure, as if it made any difference. They've raised the ceiling 93 times since they first imposed a debt ceiling 94 years ago. What are the odds that they will hold the line this time?

Zilch. Instead, they'll continue borrowing and spending until the nation goes broke. Count on it.

The US economy was a free-market success story for a hundred years...from the end of the US War Between the States to the end of the Vietnam War. It was the richest, fastest-growing, most innovative, most competitive, and most admired economy in the world. But then, in 1971, Richard Nixon replaced a more-or-less solid dollar, vaguely backed by gold, with a pure paper dollar, backed by nothing but the good intentions of government employees.

As the money went, so went the nation. Our friend and colleague Byron King opines:
The problem with the US over the last 40 or 50 years is that there's too much free money...

We raise three generations of population who are untied from the basics of monetary education - millions of minds poisoned by Economics 101 in universities across the land. "Elastic currency," courtesy of the Fed.

Media & political classes are no smarter than the dummies who walk the land, so they make policy based on "free" money from the Fed... Deficits don't matter.

Currency circulates and inflates the general price levels... People learn to live with it. Even make a virtue of it, doing things like "buy as much house as you can afford; the market will rise and you'll make money." That kind of idiocy.

There's all this excess currency sloshing around the economy, leading to people doing stupid things like drugs, too much alcohol, divorce (Cherchez les femmes), food (obesity), theft, etc...

"Wars cost much silver," wrote Sun Tzu. [Lack of money] kept a lot of nations out of a lot of trouble over the years. Not any more. Who needs silver when you can just print up bricks of paper cash and fly it over to Iraq and such.

Kind of gives a whole new meaning to the term American Exceptionalism... yep, we're exceptional. That's for sure. More prisoners in jail than anywhere else. We fight longer wars than anyone else...and don't win. We give more welfare to more idle people than anywhere else on earth...and we're proud of it.

There's so much money that we don't know how to say no. No limits. Just raise the debt ceiling...spend until you can't spend any more. Then spend some more.

Well, there are no limits until there are limits. Per Ayn Rand... "You can avoid reality. But you cannot avoid the consequences of avoiding reality."

In the space of 40 years the US lost its winning ways. Real, hourly wages stopped growing in 1973. Stock prices, in real terms, peaked out in '99...about the same time that real, per capita private sector growth came to a halt. The number of full time jobs topped out about two years later...and housing hit its peak in 2007.

Abroad, US armed forces continue to squander the most magnificent advantage that a military has ever had. The Pentagon spends 7 times as much as the next biggest spender. And it doesn't even have a worthy opponent. Where does it get the money? It borrows from the Chinese!

And what does it do with all that money? It engages in pointless, blood sucking zombie wars. Its three current engagements alone are expected to cost $4 trillion, according to the latest independent estimates - about as much as its trade deficit over the last 10 years.

Ask your neighbors. What strategic advantage does the US gain from fighting in Afghanistan, Iraq or Libya? They will have no good answer. Probably some claptrap about 'fighting terrorism' is the best they will be able to do; that's what they were told on TV.

A 94-year-old retired Army colonel came over to our house for the 4th of July festivities. A Silver Star winner in WWII, veteran of the Korean War too...we asked what he thought of the Pentagon's strategy in North Africa and the Middle East.

"I am disgusted," he replied. "Those guys just don't know what they're doing. We have no business getting involved in these things...especially in Libya. They're just traps. I have arguments about it when I go into the VA hospital. The young guys - you know, they're in their '80s - are in favor of these wars. Wave the flag. Rah rah...let's go in and do the job. Teach them a lesson... That sort of thing.

"But real war is not a football game. And nobody learns anything...except not to do it again."

Who - with the exception of a 94-year-old veteran - objects to squandering the national treasure, blood and honor on these wars? Almost no one. Why not? Because they've all drunk deeply from the intoxicating cup of imperial power. An ordinary nation fights wars to protect itself. An empire fights wars because that is what an empire does. And it continues fighting until it finally beats itself.

Why didn't Rome pull back its troops from the Rhine or Anatolia or North Africa...in order to protect its homeland from the barbarians? Why didn't Alexander retire to Macedonia, while he still had breath? Why didn't the Germans retreat to the banks of the Oder when they still had the means to resist the Soviet onslaught?

Why doesn't the US bring home its troops, cut its spending, balance its budget and protect its future? Ha...ha...you know the answer. Because the system has been taken over by zombies...people who want to see the spending continue, no matter what the cost. Zombie wars. Zombie social spending. And zombie finance.

And every time we look at it, we see more evidence. California, the West Coast Greece, is going broke. Any guess why?

America’s WASP Rot

By Henry Allen, Published: June 17

I know why America is falling into a cataclysm of debt and can’t get out.

I know because I’ve seen the cataclysm before on a smaller but no less poignant scale while growing up in New England. A Boston friend calls it WASP rot: a squalor of doom and debt that prompts the best sort of people to spit sarcasms at each other during cocktail hour, to weep and rage the way Congress is doing as the debt limit looms on Aug. 2. Of course, losing a summer house isn’t losing a war or America defaulting on its debts. Yet to me, at least, the feeling is oddly the same. I worry that America is becoming a character in a story by John Cheever or F. Scott Fitzgerald.

My ancestors arrived early in North America, founded towns, fought at Bunker Hill, built railroads and cornered markets. But that day was long done when I was growing up. We were not unusual — in so many families, the money had been made, the money had been spent.

What made these families exceptional, the way America is exceptional, is that they believed that standards had to be maintained at all costs, a moral obligation, even though there never seemed to be much difference between the material and the moral. Houses in the right neighborhoods, alumni donations and keeping one’s word all seemed to have the same value.

As John Kennedy said in 1961, quoting John Winthrop’s speech to the Puritans aboard the Arbella: “We must always consider that we shall be as a city upon a hill — the eyes of all people are upon us.” To maintain the city, he’d say later, we had to “pay any price, bear any burden.”

If the trust fund played out or Aunt Cornelia turned out to be broke when she died, the rotting WASPs believed they had no choice but to bear the burden of borrowing to maintain their place in the world.

There was nothing wildly luxurious in their spending, no polo ponies or pearls, just the obligatory private schools, Bloody Mary brunches at the Inn, station wagons with yachting flags, silver wedding presents, lots of dogs, the whiskey. They borrowed from banks and relatives to keep the city shining. They borrowed against their houses. They sold Aunt Cornelia’s breakfront. They ignored bills and they despaired.

Imagine a cocktail hour.

“I hate living like this,” says a wife — we’ll call her Martha. She rattles the ice in her glass.

“Do we have any choice?” asks her husband — we’ll call him George. “Do you really want to pull Ted out of Dartmouth? Do you want to move into an apartment?”

“I could get a job,” Martha says. “I could manage a bookstore, like when you met me. It’s odd — we were poorer then, but we seemed so much richer.”

“We didn’t have money, but we did have a future,” says George. “Freshen up that drink for you?”

The conversation usually goes this way: proposals for impossible cuts in spending are met by equally impossible refusals to make them. Slash Medicare? Stop saving oppressed foreigners from tyranny? Raise taxes? The rock and the hard place. It’s a question of standards.

“We have to face the facts,” says Martha.

“I’m so goddam sick of the facts,” says George.

“If your brother would come to his senses, we could sell Seely’s Cove,” Martha says, referring to a summer house with porches and a mossy roof and photo albums from the days when men wore neckties as they sailed.

“We have to sell it or put a new roof on it, but Buell is happy just to let it molder,” George says. “He says keeping it in the family is a matter of principle.”

“You could call Tom about getting another loan from the bank. “

“We’re at the point where we’re just using loans to pay off other loans.”

This is what the American government is doing, too. Whether the problem is summer places or wars, sailboats or health care, the despair and folly feel the same. So does the decline in power and prestige, and the poig­nant denial of decline, prompted by the fear that if we don’t live and spend a certain way we’ll cease to be us — we’ll lose our place in the world.

Cheever writes: “Where had they lost their competence, their freedom, their greatness? Why should these good and gentle people . . . seem like the figures in a tragedy?”

It’s WASP rot. They drop out of the country club. The drinking eases the pain. They don’t pull Ted out of college; he quits and says he wants to be a chef. The daughter ends up living with a jazz musician who beats her.

It’s as if they, and the United States, have lost their luck.

As for America, magical ideas float through the media: Sell the gold in Fort Knox. Sell the federal government’s land to the Chinese. Maybe the Wampanoag Indians could turn the city upon a hill into a casino resort.

The troops may come home, not because of casualties or futility but because they cost too much. We might have to impoverish the old and ignore the poor and sick, not on the principle that we’re creating welfare dependency but because they cost too much. How sad. How vulgar.

I know the ending of George and Martha’s story, but I won’t depress you with it. I have no idea what will happen to America. It’s impossible to imagine Americans starving to death or the Chinese owning Yellowstone. Next thing, we’d be tossing the bodies of veterans into common graves, though this has already happened at Arlington National Cemetery.

Well-trained in situations like this, I try not to think about it, the goddam facts of it all. Freshen up that drink for you?

Henry Allen, who won the Pulitzer Prize for criticism in 2000, was a Post editor and reporter for 39 years.

How To Rebuild the American Economy

So here we are folks.  The US is at an economic crossroads; it can only go back to the former paradigm, or develop a new strategy for growth.

If we go back to expecting Americans to go shopping in a frenzy as in years past, we will sink again and perhaps lower than in the last 4 years.

So the best strategy for us to bolster employment, and grow for the next several decades is to build a manufacuring base for consumption by the Chinese consumer.  China's growing middle class is still in the saving mode.  Once disposable income becomes spendable, the vast population will be looking for products to buy in the same way Americans bought things during the last 10 years.

The federal government and the business community should be doing research and funding everything that leads to pandering to the Chinese consumer.  American products already have a leg up status-wise, but we need to compete with Chinese companies to win over the swaths of people there ready to spend their money.

If we miss this opportunity, economic ruin will be just around the corner.

America Is An Over-Indebted, Profligate, Spoiled Nation In Decline

You can't borrow your way out of a debt problem.

That's the key message from Charles Ortel of Newport Value Partners.

The U.S. and other developed countries have lost the discipline they once had and are now trying to borrow and spend their way out from under the mountains of debt they accumulated in recent years. In the process, they're prolonging the agony and moving closer to defaulting.

The U.S., at least, won't actually default, says Ortel, but as our situation worsens, the value of credit default swaps (insurance against default) should rise. So Ortel continues to recommend CDSs to his clients.

5-year credit default swaps on U.S. soverign debt currently trade for about 25 basis points (which means it costs $25K per $10M of notional value). How does that compare to other countries or states?

• Japan = 72 bps
• United Kingdom = 56 bps
• Germany = 21 bps
• California = 177 bps
• New York = 85 bps

And as for the stock market?

No good news there. Ortel sees the DOW eventually heading back down to the 5,000-6,000 level, below the lows of earlier this year.

What will pull the nation out of this state of decline?

DISCIPLINE.

Instead of rewarding government workers with ever larger salary and benefits packages, we should fire whole swaths of them. Instead of borrowing more to spend on "stimulus," we should get out of the way and let the private sector do its thing.

In the meantime, about all investors can safely own is gold.

Iran dumps US dollar for euro.

Arabian Business reports that the Iranian government and its President ordered the removal of the US dollar to be replaced by the Euro, which was introduced in 1999, in order to protect themselves from the crumbling United States economy and devaluing dollar.

The Euro will be the calculating factor of the Oil Stabilization Fund (OSF), which is a fund that is set up to help the Iranian economy against fluctuating oil prices. It is also set up to help both the public and private sectors with their currency needs by extending loans.

Iran's Central Bank deputy chief Reza Raei stated in December, according to Iran Daily, that the nation’s foreign exchange reserves were over $80 billion.
Since the inception of the Euro in 1999, it has gain popularity by many nations and businesses across the globe. Currently, there are more Euros than dollars in circulation. After it was introduced in 1999, Iraq, at the time having the second-largest oil reserves, traded its oil in Euros.

Venezuela has also pressured OPEC to abandon the US dollar, according to ADN Kronos.

The Coming Collapse of the Dollar, Part 1

While I am by no means an economist, I do have enough common sense to know that the reckless spending and monetary policies being pursued will diminish the value to the US Dollar in short measure.

Prepare yourselves now by spreading your assets in other currencies like the Euro, and precious metals like gold and silver. If you are in cash, US interest rates may skyrocket so that's the silver lining for savers but who knows how much those savings gains will be worth relative to the lost dollar value.

The Coming Collapse of the Dollar, Part 2

This is the second part for those so inclined....

Would You Trust This Arrogant Nerd's Financial Advice?

Sometimes we Americans can allow our financial better judgment to be suspended by clever marketing, polished wall street analysts, and the seductive power of CNBC, CNNf, etc. It was not enough to endure the dot.com bubble from 1995-2001. Oh no, Americans listened to the same pinheads tell them to stay fully invested for the long term, and to diversify their portfolios over a wide variety of stock classes.

Those who fell for this nonsense are now paying the price for their misplaced trust.

I removed the greater portion of my stock holdings in 2007 in reaction to the felling of market overvalue. My reaction was private as I did not want to subject myself to the jeers of my peers. I have been vindicated, no doubt, by the market drop of 2008-2009.

The myth of "diversifying" over a wide variety of stock classes is not diversification AT ALL. I fell for this scam back in the late 1990's but then noticed that all stocks (even international ones) were highly correlated in trend. No variety of stock classes would have saved anyone in the current downturn!

My point of this piece is to urge you to spread your assets between US dollars in a reputable US credit union (not a bank); a Euro cash account in a country like Switzerland, Germany, or France; the US stock market (10 to 25 percent according to your time horizen); a municipal bond fund; and precious metals like gold and silver (via ETFs like GLD or SLV). This is the diversification.

I do believe we all should be dollar cost averaging into the US stock market at the present time, but we should be doing it moderately and with the intention to continue over the next several years.

US stocks will correct again and again. When the doom and gloom are heavy on CNBC, that is the time to take chunks of your wealth and bottom feed an S&P 500 or Wilshire 4500 fund. This is called contrarian investing and you will reap great rewards if you can purchase cheap shares when the pessimism is high.

Resist the nerds who want to be fully invested at all times so their fees can still be generated from your holdings. They are out for their interests, not yours. You've been warned.

New York Times Debate on Marriage: Join the Fray!

The New York Times is perhaps the most widely read news publication in the world. Recently they published an article and readers' debate entitled Husbands, Wives and Hard Times.

This is an opportunity for all who reject the advisability of marriage to voice your opinion on the men forgoing marriage and how it is a fraud on the American man and his well being. My contribution is as follows:

Marriage is slowly dying in America and the west. What is killing it? Feminism-infected courts that steal wealth from formerly unsuspecting men, rip children from fathers, and presume women are in the right even when they are in the wrong.

Women legally initiate the vast majority of divorces; I've seen figures as high as 60 to 70 percent of divorces being initiated by women.

I have stayed unmarried and I have a bevy of loving young women who I care about. Marriage is drudgery and a bore. The only people who advocate marriage are wealth seeking women and religious zealots.

If a man must marry, and he should not, he should choose a wife from a traditional culture where wifely duties and practices are held in high esteem and not denigrated.

To hell with American marriage!

Follow this link and add your two cents too.

What Is Behind the Meltdown of Asian American Men?

The Korean Virgina Tech gunman, the Filipino recently arrested by the FBI for racist death threats, and now, Jiverly Voong, opened fire on an Immigration Service Center in upstate NY. This is just the latest in a string of incidents where Asian men have unleashed murderous wrath on innocent people.

Let me begin by saying this is not an anti-Asian American rant. In fact, I acknowledge that the vast majority of Asian American men are hard-working, law-abiding, and upstanding citizens. But what is afoot here? I believe that some Asian men increasingly view this society as unjust and unfair to them who try to do all the right things.

Men's rights advocate, Winston Wu, is legendary for his diatribes against the social isolation to which American society relegates all but a few Asian men. They are expected to live up to unrealistic "positive" stereotypes, shunned by most America women as poorly endowed, and left on the sidelines unless they are needed for calculus advice or engineering services.

While none of the above justifies lashing out in violence, I believe the plight of Asian male isolation is at the root of this trend.

To my Asian brothers, the "American Dream" that your parents spoke so highly of is an illusion meant to dupe us into consumerism and wage slavery. The American women that reject you despite your years of hard work and upright living are not women as much as they are feminists. Do not resort to violence and suicide to air your grievances. Move abroad, remain unmarried, seek foreign women who would love you in ways and for reasons American women could never love you.

We all feel what you guys feel too, but violence will only serve to punish innocent people and vilify the legions of good men among you.

Constructively take charge of your life. Move abroad and free yourself of the delusion of America being the best that life has to offer.

The Return of the Blue Collar Man

Several years ago, there was a book called The Millionaire Next Door. This book detailed the characteristics of typical American self-made millionaires. Perhaps the most surprising contribution of the book was the revelation that blue collar people who own their own businesses are disproportionately represented among self-made millionaires.

That fact is counter intuitive for several reasons. Most glaringly, the entertainment media has long promoted the white collar man as the better and more affluent. Hollywood movies, and promotion of university education at all costs fueled this thinking.

Stigma grew around the blue collar trades and blue collar tradesmen from the recent immigrant waves took over and enriched themselves and their families.

This recession will whittle away at the stigma of blue collar work. I think this is a great opportunity for young American men to rediscover the rewards of mastering a trade.

Get your hands dirty guys and make yourselves rich!

It's The Lack of Confidence, Stupid!

I just finished watching one of those weekend pundit shows with the 4 talking heads debating whether the economy needs a robust "stimulus plan" or more tax cuts. Folks, I think we are in trouble more than we realize when these so-called cognitive elites still don't get it.

People are not spending disposable income you idiots! Trillion dollar new spending from the federal government may employ a fraction of the unemployed (to include some illegals aliens), and a tax cut may enable a fraction more to save more, but neither of those strategies solve the core problem of getting people to spend, spend, spend.

Our elected officials are still in an intellectual holding pattern as to what to do. Perhaps years of decisions based on special interests created this mess.

The economy will turn around when there is more good news, and the doom and gloom reports decrease. Americans are terrified, and they are undoing years of stupid consumption. Eventually, the savings floodgates will gradually open and consumer spending will increase with the renewed prosperity. But until then, the beltway's insistence on arguing about supporting special interests under the guise of fixing the economy will only prolong our current malaise.

Just Lose Your Job? Just Eliminate Your Family, That's All!

The news media is buzzing about Ervin Antonio Lupoe of Los Angeles. Ervin and his wife were recently fired from their jobs due to forgery and low level fraud to secure child care benefits. So what does Ervin do? He shoots his wife, 5 children and himself.

How about getting a new job Ervin? I know finding a new one is tough in this economy, but most of us would rather scrub toilets all day than murder our families to spare them hardship.

As the economic downturn continues, we will likely see more and more bizarre incidents of this nature. Difficult times have a tendancy to bring out either the best or the worst in us. Ervin Lupoe obviously was lacking in former.

The Obama Presidency Begins

Today Barack Obama embarks upon the office of the Presidency. I too feel a measure of pride that an American of African descent overcame all obstacles to reach the pinnacle of power. But, I cannot help but wonder if this would have been possible under normal, non-crisis circumstances.

Most Americans realize that Obama was the brightest, most talented individual to run for the office this past year. And it is for that reason, that pragmatism overrode ethnocentrism to permit Obama to win.

For sure, some bigots, rednecks, racists, and extremists voted for Obama. Their prospects, 401k's, jobs, etc. plunged with the economy as they did for mainstream Americans.

So I too wish Obama well. I hope that he is so successful, that this blog will no longer be necessary. I do remain a pessimist however, but we shall see.....

A Layman's View of What Went Wrong With Our Economy.

I am not an economist, but I am versed enough in the discipline to gloat that I was correct back in the 1990's even. I know many will not agree with my version of what went wrong, but many others will.

The first blunder we made was our head-first foray into the global market frenzy. I was skeptical even when NAFTA was the flavor of the month. The open market model was a way for companies to sidestep manufacturing in the US in favor of using third world labor. Their gains were our losses. Now, the US produces very little and it has become a service based economy. Sure, labor unions have priced American laborers out of work, but the demise of the US Manufacturing sector was hastened by globalization.

Next, the US stock market has functioned as a promoted and regulated Ponzi scheme. The early in and out investors will and the late comers (usually the greater portion) lose money. The Fed manipulates interest rates to keep investment flowing, and the media (CNBC, Bloomberg, etc.) constantly cheer lead and promote stocks. I recall one anaylist touting AOL as a long term great investment due to the growth potential and the internet as a more important vehicle. Then the dot-com bubble burst and AOL was reduced to shreds a few months later.

Before the current market 40% downturn, I recall various financial pundits proclaiming how attractive "valuations" were for stocks. After the 40% drop they were still using that rationale to attract more stock investment. What they know deep down is that "valuations" mean nothing but a numerical correlation that is used to justify promoting more investment. Stock prices are more influenced by sentiment than valuation and no amount of value analysis will make stocks an attractive investment to spooked investors.

Finally, Americans and our industries became addicted to OPM (other people's money). OPM financed our McMansions, our 4 flat-screen TV's, our SUV's, and our yearly iPod model upgrades. Companies relied on bond issuances, and investors to finance their ventures. When recession comes to rear its head, we are at a loss to pay back OPM. That's what we face now.

What is the solution? I wish I knew, but I feel that we as a nation must expect job loss, economic uncertainty, and saving to be inevitable parts of our futures. I'm a fan of market forces fixing our problems, but market forces are undermined by bailouts, interest rate manipulations, cash infusions, and stimulus plans proposed by our government representatives. These are temporary measures that might provide short term relief, but long term consequences. I feel that the federal government just wants to prod Americans to buy, buy, buy, again just to get the juices of consumption flowing again. However, this is no resolution to the undiversified economic model we have grown into.

Adam Smith must be turning in his grave.