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I think the common person is just now starting to come around and realize that things are not well in the economy and financial industry. I am a software engineer and at my work, and I had one person come and ask me if he should start buying gold bullion and I had another ask me about how credit default swaps work. These are buy-and-hold 401K-er types.

The public is waking up and they WILL NOT BE HAPPY when their savings vanishes due to a collapsed stock market and a worthless currency! I suppose our founding fathers were wise in noting that a revolution every now and then is healthy for a Free country. And the way things are progressing, we'll have one soon enough.


You are copying my linguistics website and making the font big enough to actually read now?

I'm always about four years behind on this economics stuff, but at least I can come here to get a peek in the window. So the goofy stock market (Vegas with classy attitude) will go up a little today, and get hit with D-Day tomorrow? It all makes me dizzy. Thank heaven I have so little to lose.

This might novelty be of interest to some folks here. Google's own "Wayback Machine"!

"In honor of our 10th birthday, we've brought back our oldest available index. Take a look back at Google in January 2001."



Blues, I have an EZ Large Print edition here at http://elainemeinelsupkis.typepad.com/ezmoneymatters


Another kindred spirit: Herman Daly (Professor Daly was Senior Economist at the World Bank before leaving to teach Ecological Economics at University of Maryland's School for Public Policy):

'Our brilliant economic gurus meanwhile continue to preach deregulation of both the financial sector and of international commerce (i.e. "free trade"). Some of us have for a long time been saying that this behavior was unwise, unsustainable, unpatriotic, and probably criminal. Maybe we were right. The next shoe to drop will be repudiation of unredeemable debt either directly by bankruptcy and confiscation, or indirectly by inflation.


A wee bit off topic but can anyone explain why they went to congress with the "rescue" package in the first place? The Fed has been rescuing away anyway. I know that the Fed really doesn't have the reserves but this has not stopped them in earlier and soon to come endeavors. Did they think that the facade of the American public being on board would assure foreign investors? Any enlightenment would be appreciated.


blues, FYI if you are using Firefox all you need to do to increase font size on any website is Ctrl +, or to decrease Ctrl -, no need to do anything to a website.


Elaine, the real trick is to arrest and prosecute all the parties who clearly premeditated this whole system of irresponsible lending, oversight and ratings. From top to bottom.

Without accountability in a system, no matter who is running it, there can be no confidence. And the people who have been tasked to clean up this mess by Jr., have made it crystal clear that they never had any intention of being accountable. The 'fear' we see in the financial markets is a NO CONFIDENCE VOTE in the people running the show. The only reason the 'market' is still alive is because the majority are still at this time trying to figure out what to do as the are massacred everyday, and so we see the rush to gold, but they are too late.


Bernanke, Paulson, G7, Bush & Congress are insane as they handout super duper dosages of Viagra to Wall Street and themselves in an attempt to restart the old pecker that refuses to rise to the occasion. These flacid attempts of surgically inserting a pump may artificially make it go up but hey it still can't do anything. All these old men must accept it just ain't gonna work no matter what.

"To argue with a person who has renounced the use of reason is like administering medicine to the dead." Thomas Paine


Yeah, carli, I have Firefox, and sometimes I do the Ctrl > + thing. I would bet that Elaine is screwing around with the site again. I have the impression that she just cannot resist this impulse. She's one of those who have to mess with everything.

Can't just let things roll down the river and over the dam. No, she has to play with it first. She's like a little kid, at heart.


rockpaperscizzors, correction, FAKE VIAGRA! It's funny money, they have run out of Reserves so its like playing with your imaginary friend, or the story, The Emperor's New Clothes.

Somewhere down the line, the gnomes will wake up and realize that they are the only ones talking and playing, and that the party moved on without them.


blues, that's what's really great about her, she has all that clarity and genius in her head while remaining a child at heart. It's what separates the good ones from the bad, brother.

Elaine Meinel Supkis

I have a EZ read web page. The 'big' code got pasted by accident here.

And yes, I screw around a lot. Especially with my Dewalt battery pack screw guns. Heh.

The rescue package was a test of the corrupt Congress. Would they legalize an obvious coup? In the end, they sort of legalized it. So Paulson went off and did as he pleased. ARREST HIM. He is destroying our Constitution.

Not that the Supreme Court hasn't already shredded it with Bush's eager help.


Elaine, do you believe there will be an election if the ratings of Obama continue to rise as they have been since the markets started collapsing? Or will they just use the old Diebold hijack technique? That would be too telling...


Speaking of gold, we don't have to wait for the government to come to their senses in returning to gold based currencies. I say the hell with them.

GoldMoney and others are essentially offering an alternative currency that is available today. They, and others, offer a "payment system" that modernizes gold's oldest, most valuable feature: its use as money. GoldMoney offers "goldgrams" which are direct electronic payments that go to the gold repository of the seller.

It is still a primitive system as there are not that many recipients set up to deal in these gold transactions but the list is growing. I have read that PayPal is accepting some forms of "goldgrams" but I have not explored that yet.

If one chooses to use this alternative currency, you will still need a "catch basin" checking account to handle most transactions but it can be kept relatively low, and a larger "GoldMoney" account may be used to fund it as needed.

I made the decision a couple months ago to dump the dollar, euro, et al. I believe others will do the same and this new alternative currency will evolve to displace much of the need for "national fiat currencies."


Here's a dumb question, why can't the US government seize the gold held in the underground NYT vaults? Why borrow via treasuries sold and held by our foreign competitors? Seize the day, seize the GOLD.

Welcome to the World's Largest Gold Vault
Just a Few Blocks From the Bustle of Wall Street Sits $200 Billion in Gold
...Just a few blocks away from all the turmoil and panic of the stock market sits the world's largest stockpile of gold. Deep under the streets of Manhattan sits more gold than "James Bond" villain Goldfinger could ever imagine.


Nearly $200 billion worth of gold rests on bedrock five stories underground, 30 feet below the city's subway system, inside the Federal Reserve Bank of New York's vault.

There are roughly 540,000 gold bars belonging to 48 foreign central banks and 12 international organizations such as The International Monetary Fund or The Bank for International Settlement. The United States has about 5 percent of its gold stored there.
Fed officials were very tight-lipped about who owns what gold. Accounts are just identified by number, not name.

This vault contains about 25 percent of the world's gold reserves. That's more gold that the entire annual economy of the United Arab Emirates -- home to Dubai and Abu Dhabi.

The majority of gold came to the Fed after World War II as countries sought a safe place to keep their wealth.


To test the corrupt congress! Well they passed with flying colors didn't they? Thanks Elaine.

Elaine Meinel Supkis

The gold vault has France and England's gold as well as some royal tidbits from all over Old Europe. And China's gold, held for the Nationalists.

And a ton of investing banker gnomes.

Elaine Meinel Supkis

Gold. Gah. Posted too fast.



Add to them a collapsed consumer market and a collapsed labor market, a la Zimbabwe (as Denninger astutely predicts).

It appears that the seeds of those terrible things are all NOW embeded into our so-called "greatest economy on Earth" no matter who gets to sit in the Oval Office come Jan 20th, 2009.


Once upon a time there were hundreds of national labour markets. French workers worked in France for French companies, Americans in America, etc.etc. Skilled labour was quite illiquid. Now there is one labour market, it is worldwide, and as you all know, in every market supply and demand will work out. So the quantity of labour demanded falls in high priced markets as the demand for labour is moved to low price markets. It is what killed the merchant marine. Cheaper to avoid the Jones act and domicile your ships in Bangla Desh or Nigeria or Botswana and use cheaper labour. Now it is cheaper to source your research in Beijing and your phone support in Dacca than in Sioux City or Redmond.
The old theory of trade involved factors of production that were immobile: land, climate, labour. The only things that moved in the old theory of trade were gold, and end products. Gold because currencies were calculated with respect to a fixed ounce of it. Oh well, the markets were good to me today, tomorrow they may suck for me.


As I see it, the foreign gold that's sequestered in NYT vaults prevents foreign countries including China from total annihilation of our economic systems. We got their Gold. How else could Paulson/Bernake slapstick show get the world onboard on the recent rate cut? The government could easily prevent gold shipments out of the country. In fact, we can confiscate it as payment for our military protection of those countries. China's gonads are caught in the wheels due to their stupidity of keeping gold in our vaults. The show ain't over kids.....more to come


Folks, it is time to stop wasting time watching the country get destroyed and take action to replace debt based money with constitutionally created money.

The only problem is that you will get executed trying to do this. So never mind.

Go back to reading the news, watching TV and trying to save your debt notes from attack you stupid peasant.


"Final Thoughts
The American economy has been sucked dry by the Federal Reserve System. Americans think they own property but the truth is the entire United States has been mortgaged to the bankers. The Rothschilds and Rockefellers become richer while the peoples of the world become poorer. The International Monetary Fund and the World Bank are also designed to loan money to developing nations with the understanding that they will never be able to repay so with every loan made to a country, it becomes their death knell. The entire world has been plunged into a debt economy which means 6 billion people are in debt to about 250 men. But keep in mind that all their wealth is phony because it is created money without any gold backing.
I really laugh when Wall Street bows down to Alan Greenspan who is nothing more than a boot licker of the International Banking element who takes his orders by phone too. So many people rejoice when the Federal Reserve has a policy meeting and no interest rate increase happens. The truth is that we should never have a Federal Reserve to begin with. They print money, loan it into circulation, and the American people are strapped with more debt."


Nice posts hehe, maybe we have to look past gold and go barter?


@Dutch: If you have something that I could use and I have something you could use. We could sit down have a cuppa, and come to a trade that leaves both of us better off. It's what I do every day. Some form of money just makes the trading a bit more convenient. Gold makes superb money, but there is less and less of it per capita every day. Too many capits however have nothing to offer that is of value to anyone.
They know it too. The wonderousness of democracy is that the non productive can use their numbers to intrude on any peaceful mutually advantageous barter and attach their parasitical taxes, fees, and other thefts to the productive.

Elaine Meinel Supkis

The gold from China is NOT the communist gold. It is TAIWAN gold put there when Mao chased the Nationalists out.

Taiwan got military toys via this gold. This week!

Charles Pierce

I was interested to find your blog. 20 years ago I had a book published on different economic concepts to point the way to a sustainable world economy. Someone who liked the book recently contacted me to suggest that I update and re-publish it as a blog. She set up the blog, and the book is now complete on the blog in a series of postings. Here is the link:


With all good wishes,
Charles Pierce

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