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Jim Willie nails it again!

Wow.

WORKABLE SOLUTION FAR TOO LATE

The solution to the USEconomy and financial structure is long past available with the removal of the USTreasury gold. Here is a solution that could have worked. QE2 is the antithesis of a solution, one certain to cause great damage. Collateral, industry, and smaller government are the cornerstones to a solution. The $500 billion in gold collateral leased in the 1990 decade by Wall Street would be useful nowadays. People grope for bonafide solutions. Try this: Multiply the gold price 7-fold to obtain a hefty realistic $10,000 price level, sufficient to provide $3.5 trillion for US banking system collateral. Presto, some stability for the USDollar vis-a-vis the USGovt debt. Then the task shifts to reducing the USGovt deficit by means of terminating the endless war based upon dubious motives, ending Medicare largesse, cutting entitlements from pensions, eliminating several worthless agencies (like Energy and Homeland Security), and offering major incentives for the return of US manufacturing industry to US shores. The defense budget must be cut by 50%, and be declared no longer sacred. But the opportunity is long gone, since the USTreasury of gold was leased and sold for a few $trillion in private Wall Street gains. The usual suspects are deemed national heros.

These steps could have constructed the foundation for recovery, with $300 to $600 billion in budget cuts. Painful but progress. In two years, the deficit could have been tremendously reduced. That math works for me, but it is too late really. The nation repeatedly kicked the can down the road, the road that leads to the Third World. The opportunity for solution begins with a placement of gold collateral for both currency and debt, and a basis of industry for legitimate income. Both are absent, due to wretched leadership and profound corruption, as debt suffocates the system. Almost all attempts toward remedy mask the true motive at work, the preservation of power. The remedies turn out to be deceptive, adding $trillions to the clean-up bill without results. The squander of new money and the dissipation of asset bubbles are the essence of the Gold bull, which will take it well past $2000 in the coming two years, and much higher. The policy is not about solution, but rather power over money. Hyper-inflation, economic deterioration, and USTreasury default lie directly ahead, just a matter of time. Gold is the personal lifeboat, whose silver oars row to safety.

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