Tuesday, September 8, 2009

What do you wear to a food riot?

Welcome back from Labor Day. Still have a job? Count yourself lucky, close to twenty percent of Americans don’t have one and tens of millions more have a job but need two or three to get by. The Republicans continue to ship jobs out of the country just as fast as capacity can be found and as demand for goods continues to decline, more capacity becomes available. They learned from their grandfathers’ mistakes in the last Republican Great Depression. This time they aren’t just closing the factories, they are crating them up and shipping them out so they can’t be reopened.

When the dollar finally collapses, imports will stop, the store shelves will empty overnight, the rest of the jobs will disappear and it will look like 1932 times ten. With no goods available, printing money and handing it out won’t do anything but increase the scarcity of goods. They used to call depressions panics and that will be a more accurate word. In 1930 sixty percent of Americans either lived on farms or were directly supported by them. Today it’s one percent. Do you have a garden, can you feed your neighbors too? If you think you don’t need to worry about this in the land of plenty, remember that agriculture is now firmly in the strangle hold of the same corporations that are shipping out your jobs and have cut off health care as soon as anybody needs life saving treatment.

They have proven that they will kill you for a dollar so you better believe that they will let you starve. What do you wear to a food riot? (baggy clothes) Why? (because that’s all you have anymore)

Gold passed a 1000 dollars an ounce today despite weak demand. The price is being driven by the decline of the USD reaching an 11 month low. Let’s see, what was happening eleven months ago? Bush was threatening martial law if Congress didn’t give him a 600 billion dollar blank check. The resulting international panic drove the USD up dramatically and stopped its collapse. This time around the we are not likely to be so lucky.

In 1973 Nixon took us off the international gold standard negotiated by FDR. This was only one of many things that he did to wreck the economy in the long term. Bad farm policy, bad trade policy, bad energy policy, borrowing huge amounts of money to pay for the Vietnam war, on and on. He was continuing the bad policies of the LBJ Adm. but on steroids. This precipitated the economic turbulence of the 70’s that led to Reagan and his voodoo economics.

Nixon was pardoned on this date by Ford.