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The Collapsing US Economy And The End of The World

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Some individual investors and foreign central banks, anticipating the dollar's loss of value, are accumulating gold and silver bullion. Realizing the danger to the dollar and its policy from the rapid rise in the price of bullion during 2011, the Federal Reserve has arranged offsetting action. When the demand for physical bullion drives up the price, short sales of bullion in the paper market are used to drive the price back down.

Similarly, when investors begin to flee Treasuries, thus causing interest rates to rise, J.P. Morgan and other dependencies of the Federal Reserve sell interest-rate swaps, thus offsetting the effect on interest rates of the bond sales. (Keep in mind that interest rates rise when bond prices fall and vice versa.)

The point of all this information is to establish that except for the 1 percent, the incomes and wealth of Americans are being cut back across the board. From 2002 through 2011 the economy lost 3.5 million manufacturing jobs. These jobs were replaced with lower-paying waitress and bartender jobs (1,189,000), ambulatory health care service jobs (1,512,000) and social assistance jobs (578,000).

These replacement jobs in domestic services mean that on a net basis US consumer income was moved out of the country. Potential aggregate demand in the US dropped by the differences in pay in the job categories. Clearly and unambiguously, jobs offshoring lowered US disposable income and US GDP and, thereby, employment.

Despite the lack of an economic base, Washington's hegemonic aspirations continue unabated. Other countries are amused at Washington's unawareness. Russia, China, India, Brazil, and South Africa are forming an agreement to abandon the US dollar as the currency for international settlement between themselves.

On July 4 the China Daily reported: "Japanese politicians and prominent academics from China and Japan urged Tokyo on Tuesday to abandon its outdated foreign policy of leaning on the West and accept China as a key partner as important as the United States. The Tokyo Consensus, a joint statement issued at the end of the Beijing-Tokyo Forum, also called on both countries to expand trade and promote a free-trade agreement for China, Japan and South Korea."

This means that Japan is in play.

The Chinese government, more intelligent than Washington, is responding to Washington's military threats by enticing away Washington's two key Asian allies. As the Chinese economy is now as large as the US and on far firmer footing, and as Japan now has more trade with China than with the US, the enticement is appealing. Moreover, China is next door, and Washington is distant and drowning in its hubris.

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Washington, which flicked its middle finger to international law and to its own law and Constitution with its arrogance and gratuitous and illegal wars and with its assertion of the right to murder its own citizens and those of its allies, such as Pakistan, has made the United States a pariah state.

Washington still controls its bought-and-paid-for NATO puppets, but these puppet states are overwhelmed with derivative debt problems brought to them by Wall Street and by sovereign debt problems, some of which were covered up by Wall Street's Goldman Sachs.

Europe is on the ropes and has no money with which to subsidize Washington's wars of hegemony.

Washington is becoming an isolated and despised element of the world community. Washington has purchased Europe, Canada, Australia, the former Soviet state of Georgia (and almost Ukraine), and Columbia, and continues its effort to purchase the entire world, but sentiment is turning against the rising Gestapo state that has shown itself to be lawless, ruthless, and indifferent -- even hostile -- to human life and human rights.

A government, whose military was unable with the help of the UK to occupy Iraq after eight years and was forced to end the conflict by putting the "insurgents" on the US military payroll and to pay them to stop killing American troops, and a government whose military has been unable to subdue a few thousand lightly armed Taliban after 11 years, is over the top when it organizes war against Iran, Russia, and China.

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The only prospect Washington has of prevailing in such an undertaking is first use of nuclear weapons, of catching its demonized opponents off guard by nuking them out of the blue. In other words, by the elimination of life on earth.

Is this Washington's program revealed by the neoconservative warmonger, Bill Kristol, who had no shame to ask publicly: "What's the good of nuclear weapons if you can't use them?"

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Dr. Roberts was Assistant Secretary of the US Treasury for Economic Policy in the Reagan Administration. He was associate editor and columnist with the Wall Street Journal, columnist for Business Week and the Scripps Howard News Service. He is a contributing editor to Gerald Celente's Trends Journal. He has had numerous university appointments. His book, The Failure of Laissez Faire Capitalism and Economic Dissolution of the West is available here. His latest book,  How America Was Lost, has just been released and can be ordered here.

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Kedep up the great work.Thank you.... by bogi666 on Sunday, Jul 8, 2012 at 12:35:22 PM
As always........This article was in today's paper... by 911TRUTH on Sunday, Jul 8, 2012 at 1:07:31 PM
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the link under 'Article'... by 911TRUTH on Sunday, Jul 8, 2012 at 2:51:48 PM
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Very possibly no one. However, I cannot for t... by Daniel Geery on Monday, Jul 9, 2012 at 1:53:43 PM
I'll certainly vote for his ass, he's the only one... by Tommy Wright on Monday, Jul 9, 2012 at 3:37:51 PM
Thanks for the great articles. I read everything y... by Janet Gaudiello on Sunday, Jul 8, 2012 at 3:29:53 PM
Great article.  Everyone I talk to agrees wit... by Ernie Messerschmidt on Sunday, Jul 8, 2012 at 4:02:21 PM
As a a Socialist I find it very disconcerting tha... by Jack Heart on Sunday, Jul 8, 2012 at 4:33:08 PM
Could someone please point me to specific articles... by Roland Michel Tremblay on Sunday, Jul 8, 2012 at 4:42:12 PM
Well Roland we can start by putting the criminals... by Jack Heart on Sunday, Jul 8, 2012 at 4:51:56 PM
First we citizens of the United States need to fac... by Patricia Gray on Sunday, Jul 8, 2012 at 9:41:36 PM
And anybody on here who supports Mr.Roberts needs... by Jack Heart on Sunday, Jul 8, 2012 at 4:47:35 PM
Obama has been aggressively pushing for even more ... by Lance Ciepiela on Sunday, Jul 8, 2012 at 6:46:33 PM
I cannot doubt even though it is terribly difficul... by Walter J Smith on Sunday, Jul 8, 2012 at 7:28:32 PM
The article above represents a studied overview of... by Ray Tapajna on Sunday, Jul 8, 2012 at 7:36:17 PM
I used to think that Rick Perry, Governor of Texas... by Deborah Dills on Sunday, Jul 8, 2012 at 9:22:24 PM
The only flaw is that Mr. Roberts like most people... by Paul Repstock on Sunday, Jul 8, 2012 at 9:30:04 PM
Uhh wasn't the takeover of Afghanistan so that the... by Tommy Wright on Monday, Jul 9, 2012 at 9:47:59 AM
The following are 70 facts that Barack Obama does... by Lance Ciepiela on Monday, Jul 9, 2012 at 8:21:46 AM
As has happened so often in the past, in so many d... by Norman Harman on Tuesday, Jul 10, 2012 at 4:23:03 PM