• New article posted on munKNEE:
  http://www.munknee.com/2011/05/richard-russell-demise-of-the-yankee-dollar-vs-the-rise-in-gold/ #
• New article by Chris Puplava:
  http://www.munknee.com/2011/05/what-the-1970s-performance-of-gold-silver-and-usd-says-about-tomorrow/ #
• New article!
  http://www.munknee.com/2011/05/why-hyperinflation-is-not-likely-let-alone-imminent/ #
• New Article on Gold and Silver
  http://www.munknee.com/2011/05/%e2%80%9cthree-peaks%e2%80%9d-pattern-suggests-gold-to-decline-17-into-june/ #
• Not too late to buy gold!http://www.munknee.com/2011/04/goldrunner-gold-on-track-to-reach-1860-1920-by-mid-year/ #
• An opposite point of view:http://www.munknee.com/2011/05/america-is-bankrupt-claim-is-total-nonsense-heres-why/ #

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“My Fellow Frantic Americans”

If I was the President right now and could give a fireside chat (FDR-style) to all American citizens here is what I would say. So get warm and cozy and take a healthy dose of the red pills. Words: 1676

So says Ash at peakcomplexity.blogspot.com in an article* which Lorimer Wilson, editor of www.munKNEE.com, has reformatted and edited [...] below for the sake of clarity and brevity to ensure a fast and easy read. (Please note that this paragraph must be included in any article re-posting to avoid copyright infringement.)  Ash goes on to say:

“My frantic Americans, this is your President speaking. I would like to [take this opportunity to] inform you about the state of the union in this most unfortunate year, 2010,[and what the prospects look like for 2011 and beyond].

[Before I begin] please take a moment to make sure the elderly, weak or infirm in your household are sitting down. In fact, just make sure everyone is sitting down and adequately restrained.

What I’m going to tell you is the cold, hard, ugly truth, and, just so you all know, my presently calm tone is not an accurate reflection of how I actually feel, because, man, I’m FREAKING OUT! The state of your union is worse than it has been since 1861, and it’s only gonna get worse… much worse. Anyway, let me break down the situation for you in the simplest terms possible.

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The economy is no better than it was in 2008, in fact it is much worse. I’ve tried just about everything, from bailouts to stimulus to quantitative easing and beyond, but nothing works! [Let me itemize what has unfolded this year:]

1.) Those sheisty banks took the [bailout] money and paid it out in bonuses, while my poll numbers kept dropping.

2.) You people keep filing initial jobless claims, asking for food stamps and unemployment benefits and other handouts, but I have nothing left to give you.

3.) The damn housing market faked me out, making me think it was going to stabilize from the tax credits and public backstops, but wouldn’t you know as soon as the public money disappeared, sales plunged like a skydiver without a parachute.

4.) My colleague Ben Bernanke keeps telling me we can stimulate the economy with his loose monetary policies, but his trillions of dollars in quantiative easing have done diddly-squat. Even if I wanted to give you people more free money, those dastardly conservatives won’t even give me an inch of slack!

5.) I gave health care and financial reform a try, but let’s be honest, everyone knew those bills were dead before they made it out of committee. You all can forget about low taxes, pension payouts, cushy salaries, retirement benefits and high standards of living, because all of that just ain’t happening!

So what do you want me to do, people?? [Let me tell it like it is, point by point.]

1.) This country we call home doesn’t have a single manufacturing plant left and is soaked to the gills in private and public debt. Remember I told you we could double our exports by 2015? Well, I forgot to tell you that the only thing we export anymore is FRAUD and, even if we did have real products to export, other countries won’t let us take any of their market share.

2.) I tried to reason with China and get it to revalue its currency, I really did, but they looked at me like I had just escaped from an insane asylum. 

3.) Meanwhile, the Japanese and Brazilians are running their own blatant devaluation schemes and I just can’t keep up anymore. Hell, even the Mexicans are buying dollars. 

4.) The Europeans – don’t get me started on those fools – they are keeping the Euro down by making people fear the entire European Union is going to fall apart! How can I compete with that nonsense??

Seriously, I feel like I’m in one of those screw-ball comedy movies where everyone is holding a gun to their own heads, threatening to shoot if the other guys don’t lower their guns – and I’m at a big disadvantage here, because my gun doesn’t have any bullets and the other guys know it. Man, we should have never become the world’s reserve currency.

5.) Even if I had a magic solution to fix the economy, I wouldn’t be able to implement it because you people keep throwing domestic boondoggles in my face. People are dropping like flies because health care costs are spiraling out of control – and you want me to fix that? [There is just] no way. The insurance companies are too strong and they give too many people too much money… [so its just not gonna happen.

6.) Oh yeah and illegal immigration, now that's a huge pain in the ass if I've ever had one. We have a 2000 mile-long border with the country and the illegals have supported our economy for years, but now they are a major drag and I have to find a way to tell millions of people to get lost. The Mexican quote-unquote "government" isn't doing me any favors either, because their politicians get assassinated when they try to challenge the trafficking routes of local drug cartels.

7.) And what's up with these ridiculous social issues like gay marriage? Seriously, the conservatives have made that such a heated debate I couldn't even get "don't ask, don't tell" repealed, so just leave me alone on that one.

 8.) As if all this crap wasn't enough, I had to suddenly deal with the worst environmental disaster in our country's history after BP did everything ass-backwards on their drilling rig and blew a hole in the Gulf's seafloor. Listen, if things hadn't already been so precarious, I would have kept those criminals away from the crime scene and been straightforward with you people about what was going on down there - but give me a break, people. This disaster was like a kick to my face after I was already down and I had no other choice but to protect my job and the jobs of my friends. Every single one of you would have done the same thing. Yeah, sure, I authorized the deep-water drilling off of the Gulf shores to appease my "drill, baby, drill" conservative colleagues, but how else could I make any progress on alternative energy and cap-and-trade??

9.) Speaking of which, these pesky scientists really need to stop bothering me about the devastating effects of climate change. Sure it's happening and we're probably driving that boat into a cliff wall, but do you people really think I have any chance in hell of fixing that colossal mess? No sir, not this guy. Here's another thing about environmental disasters. Can anyone tell me why we keep having earthquakes, hurricanes, floods, volcanic eruptions and who knows what else around the world? That stuff is just really starting to freak me out above and beyond my constantly elevated level of freaked-outness!

Excuse me for a second, my frantic Americans, while I take a sip of some whiskey - alright, where was I? Oh yes, I was just telling you all about how truly screwed we are as a country, and I almost forgot about the quagmires I inherited from the previous suckers in the White House.

10.) My base voted for me in 2008 so I would reverse the previous administration's policies in the Middle East and bring our troops home, but they just don't understand. We have too many vested interests over there and if I turned the spigot off right now, all hell would break loose. A swarm of lobbyists and neo-con war hawks would descend on Washington like the black plague. And if America wasn't at war, what could I possibly use to distract [you] from everything else going on? I was thinking about pulling the troops out and then manufacturing a fake television war, like those people did in that movie Wag the Dog, but then I decided it would be much easier and more profitable to amplify the real thing. Don’t hate the player, people, hate the game.

 Honestly, I’m [pleased] those Republicans dominated the elections in November and took some of this heat off of my back. I can’t wait to see their child-like idealism evaporate when they see all the crazy predicaments they’re up against. A few months after November, the economy will be in the process of being flushed down the toilet and then those so-called conservatives will be faced with a choice: stick to their campaign promises or sell out their base and start spending like crazy. I’m willing to bet the keys to the White House that they open up the purse strings and go on a spending spree that would make Paris Hilton look like a financial adviser who tells people to hide their cash under a mattress. They have no idea how hard this job really is, and neither do you people!

Everyone in my administration is slowly abandoning me and so are all the Democrats who voted for me in 2008. Maybe the best thing for my poll numbers right now would be to get together with Israel and tag team Iran, Syria, Lebanon and any other country who could potentially be a threat to our national security. It’s an age old trick, but I’m starting to get the feeling it wouldn’t work anymore, so maybe I’ll just save that as an absolute last resort option.

My frantic Americans, your president is now completely worn out and must bid you all good night, but allow me to end this chat with a simple request – please take some comfort in the fact that I am just as frantic as you are!”

*http://peakcomplexity.blogspot.com/2010_09_01_archive.html

**http://www.ibtimes.com/articles/105008/20110126/full-text-of-obama-s-state-of-the-union-2011-speech.htm

As their country struggles with ongoing economic challenges and drug violence, Mexicans are unhappy with national conditions. 79% are dissatisfied with the way things are going in their country and 75% say the economy is in bad shape. Words: 819

Such are some of the results of two Pew Global Attitudes Surveys* at http://pewglobal.org. Below Lorimer Wilson, editor of www.FinancialArticleSummariesToday.com, presents further reformatted and edited [..] excerpts from both surveys for the sake of clarity and brevity to ensure a fast and easy read. (Please note that this paragraph must be included in any article reposting to avoid copyright infringement.) The surveys’ findings are as follows:

Mexicans Continue Support for Campaign Against the Drug Cartels
Since President Felipe Calderón took office in December 2006, more than 25,000 people have been killed in drug-related violence. However, Mexicans overwhelmingly continue to endorse Calderón’s campaign against the drug cartels. Most also believe the Mexican military is making progress in the drug war, although they are less likely to hold this view now than was the case one year ago.

Fully 80% of Mexicans support using the army to fight drug traffickers, essentially unchanged from 83% in 2009. Opposition to using the army has increased only slightly, from 12% to 17%.

Just over half (55%) of Mexicans say the army is making progress against the traffickers, while only 22% think it is losing ground and 21% believe things are about the same as they have been in the past. However, assessments have become somewhat less positive since last year, when 66% felt the army was making progress and only 15% said it was losing ground.

Majorities in Central (60%), North (56%) and South (56%) Mexico believe the army is making progress, while residents of Mexico City (45%) are somewhat less likely to offer a positive assessment.

Mexicans Continue Support for American Involvement in Drug War
The survey also finds continuing support for American involvement in the battle against drug cartels – at least in terms of training and financial support. Fully 78% favor the U.S. providing training to Mexican police and military personnel, unchanged from the 2009 poll.

A smaller majority (57%) favors the U.S. providing money and weapons to Mexican police and military personnel, down slightly from 63% last year. Meanwhile, the share of the public that opposes this idea has grown from 28% to 37%. Opposition to the deployment of U.S. troops in Mexico has also increased, from an already high 59% last year to 67% in the current survey.

Support for American assistance to Mexican forces tends to be strongest in North Mexico, parts of which have been especially hard hit by drug-related violence. For example, 67% of those in the North favor the U.S. providing money and weapons to Mexico’s military and police, compared with 56% in the South, 53% in the Central region, and 52% among residents of Mexico City.

Arizona Immigration Law Turns Mexican Views of U.S. Negative
Prior to the recent passage of Arizona’s immigration law, 62% of Mexicans had a positive opinion of the U.S., compared with 44% after the law. However, the Arizona controversy had a lesser impact on views about U.S.-Mexican cooperation in the drug war. Still, those surveyed after the law’s passage were slightly more likely than those surveyed before to oppose U.S. training of Mexican police and military forces (16% before the law, 24% after the law).

Most Mexicans Believe Life is Better in the United States
57% say that people who move from Mexico enjoy a better life in the U.S., up from 51% in 2007 and the vast majority of those who are in regular contact with friends and relatives living in the U.S. say those friends and relatives have largely achieved their goals.

A substantial minority of Mexicans say that if they had the means and opportunity to go live in the U.S. they would do so, and more than half of those who would migrate if they had the chance say they would do so without authorization.

Close Ties Remain Between Both Nations
The close ties between people in the U.S. and Mexico are reflected in the survey’s findings – 39% of Mexicans have friends or relatives in the U.S. 18% of Mexicans say they receive money from relatives living in another country, although this represents a slight decline from 2007, when 23% said they received money from outside.

Survey Methods
Results for the survey were based on face-to-face interviews conducted April 14 to April 20, 2010 and May 1 to May 6, 2010. The survey in Mexico is part of the larger 2010 Pew Global Attitudes Survey conducted in 22 nations from April 7 to May 8, 2010, under the direction of Princeton Survey Research Associates International.

*http://pewglobal.org/2010/08/12/mexicans-continue-support-for-drug-war/
*http://pewglobal.org/2009/09/23/most-mexicans-see-better-life-in-us-one-in-three-would-migrate/

Editor’s Note:
- The above article consists of reformatted edited excerpts from the original for the sake of brevity, clarity and to ensure a fast and easy read. The author’s views and conclusions are unaltered.
- Permission to reprint in whole or in part is permitted provided full credit is given.
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Robust economies utilize all spare capacity, or restructure it for better use. Having 17% of our able-bodied population sitting at home or working part-time at Cinnabon indicates that our present policies are weakening the economy — even if GDP is growing. There is no “jobless recovery,” only senseless cheerleading. Words: 699

In further edited excerpts from the original article* Peter Schiff (www.europac.net) goes on to say:

Those who do cling to the absurd belief that, absent exponential productivity gains, the economy can expand while workers are being laid off will undergo a massive test of their convictions now that it’s clear the employment picture is bleak.

There is no question, however, that the sense of panic has temporarily subsided. In recent interviews, Treasury Secretary Geithner has been almost giddy in his descriptions of the recovery – all the while crediting his own policies for averting disaster. Americans are once again taking the government’s bait by spending money they don’t have to buy things they can’t afford.

To really recuperate, however, the government must allow market forces to restructure our economy. The government and individuals must rein in their spending; we must replenish our stock of savings, allow interest rates to rise, asset prices to adjust to economic reality, insolvent businesses to fail, and wages to reflect productivity. To accomplish these goals, subsidies that distort market forces must be removed and regulations that undermine our competitiveness must be repealed.

None of this can be accomplished without a degree of short-term economic pain. However, if we endure it, the payback will be a real recovery with plenty of new jobs that don’t rely on government stimulus money. If we refuse to allow the economy to experience a real recession, we will never have the benefit of a real recovery. Instead, we get the “jobless recovery,” a veneer of apparently positive indicators that merely obscures the underlying rot.

Over the last few decades, our industrial job market has atrophied while service- and public-sector jobs have grown unsustainably. We must restore balance. New jobs will have to come from areas that produce goods; bloated service and government sectors must be allowed to shrink. By propping up the sectors that need to contract, and running staggering budget deficits, the government cuts off the capital necessary to fund sectors that need to expand.

In truth, many of the service-sector jobs that exist today, such as real estate sales, mortgage finance, home improvement, and auto sales, were created in an environment of ever-increasing home equity, rising stock prices, and almost unlimited access to cheap consumer credit. With home equity gone, stock markets flat, and credit depleted, Americans find themselves needing to save rather than spend. Unfortunately, Washington has put through policies that have counteracted our good instincts.

While we were focusing our economy on consumer spending, much of the rest of the world was saving for the future. As such, we must begin to produce more for export, so that we can sell goods to those who have the savings to pay for them. That is the only way we can repay our debts, replenish our savings, repair our infrastructure, and rebuild our industrial base.

Another prerequisite to any real economic expansion is the potential for business owners to earn profits. With increased regulation and higher taxes on the way, these incentives are being diminished. In fact, via a phenomenon called ‘regime uncertainty,’ our current policy path is actually encouraging businesses to contract in order to prepare for a more hostile business environment.

Robust economies utilize all spare capacity, or restructure it for better use. As such, there is no “jobless recovery,” only senseless cheerleading.

*http://www.campaignforliberty.com/article.php?view=253

Editor’s Note:
- The above article consists of reformatted edited excerpts from the original for the sake of brevity, clarity and to ensure a fast and easy read. The author’s views and conclusions are unaltered.
- Permission to reprint in whole or in part is gladly granted, provided full credit is given.
- Sign up to receive every article posted via Twitter, Facebook, RSS feed or our Weekly Newsletter.
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