Archive for February 25th, 2008

Faith and Hard Cash

Dave’s discussion below shows, among other things, that he is dealing in a reality he hasn’t quite grasped yet. It is important that he not let common popular ideas get him off track. He must stick with Mantra logic.

Let’s get specific. In common parlance, faith and hard cash are two ends of a spectrum. “Show me the MONEY” is supposed to be hard reality whereas faith is supposed to be wimpish. But, as Dave makes clear, it is faith in Germans that made the Deutschmark the hardest of currencies.

“Show me the money” sounds realistic, but it hasn’t been that long since the Hard Currency, pieces of official paper, was considered wimpish. “Show me the METAL,” Show me the GOLD” was the essence of Practicality until Roosevelt outlawed the possession of gold and the 20s gold bonds were called in.

So is Real Money gold or paper?

Real Money is what you can SPEND. How do you KNOW your paper or your gold will be accepted? Chances are your gold won’t. You can’t use gold coins as a medium of exchange.

You CAN use paper as a medium of exchange.

In fact, you can’t USE your gold coins as a medium exchange unless you have a piece of paper from a goldsmith saying they’re the Real McCoy. In the real world, you take your Hard Currency to the gold dealer and get pieces of paper, real money, for it.

Lots of people have gold for exchange when The Catastrophe hits. They do that because society will be in a state of collapse. They do that because all the stores will be closed.

So how in the HELL, in the midst of a catastrophe like that, are they going to get anyone to testify that it is REAL gold? We’ve all seen real gold, but how many touchstones have we seen?

So what IS money?

Money is what you accept because you have FAITH that anyone will accept it from you.

Money is faith.

In the 1960s survivalists talked about how only GOLD would work in The Great Collapse. I thought that was laugh then, but I couldn’t explain it to them.

Libertarians insist on their Magic Money, based on Hard and Objective Metal and the Magic Border Lines. But, as Dave points out, the Magic Border Line that makes wages higher is based entirely on faith in the PEOPLE north of that Line as opposed to PEOPLE south of that line.

Japan has less natural resources by far than Mexico has. But if you took all the Mexicans and moved them to Japan and took all the Japanese and moved them to Mexico, Mexicans would be worse off than they are now. I wrote that in the New Right Papers in 1982 after presenting it to before Nobel Laureates at an economics convention. No one EVER disagreed. But no one repeated it, either.

You can’t SAY that and have a career in academia, as Nobel Laureate Dr. Watson’s firing has just demonstrated.


All the careerists in every field are OPENLY rejecting serious analysis that leads in politically incorrect directions. Which means that it is in precisely those directions that unexplored truth is piling up. It is a failure to move in those directions that is leading to the ever more impossible bottlenecks we are faced with in public policy.

Dave, BUGS participants, we have reality all to ourselves.




The most severe crises is in Europe precisely because a bunch a bureaucrats in Brussels decided to replace Germany’s organic currency with a Soviet model fake called the Euro, thus removing from the sovereign state of Germany, one of the world’s greatest industrial powers, any ability to competently manage the market in its own sovereign bonds (the bonds of the German state).

Political correctness requires us to ignore how important Germany is to the world and how dire the mismanagement of Germany’s finances is to the future of Europe.

The combat occurring in Central Asia is light action combat only. It is no big deal, stuff for mercenaries. Iraq, Afghanistan, and Pakistan are not going to be problems going forward. Young men for several generations and still today in Central Asia have no other means to earn a living except through being a fighter in somebody’s ad hoc cobbled together battalion. Nothing has changed. It is the same ‘ol same ‘ol in Central Asia. The only difference is that America now has significant bases there.

It is hugely ironic that after the fall of the Berlin Wall, America decided to move its European presence eastward into Central Asia.

Clinton actually felt it necessary, in connection with his Serbian aggression, to flip the Russians the bird by bullying Turkey to let American surface naval vessels through the Bosporus Straits for an unseemly victory lap in the Black Sea.

So the big move into Central Asia has been a big friggin success, just at the time Europe is going to hell in a hand basket. The MSM fails to report that France is currently facing an exodus of white people. These whites are early adopters of the coming “get the hell out of Dodge” mentality that is sweeping Europe’s white middle classes.

The American government has plenty of room to continue to water its sovereign bond float in this environment. Global finance has nowhere else to go except into gold and the smart money sure in the hell is not doing that. Instead, it is selling into the big gold rally that has been going on now for over 5 years the loot it stole in its mortgage bond pool operations. They are flipping the loot into short-term American sovereigns in anticipation of an inevitable crash in the commodity markets. Unlike consumer goods prices, commodity prices always come home.

Today, the Fed actually has to sell American sovereigns from its very own portfolio to keep short-term interest rates from going too low. This is because the demand for short-term American sovereigns from the global pool operators. This is truly history making stuff, as it is truly rare that the Fed sells bonds to drain the monetary base.

There is no way in hell the Fed is going to water American currency by buying bonds. It has no need to, and won’t for the foreseeable future. You have to remember, the Fed has no choice but to be responsible in today’s environment. It is a captive agency of the US Department of the Treasury and has global terms of trade commitments that must be met. Also, the value of American bonds must be upheld because those bonds are required to fund the American Navy’s victory laps in the Black Sea. (Don’t tell a Libertarian this. It will upset his religious conceits.)

Meanwhile, the whole nonwhite world is piling onto the backs of white Americans through T-Bill purchases. And meanwhile, the MSM continually tells us America has been defeated in Central Asia.

No way. That is not what is going on at all. Europe has been defeated. But the MSM will not notice this until Europe is in utter ruins.

And you know how it is. It is the MSM that determines what is real, not reality itself.



The National Debt

That was Perot’s big issue in 1992 and it is dead now. Bush used 9/11 to write himself a permanent free ride on debt, since wars are routinely financed by debt and this war will be forever. The end of the debt issue means the end of issues about what Shari calls the consolidated state.

There are no longer any issues for elections to decide. All the money is committed. However much we talk about things government should do or not do; it is simply a cash cow now. The national debt is free money and entitlements take up about all of the rest.

Especially if you include all the REAL entitlements. Almost all black degrees are in areas which are part of government entitlements, Human Relations and Education and all the rest which are simply the result of government regulations or pressure.

The Trial Lawyers Association represents an entitlement. Three million lawyers make their livings off of games played that are totally useless.

What we say here interrelates. So when I pointed out that there is no evidence whatsoever that more legal due process produces the slightest increase in actual justice, it meant that lawyers live on a government entitlement as surely as Social Security recipients do. “Civil rights” is now a cash cow, as is the Holocaust Industry.

The PRACTICAL result here is that minorities will be bought off, one way or another. The Great Torchlight Parade will be replaced by dealing. Not with a bang but with a whimper.

And shares in a depreciated America will not be that big a deal by the time it comes due. We are already dealing with the fact that a dollar from White America and a dollar from our New Brazil melting pot is not the same thing.