 Acknowledging
Elephants...
Doctor Dinero's Discussions
Doctor Dinero
email: thedoctordinero@yahoo.com
August
25, 2004
...not the pink ones you see from
drinking way too much vodka and grapefruit, or the ones wearing
pretty tutus in the circus, but the ones in the room.
Q: Why did
the elephant paint his toe nails different colors?
A: To hide in Jelly Bean Jars.
Q: Have you ever seen an elephant in a Jelly Bean Jar?
A: Works doesn't it.
Let me explain. When there
are problems so BIG, people tend to ignore them and only see
what they want to see. They only see gray sandpaper, or a funny
looking hose, or really big jelly beans. They do not stand back
and look at the big picture, the whole elephant, or in this case
a herd of elephants in the room.
Elephant Number 1: Fiat
Money
Unbacked money has
historically always led to currency collapse within a few years.
The dollar's persistence is mind boggling, now going on 31 years.
The Federal Reserve has been increasing the amount of Federal
Reserve Notes (no longer a true dollar as defined by the constitution)
around 9% a year.
The CPI and PPI numbers have
continuously been massaged to remove any hint of inflation. For
36 years the CPI (and PPI) trended 1 to 1 with FRN creation.
In the early 80's, when the government decided to index taxes,
social security benefits, and bonds to inflation that relationship
deviated. Since the early 90's there is almost no relationship
due to continuous refinements in these indexes. We have been
experiencing 9% inflation but it is only being reported as sub
3%. This has been a double-edge boon to government. They have
been able to stiff the retired people at the same time increasing
taxes on everyone.
This is why the Federal Reserve
must be abolished. This is why we must return to honest, gold-backed
money. That is why you should be purchasing gold and silver bullion
for your own protection.
Elephant Number 2: Total
Debt
34 trillion and counting,
(that total is not including the trillions in unfunded entitlement
liabilities) which puts our total debt greater than 300% of GDP.
For those historically-challenged individuals, this debt to GDP
ratio is greater than that of the previous great depression.
So that means we will be experiencing the Greater Depression.
We only have one way out and that is to default. Some say we
can hyper-inflate our way out (which I strongly believe the Fed
will try, but be unsuccessful). Either way the FRN will be worth
nothing.
That is why we need to
inform everyone that US treasuries are worthless (unless used
as wallpaper). Tell the IMF and the World Bank to take
a hike. And never allow our Government to ever run a deficit
again. Do not trust in paper, trust physical gold and silver,
your only hope.
Elephant Number 3: Entitlements
These unfunded liabilities
are the genetically engineered elephants. Believe it or not,
but this elephant is smaller today than the other two mentioned
above. Soon, like 6 years from now, this elephant will dwarf
the others. These entitlements are PONZI schemes, used to take
from their children for their own greedy needs. (That is why
these programs are selfish). Booomers need to give up
their selfish ways, just because their parents made them pay
into a broke social security system, they should not make their
children. As T- said, "If a parent generation abuses its
children, are those children ENTITLED to abuse the next generation,
just to make it all "fair?" How absurd"
Currently SS is a pay as we
go system, all surpluses are being used by the government. Once
the Greater Depression hits, revenues will fall, entitlement
demands will increase, gov't debts will escalate, Fed
will be the only buyer, destroying the FRN, SS will fail and
fail hard. And of course CPI will not ever show inflation. The
ending of the SS system can either be accomplished peacefully
or (what are the words I am looking for, oh yeah) less
peacefully. Unfortunately, I believe no one wants to see this
elephant and they will continue to wreck the room which is the
US economy.
Retirement is not a right.
Retirement must be earned. Retirement must be saved. Make sure
you have some of those savings in gold and sliver.
In Closing
Several Boomers were
really offended by my previous essay. Let me clarify. Boomers
control the current government and have done since the 70's.
Since then the government spending has continued to explode and
refuse to see the elephants. They are the one generation that
can fix the above problems, but it is going to require sacrifice.
However, the Boomers rationalize the PONZI schemes put in place
by previous generations for their own selfish needs. Boomers
must acknowledge the elephants that are in the room, the younger
generations need to wake up and help get these elephants out
of the house and into the ZOO. Where we can go and look at them
and appreciate that they are no longer sitting on the sofa.
Viva La Information Resistance!
August 26, 2004
Doctor Dinero
email:
thedoctordinero@yahoo.com
PS: I apologize in advance to whoever first penned the joke
used at the start of my essay.
Copyright ©2004 The Doctor
Dinero. All Rights Reserved.
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