[p2p-research] Fwd: the coming sovereign default in the US = $99.2 trillion

[Michel Bauwens]

---------- Forwarded message ----------
From: Kris ROOSE <kroose at gmail.com>
Date: Tue, Aug 26, 2008 at 4:10 AM

Ik ontving dit artikel van een vriend. Vond het wel boeiend en verhelderend.
Don't Cry for Me Argentina
Save Your Tears For Yourself

Darryl Robert Schoon
Aug 25, 2008

*While bankers do control the issuance of credit, they cannot control
themselves. Bankers are the fatal flaw in their deviously opaque system that
has substituted credit for money and debt for savings. The bankers have
spread their credit-based system across the world by catering to basic human
needs and ambition and greed; and while human needs can be satisfied,
ambition and greed cannot - and the bankers' least of all.*

I have a bad feeling about what's about to happen. The Great Depression is
the closest that comes to mind. I, like most, was not alive during the 1930s
when it happened. Nonetheless, what once was feared in private is now being
discussed in public. It's going to be bad. It's going to make high school
seem like fun.

*THE UNITED STATES OF AMERICA
THE NEXT ARGENTINA*

*This Time is Different: A Panoramic View of Eight Centuries of Financial
Crises* by University of Maryland's Carmen Reinhart and Harvard's Kenneth
Rogoff makes for perfect reading when flying between the US and Argentina.

There is perhaps no better analysis than Reinhart and Rogoff's on the
history of sovereign defaults; and, as such, Reinhart and Rogoff's paper was
ideal reading material when traveling between the US and Argentina, for the
sovereign defaults that happened in the past to Argentina will soon be
happening to the US.

But a US default will make Argentina's debt defaults pale both by comparison
and consequence. The US, unlike Argentina, is the world's largest economy,
the issuer of the world's reserve currency and the world's largest debtor -
and a default by the US on its debt will shake the very foundations of our
increasingly fragile global economy.

*SOVERIGN DEBT
LIQUIDATING AMBITION*

The power of ambition is extraordinary. The power of ambition transformed
the US from the world's only creditor after WWII into the world's largest
debtor in less than fifty years. Wanting to emulate England's 19th century
empire in the 20th, the US instead has mirrored England decline in the 20th
century here in the 21st.

Credit and borrowing fueled America's ambitions in the 20th century as it
had England's in the 18th and 19th. During the 1980s, to pay for President
Reagan expansion of the military, the US quadrupled its national debt in
less than a decade by borrowing three trillion dollars during a presidency
pledged to balance the budget.

When Reagan took office, US debt totaled one trillion dollars. When Reagan
left office, US debt totaled four trillion dollars. Reagan's vaunted slogan
of fiscal conservatism was just that - a slogan; and while talk is cheap,
the debts now have to be repaid.

Just as the costs of WWI forced England to abandon the gold standard in the
early 1900s, post WWII military spending forced the US to suspend the
convertibility of the US dollar to gold in 1971; and the consequences, e.g.
burgeoning trade deficits and global currency instability, are now putting
unsustainable strains on a financial system already *in extremis*.

Ambition has its price and the bill is now due and owing. The question is:
how will the US pay what it owes? In Hyman Minsky's Financial Instability
Model, the US is close to "Ponzi status" if not already there since the US
is having to roll its debt forward and borrow from others to pay the
interest as it can no longer pay down the principle.

In 2006, in an article published by the St Louis Federal Reserve Bank,
Professor Laurence Kotlikoff stated the US was "technically bankrupt" as
there was no way the US could pay the $65.9 trillion it owed.

Evidently, Professor Kotlikoff was conservative in his estimate or we're
going downhill faster than he knew. Just three months ago, on May 28, 2008
Richard W. Fisher, President and CEO of the Dallas Federal Reserve Bank
estimated the obligations of the US to be actually $99.2 trillion, 50 %
higher than Kotlikoff's figures.

Fisher stated:

*"In the distance, I see a frightful storm brewing in the form of untethered
government debt. I choose the words - "frightful storm" - deliberately to
avoid hyperbole. Unless we take steps to deal with it, the long-term fiscal
situation of the federal government will be unimaginably more devastating to
our economic prosperity than the subprime debacle and the recent debauching
of credit markets that we are now working so hard to correct."*

Fisher should know what the US owes and the danger that sum represents. As
President and CEO of the Dallas Federal Reserve Bank, Fisher is a part of
the Federal Reserve System - the very system that has indebted America into
perpetuity when its credit-based money forced out gold and silver based
money in 1913.

But in his speech Fisher said nothing about the role the Federal Reserve has
played in America's fatal dance with debt, warning instead about the
increasing costs of entitlements such as Social Security and Medicare.

Fisher is part of a larger effort to now blame America's entitlements as the
primary cause of our problems, assiduously avoiding the role his own Federal
Reserve Bank has played in sinking our once wealthy nation into perpetual
indebtedness.

In truth, the entitlement program that poses the greatest threat to America
is - and always has been - the Federal Reserve System. Without the Federal
Reserve's credit-based money whose compounding interest (paid to the
bankers) is obliged to be paid for by a possibly unconstitutional US income
tax [note: the Federal Reserve Act and Federal Income Tax were both
instituted the same year in 1913], the US would not be indebted and bankrupt
as it is now.

If Ben Bernanke and Richard Fisher et. al. at the privately owned Federal
Reserve Bank resigned and stopped plundering the US for their own benefit at
the expense of the public in order to line the pockets of their banker
friends with public funds, the US might have a chance of successfully
getting out of this mess.

But, of course, they won't and the now privately controlled US government
will continue to indebt the American public so insiders can continue to
profit immensely at the public trough. But the question still remains, how
will the US pay its unpayable debt? The answer is as clear as it is obvious.
It won't because it can't.

*DEBT & DESTRUCTION SOUTH OF THE BORDER*

In their well-researched paper, *Serial Defaults and Its Remedies,* Reinhart
and Rogoff write "Cycles in capital flows to emerging markets have now been
with us for two hundred years". If we are to understand the dynamics of
serial default, it would do us well to look at these cycles and their
relevance to what is happening today.

*Serial Defaults and Its Remedies, Section 2. Capital Flow Cycles and the
Syndrome of "This Time Is Different"*:
*...a pattern of borrowing followed by crisis is evident in the string of
defaults during 1826-28 in Latin America that come on the heels of the first
wave of massive capital flows from Britain into Latin America in 1822-25A
second wave of capital flows from Britain came during the 1850s and 1860s.
The cycle ended with the crisis of 1873. The next wave of capital flows into
emerging markets coincided with the shift of the financial epicenter of the
world from London to New York. Among Latin American countries, the borrowing
binge of 1925-28 was [financed] with "cheap" money from New York. Capital
flows peaked in 1928, the year before the U.S. Stock market crash ushered in
financial and currency crises around the world and eventually an
international debt crisis during 1929-33.*

Argentina is at the very epicenter of Latin America borrowings and defaults
and a cursory judgment may well lay the blame for such on Argentina. But
understanding the past is akin to sedimentary sampling and a deeper reading
of events reveals far more than the too familiar story of a spendthrift
deadbeat nation borrowing more than prudence would otherwise dictate.

The capital flows from England and the US in the last two hundred years to
Latin America were flows of credit, not money. The distinction is critical
in understanding what has happened during the last two centuries. It
explains the basis of the British Empire and current American power. It also
explains the exploitation of Argentina.

The British Empire was founded on the central bank invention of credit-based
money and the subsequent ability to substitute this new "money" for costly
gold and silver; and the issuance of paper money allegedly backed by gold
and silver is a critical component in the confidence game of central bankers
to pass off their printed coupons as the real thing.

What the private bankers accomplished with the creation of the Bank of
England was the government's "legitimization" of the bankers' new credit
based coupons, *sic* paper money - coupons upon which the private bankers
could now charge interest just as they had when loaning actual gold (what a
wonderful scam). The new coupons were a lot easier to come by, especially
when the king gave them a monopoly over its issuance.

The advantage to the king was that the king now had an unlimited supply of
"money" that could be used to finance his wars - wars which led to the
establishment of the British Empire; the cost of which was transferred
directly as a burden to the people as the new counterfeit debt-based money
was now an obligation of the state, not of the king.

This was the genesis (genius to the bankers and government) of the modern
income tax where the people are forced to pay interest on the credit-based
money issued by their own government. This was also the beginning of
credit-based markets, deceptively called capitalism in order to closely
identify the newly counterfeit credit based economy with the real money it
had replaced.

*CAPITALISM
THE SPREAD OF DEBT IN DISGUISE*

The flow of credit from England and then from its surrogate successor, the
US, to developing nations such as Argentina was but the flow of printed
coupons designed to harness and indebt the wealth and productivity of new
lands.

The "capital" was really only credit, thinly disguised debt in the form of
paper money originally issued by central banks, the Bank of England in
Britain and the Federal Reserve Bank in the US, the twin towers of monetary
Mordor.

The wonderfully sounding idea of unfettered capitalism is but a smokescreen
for bankers to leverage their coupons in the form of credit and thereby
indebt and control the productivity and wealth of others. As such, it has
accomplished its goal admirably but its success will now cost the bankers
dearly.

Three centuries of indebting nations, businesses, and the citizenry with
constantly compounding debt is no longer sustainable. This is why central
bankers in London, New York, Paris, and Tokyo are in such distress. Debtors
can no longer pay their debts, defaults are on the rise and bankers may
actually have to find real jobs if their confidence game continues to
disintegrate.

*BANKERS' FEARS*

Lawrence Summers' credentials as a banker are impeccable. Educated at MIT
and Harvard in economics, Summers has served as Chief Economist for the
World Bank, US Secretary of the Treasury and President of Harvard
University.

Recently, in March 2008, Summers stated:
*...we are facing the most serious combination of macroeconomic and
financial stresses that the U.S. has faced in a generation--and possibly,
much longer than thatIt's a grave mistake to believe in the
self-equilibrating properties of economies in the face of large shocks.
Markets balance fear and greed. And when fear takes over, the capacity for
self-stabilization is not one that can be relied upon.*

On June 29, 2008 the Financial Times quoted Summers:
*...we are in an economic environment where we have more to fear than fear
itself*

Lawrence Summer's fears are not to be taken lightly. They are the banker's
equivalent of Jim Cramer's televised fit of fear when interviewed on CNBC
last year, see youtube <http://www.youtube.com/watch?v=SWksEJQEYVU>.

While Summers is rightfully fearful of the current economic environment, the
rest of us have far more to fear from bankers like Lawrence Summers and
others like him. Summer's role in the manipulation of the price of gold is
found in his 1988 paper *Gibson's Paradox and the Gold Standard *co-authored
with Robert Barsky, published in the *Journal of Political Economy* (vol.
96, June 1988, pp. 528-550).

The hubris of bankers such as Summers is stunning. Fixing the price of gold
hoping to control interest rates and prices is like fixing the temperature
of thermometers hoping to control global warming. Such is the short reach of
Summers' considerable intellect.

*EVIL BANKERS
FACT OR FICTION?*

But the real danger of bankers like Lawrence Summers lies not in their
untethered intellect but in their cold ambition and selfish greed that sees
nations and people as but living fodder to be milked, used and discarded as
they and others profit.

In 1991, Summers issued the following memo while serving as Chief Economist
at the World Bank:

*...developed countries ought to export more pollution to developing
countries because these countries would incur the lowest cost from the
pollution in terms of lost wages of people made ill or killed by the
pollution due to the fact that wages are so low in developing countries...
the economic logic behind dumping a load of toxic waste in the lowest wage
country is impeccable and we should face up to that.*

As the World Bank's Chief Economist, Summer's memo is a chilling reflection
of the heartlessness that lies at the core of bankers and banking
establishments. The World Bank itself seems to be a favorite watering hole
for those of questionable intent.

Robert McNamara, the architect of the Vietnam War was President of the World
Bank as was Paul Wolfowitz, the architect of the Iraq War. The current
President of the World Bank, Robert Zoellick, is also an ardent supporter of
the Iraq War (also on Zoellick's considerable list of "credits" is his
service as advisor to Enron, his membership on the Council on Foreign
Relations and Trilateral Commission and his attendance at the secretive
Bilderberg meetings from 1991 to the present and his role as Senior
International Advisor to investment bank Goldman Sachs).

It is no coincidence that those heading the World Bank are closely
associated with America's vast war machine. Bankers have profited from
fueling the military ambitions of both England and the US for the past two
centuries and continue to do so today.

But perhaps the most damning indictment yet of the World Bank and today's
bankers is John Perkins's *Confessions of an Economic Hitman* (Barrett
Koehler, 2004) in which Perkins reveals the hidden intent of the World Bank
and US bankers to cold-bloodedly indebt third world countries such as
Argentina and profit by their misery.

In their review of *Confessions of an Economic Hitman,* Russell Mokhiber and
Robert Weissman write:

*Remember Smedley Butler?*

*He was perhaps the most decorated Major General in Marine Corps history. In
the early part of this century, he fought and killed for the United States
around the world. Butler was awarded two Congressional Medals of Honor.*

*Then, when he returned to the United States he wrote a book titled "War Is
A Racket" which opens with the memorable lines: "War is a racket. It always
has been."*

*"I was a high class muscleman for Big Business, for Wall Street and for the
Bankers," Butler said. "In short, I was a racketeer, a gangster for
capitalism."

In a speech in 1933, Butler said the following:
"I helped make Mexico, especially Tampico, safe for American oil interests
in 1914. I helped make Haiti and Cuba a decent place for the National City
Bank boys to collect revenues in. I helped in the raping of half a dozen
Central American republics for the benefit of Wall Street. The record of
racketeering is long. I helped purify Nicaragua for the international
banking house of Brown Brothers in 1909-1912. I brought light to the
Dominican Republic for American sugar interests in 1916. In China I helped
to see to it that Standard Oil went its way unmolested."*

*Smedley Butler, meet John Perkins.*

*Perkins has just written a book, "Confessions of an Economic Hit Man"
(Barrett Koehler, 2004). It is the War is A Racket for our times. Some of it
is hard to believe. You be the judge.*

*In 1968, after graduating from Boston University, Perkins joined the Peace
Corps and was sent to Ecuador. There, he was recruited by the National
Security Agency (NSA) and hired by an international consulting firm, Chas.
T. Main in Boston.*

*Soon after beginning his job in Boston, "I was contacted by a woman named
Claudine who became my trainer as an economic hit man." Perkins assumed the
woman worked for the NSA.*

*"She said she was sent to help me and to train me," Perkins said. "She is
extremely beautiful, sensual, seductive, intelligent. Her job was to
convince me to become an economic hit man, holding out these three drugs --
sex, drugs and money. And then she wanted to let me know that I was getting
into a dirty business. And I shouldn't go off on my first assignment, which
was going to be Indonesia, and start doing this unless I knew that I was
going to continue doing it, and once I was in I was in for life."*

*Perkins worked for Main from 1970 to 1980. His job was to convince the
governments of the third world countries and the banks to make deals where
huge loans were given to these countries to develop infrastructure projects.
And a condition of the loan was that a large share of the money went back to
the big construction companies in the USA - the Bechtels and Halliburtons.*

*The loans would plunge the countries into debts that would be impossible to
pay off.*

*"The system is set up such that the countries are so deep in debt that they
can't repay their debt," Perkins said. "When the U.S. government wants
favors from them, like votes in the United Nations or troops in Iraq, or in
many, many cases, their resources - their oil, their canal, in the case of
Panama, we go to them and say - look, you can't pay off your debts,
therefore sell your oil at a very low price to our oil companies. Today,
tremendous pressure is being put on Ecuador, for example, to sell off its
Amazonian rainforest -- very precious, very fragile places, inhabited by
indigenous people whose cultures are being destroyed by the oil companies."*

*When a leader of a country refuses to cooperate with economic hit men like
Perkins, the jackals from the CIA are called in. Perkins said that both Omar
Torrijos of Panama and Jaime Boldos of Ecuador -- both men he worked with -
refused to play the game with the U.S. and both were cut down by the CIA --
Torrijos when his airplane blew up, and Roldos when his helicopter exploded,
within three months of each other in 1981.
If the CIA jackals don't do the job, then the U.S. Marines are sent in --
Butler's "racketeers for capitalism."*

*Perkins also gives lurid details of how he pimped for a Saudi prince in the
1970s, in an effort to get the Saudi royal family to enter an elaborate deal
in which the U.S. would protect the House of Saud. In exchange, the Saudis
agreed to stabilize oil prices and use their oil money to purchase Treasury
bonds, the interest on which would be used to pay U.S. construction firms
like Bechtel to build Saudi cities.*

*For years, Perkins wanted to stop being an economic hit man and write a
tell-all book. He quit Main in 1980, only to be lured back with megabucks as
a consultant. He testified in favor of the Seabrook Nuclear power plant ("my
most infamous assignment") in the 1980s, but the experience pushed him out
of the business, and he started an alternative energy firm.*

*When word got out in the 1990s that he was starting to write a tell-all
book, he was approached by the president of Stone & Webster, a big
engineering firm.*

*Over seven years, Stone & Webster paid Perkins $500,000 to do nothing.
"At that first meeting, the president of the company mentioned some of the
books that I had written about indigenous people and said -- that's nice,
that's fine, keep doing your non-profit work," Perkins told us. "We approve
of that, but you certainly would never write about this industry, would you?
And I assured him that I wouldn't."*

*Perkins assumes the money was a bribe to get him not to write the book.*

*But he has written the book.*

*You be the judge.*

Evil bankers? Fact or Fiction? You be the judge.

*DEFAULT OR JUST DEADBEATS*

While Reinhart's and Rogoff's work on sovereign default is worthwhile and
important, their glaring avoidance of the geopolitical aspect of credit
flows from England and the US to Latin America and other developing regions
is indicative of the blind eye scholars turn to the activities of those who
pay them.

Lawrence Summers was President of Harvard University where Kenneth Rogoff is
now employed. It is not likely those who hired the likes of Summers would
look kindly upon Rogoff should he begin asking questions whose answers would
lead to truths Harvard's trustees would rather not see the light of day.

So instead of dealing with the critical issues raised by John Perkins,
Reinhart and Rogoff consider the phenomena of sovereign defaults as an
innocent rite of passage much like high school through which developing
economies must pass. Perhaps it is so, perhaps not.

But their "trained" eye wanders a bit, even to an untrained eye such as
mine. According to Reinhart and Rogoff, the US is a "default virgin",
*sic*the US has never missed a debt repayment or rescheduled on at
least one
occasion. While this is strictly so, the US is nonetheless at the center of
the largest default in monetary history.

In the 1970s, the US defaulted on its gold obligations under the
Bretton-Woods Agreement. After overspending the greatest hoard of gold in
history, 21,775 tons, between 1949 and 1971, the US had 7,000-8,000 tons of
gold left and still owed perhaps over 31,000 tons to others.

In 1973, when the US officially refused to convert US dollars held by other
countries to gold, it was the biggest monetary default ever. In that one
act, as a consequence the entire global monetary system shifted from a
gold-based system to a fiat-paper system.

Of the US default on its gold obligations, Professor Antal Fekete wrote in
June 2008 <http://www.321gold.com/editorials/fekete/fekete060608.html>:

*Thirty-five years ago gold, symbol of permanence, was chased out from the
Monetary Garden of Eden, replaced by the floating irredeemable dollar as the
pillar of the international monetary system. That's right: a floating
pillar. The gold demonetization exercise was a farce. It was designed as a
fig leaf to cover up the ugly default of the U.S. government on its
gold-redeemable sight obligations to foreigners. The word 'default' itself
was put under taboo even though it punctured big holes in the balance sheet
of every central bank of the world, as its dollar-denominated assets sank in
value in terms of anything but the dollar itself. These banks were not even
allowed to say 'ouch' as they were looking at the damage to their balance
sheets caused by the default. They just had to swallow the loss, obediently
and dutifully join the singing of the Hallelujah Chorus of sycophants in
Washington praising the irredeemable dollar and the Nirvana of synthetic
credit.*

Debt virgin? Hardly, and whether the US defaulted or not is not just a
question of semantics, it is a matter of truth - which, like credit, is now
surprisingly hard to come by.

*THIS TIME IT'S DIFFERENT*

Carmen Reinhart and Kenneth Rogoff's paper, *This Time It's
Different,*refers to the idea that sovereign defaults are a thing of
the past. That we
have somehow fixed what was wrong and it won't happen again. Reinhart and
Rogoff think otherwise.

But this time, in a different way it really is different. This time default
will come to both banker and debtor alike. The bankers' system itself is now
collapsing under the weight of debt that the bankers' debt-based money has
produced.

Banks are finding themselves increasingly bankrupt as are the governments
the bankers used to debase the world's currencies. This time, not only will
Argentina possibly suffer another sovereign default, so too will its
creditor, the US, as will many of the US banks that issued that debt.

The default of the US will remain, however, outside the limited definition
of default used by Reinhart and Rogoff. The US will not miss a payment or
reschedule its debt. Unlike Argentina, the US prints the currency in which
the Argentine and US debt is denominated. The US will print its way out of
its debts. Argentina cannot.

Because of the enormity of the US debt, the amount of dollars necessary to
print to pay down the debt will lead to the hyperinflation in the US and the
destruction of the US dollar. Those who live by the sword sometimes die by
the sword - though not often.

In that same article where Professor Kotlikoff estimated US liabilities to
be $65.9 trillion, Kotlikoff also wrote:

*The United States...appears to be running the same type of fiscal policies
that engendered hyperinflations in 20 countries over the past century.*

Maybe this time it isn't different.

*DON'T CRY FOR ME ARGENTINA
SAVE YOUR TEARS FOR YOURSELF*

In 1976, the Argentine military overthrew the democratically elected
Argentine government. The first to recognize the dictatorship was the US.
The second was the International Monetary Fund, and within 24 hours of
recognizing the soon-to-be most brutal regime in recent history, the IMF
arranged a loan to the military junta.

At the time, Argentina's external debt totaled $7 billion. When the bloody
dictatorship ended with the return of democracy six years later, Argentina's
debt totaled $43 billion, a debt owed mainly to US banks.

The common law concept of *caveat emptor* has particular relevance
here,*caveat emptor
* - Latin, "let the buyer beware", is a legal precept that buyers must take
responsibility for the conditions under which the sale was made.

*If you loan to a dictatorship, don't expect to be repaid if a democracy
emerges.
*Richard Perle, former US Assistant Secretary of Defense and neoconservative
lobbyist

Richard Perle who supported the Iraq War said those words shortly after the
US invaded Iraq. While it is doubtful Perle believes the same applies for
debts incurred by the US supported dictatorship in Argentina, the truth of
Perle's words extend beyond Perle's situational principles or a lack
thereof. In a court of law, an illegal contract cannot be enforced - unless,
of course, the court has been bought off.

A critical distinction between the debt "owed" by Argentina and the debts
owed by the US is that Argentina's debt was illegally imposed upon Argentina
by the IMF, the US and international bankers without the consent of the
Argentine citizenry, The US debt, however, was incurred with the consent of
the American people - or was it?

That, my fellow Americans, is a $99.2 trillion question.

*BANKRUPT BE THE BONDS THAT BIND*

Americans with their outstanding obligations now measured in trillions of
dollars of outstanding US bonds have much in common with the Argentine
people. We have both been enslaved and bankrupted by the same financial
system.

While it is impossible for the debt burdened Argentines to do something
about US banks, it is not impossible for Americans to do so. The US Federal
Reserve Bank - the largest emitter of debt-based money in the world - while
not an official US government agency is nonetheless still subject to the
rules and laws of our land.

*STIRRINGS IN THE ELECTORATE*

Dissatisfaction, the beginning of change, is now occurring. The two
political polarities are finally awakening to the fact that both have been
callously used by those in power. The US has lurched right then left then
right again, but it continues to go in the same disturbing direction, a
direction now equally distasteful to those on the left and on the right.

*In modern democracies, successful politicians must possess two qualities:
They must say what the people want to hear and they must do what those in
power want done.*

It has been easy to manipulate those on the right as well as those on the
left. The Republicans and Democrats have done so for years. But where's the
beef? The nation's finances have been even more badly managed by the
Republicans than the Democrats - and Iraq? Sure, vote for the Democrats and
stay mired in a conflict they promised they would end.

Both parties are controlled by the same money, the same money that now
controls global governments and institutions such as the World Bank and the
IMF, the same money that buys politicians, scholars, the military, lawyers,
TV anchors, radio talk show hosts and anyone else whose influence they can
use for their own ends.

There is a reason why we are indebted as we are and there is a reason why we
are mired in a war that one wants except the few that do, the few that now
control our nation and many others. In the midst of this most unreasonable
world, there are reasons - whether you want to know them or not.

Humanity now finds itself at the beginning of a profound shift, a shift that
will force us - if we are to survive, if we are to triumph - to put aside
our differences to accomplish together what we obviously cannot accomplish
apart.

The two political polarities must find common ground or they will soon find
there is no ground at all. What is happening is bigger than money and power
although it involves both. It involves humanity, it involves all of us and
unless we find each other we will soon find there will be nothing left to
find at all.

We are closer to the end than to the beginning. Keep your own counsel. Buy
gold and silver. Keep the faith.

In Argentina, I read in a recent issue of Scientific American that
physicists now believe that in the beginning of time the Universe was only
one centimeter across. That knowledge heartened me. We have come a long way.

Note: I will be speaking at Professor Fekete's last session of Gold Standard
University Live to be held in Canberra, Australia from November 11th to the
14th. The focus of the session will be trading the gold and silver basis for
profit.

<http://www.321gold.com/archives/archives_authors.php?author=Darryl+Robert+Schoon>
*About Darryl Robert Schoon*

In college, I majored in political science with a focus on East Asia (B.A.
University of California at Davis, 1966). My in-depth study of economics did
not occur until much later.

In the 1990s, I became curious about the Great Depression and in the course
of my study, I realized that most of my preconceptions about money and the
economy were just that - preconceptions. I, like most others, did not really
understand the nature of money and the economy. Now, I have some insights
and answers about these critical matters.

In October 2005, Marshall Thurber, a close friend from law school convened
The Positive Deviant Network (the PDN), a group of individuals whom Marshall
believed to be "out-of-the-box" thinkers and I was asked to join. The PDN
became a major catalyst in my writings on economic issues.





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