The most extensive theft of our cash has been imposed by our own Federal Government. The politically motivated and seemingly endless printing of dollars has reduced the value of our cash. With a rapidly ascending National debt already stepping over the $19 trillion mark, an economy visibly slowing having been in a depression since 2007, real unemployment increasing and unemployment duration at historical highs fundamentally changing the Nation, America is sagging under wage deflation. We can thank reckless self-serving senior bankers, politicians and overstepping government for leading the country down a trail toward destruction.
We function in an orchestrated economy manipulated by central bankers and influenced by politically whipped government bureaucracies. For most of the current Administration’s tenure, job creation has depended on the exploitation of taxpayers. Jobs have principally been of government provenance directly, or indirectly in healthcare, education and defense.
Constant misrepresentation by Obama’s rhetoric is no longer resonating for the vast majority of unemployed or underemployed Americans. The overwhelming success of outsiders on the current Presidential campaign trail tells us most of America doesn’t believe the lies. The extent of the government lies suggest we may as well be listening to China’s pronouncements.
We may look upon China’s Communist Party centrally controlled economy with some derision, and yet the increasingly centralized nature of our banker and politician controlled economy is rapidly moving in the same direction — ignoring the Constitution, ignoring human nature, ignoring common sense, ignoring principals of truth and morals, we head straight into the arms of socialism on our way to communism. We are on our way to government intrusion and meddling into all aspects of our lives, both personal and business.
Our generally rosy and growing standard of living was supposed to be assured when the Bretton Woods Conference established the dollar’s position as the world’s reserve currency at the end of WWII. Key to America’s strength and the confidence in its currency was heavily influenced by gold’s backing of the dollar and gold price being fixed to the dollar. Washington profligacy, however, deteriorated international confidence in the Bretton Woods accord.
After Nixon disconnected the dollar from gold in 1971, the newly-floating dollar’s strength was bolstered by the petrodollar system negotiated with Saudi Arabia in 1973. Its oil producing neighbors such as Kuwait, Bahrain, Qatar and UAE, swiftly followed suit agreeing to only accept ‘dollars’ for oil. As demand for oil increased in a developing and consuming world, so too global demand for dollars increased. Military protection was part of the quid pro quo. It should also be noted that this deal enabled the United States to purchase oil with currency it controlled (printed).
The most addictive and powerful narcotic element ever known to mankind had been engendered by bankers and approved by politicians — the unlimited and inexhaustible ability to print untethered dollars on demand without near term or mid term repercussions. Long term, not so much. Long term, central bankers, encouraged by politicians, used the ‘dollar printing press’ to manipulate society, manipulate the economy, and worst of all, artificially camouflage systemic economic problems as they have done with abandon particularly since 2008. For almost half a century, banks outdid themselves to advocate unquenchable consumption, but for the last twenty years, they’ve received serious debt marketing help from almost all politicians.
Corporate profits in practically all industries are dropping. Labor has been cut back, expenses have been trimmed, and now profitability seems to await some new event. We seem to all be awaiting such an event. An unforeseen event, perhaps a magical event that will not mandate raising taxes and cutting spending, BUT will raise GDP above the rate of debt increase. An unforeseen magical event that will enable our bypassing any battlefield requiring sacrifices.
Anyone with capacity for perception of the obvious long ago recognized that out of control printing of dollars and relentless increasing of debt is a road that leads to no other end than self destruction.
We now enter a time when a compendium of perfect storms converge on America, including the greatest poverty levels in history, un-repayable government and personal debt, decaying wages and purchasing power, collapsed resource prices, collapsed education system, endless job-off-shoring, bank rates stuck at zero, destruction of savings accounts, and of course a weakened global banking system where governments lend to banks who lend to governments who lend to banks. Oh, and though the list continues, I shouldn’t forget that colossus, the total ‘derivatives’ debt — hundreds of trillions of dollars worth.
As we strive to discern rhetoric from reality coming from politicians and bankers, we must also determine with diligent insight, who amongst the current group of Presidential election candidates will have courage enough to do the right thing for America — demonstrate fiscal restraint and cut spending, lift all impediments to entrepreneurship, and stop the dollar printing presses.
A constituent of the vast baby boomer generation with a career which has been fortunate to know the ponderous corporate worlds, as well as the intimately pressurized, and invigorating entrepreneurial domains of high tech and venture capital, I have harvested my share of mistakes meandering through corridors of enterprise from Silicon Valley, to London and endless, colourful, sometimes praetorian points in between. The voyage has provided an abundance of fodder for a pen yielding to an inquisitive keyboard, a foraging mind, and a passionate spirit.
Whether political or business or social or economic or personal, is it not all political? It is a privilege to write, and an even greater privilege to be read by anyone, and sometimes with the wind at my back the writing may occasionally be legible. I do not write to invite scorn, nor to invite respect, but if I get really lucky the writing can stimulate thinking. I also write for the very selfish purpose of animating my own processes, and engaging the best of what life offers. Above all, whether biting fire or swatting shadows, I am grateful to be gifted the freedom to write and publish whatever flows down to the keyboard. To all those who enabled this freedom, and to all those standing guard to preserve it, I am indebted.