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« WSJ: Bernanke's Exit Strategy | Main | WSJ: The Markets Have Good Reasons To Be Nervous »

March 10, 2010



Hi Andy, what do you see as happen when the life support ends, what do you think the transition will look like? - Ilene

Rich Vail

Instalanche...interesting points. Thanks.

John Furrier

You timed the market perfectly when you got out when you did .. your legend grows selling at the top of the boy .. me I was on 34 then..

Lorelei Kilbourne

Andy and Readers,

“Blame the bankers!”
“Blame the mortgage brokers!”
“Blame the speculators!”
“Blame anyone and everyone. Just don’t blame us,” shout the politicians.

Say, remember actual gold-coins? Real silver-coins? Yellowbacks? Silver certificates? Sure you do. Printed on every dollar-bill were the words “Payable to the bearer on demand one dollar in silver.”

Now, printed on dollars are the words “Federal Reserve Note”. What do those words mean? They’re a tautology. If you hold a Federal Reserve Note, the government bases its value on another Federal Reserve Note of the same denomination. Do the words then mean nothing? Not at all. What they mean is that each Federal Reserve Note is based upon the governmental power to tax. But wait? What if productive taxpayers (now less than 50% of the American population) refuse to pay the politically-imposed taxes on which the Federal Reserve Note is based? Well, as Mao Tse-tung used to say as he was slaughtering tens of millions of Chinese, “Ultimately, all power comes out of the barrel of a gun.” Ask the IRS.

So, how do the productive people of America stop “capital misallocation” as “a fallout of bad government policy”? By electing Republicans? No, they tried that. By supporting a third party, such as the Constitution Party? Possibly, depending upon its platform. By imposing martial law? A last resort but maybe an inevitable one.

How about this option? By embracing an entirely new approach - an approach based upon Science, American Tradition, and the Constitution? Believe it or not, there is a way to employ scientific methodology to clean up the mess we Americans have created for ourselves; it includes the issuing of a sound U.S. currency not based upon gold. “How?” you ask.

Let me refer you to a just-released novel that presents a detailed blueprint on applying Science to the four cornerstones of society - government, law, education, and medicine. Its longest chapter deals with economics and begins with an economic crash in China. It’s entitled Inescapable Consequences. Its website is ...
Andy is right. Productive Americans must create a context and employ contingencies that promote real productivity not phony profits. I predict that, without employing science as we have in other areas with great success, we’ll fail. The consequences of our current actions are inescapable - and frightening.

Robert Dobb

It does not matter if a nation holds gold or not. There are all sorts of ways to become wealthy. And gold is just one way to measure wealth.

"If you see ten troubles coming down the road, you can be sure that nine will run into the ditch before they reach you".


Andy, you missed badly on this piece

We did not just come through a period of capital misallocation. That can happen only when money is scarce and it wasn't. Everything was financed that could be financed. It was not misallocation but a lack of discrimination that exploded.

Faced with falling and stagnate income American's borrowed and borrowed and borrowed. The criminal class--the bankers on Wall Street---used such a natural human tendency to create trillions in junk securities that were sold to the world.

The political class went along because it lacked the fortitude to attack our two fundamental problem---income distribution coupled with a lack of control over the price of oil, resulting in billions of tribute being paid each month for oil imports.

Nothing has changed. Oil is going back up. The story of 2008, that oil reached $145 a barrel on the 4th of July has been long forgotten.

Stock market lesson

There are many good points in your post.. According to me it will be very helpful for everyone..

Stock Market Lesson

“ If your broker [or investment advisor] is not familiar with the concept of standard deviation of returns, get a new one.”

Belstaff Jacket

So cute! I already like you on FB and also get your posts on Google Reader. :)


This is understandable that cash makes us independent. But what to do when someone does not have cash? The only one way is to try to get the mortgage loans or student loan.

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