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Missive #30

There is not much happening here. I do have the appointment for a Desperado wash and wax on Thursday. The regular group training class for Erik tomorrow. There is the weather of course with the low this morning below freezing again. That makes 20 mornings below freezing during this January compared to 23 last year at this time; yet the average temperature this year was about 3° less than last January. Strange climate change!

In a series of disarmingly simple arguments financial market analyst George Cooper challenges the core principles of today’s economic orthodoxy and explains how we have created an economy that is inherently unstable and crisis prone. With great skill, he examines the very foundations of today’s economic philosophy and adds a compelling analysis of the forces behind economic crisis. This is a very short book. It is also a very easy read, if you ignore the footnotes, and explains how and why the USA is in the economic mess that it is in now. The book was published in 2008 and all the government policies have been just what he predicted they would be and that we would be in this mess. His goal is nothing less than preventing the seemingly endless procession of damaging boom-bust cycles, unsustainable economic bubbles, crippling credit crunches, and debilitating inflation. His direct, conscientious, and honest approach will captivate any reader and is an invaluable aid in understanding today’s economy.— Book promo @ goodreads.com

Lenin is said to have declared that the best way to destroy the Capitalist System was to debauch the currency. By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily; and, while the process impoverishes many, it actually enriches some. The sight of this arbitrary rearrangement of riches Money, Banks And Central Banks strikes not only at security, but at confidence in the equity of the existing distribution of wealth. Those to whom the system brings windfalls, beyond their desserts and even beyond their expectations or desires, become ‘profiteers,’ who are the object of the hatred of the bourgeoisie, whom the inflation has impoverished, not less than of the proletariat. As the inflation proceeds and the real value of the currency fluctuates wildly from month to month, all permanent relations between debtors and creditors, which form the ultimate foundation of capitalism, become so utterly disordered as to be almost meaningless; and the process of wealth-getting degenerates into a gamble and a lottery. — The Economic Consequences of the Peace, J. M. Keynes, 1919, Chapter 6

Lenin was certainly right. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose. — The Origin of Financial Crises by George Cooper

[W]e are not quite there YET, but with the German Foreign Minister declaring that the EU is at war with Russia, and knowing that the EU is just a colonial administration, we are very, very close to a fullscale war between the US and Russia.  What is even worse is that I don’t see how such a war could be avoided.  I explained that in my recent post here.  Simply put, there is *zero* chance of the US/NATO/EU victory, which means that the US Neocons will be faced by a stark choice: defeat or go nuclear — Andrei @ The Saker

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