Fall of the American Empire – August 7, 2011

USA is Circling the Drain

S&P Rating – Well this is impacting the markets big time. The Tel Aviv Stock Market (Israel) trades on Sunday and they are down 7% on Sunday. This is a lot. Tonight Asia will open their markets and they will follow suit almost for sure. Then in middle of night Europe will open and also drop to be followed by the USA markets opening with all the preceding hours of fear causing even more drops. This will then filter over on Tuesday to more drops. Well next time a Kenyan runs for President and promises real change maybe someone will ask him “Good change or Bad Change”. No doubt Obama pulled through with real change so be careful if you call him a liar for this. We the people should have asked him what type of change. S & P said there is a 33% chance the rating will be cut again in 6-18 months. I think when Obama gets into QE3 there will be another drop in the S & P rating to A. Gold opened at $190 Sunday night. Wow. Looks like $1700 is in the bag for Monday.
Trouble in the EU – Germany is the only breadwinner in the EU, so to speak. They feel that Italy is too big to bail out. They think it would require several times more funds than is available in the fund. Read between the lines – let Italy go into default. Spain and Portugal are also doing badly. Their defaults are on the way. Many nations will be in the EU but will go back to using their own watered down fiat money to keep their social support programs going. Well that is what they think anyway. Their currencies will be worth very little. People may go there to buy bargain priced real estate. Doubt anyone will open businesses there due to workers benefits. The EU is a year or so behind the USA but it too is starting to circle the drain in large slow moving circles. The USA is running in small tight fast circles very close to the drain.
Get Into Foreign Currencies – The dollar is headed down. Suggest you hold Swiss Francs, Canadian Dollar, Australian Dollar, and Singapore Dollar. If Hong Kong pulls their Hong Kong Dollar away from the USD this will be a good buy as well. There are some secondary currencies that are good as well. Brazilian Real is one.
What to Look for in the USA – Well the bond rating drop means the USA has to pay more interest thus more debt for we the people. China is threatening to not buy more bonds. Great. What if Obama tells them he will default, then what will they do? They will keep buying the bonds and the Federal reserve will keep buying them which is a sleight of hand. The dollar will be dropping against foreign currencies, possibly like a rock. Sunday the Swiss France was already at $1.32. Inflation will get worse. The standard of living will go down. Eventually Obama may have to resort to price freezes by executive order. Imports will be expensive. Efforts to stop the flow of money out of the country will increase. I think we just took a big step closer to gold/silver confiscation forced buy back for USA persons. This takes us back to the other famous Narcissistic Psychopath Hitler.
Parallels between Obama Super Congress and Hitler Enabling Act - The Obama Super Congress measure directly mirrors the Hitler Enabling Law (Ermaechtigungsgesetz) of March 1933, by which the German Reichstag "democratically" voted to give Hitler emergency powers by passing the "Law for Removing the Distress of People and Reich," which gave Hitler the right to governon his own, and in contravention to the Constitution, without consulting the parliament for a period of four years. The Centre Party and the National People's Party decided to take Hitler at his word, permitting him to act on behalf of the parliament, including passing laws which deviated from the Constitution "as long as they do not affect the institutions of the Reichstag and Reichsrat," and maintained the rights of the President.
The guarantees were nonsense. Within three short months of the passage of the Enabling Act, all of the political parties except the Nazis had been banned. Hitler did not operate with the parliament, but effectively superseded it. It only met 12 times over the next 12 years—including the two sessions when it renewed the Enabling Act. When Hitler took over the economy of Germany was a mess. Hitler promptly got rid of the bankers and stopped paying them interest. I sincerely expect Obama to do the same. First he wants to lock himself into office again. He will lie to the bankers until it is time to stab them in the back. The psychopath does not want to keep answering to the bankers and congress. He is well on his way to making congress superfluous and then it is a simple matter to dump the federal reserve, declare the interest due illegal or void it and then he is on his way with the USA war machine behind him. This will end badly.
Let's Talk Military – China has one aircraft carrier built on an old frame from Russia. Their pilots are just getting used to it. China has no military force to fight wars thousands of miles from their homeland. They have defensive forces. Russia also lacks enough forces to engage in wars thousands of miles from their homeland. Russia has one aircraft carrier and a few in construction. The USA has 11 aircraft carriers active plus another one in reserve. It also has two more under construction. The UK has one, Italy and Spain each have two, France, India, Thailand and Brazil each have one. Getting a feel for how powerful the USA is yet. The USA has 73 submarines, China has 63, Russia has 56. The USA has about 4300 combat aircraft. Russia has about 2600. China has about 1600. The USA has about 3 million troops counting active and reserve. China has about 4.5 million but 1.5 million are paramilitary. Russia has about 21 million but 20 million of these are paramilitary, so they really have about 1.8 million.
The point here is the USA has an awesome war machine. The troops are used to war and are battle seasoned. They can still use the USD to buy gas, parts and make payroll. They are open for business 24/7. Obama has control over this war machine. His economy is awful. His popularity is low. He wants to get re elected. What do you think he will do?
Why Will It End Badly – First off because Obama is crazy and thinks he is the great one. Secondly he is pushing Russia and China. They know he is crazy. We know, they know. They know all about Hitler. Their generals go to war colleges. Obama is trying to make it difficult for China to get oil in the middle east. He is putting all sorts of weapons through NATO on Russia's borders. Question is how much will China and Russia take? They know if they keep giving in they will wind up being taken over or attacked. True the nuclear ingredient changes things but then again perhaps not so much. No one wants a nuclear winter. This game has no winner. The great one (Obama as he sees himself) needs to do something about the economy or perhaps he thinks he can just keep printing money and intimidate the other countries to keep accepting it. So far he has been doing a fantastic job when it comes to this. In any event Obama is already starting to get into military options especially in the middle east. This will escalate over time and eventually someone will say we had enough and hit him back. The wacko will then go to all out war but he will not hit Russia or China directly. He will go after strategic chess pieces in the game of war. Middle east oil producing countries is where he is focusing his energy today. One of the reasons he is bypassing congress is so he can wage war at will. He will get more respect at international meetings this way and that is what feeds the nuts narcissism. He will make mistakes and big ones. This I say with great certainty. You may be seeing real state sponsored terrorism in the USA as Obama marches on. I mean biological and chemical devices being set off to see if they can break the will of Obama. You may see cyber warfare. EMP attacks. Attacks on the economy. Will Obama listen to his military and advisors or will the self perceived great one decide he knows more than they do? Probably the later because these nuts tend to get very paranoid and stop trusting their closest advisors. Nobody can really predict what happens. All I can say is plan on it getting a lot worse before it falls apart. I can see not one thing encouraging about the economy, domestic affairs or foreign affairs. It is all bad. When the QE3 gets announced another plunge in the markets and currency will occur. Gold and silver will again spike up as will the right foreign currencies. To me I see this as a great opportunity to make money and remember you do not have to be in the USA or EU to do this. Best is to keep your money outside of EU and USA banking jurisdictions in case of a bank holiday. A bank holiday can shut you out of important decisions to protect your wealth and even increase your buying power. Your gold and silver is now best kept outside of the USA. Obama is getting scary and this super congress will make gold and silver confiscation far easier. Most people waited too long to leave with Hitler and of course we do not mean just the jews. Even the aryans suffered with Hitler. They lost their right to own guns early on. They suffered shortages of everything. They got killed in the army. The civilians got bombed at the end of the war. Many soldiers wound up in POW camps. Then the Russians invaded and went house to house executing the germans as payback. Many of these dead Germans did not like or want Hitler. They saw themselves as committed to staying in Germany and thus went down with Hitler. Hitler actually escaped to South America and died around 1959 from illness. I do not suggest remaining on board an out of control ship with Obama at the helm. Feel free to disagree with me but would like to hear an argument for remaining onboard the good ship Obama.