Driving to Neverland

Time Magazine Cover - November 24, 2008

Barrack Hussein Obama and Franklin Delano Roosevelt have a lot in common. Both promised sweeping new deals.  During Franklin D. Roosevelt’s first term he ordered a default on domestic held debt.  ”Liberty Bonds” were issued as a series of debentures beginning in 1917 and the default was ordered on the fourth Liberty Bond, the other three having been retired in the 1920′s.  The bonds were supposed to be payable at a rate of $20.67 per troy ounce of gold.

However, by 1933 the Treasury had only $4.2 billion in gold and the total Liberty bond debt was 22 billion, so it was obvious that when the principal came due in 1938, there would be no way it could be paid.  The U.S. Treasury called the fourth bond on April 15, 1934, but refused to redeem the face value in gold, as required by the terms of the bond.  With Roosevelt ordering a default, by refusing to redeem the Bonds in gold to American bond holders, and then devaluing the dollar 40% with gold valued at $35.00 per troy ounce , this allowed the Treasury to make a partial payment and maintain foreign exchange with U.S. trade partners. Bondholders lost almost 3 billion dollars.  No small sum in those days.

No doubt, purely by coincidence, on April 5, 1934 FDR signed Executive Order 6102 thereby confiscating gold belonging to Americans.  This order criminalized the possession of gold by “any individual, partnership, association, or corporation.”  The excuse was that hard times had forced the hoarding of gold. See any parallels to the present time?  The Gold Reserve Act of 1934 ultimately changed the value of a dollar, in gold, from $20.67 to $35.00 per troy ounce.  In 1971, Richard Nixon abandoned the gold standard by announcing the United States would no longer convert dollars to gold at a fixed value.  As they say, the rest is history.

Today, Barrack Hussein Obama, the banksters and Helicopter Ben have nearly exhausted all of their options in fixing the nation’s financial woes.  They continue to toy with default, each side posturing and accusing the other.  So much for teamwork.  Anyway, let’s briefly recap the options for bolstering, for lack of a better term, the economy:

1.  Cut Interest Rates – When you’ve cut to zero, there’s no where else to go.  Hasn’t worked this time.

2. Bailouts – When you are the world’s largest economy, there is only so much bailing out the rest of the world can do, especially when a large number of countries need bailing out too.  China sees the handwriting on the wall and you can only borrow from yourself for so long.  Hasn’t worked this time.

3.  Stimulate growth – From cash for clunkers to Quantitative Easing.  Hasn’t worked this time.  Some say things are worse than in 2008.

4.  Austerity Measures – That’s getting a lot of talk, especially since the debt ceiling appears to be getting raised.  Problem is Americans are getting squeezed so tight their pocket books are the size of a gnat’s ass, as that saying goes.  Plus, there’s not enough political will or enough austerity to fix a problem this big. Sounds good, but won’t work.  Unless, of course, it involves everything.  That won’t happen because “everything” includes the Department of Defense and the Justice Department.  Remember 200 years + passed before this country had a Department of Homeland Security.  Big government just keeps getting bigger.

There are only two options left, when you have a debt so large and programs you can’t pay for, (unfunded liabilities).

5.   Inflation – Zimbabwe was the first country to issue 100 Trillion dollar notes. (And it was spelled in English and you can find them on Ebay.)  This is the plan most favored by the politicians, because it eventually saves their ass while burning yours.  If we get to that part, then our vote is for Chumley to be on the Trillion dollar note.  The country has been pawned.

6.  Default – This has been getting a lot of attention lately.  What was once unthinkable, has become part of a mainstream chatter of possibilities.  If this happens, then Barrack Hussein Obama, accompanied by the banksters and Helicopter Ben will simply push a “reset” button.  That means a new currency, a new look, and a new, new deal.  You will turn in your Ben Franklin and get 1 Pelosi or a Reid, or an Obama or for the sake of partisanship, not since Lincoln and Grant were on a bill, the Obama & Biden 1 dollar bill.  You’d be trading your C note for a BO or a O/B.  Sounds kinda sweet.

This President is driving the country to Neverland.  You never wanted to go there and you’ll probably never get back.  He is going to be taking a whole lot of good Americans to places where Americans have never been before. He can blame a stretch of the road on Bush and the Republicans, but Obama and the Democrats are driving the car.  In the back of the line are the millions of unemployed and they’ve already begun walking their journey.

There’s a rocky road ahead to that place, that land where none of us thought we’d ever be.  If you can find a seat belt, better fasten it tight, cause the trip to Neverland, once this President shifts gears to take us there, is going to hit warp speed.  When we get there, the realization that we’re not in Kansas anymore will hit like a brick.  Finding our way back home, if we ever can, will take years.

These are the times for our Constitution