Tuesday, November 25, 2008


This professor mainly suggests that the cause for the breakup of America is debt. On that score he has it wrong, however, gold standard thinking is pervasive and the one thing that may imede or block our abililty to turn this economic crisis around.

"Millions of citizens there have lost their savings. Prices and unemployment are on the rise. General Motors and Ford are on the verge of collapse, and this means that whole cities will be left without work. Governors are already insistently demanding money from the federal center. Dissatisfaction is growing, and at the moment it is only being held back by the elections and the hope that Obama can work miracles. But by spring, it will be clear that there are no miracles."

He also cited the "vulnerable political setup", "lack of unified national laws", and "divisions among the elite, which have become clear in these crisis conditions."

He predicted that the U.S. will break up into six parts - the Pacific coast, with its growing Chinese population; the South, with its Hispanics; Texas, where independence movements are on the rise; the Atlantic coast, with its distinct and separate mentality; five of the poorer central states with their large Native American populations; and the northern states, where the influence from Canada is strong.

There are large racial, ethnic, religious undertones in the American society that can become a source of tension and strife if economic conditions become very bad. I believe that.


googleheim said...


what a crock, just like Schiff -

watch - the only break up with the further atomization of the FSU and Russia !!

just like Schiff.

googleheim said...


instead of tax and spend

we need to

spend and tax the result

that's what the false interpretation of the ENTIRE Lauffer curve brought in the past 8 years.

- if government would have raised taxes around 2005 on richest and trickle that increase downwards, then it would have put brakes on all this mess while making it internalized.

- bubbles must be met with tax changes

- as the bubble expands the economy does too and taxes must follow it commensurately with corelation otherwise bubble outstrips itself

- corporate taxes would have sequestered overleverage if done in a specific manner.