Downfall of America - Part Twelve

John A. Quayle blueoval57 at VERIZON.NET
Tue Oct 30 22:36:56 MDT 2007


http://www.coloradogold.com/donscolumn.htm

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   Downfall of America
By Don Stott

Part Twelve

         I think the word 'gradualism' maybe the correct one. In 
previous columns I have shown how the dollar has been degraded 
endlessly by various welfare programs, increased bureaucracy, wars, 
handouts, Medicare, Social Security, earmarks, and endless spending. 
It has happened because politicians have been unable to get 
re-elected without continual promises of largess from the public 
treasury. "Let the government pay for it," without any consequences, 
is the absolute belief of 99% of the foolish American voting public, 
as history has shown. (Should I delve into the mentality of the 
voters, and especially since they don't have to be able to read, own 
property, or hold a job to vote? Shouldn't they? Is it in 
politicians' interest to continually lower voter qualifications so 
they'll vote for endless shallow and foolish promises? Of course!) 
The degrading and debasement of the nation's currency has nothing 
whatsoever to do with labor unions, greedy corporations and 
businesses, nor careless housewives. It rests solely with the D.C. 
Gang, as I call them. I don't print dollars, and neither do you. The 
dictionary definition of inflation is simply, "An increase in the 
currency supply." Look it up for yourself.

         But it is not just raised prices that are the result of 
inflation, which is better defined as the debasement of the currency. 
When a currency is debauched, thanks to politicians, the effects are 
so numerous and virtually impossible to correct, that the downfall of 
a nation has to be the ultimate result. This is where the word 
"gradualism" comes into play. When prices go up a bit, say for 
gasoline, butter, lumber, electronics, or any item used, we can 
usually 'grin and bear it,' as the old comic strip was titled. A few 
cents extra at the filling station, or for a pound of butter can be 
overlooked as insignificant. If lumber costs a bit more, the builder 
can just raise the price of the house a few bucks, and no one will 
notice the difference. A few cents per hour raise for employees to 
meet the increased cost of living won't bankrupt a company. I bought 
McDonald's hamburgers for 13 cents in 1962. For 150 years, the value 
of the dollar remained the same, and price fluctuations were solely 
because of supply, demand, and efficiency of manufacture. These are 
legitimate reasons for prices to go up or down.

         Unfortunately, once the process of currency inflation 
begins, ever so slowly and gradually, it always increases in speed 
and volume. This is just as certain as the sun rising. It may take 
decades, or many decades even, but the process of national 
destruction, thanks to currency debasement, is writ in stone, and no 
nation in history has ever been able to stop it.

         Inflation, caused by politicians constantly promising more 
from the public treasury, can only be stopped if they stop spending 
more than they take in, balance the budget, and cease the endless 
printing of dollars to pay their bills and for their handouts. This 
is impossible to happen, because the glory and prestige rewarded by 
public office at any level, is unmistakable, and especially at the 
federal level. A senator or representative who didn't promise to 
satisfy his constituents desires from the public treasury, would be 
quickly replaced by one who would. It is ridiculous to imagine 535 
members of congress unanimously voting "no" on all spending bills. It 
will simply never happen, even though the destiny of the United 
States of America hangs in the balance. It's all so easy to make the 
citizenry not be responsible for their own welfare, protection, and 
prosperity, while at the same time robbing them by debasing their 
currency. It gets votes, even though it is a total fraud.

         As prices and wages rise, the basic needs of the public 
remain about the same. They need a car, groceries, hardware, 
clothing, entertainment, and a place to live. They also need jobs to 
pay for these items.  As prices increase, due to the debasement of 
the currency, it becomes obvious that an American manufacturer must 
increase his employees' salaries by enough so that they can maintain 
their standard of living and pay their bills. Many things then 
happen. Nations with hugely lower standards of living will be tempted 
to make the needs of Americans at much lower cost than is possible in 
America. In the sixties, it was Japan, and now it is China, India, 
Philippines, and other nations in the Orient. They have no Social 
Security, income taxes, Medicare, Medicaid, and unemployment taken 
from their 50 cent an hour wages. Their workplaces are similar to 
America's of a hundred years ago, as are their wages. The result is 
that hoards of foreign made merchandise floods America, costing 
Americans millions of jobs.

         It happened gradually, and has now reached a hurricane 
level. It was small at first. A few transistor radios from Japan and 
a few two cylinder cars was all that was imported. A few Volkswagens 
from Germany, and then Japanese motorcycles, cameras and film. 
Eventually foreign companies built factories here, in non-union areas 
of the south, thus costing highly paid union auto workers in Detroit 
their jobs. The profits go back to Japan of course, and a lot of the 
parts are made in Japan. Now Mercedes is building cars in the 
south.  China now makes just about everything America uses, and all 
major auto manufacturers are building plants in China. America used 
to export its goods which were wonderful; and now imports thousands 
of containers each month, full of goods made elsewhere. They return 
empty to be loaded with more American bound goods.

         It so happens that most Indians (from India) are taught and 
speak English from childhood, and even though it is spoken with a 
distinct accent, unlike the Chinese, Indians can communicate with 
Americans.  There are intense schools in India which teach the 
natives to speak with an 'American' accent, so they can earn $2 an 
hour speaking to Americans about their credit card balances, bank 
statements, and utility bills.  Indians also make travel 
arrangements, and perform any telephone related task which used to be 
done by Americans. The phone bills are easily offset by the huge 
savings in labor. Not only are American factories shuttered, but even 
simple telephone answering and messaging can be done in India at huge 
cost savings.  No one ever realizes that when we have no jobs or 
manufacturing capability, we will eventually have no money to buy 
foreign goods. Washing each others clothes and paying each other for 
their 'service,' which is what the boob economists say is our 
salvation, is a nursery rhyme.

         On top of this, the politicians are constantly figuring new 
ways to satisfy their constituents by 'giving' them more and more 
'protection' and 'help' from the public treasury, with no seeming 
cost. There is always a bit if babble about budgets, but it never 
reaches first base. I have already pointed out that the actual 
official national debt is $9 trillion, plus another $30 trillion or 
more in future promises. These debts cannot be repaid.  It is as if a 
minimum wage worker was asked to pay a billion dollar debt. The fact 
that it would be impossible, is minimalizing it. Absurd would be more 
like it. On top of the actual debt, there is the interest to be paid 
on the debt, which is now more than is taken in, in taxes. Some say 
the interest payments are more than covered by taxes, but that is 
another government lie. You figure 4% of $9 trillion for yourself and 
compare it with government stated interest payments.

         The fact that we have lost millions of jobs makes Americans 
angry, is obvious. The problem is that they don't know why this has 
and is happening. The most common scapegoat is the unions who demand 
high wages, or the greedy corporations who will do anything to make a 
profit. Now stop and think: For well over a hundred years, no one 
complained about unions or greedy corporations which made autos, 
sheets, refrigerators, furniture, cameras, TV sets, and light bulbs. 
Union strikes were about raising workers standards of living, not 
because of shrinking value currency making wage increases mandatory. 
Sears catalogs of a hundred years ago had thousands of items in them, 
all made in America. The reason there were no job losses is because 
our currency was stable. A man could work for Bendix, Chrysler, AT&T, 
Montgomery Ward, or General Electric, and know that if he put in many 
years of satisfactory service, he would have his job as long as he 
wanted it, and could retire comfortably. He could make payments on 
his home and know that the neighborhood was stable. He could attend 
the same church as his parents attended, go to the same restaurants, 
and buy his car from the well established dealer who had been in 
business for many decades.

         America was a nation of peace, stability, low crime, 
prosperity, and affluence. Many times homes were passed down from 
parent to children, so stable were neighborhoods and cities. The 
trolley cars ran, busses ran, trees grew, flowers bloomed, houses 
were maintained, factories made things, and people bought and ate 
things made, grown, and mined in America. Citizens carried silver and 
gold coins in their pockets, and could save in banks, knowing that 
all was secure and stable. America was as solid as the well known 
Rock of Gibralter. My, how this has changed! No, I have not finished, 
and if you didn't get the first segments, I did save them, and will 
be glad to forward them to you by e-mail.  <mailto:gold at gwe.net>gold at gwe.net.
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