“Soft despotism is a term coined by Alexis de Tocqueville describing the state into which a country overrun by "a network of small complicated rules" might degrade. Soft despotism is different from despotism (also called 'hard despotism') in the sense that it is not obvious to the people."

Monday, November 24, 2008

Forget the Franklins. We are going for Clevelands.

You didn't even know President Cleveland was on a note, well he is, and on a big one. The necessary reflation will result in the printing of lots of these. Someone will get blamed, but there were plenty of architects of the eventual inflation in our future.

Plan accordingly.


  1. Have to destroy the confidence in the current currency, before a new one can be introduced.
    We are watching it being done, in real time.

    Betcha an Amero to a doughnut.

  2. There are Clevelands floating around? I thought Ben's were our top one, now being printed.

    How to keep up with inflation is a darned good question. I looked at the value of farmland, wheat prices and money over time in US history once, and they all more or less tracked along. More or less. With wheat lagging considerably behind lately, admending my statement. Whether that would hold in the future I have no idea.

    We're in the time of year here when my wife and I start arguing about whether to turn the furnace on, and how much. An early cold snap.

  3. They're calling it the tsunami dollar. And the wave has yet to hit shore.

  4. i invest in goods and infrastructure.

    no dollars, dollars flow in and out...

    My assets are my clients....

    dollars, yuan, yen, euros?

    marshmellows that blow one way or the other...

    tides come in, tides go out...

    people will still eat...

    people will trade...

    commerce will continue...

    we are seeing a great correction of what was a house of smoke and mirrors, the good news?

    we are not alone, it's world wide...

    so in the end, what was really lost?

    nothing, just some zero's on a balance sheet...

    fluff over paid jobs will vanish...

    too bad...

    some companies will close...

    it's aint a death camp...

    factories in china will slowdown or shut down...


    nope all i see is good coming from the meltdown...

    (except for the fact that alternative energy will once again go the way of the dust bin, it's 1973 all over again...)

    just wait 10 months from now? the recession will be over and oil will be 85 bucks a barrel...

  5. just wait 10 months from now

    A lot of ugliness is what you'll have.

  6. Zombie Economics

    Though Citicorp is deemed too big to fail, it's hardly reassuring to know that it's been allowed to sink its fangs into the Mother Zombie that the US Treasury has become and sucked out a multi-billion dollar dose of embalming fluid so it can go on pretending to be a bank for a while longer. I employ this somewhat clunky metaphor to point out that the US Government is no more solvent than the financial zombies it is keeping on walking-dead support.

    No cabinet job for you, James Al-Howard Kunstlerawahri!!

  7. Bear with me:

    For months, no one appearing on or quoted by Bloomberg TV would use the d-word, even when carefully prodded or led to it, unless to discount its likelihood. But it's now beginning to pop up, as in "contained depression," which as I understand it is a sharp recession with a more or less invisible recovery.

    Whit suggested that as the nation falls on, or into, hard times, we might all be encouraged to, among other things, relocate the spouses and children we lost track of this past decade in our vast, ugly, overvalued suburban homes and Greyhound-length SUV's. (Though we never completely forgot their presence, as the former, when not off happily in some pesthole, was always watching a Tom Clancy movie on AMC, on the "good" tv, when something obviously far better was on; and the latter was always asking for our credit card or patiently reassuring us that his grades may look exceedingly bad now, but just you wait til the end of the semester. ((Oh, that's right, we have two children: The other was always calling home, weeping, after her macroecon class and concocting/threatening means of escape from school that at one time involved the alarming prospect of employment at a nearby purveyor of "body art.")) And they never completely forgot about you, without whom they would malnourish themselves on a diet of Tostitos and cheese glue.)

    Whit may be right (the thought doesn't gall me, at least) but if we're heading to a linguistically modified depression I hold out hope that we take a page from the last one by making movies actually worth watching. Someone made a Top Ten list of the details they like most about those old movies, which any devotee of TCM can immediately confirm. Among those things: The telephones, the drinks, the trains (esp. with sleeping cars), the nightclubs, dressing for dinner, smoking...The search should probably be on for another Myrna Loy and William Powell; another Bogart, another Hepburn. No economic stimulus, this, but something just as important: a cultural stimulus. A true revival of a marvelous, and what ought to be sustaining,
    American institution.

    Oh. And bring back the Fedora. Please.

  8. It's not Groundhog Day everywhere, though.

    Michael Yon states authoritatively: The war in Iraq is over.

    Can we maybe get a couple of complete strangers spontaneously embracing in Times Square?

  9. Well said, Trish.

    The telephones, the drinks, the trains (esp. with sleeping cars), the nightclubs, dressing for dinner, smoking...

    I'd add, cars with suicide doors.

  10. Inflation? Please, Lord; Let it be so!

    We can deal with inflation. We can make money on inflation. Our system is set up for Inflation. We, really, really need inflation.

    Just keep us out of Deflation.

    I'm going to say it again, "I think we'll be out of this mess in 3 to 6 months."

  11. Recessions/Depressions are ALL about UNEMPLOYMENT. Period.

    When the "crisis" hits the first job (the Only job) is to keep people working. To do that you've gotta keep "Credit" flowing. The Gov has made a lot of mistakes, but they're pretty much doing the right things, now.

    TRADE is Good, folks. It's going to save our butts, again.

  12. The "Twenties" didn't teach us anything about "Staying Out" of Trouble; but, we did learn a lot of lessons from the "Thirties" about what to do once you get there.

  13. TRADE is Good, folks.

    No, it's not.

    Not as it is currently set up. The "Free Trade System" should really be called the "Free Slave System". It has almost completely hollowed out the US economy and its ability to create goods. Without the ability to create goods, all service and finance jobs eventually go out the window. You talk of jobs, but you advocate everything that will eventually decimate jobs.

  14. Suicide Doors

    The gangsta's elegant lady exits the car from the back seat from the suicide doors heading to the speakeasy.

  15. Suicide doors were not uncommon on cars manufactured in the first half of the 20th century.[2][4][8] They were especially popular in the gangster era of the 1930s because "It's a lot easier to shove somebody out with the wind holding the door open", Dave Brownell, the former editor of Hemmings Motor News stated.

  16. Met dont worry be happy...

    Americans who have NOTHING (96%) do the overwhelming amount of shopping!

    and even if they dont shop as MUCH as past years they still will....

    War is the problem, not this crap....

    I'd be focusing on 42,000 rockets in lebanon, nukes in iran and syrian tank brigades as a bigger isssue...

    Look at China and her expansion as a problem...

    look to Russian expansion as a problem....

    a few trillion in smoke and mirrors?


    a few million unemployed? really who cares...

    we have food stamps...

    and not to worry, the ONE will be the lord and savior come January and give great paying government jobs to his pre-approved groupies...

    He'll check his database to make sure they were supporters BEFORE his crowning and IF you were nice and supportive, you will get one of those jobs...

    if not?

    you can move in with his aunt in boston...

  17. Thanks, bob. I never knew they were called that.

  18. if not?

    you can move in with his aunt in boston...


    Or, his bro in Kenya...


  19. we have food stamps...

    And the Chinese have a billion people eager to learn and compete. If this continues, in 20 years the top universities will be Chinese. Then what?

  20. And the Chinese have a billion people eager to learn and compete. If this continues, in 20 years the top universities will be Chinese. Then what?

    then china will explode being pulled apart by 100's of different ethnic peoples...

    china is a ticking bomb...

    it aint homogenous...

    liberation movements are already afoot...

    islam is attacking...

    yep china is a JUICY target for liberation groups...

  21. islam is attacking...

    LOL! You don't know the Chinese. They'll have muhmud's balls in a soup bowl for dinner.

  22. Suicide doors--which reminds me of a story, true too.

    When I was a kid I used to go down to Walla Walla(water, water) Washington, in the summers, and hang out with my cousins, just kind of hang out for three or four weeks.

    They knew this kid--Frankie--and his brother. Their dad ran the funeral home. And let me say right up front, Frankie wasn't exactly the brightest bulb in the embalming room.

    Anyway, one night Frankie and his older brother were out with a couple of girls, driving around in the old man's Lincoln Continental, which had suicide doors, in those days, Frankie in the back, right hand side.

    Brother takes a left hand curve, pretty fast, and the door flies open, catches the wind, and out goes Frankie.

    Ending up in his father's embalming room.

    So I've always remembered the term 'suicide doors.'

  23. Bush is doing a "hell of a job"(tm) with the transition. I'm, actually, kind f proud of the guy.

    I think he's just so happy to be getting out of that meatgrinder.

  24. Oh my God. That's an awful story, bob.

    My best friend in fifth grade (in my dad's Ozark, Mizzura, hometown - he was in Seoul that year) was Valerie Adams, daughter of the owner of the Adams (yes) Funeral Home. (Often the nicest 'home' in midwest towns. Distinguished by its side portico.)

    Spent the night. Once.

  25. I think he's just so happy to be getting out of that meatgrinder.

    Mon Nov 24, 11:53:00 AM EST

    I think he's probably been looking forward to it for a couple of years now.

  26. Spent the night. Once.

    And I'm glad one night was all you spent:)

  27. BTW, Mat, the U.S. is the No. 1 Manufacturing Nation on Planet Earth.

  28. Help put “Jamiel’s Law” on the ballot.

    Go Here For Petition

    I think you have to be a California resident. It's to end the idiocy of some of the 'sanctuary city' crap that results in needless tragic deaths.

  29. PANIC OF '08:
    FED PLEDGES TOP $7.4 TRILLION--headline reads.

    Rufus, 7.4 trillion is about half of everything we do in the US in a year, I think.

  30. Loads of money has 'evaporated' so, in essence, all this newly minted money is simply replacing it and, theoretically, not inflationary. If inflation does rear its head there are monetary instruments to combat it. So, the mantra seems to be, spend, spend, spend, bailout bailout bailout, guarantee, guarantee, guarantee. Interesting spot to be in - spend and cut taxes (hmmm, I guess we've been there all along). Where all this stops nobody knows.

    pass the popcorn...

  31. Did you all know that the wholesale price of gasoline is now Below that of Oil? Hmm.

    Now, THIS, from Lake Co, In:

    "Lake County officials have approved a contract with a company that plans to build an $80 million plant that would turn trash into ethanol," according to WSJV Television in South Bend, Ind. "The Lake County Solid Waste Management District voted 14-4 on Thursday to approve a 20-year contract to provide trash to Powers Energy 1 of Indiana.

    We produce about 250 Million Tons of Municipal Solid Waste in this country. That would make about 17 BILLION Gallons of Ethanol.

    AND, put about 100,000 People to Work.

    BTW, this is "proven" technology, and there are several of these projects kicking off around the country.

  32. mat keeps praising the Chinese, but does not want to move to Vancouver BC, Peking of the Americas.

    The Chinese are pesky and persistent folks. Gave 'em a inch, in Panama, now they are taking a mile of Costa Rica.

    Real cozy with Hugo, the Chinese are.

  33. Keep One Thing in mind, chilluns: Guaranteeing a loan isn't the same thing as "spending." Nor is, "Investing" in a bank, Ins. Co, Car Maker, etc.

    Word is we'll make some money on the Bear Stearns deal.

  34. I Love having the Chinese investing in South America. Maybe it'll get OUR juices flowing. Get US competing. If the South Americans make money, we'll make money. Bet on it.

  35. But our number two trading partner, too.

    Interesting, our top three trade partners

    1. Canada 17.8%
    2. China 11.6%
    3. Mexico 10.7%

    Then Japan at 6.1%.

    Two of the top three trade partners, are already Amerian countries, too.

  36. 7.4 trillion is about half of everything we do in the US in a year, I think.

    Nope. It's half of the money you borough and pretending to do something with it by shuffling paper and gas gaslers back and forth and buying Chinese.

    I was in Europe recently and they haven't seen
    US made autos in years.
    US made computers in years.
    US made appliances in years.
    US made digital gadgets in years.
    US made clothing garment in years.

    They haven't seen anything US made in years.

    What exactly is it that US is producing to justify its trillions in GNP? Other than military hardware.

  37. Interesting numbers, at that interesting link.

    Import, export and total trade.

    The top three are always the same.

    Only the order changes.

  38. mat keeps praising the Chinese, but does not want to move to Vancouver BC, Peking of the Americas.

    I have nothing in common with those people. To me, they might as well be Martians. I'm very worried about America.

  39. We're in the Americas, mat, not Europe.

    There is no NAFTA with the EU.

    It's the trilateral management plan for the World.

    Interesting lists of trading partners we have, if fits the Amero program, which would be far superior to the Euro.

  40. DR hit on it. NAFTA has been a "raging success." CAFTA will, also.

    Something like 87% of our trade is done with the 5% of countries with which we have Free Trade Agreements.

    Europe is a huge (and, successful) "free trade zone" that's open to EUROPEANS. Of course, you'll see mostly "European" goods, there, with a smattering of Chinese, Japanese, and American.

    Just like you'll see, mostly, U.S. products in Mexico. Just the way it is.

  41. Also, interesting, from your link, Rat.

    Mexico is our Second Largest "CUSTOMER!" Twice as large as China, for instance.

  42. DR hit on it. NAFTA has been a "raging success."

    You will see less and less support for NAFTA among Canadians.

  43. The US, due to the influence of the Russell Trading/Skull&Bones influence on the Federals, has followed a foreign policy that exploits China, to the material benefit of the United States.

    But then the Europeans have, as well. Exporting manufacturing capacity to China in exchange for cleaner air.

    I have traveled the world, the Americas have it over all the rest. Some trouble ahead in Mexico, but as Mr Fox said, get their per capita GDP to $25,000 and those problems would fade away.

  44. Once in a Union with Federal America, mat, there is no divorce.
    Just as Ms T, advocates.

    The fate of Canadia is sealed, has been since well before your landfall, there.

  45. The fate of Canadia is sealed, has been since well before your landfall, there.

    I'll keep that for other Canadians to see.

  46. While I don't think Canada will do much regarding NAFTA unless the hand is forced by the US the Rat 'dream' of an Amero will not include Canada. There was some talk in Canada a number of years ago of adopting the US currency, or pegging the Canadian dollar to it, but most realized that relinquishing Canada's monetary policy to the US would be foolish.

  47. For once I agree with Ash. That's the way I'd feel if I was a Canadian.

  48. “The real gamble in this election is playing the same Washington game with the same Washington players and expecting a different result.”


  49. Maybe I'm spinning but Obama does seem to be using a different approach, offering up change with his recent appointments and actions. Though he has stuck with 'experienced' folks he hasn't banished his political rivals to the wilderness. I would have though Lieberman and Hillary would have been thrown under the bus but he's kept them around. I'm guessing McCain didn't want to play ball.

  50. Brian Haroldsson,Reykjavík 24/11/2008 15:02:37
    Utter hyperbole Ómar. Where you there at all (varstu þarna eða hvað?) The Althingi or parliament was hardly "besieged" and compared to the local Hearts/Hibs derby it would hardly justify even being called a stramash...

    At least we Icelanders can still legally meet outside our parliament and protest in large groups. Have you seen the legislation in the UK? "Unlawful assembly" mean anything to you?

    We are hardly revolting, in both senses of the word!

    Áfram Ísland and Alba gu brath...

    The Icelanders Are Pissed

  51. The meltdown has yet begun, fellas.

    The Candians will be hardpressed, without US. More so than we without a Canada.

    The Canadians would last no longer than Saddam's Republican Guard.

    If and when the oil and timber became more precious than the idea of Canada. The same with regard Mexico, they are both in a more fragile position than either the US or China.

    If the US really is the commi mafioso run Empire that mat claims it to be.

  52. But violence, war, that'll never happen, as the Canadian elites are on the same Ship of State as are ours and in Mexico.

    It's manifest destiny.

  53. Are the credit markets in Canada flowing?

    Or are they part of the "Global" credit crunch, too?

    Let's guess...

    The UK and the US are both in crisis, but Canada is uneffected, not likely.

    Canada's Major Trading Partners - 2006
    Canada is a major trading nation whose combined value of exports and imports is the equivalent of more than two-thirds of the country's GDP. Canada trades with the world but its main trading partner is the U.S., accounting for roughly three-quarters of trade and the majority of capital moving in and out of Canada.

    % Share of
    Total Exports
    United States 81.6%
    United Kingdom 2.3%
    Japan 2.1%

    % Share of
    Total Imports
    United States 54.9%
    China 8.7%
    Mexico 4.0%
    Japan 3.9%
    Germany 2.8%
    United Kingdom 2.7%
    South Korea 1.5%

  54. In an update today chief financial officer Rob McDonald said demand was uncertain but was clearly weaker across all markets, with the Tasman specially difficult.

    Benefits from lower jet fuel prices would be more evident in the second half, he said.

    Air New Zealand shares were up 4c to 88c in early trade today, having ranged between 80c and $2.02 in the past year.

    Passenger Numbers Down

  55. mat tells us that a service economy cannot long survive

    Let's look north

    Labor force - by occupation:
    agriculture 2%,
    manufacturing 13%,
    construction 6%,
    services 76%,
    other 3% (2006)

    $431.1 billion f.o.b. (2007 est.)
    Exports - partners:
    US 79.3%, UK 2.8%, China 2.1% (2007)

    $341,862,300,000 is the US share

    $386.4 billion f.o.b. (2007 est.)
    Imports - partners:
    US 54.4%, China 9.4%, Mexico 4.2% (2007)

    $210,201,600,000 is the US share

    Total US impact on Canada

    GDP (purchasing power parity):
    $1.271 trillion (2007 est.)

    So, in 2007 the US was directly responsible for 43.43% of Canada's GDP.

  56. Dear Prudence

    I feel I have no choice but to write to you to tell you that I have been unfaithful.

    I have long professed my love for you, telling people that I would never leave you. But underneath, I have been carrying on a secret dalliance. In fact, Prudence, whilst expressing my undying devotion, I have been utterly besotted with Profligacy.

    I pledged to you that I would not turn the UK economy into a debt-ridden example of high-spending socialism. And because I kept telling everyone how important to me you were, I was able to convince them that I was being good.

    But for the past ten years, I have – as Chancellor of the Exchequer and now as Prime Minister with direct control over the Treasury – actually been spending more and more money for less and less benefit to the public at large.

    Dear Prudence

  57. As for policies, they come and go. As George W. Bush demonstrated, an inflexible president is a failed president.

    He can call it principle, but if his principles result in failure, he will be judged by his failure and not by his principles. Obama has clearly learned this lesson.

    He understands that a president can’t pursue his principles if he has lost the ability to govern. To keep that ability, he must build his coalition.

    First Moves

  58. Here in Canada they say "if the US sneezes it's Canada that catches the cold".

    Canada depends very much on trade with the US. Canada also has mucho natural resources and a weak military.

  59. The banking sector has been fairly heavily regulated and is in better shape then 'down there'. So far we've faired pretty well but the crisis seems to be now lapping at our shores.

  60. This comment has been removed by the author.

  61. With each passing day, it's becoming more apparent that unless our leaders have become completely irresolute men, this is no simple recession that we're facing. How else would one explain the profligate and unprecedented spending by governments? Now, our fearless leaders are talking about another $500-$700 billion in stimulus spending in addition to the $700 billion already pledged. This is astounding! Absolutely unheard of. I can only conclude that they're convinced that it's "all or nothing." I've concluded that anyone with stocks or funds should probably sell out, write off their losses and bank whatever little cash they have left. Conventional wisdom says don't panic, stay invested, ride it out. My fear is that the mutual funds will go broke, so it's better to get out with whatever is left. If you can manage to leave the cash untouched, you can always buy back into the market.

  62. this is no simple recession that we're facing.

    Duh! We know that!

    What I should have said is that it looks like a bad-ass "depression" is bearing down on us like freight train in a tunnel.

  63. My advice and a couple of bucks may buy you a cup of coffee if you're a smart shopper.

  64. Economists across the political spectrum cheered the selection of UC Berkeley professor Christina Romer to head the Council of Economic Advisers as president-elect Barak Obama moved today to name his key financial counselors.


    Romer will turn 50 on Christmas Day. She and her husband have three children.

    A member of the Berkeley faculty since 1988, Romer has won awards for teaching such undergraduate classes as introduction to economics.

    Respected by Economists

  65. Obama says his "new ($700 billion) deal" will create 2.5 million new jobs in the next year.

  66. Wonder how he comes up with that number?

  67. Despite these measures, John Sauven, Greenpeace executive director, said he was disappointed. "This was an historic opportunity to invest billions in a low-carbon, high-technology future but the chancellor blew it.

    We can only hope that by the time he formulates the budget itself, he will have grasped the potential of hi-tech climate solutions to get us out of this recession.

    "Once again the aviation industry has been given a free pass at a time when its contribution to climate change is rising."

    Green Campaigners not Satisfied

  68. They figure it's going to take about 5% of GDP to "spend off" the depression.

  69. The Parrot

    A young man named John received a parrot as a gift.

    The parrot had a bad attitude and an even worse vocabulary.

    Every word out of the bird's mouth was rude, obnoxious

    and laced with profanity.

    John tried and tried to change the bird's attitude by

    consistently saying only polite words, playing soft music

    and anything else he could think of to "clean up" the

    bird's vocabulary.

    Finally, John was fed up and he yelled at the parrot.

    The parrot yelled back.

    John shook the parrot and the parrot got angrier

    and even ruder.

    John, in desperation, threw up his hand, grabbed

    the bird and put him in the freezer.

    For a few minutes the parrot squawked and kicked

    and screamed.

    Then suddenly there was total quiet.

    Not a peep was heard for over a minute.

    Fearing that he'd hurt the parrot, John quickly

    open the door to the freezer, the parrot calmly

    stepped out onto John's outstretched arms and said,

    "I believe I may have offended you with my rude

    language and actions.

    I'm sincerely remorseful for my inappropriate

    transgressions and I fully intend to do everything

    I can to correct my rude and unforgivable behavior."

    John was stunned at the change in the bird's attitude.

    As he was about to ask the parrot what had made

    such a dramatic change in his behavior, the bird

    continued, "May I ask what the turkey did?"


  70. ANZ Banking Group chief economist for Asia, Paul Gruenwald, points out the package represents around 15% of China's GDP and around 30% of its current investment and is designed to not only boost demand and therefore growth, but also confidence in the economy broadly.

    The plan covers a two-year period. One quarter of spending is to be funded by the federal government and the rest by local governments and the private sector.

    As Gruenwald notes, while headline GDP growth remains solid at around 9%, there are signs growth in key industries such as automobiles and steel are deteriorating if not stalling. This could push growth below what the bank sees as a comfortable level of around 8%.

    Chinese Stimulus

  71. If past experience holds true, these times should be good for our local universities. We're countercyclical, and people come back looking for a new skill.

    By the way, nurses are always in demand, always. Least around here.

  72. They need to put some thought as to how they go about spending this money. But they wont.

    This could be a good opportunity to build and rebuild mass public transport in the US. Electric trains and inner city trams. Electric plugin infrastructure for EVs. High voltage superconducting electric grid. Solar and wind farms. Mass production of electric cars electric bikes electric scooters. Rebuilding of the shipping waterways.

  73. nuclear plants, extend rent subsidies to college students, fund farmers...

  74. ...create fly fishing schools, teach grouse hunting...hire retired farmers as instructors for same...

  75. The next round will focus on arrangements for inspections to verify a declaration of nuclear activities the North made in June as part of the disarmament pact.

    The verification dispute is just the latest hurdle in tortuous negotiations, which began in 2003 and have often come close to breakdown. The forum groups the two Koreas, the US, China, Russia and Japan.

    Analysts say North Korea feels it can win concessions from Mr Bush, who leaves office in January, as he is seeking a diplomatic legacy.

    Sealing Border

  76. “I've asked my economic team to consult with Congress, the current administration, and the Federal Reserve on immediate economic developments over the next two months.

    It is my hope that the new Congress will begin work on an aggressive economic recovery plan when they convene in early January so that our administration can hit the ground running,” he further added.

    In his address, Obama resolved to bolster the flagging auto industry and to lift his country's plunging economy, promising to honour the current administration's commitments to address the crisis.

    Rescue Team

  77. teach grouse hunting..

    It's wabbit season!

  78. Things Cleveland did to get on the 1k bill:

    * Soon after taking office, Cleveland was faced with the task of filling all of the government jobs for which the President had the power of appointment. These jobs were typically filled under the spoils system, but Cleveland announced that he would not fire any Republican who was doing his job well, and would not appoint anyone based solely on party service.

    * Cleveland faced a Republican Senate and often resorted to using his veto powers.[87] He vetoed hundreds of private pension bills for American Civil War veterans, believing that if their pensions requests had already been rejected by the Pensions Bureau, Congress should not attempt to override that decision.

    * One of the most volatile issues of the 1880s was whether the currency should be backed by gold and silver, or by gold alone.[93] The issue cut across party lines, with western Republicans and southern Democrats joining together in the call for the free coinage of silver, and both parties' representatives in the northeast holding firm for the gold standard.[94] Because silver was worth less than its legal equivalent in gold, taxpayers paid their government bills in silver, while international creditors demanded payment in gold, resulting in a depletion of the nation's gold supply.[94]

    Cleveland and Treasury Secretary Daniel Manning stood firmly on the side of the gold standard, and tried to reduce the amount of silver that the government was required to coin under the Bland-Allison Act of 1878.


  79. What our economy really needs is a dollar backed by the wheat standard. A ten dollar bill will get you a bushel of soft white anytime you want. This would produce the consumer confidence our economy needs. Change you can believe in, new ideas for our future together.

    After all, it beats a dollar backed by nothing.

  80. The Federal Grain Depository, the Fort Knox of Wheat, could be right down the river at Portland.

    "You can't eat gold."

  81. Even if a horse was president of the Czech Republic, it would have a 50 percent approval rating,” he said. “And Klaus is surely much cleverer than a horse.”

    (The same can be said for the United States)

    He has blamed what he calls the misguided fight against global warming for contributing to the international financial crisis, branded Al Gore an “apostle of arrogance” for his role in that fight, and accused the European Union of acting like a Communist state.

    Klaus Ascends

    Chavez Loses Ground In Venezuela Elections

  82. Even if a horse was President of the US and could have a 50% approval rating, bob, what does that make GW Bush?

    His approval rating has not approached 50% for a couple of years, now.

    You under rate the US citizenry.
    They are smarter than the Czechs, having seen through the smaoke and around the mirrors, they have judged GW Bush fairly based upon his performance.

    If one supports his performance, then they must celebrate the outcome of it.
    The election of Barack Obama.

  83. You folks ought to listen to this interview with Leo Donofrio, it's very good.

  84. Leo Donofrio is one of yours, Rat, a Ron Paul supporter!