It's all about leadership. Economic leadership, political leadership and military leadership. In my humble opinion, a great test is going to come upon America shortly. Based upon my analysis of the current leadership, I feel they will fail. We will be savagely tested; we will be stressed to the max of our SUV loving minds and found wanting. The idea that this shallow, amoral society of ours will suddenly find the discipline to deal with the brutality of our enemies is ludicrous. The idea our leaders will suddenly turn into George Washington or Thomas Jefferson is even more ridiculous. I make a moral, subjective judgment on the character of our system and our leaders. Will they now tell us the truth, after having lied so much for so long? I doubt it. We are on our own. They will be in the fortified bunkers we have built for them and we will be left to fend for ourselves. Some of us, the doomer survival faction, have a good chance of making it. Unfortunately, the great majority of my naive, trusting countrymen will die in their ignorance and folly. We are going into Iraq; when we do, modern American life will end. The people around me cannot see that. It disturbs me, pains me, vexes my soul, but all I can do is what I have been doing all these years. Considering the current economic situation, you would think people would be more upset with the failure of the system they counted on to save them. Instead, there is the mindless assertion that the economy isn't really as bad as doomers like me say. We have an elite that is obsessed with lying to us about what the true economic situation is in order to maintain their status quo. The status quo is about to be shattered. I'm just not sure the average American understands that. They will soon. They will soon.

At what point people admit the stock markets are garbage is a subject that still fascinates me. Exactly how much does the NASDAQ have to collapse before people admit it is beginning to resemble 1929. Will it take a fourth year of stock market declines? If so, why didn't three years do it? What's the difference between the two. No doubt, the talking heads will still be chattering away on great buying opportunities as the indexes close in on 500 and 5000. Anyway, the percentage losses in the NASDAQ are closing in on the 89% of the DOW in 1929. That's the objective reality. We just have a media and Wall Street elite that is still trying to con us. They will continue as long as people don't start laughing at them.

The US trade deficit was nearly 450 billion dollars last year. The Federal Debt limit was blown through from June 2002 to February 2003. Some 450 billion in debt was piled on in less than a year. Did anyone notice? Did anyone care? No, we just keep piling on the debt under the assumption that we can continue to do it with impunity. The fiat dollar's status as the global reserve currency gives us a certain amount of leeway other deadbeat nations don't have. The reality is clear. The fiat dollar is withering away before our very eyes. Various other countries are shifting reserve assets into gold or euros. The United States economy has been judged and found wanting. The foreigners are pulling out, out of our stock markets, out of our real estate markets, out of our bond markets and, most ominously, out of our fiat dollar. They realize the economic game is rigged and are refusing to play anymore. Few in America are noticing, but this single economic fact will have a more devastating impact upon daily life than people realize. We are looking at a resurgent Euro, yes the laughable farce called the Euro, is now worth more than the US dollar. Gold surged over 20% in 2002 at the same time the stock markets were experiencing double digit declines. The chaos in the Bush economic team reflects this fact. Whatever our elite idiots say, they know the handwriting is on the wall. Spray painted in orange neon letters three feet high in fact. We are witnessing the early phases of a fiat dollar collapse. The multigenerational role of the fiat dollar as the global reserve currency is ending. This has broad political, economic and military implications for you and me.

Iraq has led the charge by refusing to be paid in fiat dollars for its oil. Saddam took this step a while back, when the Euro was below the dollar, and has made several hundred million in profit as the Euro has gained. China and Russia have decreased their dollar reserves. Even those psychos in North Korea have gotten in on the act. The dollar is under attack because foreigners are making a judgment the USA economy is in trouble. They are correct.

The foreigners don't have the flippant view of the United States debt situation. They look at our consumer debt, our corporate debt and our government debt and ask the right question. Can this money be paid back? They ask where are the signs of the political will to make the tough decisions to curtail our lifestyle in order to repay it. The government is currently obsessed with providing prescription drug care to seniors. Say what? We burned through 450 billion in about ten months and we are talking about spending billions more on Homeland security and health care. Foreigners rightly look at that scenario and scratch their heads. The judgment is in. The debate is over. I don't think the foreigners are rats leaving the sinking ship. I think they are astute judges of the current reality in the United States. I think they are making intelligent economic decisions based on the objective reality of current debt levels in the United States. These debts are denominated in dollars and they understand what is coming. I don't blame them for bailing out.

The blunt truth is the USA government now owes nearly 7 trillion dollars. The blunt truth is that a payment plan covering ten years would require 700 billion per years, plus interest. The blunt truth a twenty year plan would require 350 billion, plus interest. There is no political will to take between 500 and 900 billion dollars a year, out of 2.2 trillion dollar federal budget, and use it to pay down the debt. We will go deeper into debt until the foreigners cut us off, just like New Zealand in 1984. The fiscal collapse of the US dollar is not some doomer fantasy. It's coming as sure as we are going into Iraq. If you understand what our enemies are trying to do, if you understand their modus operandi, you will see our fiat dollar is going to lose up to 40% of its value. It has already lost quite a bit in the last two years. Of course, it has lost nearly 100% of its value since the FED took over in 1913. What I mean is will lose roughly half of its current value in the near future. It has to since the foreigners are onto our economic scam. Our enemies have said they will destroy our economy and indirectly this great military machine we have built. It's the dollar, stupid. And it's fading fast. I'm on record as saying that the Argentina situation has a very good chance of happening here in the United States of America. The wheels of economic reality grind slowly, but they grind completely. They have gutted manufacturing, the stock and commercial real estate markets and left us with massive debt levels. Now they are coming for our fiat dollar. A dollar collapse. Coming soon to your wallet.

7 March 2003