Why The U.S. Economy Will Collapse

It is very simple.

1) A nation can't borrow and print its way out of a debt crisis. It destroys confidence in its currency and makes matters worse, regardless of how charismatic its president.

2) A nation's consumers can't shop their way to prosperity by buying goods they can't afford. It only compounds their debts.

3) A nation can't sell its government to the highest bidders. When that happens, not only is the treasury pillaged, so is the freedom of the people. The latter just takes a little longer.

4) A nation can't drain its resources on weapons and wars. It's the fastest way to the poor house, morally and financially, for beating people into submission doesn't work and extracts a heavy price on the souls of those who try it.

The financial collapse has already begun, but there is good news as well. The collapse will force the people to get involved with their government, rather than just casting a ballot and assuming the politician they voted for will fix the problems.

It is also a chance for the people to learn from their mistakes and build a better, more humble and compassionate nation, one that uses its resources to uplift itself and the rest of the world. For that is how one truly finds peace and prosperity.

Dick [last updated 2/8/10]
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"Deficit to Hit All-Time High" (Wall Street Journal, 2/1/10)

This is disgusting. America's financial security is in dire straights as President Obama and Congress keep spending vast sums of money we don't have. Where in the Hell is our nation's leadership?

To start with our government has gone war crazy! U.S. military and nuclear weapons costs are equal to the next 15 nations combined. This week, President Obama called for nearly $160 billion alone for the wars in Iraq and Afghanistan in 2011 and $33 billion to pay for those wars this year in addition to what has already been spent.

Mr. Obama's proposed 2011 military "budget" of $708 billion would be a new record for military spending. And that's before it gets added to throughout the year with more spending bills. Has our government gone nuts?

With all this spending, it's no wonder the U.S. Deficit will hit an all-time high. We are already completely dependent on others to loan us money or believe or not the U.S. government can no longer pay its bills.

What is the government's answer? To borrow more money. And what it can't borrow, the Fed now prints.

Republicans and some Democrats are publicly demanding something be done about it but they offer few specifics. Let's help them. In EACH CONGRESSIONAL DISTRICT, slash military and other costs so each Congressman helps to balance the budget.

But if cutting expenses doesn't work for them, here is an alternative: raise taxes. Each Congressman could poll voters in his or her District to find out how much more they would be willing to pay.

But every man, woman and child in America already owes $40,000 and that number is rapidly rising. And for what? To bailout Wall Street? To shower money on the military-industrial complex?

The value in the U.S. dollar is based solely on the confidence people have in it. If a crisis of confidence should strike, the value could collapse. And the history of many other nations tells us that when it happens, it happens fast.

Think of it like trying to bend a steel rod. It is solid and looks impenetrable. But if enough pressure is brought to bear, over time it will bend and when it does, it will bend fast.

The U.S. is particularly vulnerable because its major creditors like China are already worried and because the U.S. finances so much of its debt short-term. All it takes is for investors to stand back and the ensuing crisis will paralyze our nation.

We allowed these soaring deficits by letting our government and the lobbyists who run it do whatever they want. Endless wars, bailouts, you name it. But we can solve it by taking back our government and demanding these Titanic size costs be slashed before it's too late.

Our creditors and the nations we occupy or would attack on a whim will thank us as will our families for saving their financial security. We as a people are far better than our government and it's long past time we assert ourselves.

Dick [updated, 2/4/10]
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A Candid Conversation With Barack Obama

"The time for change has come," declared charismatic presidential candidate Barack Obama as he spoke to our hearts and made profound promises he vowed to keep.

Mr. Obama promised to end the Iraq War in 16 months, close Guantanamo within 12 months, end our dependence on foreign oil, end "Don't ask, don't tell" for gays in the military and make affordable health care available to all.

He promised "transparency," so that we would know what is really going on with our government and he promised to end the grip lobbyists had on Washington and to get rid of "earmarks," pork barrel money Congress uses to pay off its supporters.

Now a year into his presidency, not one of these things has happened and many of Mr. Obama's supporters are disillusioned. Instead, we have the continuation of the Iraq War and the escalation of the Afghan War, costing lives and money and what is left of America's moral fiber in support of a government that fixed the election to keep itself in power.

Wall Street is doing all the horrific things it did before and there is no new oversight nor tougher rules, nor has anyone been held accountable for anything. And the staggering sized bonuses Wall Street is paying itself are "in your face." They don't care what the American people think.

We have record setting deficits, bailouts, the Fed printing money out of thin air and the U.S.'s major creditors seriously concerned about loaning us more money.

It was time to have a hypothetical talk with Mr. Obama to understand what has gone wrong. "President Obama, why have things gone so badly?"

"Because I was naive. I'd only been briefly in the Senate before I began running for president. I had no idea how entrenched the lobbyists actually were and how little they cared about my promises or even the rights of the American people.

"The big banks and insurance companies, the pharmaceutical giants, the huge oil firms and the military-industrial complex, among others, very much run the show. They own both major political parties. To them, I'm just a figure head and aside from taking their tax money the American people don't count.

"Even I got caught in their grip. When I ran for office, I took more lobbyist money than any other presidential candidate in history. I too am indebted to them."

Struck by his candor, I asked, "Why did you turn leadership over to Congress? As you pointed out, they are owned by the lobbyists and when they turned your proposed health care reform into a joke and forget most of your other ideas, it makes you look like an ineffective leader. The President is supposed to lead, not follow."

"You're right," he replied with a sigh. "I had no leadership experience when I took this office. It's one thing to be a Senator or a community organizer or a university instructor and quite another to lead people and implement a vision."

"What are you going to do about it," I asked.

"I don't know," he answered. "What I do know is I'm desperate for help. It's hard for me to admit it publicly but you could see it in my State of the Union speech and in my meeting a day or so later with the Republicans. In frustration, I actually became combative and that won't accomplish anything.

"I know if the American people don't get involved, what you see is what you'll get. Endless wars and their treasury looted. No accountability and an economy that in a few years will complete its collapse and throw us into a Depression and potential chaos."

Stunned by the severity of the situation, I asked "What do you want us to do?"

"Raise your voice," Mr. Obama answered, as he raised his. "Overwhelm the media with calls, emails and letters because they are asleep. With few exceptions, they ignore the wars and give superficial coverage to the dire financial situation.

"Most are corporate and government mouthpieces, avoiding controversy and largely reporting what they're told to report. The founders of our nation expected much more from them when they created the First Amendment, Freedom of the Press.

"And take to the streets," Mr. Obama continued. In the 1960's, Americans brought in Civil Rights through marches and demonstrations and they did it again in the late 60's and 1970's bringing the Vietnam War to an end. Despite my promises, real initiative always comes from the people who compel their government to act.

"Things are so bad, the American people must fight to take back their government or they will lose their democracy. They nearly lost it to the last president, who ruled by fiat claiming 9/11 and his "War on Terror" gave him special powers beyond those in the Constitution.

"I need the help of the American people! Together, we must succeed for the future of our country and the well-being of people all over the world depends on it. They have no reason to believe anything I say but please don't give-up on me yet."

Dick [last updated, 2/1/10]
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Wall Street's Massive Bonuses: Giving The Devil His Due

"Welcome to Wall Street's Annual Predator's Ball," said the tall striking looking man at the podium, with the thick black hair and muscular body as his penetrating dark eyes made contact with everyone in the room.

His deep majestic voice echoed across the crystal chandeliered, marble floored, oak paneled ballroom bigger than two football fields, in one of New York's finest hotels. Every seat was filled by invitation only to Wall Street's elite.

"First, congratulations to each of you for doing such a great job," he stated. "You brought the global economy to the brink of collapse, and while doing that you paid yourselves record bonuses, as you ignored the public outcry.

"Second, you unloaded the colossal mess you created entirely on the taxpayers. In many cases, these are the same people who lost their savings and their retirement accounts and some even lost their jobs and their homes because of you.

"Third," he added as a sense of amazement filled his voice, "Not one person in this vast room was ever held accountable for anything!" Before he could utter another word, the audience burst into cheers.

"Fourth," he said after the cheering died down two minutes later, "You avoided any new financial regulation or oversight. You're still doing all of the same terrible things you did before and no-one is stopping you."

Before he could say anything more, the audience responded with a thunderous ovation and then moved by the moment everyone sang, "God Bless America."

As they sang, he just stood silent, absorbing the arrogance permeating the room. Then as he looked at the sea of faces, he asked, "Is there anyone here who doesn't live in a mansion or a lavish high rise co-op?" The room was silent.

"Is there anyone here who doesn't have a limousine, a private jet, a yacht and more jewelry than you can measure?" Silence once more filled the room.

"I thought so," he said. "Yet most of you are grabbing money to add to the huge sums you already have, which is more than you could spend in 10 lifetimes. Others of you don't have as much money but you want to be like those who do.

"How many of you plan to pay much income tax to the system that bailed you out?" There was silence once again.

Then staring at the audience he inhaled deeply and exhaled into the microphone, as his eyes narrowed and a look of disgust filled his face.

"I should introduce myself," he said. As he spoke those words, he grew in size, taller than any basketball player, while his skin took on a reddish tint.

"I am the Devil," his voice boomed out. "Enjoy your ill-gotten gains. But know that when your lives end, you're mine, for in my world there is accountability.

"And remember, life is short and that everything you've greedily grabbed gets left behind. It will be worthless to you."

The mood in the room abruptly changed from one of laughter and joy to fear, as women screamed and men panicked, some of them racing to the exits, pushing and shoving one another, as their security personnel met them at the doors while calling for their limousines.

But most people stayed in their seats. "How do we save ourselves?" one shouted.

"If you are sincere," replied Satan, "As you leave here, notice the desk clerks, the doormen, the chefs, the food servers and the janitors. For many of you, it will be the first time you've seen them, for you never cared about them and their families.

"And afterward, notice those who repair your streets, teach your children, fight your fires, police your neighborhoods and nurse your sick. See the small businesspeople who risk everything they own in pursuit of the American dream and they employ millions of others in the process.

"Your selfish actions have jeopardized the financial security of all these people.

"But don't stop there. Think about all the soldiers you sent off to war and the pain their families endure when they are killed or maimed or away from them for months at a time. Many of you have profited from their misery, never caring for their welfare.

"Some of you mocked the vast number of families with no health insurance. Their children die each day from lack of care but for the government to offer it to them you called, 'Socialism.' But what was it when the government bailed all of you out?"

Just then, a 50 year old man stood up. "What a fool I've been, he said sadly. The price I've paid to accumulate all these riches has often separated me from those I love, as I worked long, stressful hours and had to travel frequently.

"Yet none of the things I have has ever given me as much joy as my family or when I've done something to help someone else. I've missed many of the most important things in life, my son's soccer games and my daughter's recitals, their graduations and the list goes on.

"Now they're grown and gone and neither of them is close to me. I'm a stranger to my wife and I have no idea whatever became of my close friends.

"My doctor tells me I have high blood pressure and clogged arteries and I could drop dead tomorrow. If I did, who would care? A week later even my job would be filled.

"People hate me because of my greed and the harm I've caused them. Yet there are many who wish they could have what I have, not knowing how empty my life really is. I don't even know who my friends are, for I just have hangers-on, smiling people who pretend to care about me but really just want to take from me.

"I am rich in assets and poor in spirit. I thought money would bring me happiness and power and make me feel important. But only briefly did it bring any of those things and I never really had control over other people and events, it was just an illusion. Self-control is the only control any of us have.

"My real worth was always within and the only thing we can ever take with us is the love of others. My life is brief and it is precious. I am valuable for the quality of who I am and for the kindness I can offer others to make their lives better.

"Tonight, I finally get it! From now on, I'm going to enjoy each day I have, knowing it could be my last.

"My crazy work hours are over and I'm going to slash my personal overhead, sell off what I don't need and share some of the proceeds with others whose need is great. People who work for me will receive raises and I will take a sincere interest in their well-being.

"And I'm going to reintroduce myself to my loved ones and do everything I can to make up for what was lost, as I hope to become an important part of their lives. I'll start with my wife, who I've virtually abandoned emotionally and physically all these years. Thank you!"

"It's odd," said a member of Satan's staff, "That you could have such a positive affect on that man. "Not really," replied the Devil with a big smile and a warm sparkle in his eyes. "Sometimes it is a very thin line between Heaven and Hell."

Dick [last updated, 1/28/10]
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How The Dubai Financial Collapse Affects You

In the recent boom years, no other nation spent money like Dubai, building the world's tallest building, man-made islands and by the hundreds, multi-million dollar red tile roofed mansions similar to some of those in Beverly Hills.

But Dubai has gone bust and as one of the seven United Arab Emirates (U.A.E.), it and its lenders thought it had a U.A.E. bailout. But that bailout is shrinking. For the U.A.E. didn't cause the problems nor does it want to bear the brunt of them.

The magnitude of Dubai's debts is not publicly known but is in the many billions of dollars. The global lenders that loaned it staggering sums of money during the boom years may have to write off most of their investment.

Little is known as to who these lenders are and what they are owed but they likely include some of the "too big to fail" U.S. banks and other banking giants. Many have already gotten government bailouts and depending upon their reserves, may come back for more, meaning money from your pocket and mine.

These awful surprises keep happening because we are no-where near the end of the global financial meltdown. And what affects Dubai or other nations affects us all.

But take heart. At some point, the industrialized nations will have to acknowledge the magnitude of their financial problems and unite to try to solve them. However, the longer it takes these nations to solve their problems, the greater the likelihood they could bankrupt themselves and with it, all that you have worked for.

You can make a difference if you will raise your voice for "transparency," a word that used to be used by a U.S. presidential candidate, and for fiscal sanity. By doing so, you will be helping to secure your financial security and that of future generations.

Dick [last updated, 1/20/10]
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Taliban Strike Stuns The Afghan Capital And The World

On Monday the Taliban struck hard at the Afghan government, just 50 yards from the presidential palace.

Four hours later, when the explosions that shook everything in their path ended and the gunfire was silenced and as the black plumes of smoke cleared, at least 12 people lay dead and 71 more were seriously injured. The blown out office buildings added to the stark testimony of the Hell that had reigned.

This latest attack did something few in the media are aware. It told investors across the globe that no place in Afghanistan is safe for investment. Without their money, the nation cannot grow and prosper, instead sinking deeper into poverty and misery.

What happens next? The Taliban "militants" or "freedom fighters" will choose when and where to strike again and all the U.S.'s Afghan puppet government can do is to be it's victim. After fixing last year's election, this government remains in power only because of the U.S. military and the U.S. mercenary army.

If you doubt that, ask yourself how the Taliban was able to come heavily armed into the most secure part of Kabul, despite all the U.S. and Afghan security. Clearly, they have supporters in the highest levels of that government.

The Afghan government rules only in the capital as the Taliban, the War Lords and the village elders rule elsewhere, something the U.S. cannot change with a million troops and endless air attacks. The Taliban are Afghans and they can wage this war indefinitely, something a foreign occupier cannot do.

If you're an American, why should you care? Because your brethren, U.S. and Afghan are being killed or maimed. But also because your country is going broke and it will bankrupt your money with it.

Instead of escalating this war, the U.S. must seek peace. The way to do this is to call for a cease fire and negotiate a settlement for this is how most wars end.

But it won't happen soon, and not without a lot more bloodshed, unless you raise your voice. Please, for humanity and to protect all you have worked for, do it now. Your conscience will thank you, as will the world and ultimately future generations will thank you as well.

Dick
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Break Up The U.S. Banks That Are "Too Big To Fail"

President Obama calls the biggest bank bonuses of all time "obscene" and is talking with Congress about taxing those bonuses to recover some money for the American people.

But so far Mr. Obama can't even get tougher financial regulations or a new Consumer Protection Agency through Congress for the banking lobby buys the Congressmen.

But Mr. Obama has powers he's not using. Under the Antitrust legislation already on the books, he can direct the Attorney General to file suit to break up the banks that are "too big to fail," for they have become a monopolistic predatory trust.

A century ago, this is what Teddy Roosevelt did against the greedy corporate giants and it's time to do it again. Bank of America, Citigroup, Goldman Sachs, J.P. Morgan Chase and other giants need to be broken up so community banks can compete with them and to stop U.S. consumers from being gauged at every opportunity.

This is how Mr. Obama can show them "change" is coming, rather than just reacting in anger at the fleecing of the American people.

If Congress can find the courage to act, it could re institute the 1933 Glass-Steagall act, which separates banking (making traditional loans) from investment banking (trading stocks, bonds and commodities and creating exotic financial instruments). This act served the public well until it was dismantled several years ago by banking lobbyists.

These banking behemoths then had overwhelming conflicts of interest but it didn't matter to them in their aggressive pursuit of deals and massive executive bonuses, which played a crucial factor in the current economic meltdown. These conflicts of interest still exist today and already, these behemoths are back to their old ways and the sky high bonuses are just one manifestation.

America has been a great nation and it can be again. Taking financial control back from those who bled it dry, including Congress, is a vital step. But it can't happen unless you raise your voice and demand change for no President can accomplish this without your support. Let's encourage this President and give him that support.

Dick [last updated 1/18/10]
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