acortes.com » 2008» November

Very interesting interview of investor Jim Rogers on the Fox Business channel. What’s great about this interview is that the interviewer seems to instigate Jim with the type of reasoning and rhetoric prevalent in Washington and in the general public. The total spent on bailouts in the last six months has ballooned to the tune of 8.5 trillion! Mr. Rogers’ concerns about the future of our country resonate with me very much.

On a related note to the dollar collapse, a top Russian economist predicts that the U.S. economic crisis will “Rip America Apart”.

Among his predictions:
China and Russia will become the regulators. Makes sense, since China and Russia have are the #1 and #3 holders of dollar reserves, respectively.
“Dissatisfaction is growing, and it is only being held back at the moment by…the hope that Obama can work miracles…but when spring comes, it will be clear that there are no miracles.” He is right about Obama. The only thing he is promising to do is spend more by borrowing.
Because governors are also demanding money from the federal government, dissatisfaction is growing. This is already happening in California.
The U.S. will split into: the Pacific, the South, Texas, the Atlantic coast, the central states and the northern states, and hinted that Alaska could be Russia’s for the taking. This is the boldest statement, and one that I find hard to believe. Then again, everything that has been happening lately has been hard to believe.
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The potential U.S. dollar collapse is the biggest crisis that the U.S. faces. It is the only thing that is keeping our country going. Countries around the world continue to trust the stability of our dollar and are still willing to purchase our Treasury bonds. I do not know at what point countries will lose faith in our dollar, but I do believe that this can not continue for much longer. All it would take is one country to sell of its dollar reserves (China has the most in the world) to start a chain reaction and lead to the end of our economy as we know it. The following video provides great information, as well as a great example that is easy to understand by none other than Peter Schiff.

Happy Thanksgiving to everyone out there. Now, more than ever remember to be thankful for whatever you have, especially friends and family during these difficult times. I wish you all the best.

Very sad report on the state of affairs here in southern California. With tomorrow being Thanksgiving, reporters are doing their once a year coverage on the homeless shelters and the food they give out. This year is different though. With the economy the way it is now, these places are serving more and more of those that are not homeless, but hungry, and perhaps homeless in the near future.

Food pantry visits up 41% in Los Angeles.
1 million lbs of food to food pantries per week not enough to cover demand. (It’s interesting to note that most of these foods come from donations, and when those inevitably dry up, things are going to get really bad.)
More and more middle class families are participating. (More signs that the middle class is shrinking.)
1 in 8 of Americans (36 million) live on the brink of hunger. (On the greatest nation on Earth. Unacceptable.)

Mr. Obama has appeared in a series of press conferences this week and late last week related to his nominations for his economic team. Besides heavily choosing former Clinton administration officials, his nominations are not those that inspire change at all. In fact, they really are more of the same Washington insiders he so heavily criticized during his campaign. What is really ridiculous is that he is choosing federal reserve officials to very prominent positions in his cabinet. There is no doubt now that Mr. Obama is bowing to the will of the true political masters. It is no coincidence that he is a member of the secretive Council on Foreign Relations, and his choices reflect their plans. Let’s look at two of his nominations:

Tim Geithner
Before his nomination as Secretary of the Treasury by Mr. Obama, he was president of the federal reserve Bank of New York. Yes, the very same federal reserve that has caused our economic collapses time and time again. He is also a member of the Council on Foreign Relations.

Paul Volcker
Formerly chairman of the federal reserve. Another member of the Council on Foreign Relations. He will now head Mr. Obama’s “Economic Recovery Advisory Board.” It’s absurd that a former federal reserve official will be making recommendations to the White House on the economic recovery process. From this article, Mr. Volcker “…is a legendary central banker who raised interest rates and restricted the money supply to tame raging inflation in the 1980s. It was a painful prescription that helped send the economy into one of the nation’s worst recessions.” Great pick Mr. Obama!

The more I find out about Obama’s choices, the more ludicrous they seem. Believe me, I want to have things get better and I want to trust in our leaders. But one must also use critical thinking when looking at the choices our leaders make. Sadly, many Americans are not paying attention to what matters. This is just how the masters want it.

Here are some recent appearances by Peter Schiff.