THE ECONOMIC BOILING POINT

SO THIS UNDULATING G20 meeting is stirring the pot to keep us all from the boiling point. The world has gathered for Bretton Woods II. While my well-meaning but fiscally ignorant friends in the art world tell me I pessimistic in always seeing the glass as half empty, I simply shudder at the bubbling abyss into which I stare. Read this—

But I can't reiterate enough:

1. The original Bretton Woods system was destroyed in '71 because of the need for credit.
2. Our manufacturing was offshored in the need for credit.
3. Our savings were dumped over the need for credit.
4. And now we're at the point where we can't even borrow for credit. There are repercussions for destroying the world's economy, and no one will be offered blame in this but the United States as far as the history books are concerned.

At the root of this is a long, long trend of manipulation by the Fed to avoid biting the bullets of cyclical downturns in the economy. It's been spurred by the creation of more and more paper that has no backing other than the credibility of our US treasury. And now that credibility is all but gone over the bailouts.

I can't really think of any point in history where a flee floating monetary fiat system didn't ultimately fail because as aforementioned, when the going gets tough, the bank starts printing more, and more paper. We're at that point now, and this meeting which has been instigated by Gordon Brown and slammed home by Sarkozy in his endless travels will have long-lasting consequences for the United States.

And since we are the world's largest debtor due to this endless expansion of credit, our leaders aren't going to have a lot of room to maneuver or offer discourse towards rejecting any agreements short of war.

We are at the point in our history where sovereignty will be surrendered with a white flag in the name perpetuating credit. The implications are one of economic slavery for We the People who will be left holding the bag when this ponzi system comes collapsing down at the word of the American creditors.

There are men in Brussels, Beijing, Moscow, Dubai, and London right now who are laughing their gray-suited arses off.

But then again, let's go to the Great Commonwealth of Virginia for another take on matters...

I see a lot of folks on the boards concerned about globalization, the new world order, global money, etc., etc. Don't worry, I say. What we are seeing right now is an economic collapse, an economic winter. This proves that we cannot even build a Tower of Babel in our own country, let alone the world. Look at the upsides of a collapse:

1. the new world order is kaput.
2. as unemployment rises illegal aliens will be pressured into leaving
3. has anyone noticed that gasoline prices are way down?
4. the Kuwaiti investors lost their shirts in their market collapse (now ain't that a shame?)
5. my house has dropped in value. That's good you ask? Why yes, my property tax bill went down! If my house goes to $0 then I pay no tax! Plus my kids will be able to afford their own homes, rather than squatting on me. To me a home is not an ATM machine—it's where I live. If I sell it what am I gonna do? Live on a park bench?
6. our government will go broke—that means no more deficit spending—stuff like the F22 Raptor will be canned. Heck, we need men with guns on our borders more than we need the F22. The aliens we want to stop are from Mexico...not outer space.
7. imposters such as Paulson and Bernanke will be shown to have "no clothes"
8. Obama will be revealed as a eunuch (as will all world "leaders")
9. China gets sent back to the middle ages
10. etc., etc.

A collapse means a return to traditional values, conservatism, less spending, less driving, more family, for some a renewed belief in God. It also proves that the development of a new world order is many, many generations away. Winter is cold, but it does kill rats and flies.

Let's face it. Humor and personal niche politics are always the best medicine when the pot starts boiling and the broth freezes over. What's the old ire? A conservative is someone who hates socialism when it benefits poor people but loves socialism when it benefits the wealthy.

THE NEW CHINA'S BIG STICK

Chongqing, China

AS WE HAVE BEEN predicting for several years now, this nation's economy is facing assaults from not just the jihadists but on several other fronts as well, particularly Saudi Arabia and China and their war on the dollar.

China roiled financial markets around the globe yesterday when it asserted that the dollar is losing its luster as the world's reserve currency and that Beijing will swap some of its $1.4 trillion in reserves out of U.S. dollars and into stronger currencies like the euro and Canadian dollar.

China's verbal assault on the dollar helped trigger a 360-point plunge in the Dow Jones Industrial Average and came as French President Nicolas Sarkozy warned in a speech to Congress that the "disarray" caused by the dollar's steep fall could lead to "economic war."

We must stop this trade surplus misery right now, George Bush. Fair trade, not libertarian-styled free trade is the ticket for global stability. With the euro soaring against the dollar, the Europeans themselves are feeling the same painful assault on their economies but for different reasons. Presently, they are feeling the pinch of not being able to sell their suddenlly higher priced goods, stagnating their own economies. Meanwhile China and Saudi Arabia are running the table with a host of unfair practices from A to Z.

Read it all.