Friday, March 28, 2008
Is Chaos Coming?
"There is a serious threat of a complete breakdown of the social order. In recent months, there have been food riots in 7 countries. ... The last news from Zimbabwe (March, 2007), was that wage and price controls were being imposed, and goon squads of young toughs were going around with the police and threatening violence against shopkeepers who raised their prices. ... What scares me is not what is going on in Zimbabwe, or even Mexico. What is scary is what is going on in America. Starting Sept., 18, 2007 and continuing to the present there has been a deliberate campaign to increase the rate at which prices are rising. ... Starting Sept. 18, 2007, the Fed has been sharply cutting the interest rate, indicating that it is ready to start printing money at a much faster pace. ... Houses have become unaffordable for the average American. But houses were deliberately taken out of the official figures so as not to alarm you. ... In the past 12 months, the price of wheat has gone from $4.25/bushel to $11.50/bu. ... And at this crucial time, the [Fed] is deciding to spit in your face by printing money at an even faster rate. But quite frankly, they are safe because there is not one single major newspaper or magazine (or other media source) which will tell the Oprah-watching masses that their government is engaged in the operation of counterfeiting. ... But there is one thought that will never cross these people's minds, that their government, which robbed them of food, is the source of the problem. ... The government promised them something for nothing, and they want to believe. ... The very first thing the New Deal did on the very first day it was in office was to give the power to create money to the banks. The poor don't donate to political action committees. And the poor don't even vote for the politicians who are their true friends because they are misled by advertising paid for by the money of the rich. ... The key question is, will there be price and wage controls. ... In the '70s, Nixon imposed price and wage controls even as he was explaining that he did not believe in them. ... But the Repubclicans do not want to repudiate price and wage controls. They intend to buy votes by printing money", Howard Katz (HK) at http://www.thegoldbug.blogspot.com/, 18 February 2008.
HK's concern is well taken. Nixon said, "We are all Keynesians now". Nixon closed the "gold window". We have no idea what our next administration might do.