The copyright date is 1961, when James Dines wrote “The Invisible Crash.” It is an excellent book, even 48 years later. On page 16, he wrote the following words: “A truth of financial reality is that any prosperity built on paper has usually been fun for a while, but has always ended in catastrophe. In the 1920s (as in 1960) the stock market was fueled by surplus paper spilling over from banks, which borrowed from the US Treasury, which had borrowed from itself. It is inconceivable to me, that the same unwise mistakes made in the ’20s were repeated in the 1960s. The question which remains is, will I be able, in some slight way, to help prevent it in the year 2008? I am hopeful, but sometimes hope can be a sophisticated and diabolically clever form of despair.”
At the end of the book, on page 364, which he wrote as an addendum in the 1974 edition: “We feel like Noah, with an ark of gold protecting you from the holocaust around you. Our primary job in the coming years will be to keep you in the boat, as we have already protected so many with gold in recent years. None of them are coming to grips with the concept that government cannot cure this problem, and only a free people can. Instead, all solutions cluster around the government doing more, and naturally people have to be taxed to pay for it. Chances are, they will seize on something “politically easy,” like easing up on tight money. Thus they will probably try to force interest rates down, which will only artificially increase the demand for money, leading to mal-investment, mal-production, and more ills in the years ahead which will need to be wiped out by a devastating depression.” Just like “Atlas Shrugged,” Dines’ predictions are also coming true today. The “2008” were his own printed words, 48 years ago.
Wasn’t he prescient? Today, corporations have searched overseas for the cheapest labor to make what they want Americans to buy. While doing that, Americans have been thrown out of work because items are being made with cheap labor overseas. Then, being unemployed, they can’t buy the stuff made overseas.. Out of work Americans are forced to do things which can’t be done overseas, such as sell hamburgers, clean bathrooms, pick lettuce, drive trucks, and unload stuff shipped into America by China. Now, the teamsters are being forced out of unloading, because Mexico and Canada are building deep water ports which are non-union. Hasn’t anyone in big corporate America, enough brains to realize that broke people can’t buy? Are CEO’s so stupid, that they cannot fathom a basic economics 101situation? Unemployed people can’t buy. Sending jobs overseas solves nothing, because the lost jobs, are also lost purchasing power by the out of work. Lowering prices, as Walmart is now doing, doesn’t give jobs which have been sent overseas. If you check your credit card or bank balances, and you get some yo-yo in India, trying to imitate an American accent, why wouldn’t you immediately cancel that account? Travelocity is just one of many doing that.
In the liberal’s efforts to make the world a single entity, don’t they know that a ’one world,’ will equalize everyone economically, thereby dragging America down to poverty? Will 300 million Americans be happy to be averaged out with a billion Indians and a billion Chinese? Want to live in a hut made of tin? Most Indians live that way.. Will the slump in real estate ever be picked up, since American earnings are going down because of the one worlders? Taxes go up and up, and we are not only the highest taxed nation on earth, but the buck is losing value daily, and becoming a laughing stock in the world. India bought 200 tonnes of gold from the IMF with their surplus dollars. The Chinese have trillions of dollars which are losing value every day. Wouldn’t it be smart of them to buy gold, rather than holding on to American scrip? ’Sell the T-Bills, get that cash out of your safe, and replace it with gold,’ is what I’d tell the Chinese to do. The American economy is sunk anyway, and the Chinese ought to protect themselves, as the Indians have done, and which you also should do.
We’re getting a lot of new customers, as we should, since a small percentage of Americans are getting worried. But it is a small trickle. Hundreds of millions of Americans are invested in, and saving in…dollars, because that’s all they know about, were raised with, and few ever change religions, habits, or even places to live. In other words, few ever stop and think for themselves, read a book, column, or now even a newspaper. The ignorance is appalling!
Hooray! Only 512,000 applied for unemployment last week, as opposed to 530,000 the week before. See? We’re on the road to a healthy economy, or at least that’s what the CNBC gang say. With housing still being foreclosed, more out of work, retail sales down, and surely a bad Christmas selling season, isn’t that a sign that we’re recovering? Not to me I wonder if the dems got the message, when their bearded, rich, New Jersey governor got the scoots on Tuesday? The conservative in New York’s 23rd district lost by only a few thousand votes, and two weeks before the election, no one had ever heard of him. Doesn’t that bode well for taking America back? I think so. Wonder if another million will be in the D.C. area today, plus in Congressional offices all across the nation, to protest the 1990 page health outrage?
The Yankees did it!