The Chinese Stimulus

(Remember, you now have access to Colorado Gold as early as 8AM Eastern Time.  Check web site for times.  Now there are three of us, all knowledgeable, all honest and friendly.  I’d like to see my daughter Melissa get some business.  She’s got a Masters in Historic Restoration, and quit her job to do this, because of the huge volume, which I don’t think will decrease over the years. My son David’s been on since Last November, and has done well.  Now let’s give some business to Melissa!)

The Chinese have announced a $586 billion stimulus package, which will improve infrastructure, and repair earthquake damage.  Shades of FDR!  FDR did the same thing, only only we had no earthquakes and the dollar was backed by gold, which hindered him a bit.  In order to get the dollars to pay for his stimulus package, he tried to collect all of America’s gold, so he could then make dollars to pay for his adventure in failure. NO ONE HAD THEIR GOLD SEIZED, as the coin shop guys love to spout.  FDR built the Hoover Dam (now Boulder), hundreds of post offices, roads, forest projects, and established a whole new hoard of bureaucracies, which still occupy the so called “Federal Triangle” area of Washington D.C.  (This is from 15th St N.W. between Constitution and Pennsylvania Aves, to the point at which they meet).  The Federal Triangle buildings are architectural delights, and were built with stimulus monies which FDR insisted would get us out of the depression.  They didn’t.  We got out of it when FDR got us into WW II.  Are we going to get into a war to get us out of this depression?  Not counting the tragic, expensive, absurd ones we are now in, of course.

China’s stimulus will indeed repair earthquake damage, and improve infrastructure, just as the same thing did here.  It will provide short term jobs, just as ours did here, but it will NOT get China out of it’s depression, just as ours didn’t get us out of ours.  China’s is caused by a lack of selling its merchandise around the world, because the whole world is depressed. China can afford to stimulate itself, because it has a trillion US dollars in its safe, plus another trillion in US debt it has bought and can cash in when it wants.  America had little debt when FDR did his little jig with dollars.  We got a few dams, better roads, new post offices, and a bit of here and there improvements which we could sort of afford back then, but we can’t now.

The reason China’s stimulus package won’t work for it, is the same reason it didn’t work for America 75 years ago.  Prosperity is not created with printing press currencies, nor government projects paid with tax dollars.  Printing presses cannot create wealth.  Printing press dollars dilutes what wealth is already in existence.  Adding water to Old Yellowstone, increases the volume, but doesn’t increase its alcohol content, which is the basic ’wealth’ of Old Yellowstone.  (It’s a pretty good bourbon and very cheap). Adding water to orange juice has the same effect.  Wealth is created, not by government spending, but by capitalism, which is the direct opposite of government.  I want my whiskey to be strong, boozy, potent, full bodied and of irreproachable proof.  The sort that used to be consumed by heavily mustachioed men in cast iron derby hats, with solid gold watch chains draped across prosperous stomachs.  I want my gold and silver to be pure, honest, and of good hallmark.  I want dollars to be likewise, and not diluted into insignificance, as has happened in the last hundred years.  I listened to an old radio show in the middle of the night, last Saturday, and the guy filled the gas tank of his 1940 Buick for $1.49.  Those dollars, which filled that Buick’s gas tank, were solid dollars, like pure orange juice and strong whiskey.

The snake oil salesmen and patented nostrum vendors, which make up the D.C. Gang and Federal Reserve, of late have literally printed TWO POINT SEVEN TRILLION DOLLARS to be added to the already un-payable national debt.  More will surely follow, as certain as night follows sunset.  More stimulus packages coming?  I’d be willing to bet that one will blossom forth before Christmas in an attempt to save the merchants, and surely Obama will print some more after January 20th. when he takes office.  It would be nice if governments learned from experience.  Those who will not profit from experience, as the old saying goes, will surely repeat it, and that’s exactly what is happening now.  Comparing today’s economics with the great depression’s, are strikingly similar, and the boobs are doing exactly the same thing to fix it as they did before, and it didn’t work then, just as it won’t now.  They’re just diluting the dollars, making them buy less, and that’s robbing from all of us.  The problem is that 99% of the TV watching public and voters for Obama, actually believe the propaganda of these connoisseurs of the preposterous and their media henchmen.