368th AP book of science--- Putting brakes on Stock Market AI bubble before it causes Stock Market Crash, then Great Depression // economics by Archimedes Plutonium This is AP's 368th published book of science published on Internet, Plutonium
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Archimedes Plutonium
Feb 25, 2026, 3:42:59 PMFeb 25
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Putting brakes on Stock Market AI bubble before it causes Stock Market Crash, then Great Depression // economics
by Archimedes Plutonium
This is AP's 368th published book of science published on Internet, Plutonium-Atom-Universe,
PAU newsgroup is this.
https://groups.google.com/forum/?hl=en#!forum/plutonium-atom-universe
Preface: I am publishing this book as fast as possible, in hopes of talking some common sense into government and economic ministers and Stock Market organizations, for the good possibility of a Stock Market Crash wielding a Great Depression. We have a company called Nvidia that makes computer chips valued at 4.6 trillion dollars with PE ratio over 53. We have scores of smaller companies thriving on this bubble. It is dangerous because if that bubble bursts, it could drag down the entire stock market and as you wake up, a Great Depression ensues. I write this book in a hurry so that some mature smart people can restore Sense and Sensibility back into the Stock Market, with a mechanism I call "Brakes" where bloated bubble companies are halted in trading and decline slowly..slowly to a normal PE ratio of 10 to 13. The Brakes will go slowly but offer stability to the market and reassurance that a crash to the market and global society is averted. Another mechanism is incremental Federal government taxes on company earnings that go beyond a 13 PE ratio. A tax on earnings alerting the investor, that bubble stocks will no longer be tolerated. Bubble stock sectors endanger all world economies.
Cover Picture: My iphone photo of scenes of the last Great Depression.
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Table of Contents
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1) We seem to have not learned much from the 1929 Stock Market Crash.
2) Stock PE ratio is the guide to prudence.
3) Always watch the price of gold to tell you if something bad is going on.
4) Taming of the Shrew Bubble.
5) First mechanism is a Stock Exchange rule; second mechanism is a government tax on bubble stock.
6) A little bit of math on PE ratio.
7) Trump & Bessent should be in excising the AI bubble, not installing cryptocurrency crap corruption.
8) Sci-fi Movie: Nvidia Nosedive.
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Text
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1) We seem to have not learned much from the 1929 Stock Market Crash.
Archimedes Plutonium Feb 22, 2026, 6:58:12 PM to Plutonium Atom Universe newsgroup.
The world is teetering on a Great Depression the likes of which was never seen before.
We have this huge ponzi con art Bubble of AI in the Stock Market. Machines are not intelligent and this moniker of Artificial Intelligence pulls in suckers all across the world investing in AI. To be intelligent, you need to have "self awareness" and no machine is able to turn itself ON or OFF or Recharge itself. Even a worm in biology is more intelligent than the best machine of today, for a worm knows it exists and moves around with that self knowledge.
The South Sea Bubble of 1713, did it cause a World Depression??? I think not. But a Bubble of AI in 2026 easily can ignite a World Depression for it would crash the stock market and send the USA into direct Depression. Certainly the Great Depression 1929-1939 was initiated by the Stock Market Crash of 1929. Apparently, if the market crashes in 2026, we can expect a Great Depression.
No wonder the price of Gold is making all time new highs every week. What was it last?? Was it $6,000. an ounce. Apparently gold tracks idiots playing the Stock Market creating bubbles.
And sadly we have as president a 6 times bankrupt loser bailed out by Russia who really is oblivious to what is going on in the world of finance and stock market. In fact, Trump is likely to stoke the fires of a Great Depression, in his idiocy of cryptocurrency and his mindless vengeance tariffs all favoring Russia for Dondolt hates Europe, hates even the USA.
I propose Brakes on all AI companies listed on Stock Market whose PE ratio goes above 13. Brakes on Nvidia with its 4.6 trillion capitalization.
Brakes on all so called AI (automation idiocy) for there is no intelligence here, to have intelligence a machine has to be self aware and can turn itself ON of OFF or Recharge itself.
Dondolt has no past experience in sensing a Market Collapse, and too foolish to even know what to do or how to prevent it.
Archimedes Plutonium Feb 22, 2026, 7:04:31 PM to Plutonium Atom Universe newsgroup.
I write this because I too will be swept up and go under if the Stock Market collapses.
Instead of Dondolt spending so much time in tariffing allies, if the idiot Trump put some brakes on the stock market bubble of AI, the world will breathe a sigh of relief, that Dondolt has his eye on the ball-- the welfare of the USA.
2) Stock PE ratio is the guide to prudence.
Archimedes Plutonium Feb 22, 2026, 8:01:26 PM to Plutonium Atom Universe newsgroup.
The AP Brake to stabilize the Stock Market and ward off collapse via Bubble
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The PE ratio is a good number to use for the Health of a company and the stock market overall.
Stalwart good companies like Verizon or AT&T have a PE of around 10PE
While Nvidia is grossly overpriced with its 4.6 trillion capitalization and PE of over 50.
So I say Halt Nvidia trading until that 50 PE goes drops down slowly to 10 PE.
If you halted Nvidia all at once and keep it halted you likely have a Market Crash.
So halt Nvidia as it slowly declines to a PE of 10. Halt it so it has a slow decline.
Thereby saving the entire Stock Market.
Archimedes Plutonium Feb 22, 2026, 9:28:34 PM to Plutonium Atom Universe newsgroup.
Now we can be a little flexible for Merck, the huge drug maker has a PE ratio of about 14 and Verizon of about 10. Somewhere between 13 and 10 is where Nvidia needs to be. Well, let us give some leeway for rising star companies, say PE 15, and then if more, action needs to take place to tame the stock.
So halt Nvidia stock tomorrow unless it falls, if it climbs, making its PE 50 or more, keep halting it until it slowly gets down to 13 to 10. Let it trade if it falls too much. The point is to have a measured fall.
Do this to the entire sector that is dubbed "AI" which to me means Automation Idiocy and which means to most investors (suckers) as Artificial Intelligence.
Most do not see that such bubbles risk the collapse of not just the sector, but the entire stock market. Easily ushering in a Great Depression.
Dondolt Trump and his immature Scott Bessent are out in left field totally unaware of the danger to the Stock Market, and global finances. These two fools focus on tariffing allies to pay attention to the Stock Market. Two fools who think cryptocurrency is decent when it should be outlawed.
If the stock market crashes, Dondolt will go down in history as a satan, a foolish satan.
3) Always watch the price of gold to tell you if something bad is going on.
I use to love reading the newsletters of Dr. Franz Pick, so enjoyable. He often said-- gold is the only real money.
His teachings to me, is, money is always gold, and if gold is high, well there is something rotten in Denmark (Hamlet) something rotten in the world of finance and economics. And the wise person should find out what is rotten.
In the past year, 2025, one only needed to watch the price of Gold zoom to $6000 an ounce. I remember gold prices in High School 1968, at $35 an ounce. Silver coins were halted in 1965.
No, unless Dondolt does something with this AI bubble, and the Stock Market collapses, we have a Great Depression. The USA currency collapses and then BRICS nations replace the USA dollar as international currency. We may have a WW3 due to a collapse in USA government.
No, Dondolt focuses on his petty vengeance of Europe and his love of Russia as USA goes down the drain with a collapse of the Stock Market, and ensuing Great Depression. Remember Trump's first term where he was swept aside in the Covid 19 pandemic. I remember him on stage trying to direct scientists with Dondolt's anti-science dumb comments-- would not bleach help??
When you have a fool as president, his administration is always punctuated by disaster. This time looks like a Stock Market Crash with Depression. Worse than the covid-19 pandemic.
Donald Trump in a campaign speech:: "Only I, can do it"
AP replies:: That is right Dondolt, only you can destroy USA in one years time which took thousands upon thousands of brave smart people to build into a superpower over 250 years, while you destroy it in 1 year of your endless petty nonsense.
4) Taming of the Shrew Bubble.
Archimedes Plutonium Feb 22, 2026, 11:03:56 PM to Plutonium Atom Universe newsgroup.
I do not know if the world of finance and economics has ever had experience in what is called "Taming a Bubble" (Shakespeare's Taming of the Shrew), seeing the horrific danger of a bloated sector of the market that could easily come tumbling down and carrying with it the entire stock market.
Apparently the US markets have never installed "dampers" for the ridiculous notion of big companies with almost 5 trillion dollars with a PE of 50, a mindless PE of 50 when companies should not be over 10 to 13 PE.
Is there a remedy of the US government stepping in and taking over Navidia until it settles down to a 10 to 13 PE.
If not, well the Stock Market itself needs new rules protecting the markets. Rules that say if a Bubble is forming or has formed, the way to break the bubble without a collapse of the entire system, is halt trading of Navidia until it slowly, we do not want it to decline fast for that may collapse the market. Bring Navidia down to a 10 to 13 PE ratio.
A so to speak decline in the Stock Market saving us from a Collapse.
I will get hurt if the market collapses even though I own no AI stock, the stupid pandered intelligence when the "I" really stands for Automation Idiocy. A flea on my cat has more intelligence than all the AI computers combined, for the flea has "self awareness".
And the fool Elon Musk thinking AI will be driving cars instead of humans. Tell me, are you intelligent enough to never be on a expressway with one of these dumb machines behind the steering wheel????
No, AI needs to come down from cloud 9, for it threatens the entire Stock Market and banking system of the USA, for if it crashes, we surely are faced with a Great Depression.
5) First mechanism is a Stock Exchange rule; second mechanism is a government tax on bubble stock.
Archimedes Plutonium Feb 23, 2026, 4:30:19 AM to Plutonium Atom Universe newsgroup.
Now here is an alternative idea of getting Nvidia and all the other bloated hyped bubble AI stock into a zone of safety.
It is always better to have several ideas to pick from.
My first idea is the stock market have Brakes, that cause the stock to decline from the outrageous 50 PE to a normal PE of 10 to 13. Looking at Lilly stock, another overpriced behemoth-- 53 PE but in the drug business not the con-scam-heretic-lunatic AI.
So what is a second option of getting overpriced behemoths into line?
Consider the Federal Government enters to make sure the Market has no bubbles that could topple the entire market even topple the USA in a depression. Governments are good at taxes, and they love taxes.
So do you say that the Government steps in and taxes shares of Nvidia at a rate in which Nvidia shares start to drop, drop slowly and keeps dropping because the government has taxes on companies that are bubbles. Suppose the Government taxed (call it a bubble tax) Nvidia 25% tax on earnings for the first year and see if the price falls to making a PE of 20 then the next year tax Nvidia 15% (Dondolt's favorite tariff number) and see if Nvidia drops to a PE of 13 then remove the tax. Do the same for all the smaller bubble stocks of AI. Do it on Lilly? I say yes, because no company should have an outrageous PE of 53.
I look on PE in a more broader sense as years into the future.
When you have a PE of 10 like AT&T or Verizon means that their business is going to be about the same 10 years down the road. And 10 years down the road is reasonable to be betting on.
But when you have a PE of 50 like Nvidia is saying that in 50 years from now, you are going to have a chipmaker doing chips in year 2026+50= 2076. If we are to come back in 2076 and looked in on Nvidia, it may no longer be in existence for 50 years in electronics is beset with huge changes.
What I am saying is that the PE is a numbers guess of years that a company will be there and strong. Many companies do not survive 50 years and ridiculous to give them a PE of 50.
So now I have two options of getting rid of this Bubble that threatens the USA.
1) the markets have Brakes, halting a stock overpriced and slowly bringing its price to a 10-13 PE
2) Federal government have a Bubble tax, that brings bloated companies down in price to a 10-13 PE
I hanker to pick (2) for taxes send hebee jeebees down the spines of investors. And before you can snap your fingers, Nvidia will be 13 PE
Archimedes Plutonium Feb 23, 2026, 4:32:35 PM to Plutonium Atom Universe newsgroup.
Yes, the taxing idea is the better idea.
Monday, 23Feb2026, Nvidia was up with its outlandish 4.6 trillion market capitalization and 50 PE.
P/E ratio is price of the stock divided by earnings per share of that company. If a company has a PE of 1 means in one year, the company could buy itself out with its earnings. When a company has a PE of 10 like AT&T or Verizon, means in 10 years of earnings, everything staying the same, AT&T or Verizon could buy themselves out. When you have Lilly at PE 53 or Nvidia with PE 50 means Lilly can buy itself if all things stayed the same in 53 years, Nvidia in 50 years.
When companies get enormous PEs tells us something crazy is going on for many companies totally disappear in 50 years especially electronics.
Why is high PE dangerous to finance and economics??? A Stock Market crash can start with these Bubble stocks, driving all other stocks downward, people losing money, then jobs and a full blown depression.
The Great Depression of 1929-1939 lasting a solid 10 years, was started, and we seem to easily forget, was started in the Wall Street crash of 1929. That crash started in October of 1929-- where October 24, 1929 known as Black Thursday followed by Black Tuesday.
Britannica says GE fell from 396 to 210, and AT&T dropped 100 points.
How did Dupont do on Black Thursday?
Apparently the world conscious has forgotten 1929, yet we have the makings of that history present today with the likes of the AI bubble and some drug companies like Lilly. We already see it in soybean farming. I see it from my home in South Dakota where in eyesight of the train tracks is two huge cranes that unload soybeans, 2 mountains of soybeans stored on the ground.
Dondolt with his tariffs is probably speeding up the risk of another Black Thursday.
A federal government Tax, a Bubble Tax needs to be applied immediately of 25% earnings and start driving down this high risk bubble stock, and smaller AI bubble stocks.
If left unchecked, this bubble can cause the entire market to collapse and enter a Great Depression.
I know we have an unhinged lunatic as president in Dondolt Trump who tariffs friends and allies and cannot even come to admit Russia is our enemy and started the war in Ukraine, but I also know there are still many in government with a clear mind and realize this disaster of a depression is looming and can stop it before it unfolds.
Archimedes Plutonium Feb 23, 2026, 8:40:00 PM to Plutonium Atom Universe newsgroup.
On Black Thursday of Stock Market Crash 1929 which initiated the Great Depression, Dupont fell from 217 to 80.
You see, everyone in the Stock Market today will be pommelled when the Bubble of AI crashes, with their absurd PE of 53 or higher. And sending the USA into a Great Depression. Dondolt Trump is too crazy and insane to understand any of this, and his tariff war on friends and allies only accelerates the USA stock market collapse and Great Depression.
We have to count on some intelligent minds in the administration to impose a tax on all companies of AI with their Bubble PE ratios. A tax on earnings so that investors slowly get out of those stocks leaving them at a 10-13 PE.
Useless for the government to step in when the Crash is over and done with. The fool Trump is more occupied in his stupid tariffs to take notice of what is really important.
Tomorrow night is the State of the Union speech for Trump, a platform of rah rah rah ignorance and liaring. Last year Trump was greeted by Democrats in the audience with signs of "false" whenever Dondolt liared. This year I hope the signs are more robust and more to the mark with "Lunatic" and "shithead" and hopefully raised whenever Trump glances over in the direction of the Democrat audience.
Archimedes Plutonium 2:58 AM 24Feb2026, to Plutonium Atom Universe newsgroup.
Please Democrat, even Republican, even Supreme Court Justices, make the State of the Union speech memorable. I hear some Democrats are boycotting the speech. Please do not do that, not while you have this great opportunity to express what you feel and what 65% of Americans feel about Trump.
Last year dissenters had signs that said "False" for Trump liaring. That is far too mild and passive. You need to show your true strong feelings. This year have signs saying "Shithead" on one side and saying "Lunatic" on the other side. Have fold up signs to get past the guard at the entrance. And when Trump is looking in your direction please hold up the sign.
Especially Congress persons retiring this year.
Please express what 65% of Americans are feeling about this lunatic-- the Oaf in the Oval Office.
Please do not boycott the speech but show your sign.
Maybe the guards will eject you from the speech, but you accomplished more than what you came for. And 65% of Americans will thank you.
Archimedes Plutonium 4:20 AM 24Feb2026, to Plutonium Atom Universe newsgroup.
Or, well this is a nice attire to wear to the State of the Union Speech by Trump. Get a original Jacques Tilly costume and hopefully sit in the front row. Maybe Clarence Thomas can wear this one.
A Tilly sculpture of Vladimir Putin, commemorating the 2022 Russian invasion of Ukraine.
Sort of reminds one of Hollywood awards with women wearing see through dresses.
And I think that Mr.Jacques Tilly is one of the greatest artists of all time, even greater than daVinci with his Mona Lisa. I say that because few artists can charge up people into action and into laughter and promote true politics.
6) A little bit of math on PE ratio.
Archimedes Plutonium 4:56 PM, 24Feb2026, to Plutonium Atom Universe newsgroup.
Let me do a little bit of math here.
So today, 24FEB2026 that Nvidia was priced at $192. a share with PE of 53.
PE is Price/(earnings per share)
Meaning 192 / E = 53
192 = 53E
E = 192/53
E = $3.62
Nvidia earns today 3.62 dollars per share.
What would be the PE if the stock fell to 1/2 of its price.
192/2 =96
What is the PE if Nvidia were today $96 per share earning 3.62???
96/3.62 =26.5
So if the price today were halved, the PE is halved.
Say the following day Nvidia stock fell by half again.
$96/2 =$48.00
48/3.62 =13.26
Yes, so what we need to fix the Stock Market is two days of halving the price of the absurd and outrageous stock AI of Nvidia and all its smaller AI cohort stocks in AI bubble.
Two days of each cutting in half the price of AI stocks to insure the Stock Market does not collapse and usher in a Great Depression.
I want to go back to Black Thursday 1929 and see if Two Halving of GE or AT&T and their related PEs were before the crash.
I believe only the USA government can step in and threaten with a Bubble Tax on these companies to force their price down in half then another half.
If the Stock Market halts trading to force a reasonable PE of 13, I do not think the stock will decline to 13 PE. But if the Federal Government steps in and threatens a Bubble Tax, a tax of say 50% on Earnings for Nvidia, then I am assured the next day Nvidia will decline.
Is this the job of Treasury Secretary???? Probably, but is Scott Bessent mature enough to understand any of this, for it seems he has he head in tariffing friends and allies, and not in making sure we do not have a Great Depression.
7) Trump & Bessent should be in excising the AI bubble, not installing cryptocurrency crap corruption.
Archimedes Plutonium 5:12 PM, 24Feb2026, to Plutonium Atom Universe newsgroup.
Trump has been the worst president in USA history and needs a robust response for his State of the Union Speech.
He broke apart NATO friends and allies.
He is willing to give over Ukraine in full to Russia.
He wants to steal Greenland.
He wants to install cryptocurrency, a pure evil.
He has destroyed Medical science in the USA.
He has destroyed the environment with no clean air or water.
He is ignorant of Wind Farms.
He hates science.
Almost every sentence out of his mouth is a liaring.
He was a 6 times bankrupt loser, bailed out by Russia.
He loves Russia, hates Europe, hates even the USA.
No, Trump needs a robust response tonight at his State of the Union.
Instead of the mild mannered signs of "False" by congress persons, the signs should read "lunatic" and "shithead". For, 65% of Americans have come to realize that Trump is a sick satan as president and belongs in a Medical Clinic, not the oval office.
Archimedes Plutonium 3:50 AM, 25Feb2026, to Plutonium Atom Universe newsgroup.
Wikipedia says the average PE ratio in September 1929 was 32.6, above historical norms.
But that is counting and including all stocks in the S&P in 1929.
If the Normal PE ratio is 10 to 13 then clearly, the 1929 crash could have been predicted by most.
It is said that in the 1929 Crash even shoeshine boys along Wall Street were playing the stocks.
What I am saying is that AI Bubble with its 53 PE is a danger sign and could easily bring down the whole market and wake up tomorrow to a new Great Depression.
The Federal Government needs to step in, now, and start bringing down these dangerous inflated stocks like Nvidia.
Bring them down slowly.
Tell them a Bubble Tax on all stock companies with inflated PEs. Tax Nvidia, tax Lilly with a 10% tax on all earnings at the start, we do not want a panic. We want to bring Nvidia from its $192 price down to say $150. Then wait a few days and impose a 15% tax on earnings, bringing Nvidia down to say $100. Slowly and incrementally bring Nvidia and all the other AI nonsense stock until they are at a 10-13 PE ratio.
Unless this is done, this Bubble can topple all of the Stock Market.
Seems as though we really did not learn much from the 1929 Crash for we are in the same sort of predicament now.
I too have a lot at stake, for no-one benefits if we have a Crash then we have a Depression. Trump is too busy on his nonsense tariffs to notice we are heading for a Crash and Depression.
8) Sci-fi Movie: Nvidia Nosedive.
Archimedes Plutonium 5:53 AM, 25Feb2026, to Plutonium Atom Universe newsgroup.
On second thought, it is probably better for the Stock Exchange to have rules when PE gets too high. Rather than have government tin badge tin-pots playing tax games.
So, probably the best cure for extravagant PEs is to have a rule that if a company PE gets over 20 is to automatically delist them from the Stock Exchange. Let the company itself deal with investors who bought in, and since their PE is so high, they should be able to handle their investors in future earnings.
While thus, leaving the Stock Market go its own way, without fear of the bubble dragging them down.
And so, just one of these ejections, would likely awaken and educate all investors--- that if you spike a company to outlandish prices, you end up with your company ostracized.
This goes for Lilly also, with its 53 PE.
And also, it improves TV shows on investing. So we stop hearing Dave Westin of Wall Street Week advertising the dumbfounded AI, AI this, AI that. I am surprised Bloomberg allows this hype of AI.
I wonder if Warren Buffet was suckered into AI, I surely hope he is far smarter than that.
Archimedes Plutonium 1:45 PM, 25Feb2026, to Plutonium Atom Universe newsgroup.
And there she is, Nvidia, up 4.41 to a new high of 197 a share with PE almost 54.
Threatening the entire Stock Market for a Crash and subsequent Great Depression.
Sci Fi Movie-- Nvidia Nosedive
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The Chinese Lunar New Year and BRICS anxiously wants to trash can the USA dollar and make the Yuan the new international currency.
Starting in 2024 when Dondolt Trump won the election various Chinese secret organizations kept buying Nvidia stock, lifting the stock to absurd new highs. They did it secretly so the West would not notice. And sure enough they got Nvidia up past 40 PE. They added more and more.
Then comes 2026 with Tariff war galore.
Russia and China want to put the USA into a Depression and replace the US dollar with the Yuan.
China has huge amounts of US Treasury bonds along with other BRICS.
Then comes February, late February 2026 and the trap is set to spring.
China sells all USA treasury bonds it has along with BRICS who have USA treasury bonds. USA treasury secretary is aghast at the commotion.
But the stinger is yet to come, for on that afternoon of the bond sell-off. Every Chinese owner of Nvidia sell their stock.
Nvidia opened at 196, and in afternoon it had dropped to 80 a share with the glut of sell orders. Trump and Scott Bessent seen on TV trying to calm fears.
Entire Stock Market takes a 25% hit and Trump announces a closing of the market for that day.
Next day the Stock Market does not open.
China announces to the World, that the Yuan is now the International Currency as the US treasury is closed and the Stock Exchange is closed.
Immediately, corporations announcing layoffs in Europe and USA.
AP, King of Science
zzzzzzzzzz
plutonium dot archimedes at gmail dot com. Looking for a College or University press to hardcover publish all 368+ AP books of science, likely to become 500-600 maybe even 700 books by the time I die. E-books are too prone to unbalanced-unhinged censor-editors, who can easily make your books vanish by pulling a switch. Science should never have gatekeepers, who thwart access to true science.
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|/______ hardcover or paperback
PAU newsgroup is this.
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Archimedes Plutonium
Archimedes Plutonium
Feb 27, 2026, 1:38:39 PMFeb 27
to Plutonium Atom Universe
Yes, President Trump, please get the Stock Market AI bubble down down down or it will Crash, and usher in a New Great Depression. Yesterday Nvidia was down approximately 10 points and today down 5 points. Keep it sliding for if the Market crashes, you will be on stage like you were in 2019 with the Covid-19 pandemic looking for solutions and the lost 2020 election.
Donald, if you usher in a New Great Depression -- America will lose the dollar as the international currency and China will take over that responsibility.
The PE ratio of Nvidia is outlandish at 53. It needs to come down to that of less than 20 to be normal and normalize the overall Stock Market with all those other AI smaller companies as Bubble.
Donald, your falling in love with satanic companies of Cryptocurrency-- of no value to the world as cheaters and laundry criminals use cryptocurrency-- Donald your love of evilness in the Stock Market spells nothing but bad bad bad. So you need to get rid of cryptocurrency along with slowly bursting the AI Bubble.
Your poor handling of the pandemic in 2019 is nothing compared to a Stock Market Crash that threatens a Great Depression.
Yet, here you are Donald, threatening war on Iran, when you should have your eye on the ball of staving off a Great Depression.
If you invade Iran, it is a trap, because simultaneously China will invade Taiwan, leaving you with nothing to respond with. And maybe that is what Putin latest telephone call to you, Donald was all about. Putin wants you to invade Iran as to give China the perfect excuse to invade Taiwan and seize it. So make Putin and Xi happy, Donald, invade Iran so that Taiwan is captured by China.
You can be sure that NATO and Mark Rutte will do nothing, because in the news today is more of the same same same with Rutte's NATO doing nothing.
--- quoting BBC---
Tram derails in Milan, leaving one dead and dozens injured
1 hr ago | Europe
Drone jammed near French aircraft carrier was probably Russian, says Sweden
3 hrs ago | Europe
--- end quoting BBC---
Mark Rutte, couch potato, every day Europe airport or rail lines are attacked by Russia and you do nothing. When you should be doing that every country in Europe attacked by Russia send their NATO contingency into Ukraine fighting alongside Ukraine army.
What is the point in a NATO army after all, when every day now, Russia attacks a airport, French aircraft carrier, a European rail line....
Mark, what is the point.....
Archimedes Plutonium
Feb 27, 2026, 3:04:44 PMFeb 27
to Plutonium Atom Universe
Please, Judge Roberts and rest of Supreme Court, there must be something in the US Constitution and related papers that makes it mandatory for Trump to talk with Putin on telephone be broadcast live to all the American people.
It gives me the creeps, thinking and knowing that Trump could give away all of the USA, in some secret telephone call.
Remember: in our modern era where Russia could make the USA a radioactive ash pile in just 30 minutes, that the USA cannot afford private and secret telephone calls between Trump and Putin, especially when one or both are unhinged.
Please, Judge Roberts, force telephone calls between Putin and Trump be made "Live" for the American people to know and judge what Trump is giving away.....
AP
Archimedes Plutonium
Feb 27, 2026, 11:06:01 PMFeb 27
to Plutonium Atom Universe
Alright, I have a new 3rd method of breaking the dangerous AI bubble that portends a Stock Market Crash and ensuing New Great Depression.
So far I outlined these two methods.
(1) The Stock Exchanges surveillance of companies whose PE ratio is absurd and halt the trading in the company until the price comes down.
(2) The Federal Government monitors company PE ratios and if far over a 10-13PE ratio that the government impose a Bubble tax on the company to bring its PE in line with normal PE ratios.
Today in the news is the AI bubble stock of Anthropic. Let us take a look why it is in the news.
--- quoting BBC---
Trump orders government to stop using Anthropic in battle over AI use
51 mins ago | Technology
--- end quoting BBC ---
So this constitutes a 3rd method to bring down bubble stocks.
(3) Government impacts the earnings of a bubble stock by not buying their products and thus the company price nosedives.
This method actually questions how much the government is the reason all AI stocks are abnormally high, as having the government being the prime customer. So how much of Nvidia earnings are really just the government buying their chips and thus causing the bubble itself.
AP
Archimedes Plutonium
Feb 28, 2026, 12:02:42 AMFeb 28
to Plutonium Atom Universe
Good excellent show David Westin--- Wall Street Week, 27Feb2026. You talked about tariffs. You talked about a book on "Mistakes". And you talked about a factory home builder in Sweden. Not once was AI mentioned. Bravo.
Keep up the good work, David.
Archimedes Plutonium
Mar 2, 2026, 4:06:37 PMMar 2
to Plutonium Atom Universe
So, Nvidia is up today, up +5 a share to 182 with PE 36.
So is the USA government itself to blame for creating Bubbles which end up causing a collapse in the entire USA society of Stock Market first followed by another Great Depression. I ask this because the Government is the main-- ____perhaps only buyer___ of these silly chips, the chips of Artificial Ignorance.
A machine will NEVER ever be intelligent unless it can be Self Aware of itself. Can it turn itself On or Off or Recharge of its own volition???? No. Why in last weeks NATURE show was a group of Orcas that is self aware of not only each individual in the pod but that the pod knows that whales need to breathe air and thus they drowned a whale. That is intelligence, but given every AI machine, not a single hint of any intelligence, no, rather instead--- Artificial Stupidity is the state of AI. Rename it AS, Artificial Stupidity or ASS Artificial Super Stupidity.
Nvidia stock should have a PE of no more than 13, not 36.
So, well this is troubling for the government itself is causing the bubble. Propping up all these AI--ASS companies by buying their mindless "N'er Do Well" chips.
AP
Archimedes Plutonium
Mar 7, 2026, 4:04:53 AMMar 7
to Plutonium Atom Universe
David Westin, Lloyd Blankenfein, are you just fueling a bubble of Stock Market Crash with Global Depression.
It should not be called AI but rather ASS for Artificial Super Stupid.
Lloyd of Goldman Sachs addressed the huge 2008 debacle where banks had built a Bubble on home mortgages, and where Lehman Brothers went under. Will Goldman Sachs go under in a AI bubble.
Westin and Blankenfein, what you are not getting and not seeing is there is _____ no intelligence______ in AI. It is simply Automation, and mostly useless automation. What is propping up AI nonsense is the USA govt itself bites into this bubble for most of these bubble stocks are 100% revenue from government suckers. Just like the recent Anthropic AI battle, where a company has all its earnings from the government, for no sane investor goes near a PE ratio of 46.
Neither one of you studied fully science in college to know you_______ better define what you mean_____before you invest.
DEFINITION OF INTELLIGENCE
--------------------------------------------------
A threshold to say an entity is intelligent is Self Awareness-- can it turn itself ON or OFF or Recharge of its own volition. Obviously no robot today can do that.
So, Westin and Blankenfein, are you leading fools to throw away their money and crash the markets leading to Great Depression.
The first sign of wisdom is "define things" before you invest.
Ever watch NATURE on PBS??? Almost every animal that appears on Nature is Intelligent because it has
Self Awareness. No machine is Intelligent today and to call it AI is corruption and fraud.
AP
Archimedes Plutonium
Mar 7, 2026, 7:15:29 PMMar 7
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No, sorry, my mistake----- _____every animal____ that appears on NATURE PBS is self aware of itself--- from a worm to a microorganism. All of them have More Intelligence than this stupid nonsense of AI.
The FIRST ORDER of intelligence is having Self Awareness. And as far as I can see, absolutely no machine possesses that and likely---- Never Will.
ChatGPT is no better than a MacPaint 2.0.
Idiots in California with their AI are doing great in making a Bubble to crash the market and lead the world into a Depression, but as for developing true science--- they are deluded frauds.
AP, King of Science
Archimedes Plutonium
Apr 19, 2026, 6:30:59 PMApr 19
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I need to make a running commentary on Dr. Franz Pick who was my teacher of economic ideas (although I never met him) I avidly read his newsletters.
I believe under Trump that the US dollar will collapse and the Chinese Yuan will take over, as China has a more stable government headed by a chemical engineer Xi. Whereas Trump hates all forms of science since he fails in every science. No nation can survive a president who hates science.
So, I am reasonably sure that the USA dollar will collapse if Trump finishes out to 2028.
The key step will be the fate of Ukraine. If Ukraine falls tomorrow, the next week the Yuan will replace the USA currency as international currency.
I was thinking surely the Wikipedia would have a bio on Dr. Franz Pick. Sorry, I was disappointed to find none.
AP, King of Science
Archimedes Plutonium
Apr 19, 2026, 6:56:45 PMApr 19
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I am happy to see my "In Memory of Dr. Franz Pick" is 2nd in a search hit of this wise man who lived among us from 1898 to 1985. Wise people of "money" are seldom listened to or even respected, because, well the living in luxury does not want to hear about reality and what is left to our young-- a wasteland because we lived far beyond our means. I found my old posts, a long series of posts commemorating Dr. Franz Pick, found the in alt.sci.physics.plutonium. I hope to reprint those posts here and include it in this book of mine #368. And to run a commentary where Dr. Pick left off and I continue.....
p
pp
ppp
Archimedes Plutonium
Apr 19, 2026, 7:07:26 PMApr 19
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Yes, my old posts on Dr. Pick were in my newsgroup of alt.sci.physics.plutonium of the 1990s. I strongly feel that the greatest economist of the 20th century was Dr. Pick and should have won the Nobel Prize in Economics for his work in the 1970s and 1980s. I actually see no worthiness in any other Nobel prize in economics, other than if Dr. Pick had won it.
--- quoting alt.sci.physics.plutonium---
In memory of FRANZ PICK , 1898-1985, rest in peace, atom
1b views
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Archimedes Plutonium
Jun 8, 1995, 2:00:00 AM
to
In article <3q7ur0$l...@dartvax.dartmouth.edu>
Archimedes...@dartmouth.edu (Archimedes Plutonium) writes:
>PICK: As for the generals in the Pentagon, they have been completely
>indifferent to the deterioration of the American monetary unit which,
>unfortunately, has destroyed most of what was once Washington's
>political superpower superiority.
> These developments are easily readable from the chronology of
>budgetary deficits and balance of payments shortfalls in the post-World
>War II era. They remind the currency analyst of the dilettantish
>mismanagement of the Pound Sterling in the postwar years of 1919-1931,
>which eventually forced the liquidation of the British Empire.
> "ALL POSSIBLE PUBLIC RELATIONS TECHNIQUES HAVE BEEN USED TO
>TRANQUILIZE THE HOLDERS OF NEARLY US$1 TRILLION OF GOVERNMENT DEBT
>CERTIFICATES."
PICK: The road to this record decline of the Greenback was gilded with
all possible public relations techniques explaining to the public at
home and to the world that whatever Washington did was good for all the
people on this planet.
The object of this propaganda was to tranquilize all the capitalistic
and patriotic holders of the nearly US$1 trillion of government debt
certificates issued to pay for Washington's expenditures that could not
be covered by receipts.
It goes without saying that all these shortfalls were covered by the
printing press in the form of engraved paper. To reduce public fear,
abundant monetary sugarcoating was applied to harsh facts with
masterful virtuosity.
The official cost-of-living index was changed at least once every ten
years to deceive the public and prevent them from having qualms about
any kinds of bonds. It was always a policy of sweeping past blunders
under the carpet of history. In the meantime, the money supply rose and
rose.
"AMERICA IS WHOLLY DEPENDENT ON MERE DEBT AND MORE INFLATION, MERELY TO
PREVENT A DEPRESSION OF GIGANTIC PROPORTIONS."
The result is that America is wholly dependent on the creation of
more debt and more inflation merely to keep an economic contraction
from snowballing into a depression of gigantic proportions.
Nowhere is there mentioned by the new regime what is the sine qua
non of any attempt to bring a halt to the debasement of the monetary
unit -- currency stabilization, in terms of foreign exchange value as
well as purchasing power.
As long as this most fundamental thought remains absent from the
thinking of the new managers of the Minidollar, whatever new edicts
come from the occupant of the Oval Office will meet with little
success.
Furthermore, if there are any good intentions by the new
Administration to stabilize the Greenback and with it the price of gold
at much higher than present levels, they will be frustrated by the
innumerable booby traps laid down by the entrenched anti-gold
bureaucracy of the US Treasury.
Indeed there have already been trial balloons sent up about the
possibility of raising revenue for the government by selling gold.
Apparently, the recent fiasco of bullion sales has made no impression
whatsoever.
Me: The above was written by Dr. Franz Pick in Late February 1981
under the title "40 YEARS OF DOLLAR DEBASEMENT CANNOT SUDDENLY BE
REVERSED". I myself remember the year 1981 well. Dr. Pick mentioned
that USA debt was 1 trillion. A few weeks ago reading USA TODAY money
section it had printed that the debt now is near 7 trillion. But that
debt is the official stated debt whereas Dr. Pick would probably come
up with a figure that was over 10 trillion. That is really serious and
awful news. For if a nation goes down the tube,the fastest way is to
destroy the money itself. A bloodbath results.
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Archimedes Plutonium
Jun 12, 1995, 2:00:00 AM
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40 YEARS OF DOLLAR DEBASEMENT CANNOT SUDDENLY BE REVERSED by Dr.
Franz Pick, SGR Contributing Editor, Late February 1981
PICK: Debasement of the Dollar has become the indispensable means of
pushing the economy to greater increases in so-called "growth." The
inflationary process, after 40 years, cannot be reversed by suddenly
embracing monetary puritanism.
Prospects for a gold standard for the Minidollar still remain a big
question mark. Under present conditions it simply could not function.
The basic prerequisite for linking a monetary unit to the yellow metal
is that the currency must first be stabilized in terms of purchasing
power as well as in foreign exchange value.
Then and only then, can the unit be given a new definition in terms
of gold.
Moreover, it goes without saying that if a country has a stable
currency, it does not need gold -- witness Singapore with its superbly
managed dollar. And even if a country does have substantial gold, the
horrible mismanagement of the currency can only lead to a bankruptcy of
the gold reserves.
Fifty years ago, Argentina, Brazil and Uruguay had as much gold in
their Central Banks as West Germany, Switzerland, and Italy have today.
Five decades later, the Brazilian Cruziero and Uruguayan Peso are
mangled by double and triple digit inflation with their monetary
reserves virtually bare of the yellow metal.
"FULLY PAID HOLDINGS OF GOLD BARS AND COINS SHOULD NOT BE SOLD."
Me: I maintain that Dr. Pick is on the mark. One of the worst troubles
of USA today is that politicians feel nothing bad can come of the USA.
They feel that they can correct any problem that comes their way. They
are so very ignorant of complex problems such as the destruction of the
USA currency. And of course they have had little living memory of
failed USA currency such as the Continental Dollar. USA Democracy is a
band-aid fixer-up-er of major problems that come and to some extent the
politics of the USA today are the major cause of our problems. Our
so-called Democracy is more of a system where politicians destroy the
currency in order that the elected officials remain in office by
promising more free give-away money to the populace which votes them
back into office. Even a fool, if she or he reflects long enough can
see that our system cannot last indefinitely. Someone has to pay the
piper of a govt that is 10 trillion dollars in the red and where 40% of
the populace live on welfare. Welfare creates overpopulation. Welfare
creates heavy taxes on people who do work for a living. Welfare
eventually creates a bloodbath to purge the system from its decay. The
trouble with a nuclear war to purge the system is that the warheads
just cannot distinguish between people who work and people who are
living parasites.
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Archimedes Plutonium
Jun 15, 1995, 2:00:00 AM
to
In article <3rg440$3...@dartvax.dartmouth.edu>
Archimedes...@dartmouth.edu (Archimedes Plutonium) writes:
> 40 YEARS OF DOLLAR DEBASEMENT CANNOT SUDDENLY BE REVERSED by Dr.
> Franz Pick, SGR Contributing Editor, Late February 1981
PICK: The outlook for gold cannot be regarded as a dim one. The
various pressures, mostly psychological, which are working against the
yellow metal will eventually subside -- but not the dynamics of
inflation.
It is the Greenback which is unstable, and not bullion. Double-digit
interest rates will not remain a permanent fixture in American money
markets. And since all economic activity in America is geared to the
debasement of currency, fully paid holdings of bars and coins should
not be sold.
Me: I agree and think that all smart people should own a little of the
precious metal as a form of insurance. By little I mean something like
1% of portfolio worth. And here I disagree with Dr. Pick for I believe
good stock has a chance of making it through a currency collapse. And I
believe it is the corporations of the future who will politically rule
the Earth and not our present outmoded system of elected officials.
Gold and silver holdings as an insurance policy. It is to be put in
safekeeping such as buried in the ground should the world go through a
currency reform or cataclysm which requires you to use it. Gold and
silver have always been the world's real money. Government's go off of
the metals only to get a free ride for a length of time, but they all
are forced back onto the precious metals when their sins catch up with
them.
One only need look at the coinage to see the history. It is now the
case that a copper penny has more copper value than the 1 cent
purchasing power. And that a steel company can just buy rolls of
nickels and melt down the nickels for their steel. When the day comes
that the metal content of a Susan B dollar of aluminum is worth more in
purchasing power than the actual dollar will be scary times to come.
AMERICAN INDUSTRY, DECAPITALIZED BY 4 DECADES OF INFLATION, IS LIVING
ON CASH FLOW AND BANK LOANS TO STAY IN BUSINESS by Dr. Franz Pick, SGR
Contributing Editor, Late March 1981
PICK: Throughout history, governments have always spent more money than
they've received from revenues. In order to keep this up, governments
have had to cheat their citizens -- by borrowing money in exchange for
unkept promises to pay it back with interest.
This is a charade which regimes and a gullible public continue to
play today.
In the United States, the new ruler confronted this age-old problem
by making a widely praised "speech from the throne." In it, he proposed
to master the problem with some sort of four-year plan to wipe out the
budget deficit.
"POLITICIANS THROUGH THE AGES HAVE KNOWN THAT THE VOTERS DO NOT WANT
REALISM; THEY WANT MAGIC!"
And it seems as if the new ruler and his technicians fancy themselves
as prestidigitators par excellence.
Me: The above writing was done in whose administration? I forgot and
could care less. But it brings up a thought in me again of how
inadequate is USA politics. Because when a new president is elected for
a 4 year term, he/she does nothing for 4 years except prepare for
re-election. So in USA politics, at least 4 out of every 8 years is
sort of like a lame-duck presidency of not very good quality
leadership. The chances of doing good politics is in the second term
where the president can devote all the time on doing something that
will have importance.
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Archimedes Plutonium
Jun 18, 1995, 2:00:00 AM
to
In article <3ro9ma$o...@dartvax.dartmouth.edu>
Archimedes...@dartmouth.edu (Archimedes Plutonium) writes:
> AMERICAN INDUSTRY, DECAPITALIZED BY 4 DECADES OF INFLATION, IS LIVING
> ON CASH FLOW AND BANK LOANS TO STAY IN BUSINESS by Dr. Franz Pick, SGR
> Contributing Editor, Late March 1981
PICK:
> "POLITICIANS THROUGH THE AGES HAVE KNOWN THAT THE VOTERS DO NOT WANT
> REALISM; THEY WANT MAGIC!"
PICK: Stopping inflation, or even reducing it below 10% a year, is a
political illusion. So long as all the so-called "off-budget" borrowing
by the various virtually autonomous agencies remains practically
untouchable, then it is an act of hypocrisy to believe that the
finances of the government can ever be sanitized.
Nonetheless, optimism of almost messianic proportions has greeted
the speech from the throne. The new ruler says that taxes are being cut
to alleviate a fresh avalanche of goods into the market-place-- and
this will meet the so-called inflationary demand supposedly resulting
from too much money chasing too few goods.
But the automobile showrooms are filled with vehicles that cannot be
sold, while residential housing finds few buyers.
As for increased productivity reducing the rate of currency
debasement, how much more hair can a barber cut, or how many more shoes
can a cobbler repair, or how many more pastramis on rye can a
delicatessen put together?
"THE GREAT AMERICAN INFLATION IS THE RESULT OF WILLFUL ABUSE OF THE
CREATION OF MONEY AND CREDIT"
The 'Great American Inflation' is not the result of too much demand
and too little supply. It is the result of the willful and
irresponsible abuse of the creation of money and credit.
Spending cuts and tax cuts tied together with the pink ribbon of
statesmanship have dazzled holders of the Minidollar into believing
that the American currency has finally left the primrose path of
debasement.
Unfortunately, nothing could be further from the truth. The titanic
abuses in the creation of money and credit since 1940 have irreversibly
undermined the financial structure that underpins the Minidollar. So
now even if a balanced budget were to be realized, it could in no way
reduce the Greenback's loss of purchasing power.
After four decades of maltreatment of the nation's money, the vested
interests of inflation have become too powerful and too influential.
They have absolutely no desire to see their financial empires and
attendant political privileges dismantled by such an obscene thing as a
monetary unit stable in purchasing power as well as in foreign exchange
value.
Moreover, American industry, decapitalized by the four decades of
inflation, is now living on cash flow as well as bank loans to stay in
business -- not to mention paying out dividends.
"ALL ATTEMPTS BY THE NEW REGIME TO COPE WITH THE DEBASEMENT OF THE
DOLLAR WILL PROVE TO BE IN VAIN."
It is no accident that the same familiar faces of money moguls can
always be noticed at the fringes of the Oval Office regardless of who
the occupant may be or his publicly professed politics.
Therefore, all attempts by the new regime in Washington to cope with
the debasement of the Minidollar will, in the end, prove to be in vain.
Whatever successes it may have will be short-lived. And they will have
been achieved more by accident than by design.
Me: Well, Dr. Pick wrote that in 1981 and this is 14 years later. There
is talk of a balanced budget kicking around Capitol Hill but that talk
is for action to start no sooner than 10 years from now. But isn't that
your usual politics -- just talk, promises and no action, the sit
around and do nothing but talk about the problem. I kind of think that
the state of California is a better political entity than Washington.
Notice how California legislated air pollution to have electric cars
there. California had balls, they just wrote it into law expecting
everyone else to comply with their new found law. I like that, and I
sincerely respect that. If California can lead the nation on air
pollution. Let us dump Washington as inept clowns and give California
permanent White House and Congress privileges. I suppose the
Californians tackling the deficit problems would just simply legislate
that by 1997 there can never be a budget deficit. You see how easy that
was. And we would not have to pay these fat cats in Washington and see
them take away news space for their "dumb running for office."
And a few weeks ago I noticed in the Money section of USA TODAY
where it showed the government debt approaching 10 trillion dollars
where as when Dr. Pick was writing back in early 1980's it was 1 or 2
trillion.
Whatever, there are some sure signs for me. I used to pay a nickel
for a Peter Paul Almond Joy in the 1950's and now it is 50 cents. As
are most candy bars now cost 50 cents.
Is there more value of nickel metal in the 5 cent coin then its
purchasing power? That is, would it be more profitable for a steel
company to just get sacks of nickels from the bank, melt them down to
make stainless steel rather than bother with the mining and refining of
nickel? I think so. And the copper in a penny has probably transcended
its purchasing power. I had read in the Money section of USA TODAY
where the mint was thinking of replacing all 1 dollar paper bills with
coins. I think that is a bad idea because it will not be long where the
aluminum content of the 1 dollar exceeds the purchasing power of the
coin itself.
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Archimedes Plutonium
Jun 18, 1995, 2:00:00 AM
to
In article <3rvs81$k...@dartvax.dartmouth.edu>
Archimedes...@dartmouth.edu (Archimedes Plutonium) writes:
> Notice how California legislated air pollution to have electric cars
> there. California had balls, they just wrote it into law expecting
> everyone else to comply with their new found law. I like that, and I
> sincerely respect that. If California can lead the nation on air
> pollution. Let us dump Washington as inept clowns and give California
> permanent White House and Congress privileges. I suppose the
> Californians tackling the deficit problems would just simply legislate
> that by 1997 there can never be a budget deficit. You see how easy that
> was. And we would not have to pay these fat cats in Washington and see
Actually this may be a good idea. Give Sacramento the permanent job
of politics for the USA. They have done a great job so far with just
their own state. They have lead the nation with air pollution and other
good ideas. Let them run the country altogether. Nothing seems to
really come out of Washington for the past 50 years but exclamations
like "wait another 10 years".
You and I both know that a double term for a president is 8 years, so
who do they think they are trying to kid with these 10 year IOU
promises? Let California run the whole show. Then we would not be
bothered with the Mickey Mouse type campaigns every 4 years that wastes
so much money, and the Mickey Mouse type flooding of the airwaves with
news few want to hear. Personally I prefer the "All Creatures Great and
Small" show over any campaign newscoverage, even on election night I
would look for anything else. Don't you? At least that is what I did
when I was younger and dumber than I am now. At least now I never watch
TV anymore. Please do not tell me that "All Creatures Great and Small"
has been taken off the air.
Anyway, I have an immediate suggestion that would solve alot of our
problems. Let us put the seat of the USA govt in Sacramento. Let us
thus sell off Washington DC in little chunks of the sort of time share
condos-- what is left of DC is a National Park and you vacation there,
peering out of your tent at the Washington monument or in your
time-share-condo which is transferable to all other US National Parks
or as a elderly group package. All the money will go to paying off the
National Debt.
And I should say, we will not have to worry about the Californians
one bit, because they have True Grit Cowboy blood in them and they will
pass a law that no budget deficits will ever occur again after 1997 or
there will be hell to pay for, pilgrim!
For you see the way California does government is fast and
efficient. They look at a problem. Assess it in terms of how many
months or years people need to get their act together. Then they go
into the marble halls of Sacramento and bang the gavel and give the
world so many minutes, days, months and years to get their act
together. It must be because of that Cowboy rich blood out there and
the corn fed filet mignon with baked potato, butter and sour cream with
chives that they are so efficient and the envy of all of Western
Europe.
So, what has been a burden, a perplexion, a big problem, a
conundrum, a nightmare for Washington DC to solve, ie, balancing the
budget. California will wave its gavel and by 1997 it will be solved,
fertig (in English-- completed).
Oh yes, there will be rebel states, and probably Chrysler and GM
will lobby the new law thinking that California has it in for them;
that we can be sure of action, and those states with the most welfare
and free-lunchers who will cry with the loudest mouths will not have
their way as they did with Washington. Californians have balls, have
backbone, have courage and the will to live. And California is so
diversified that she can handle all of these cry-babies. She can
withhold shipments of lettuce to any rebelling state and GM. What is a
big Mac without lettuce, or a proscuito on rye with dijon mustard
without lettuce? I will tell you, it is nothing any good. That is an
erosion of the American standard of living. And no American will stand
for a minute without the unalienable right to lettuce their sandwich.
American arms, men and women with their automatic rifles will show
their force and once again the Californian law will be obeyed. And so
all rebelling states will knuckle under such pressure from the threat
of the great Californians.
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Archimedes Plutonium
Jun 20, 1995, 2:00:00 AM
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In article <3rvs81$k...@dartvax.dartmouth.edu>
Archimedes...@dartmouth.edu (Archimedes Plutonium) writes:
> Is there more value of nickel metal in the 5 cent coin then its
> purchasing power? That is, would it be more profitable for a steel
> company to just get sacks of nickels from the bank, melt them down to
> make stainless steel rather than bother with the mining and refining of
> nickel? I think so. And the copper in a penny has probably transcended
> its purchasing power. I had read in the Money section of USA TODAY
> where the mint was thinking of replacing all 1 dollar paper bills with
> coins. I think that is a bad idea because it will not be long where the
> aluminum content of the 1 dollar exceeds the purchasing power of the
> coin itself.
PICK REPORT, June 10, 1981 VIOLENT VELOCITY
PICK: THE TRENDY INTELLIGENTSIA TO INSPIRE STUPID LAWS. Not so long ago
the newest glamour boy of the academics, whose books adorn the
best-seller lists, suggested that a special tax be levied on precious
metals, antiques, art, land etc., labeling them as speculative and
unproductive investments.
For someone who is currently hogging the limelight of fashionable
economic wisdom, this scholar obviously does not and cannot understand
the current problem at hand -- which is the virtually unlimited
destruction of the Minidollar. Nevertheless, an equally ignorant
politician in Washington has proposed legislation to prevent the
current favorable capital gains tax laws from being further applied to
proceeds from the sale of precious metals and other nonproductive
assets.
PICK: Taking into consideration the nearly 73% increase in the
population between 1940 and the end of 1980, the per capita money
supply in nominal terms advanced from US$317 for each American in 1940
to not less than the seemingly opulent US$1,684 by the end of 1980, a
jump of 431% and a highly respectable achievement -- if this were an
increase in stable currency units. Unfortunately, the steady and
controlled increase in the money supply, which, according to current
official dogma, would sustain the political and economic goals of
so-called prosperity and full employment has not been able to arrive at
such a dreary constellation. In terms of the Official Constant 1940
Dollar, which was worth only 17cents of prewar value at the end of
1980, the money supply per capita had, by the close of 1980, declined
to only US$286, a drop of 10% from the 1940 figure of US$317. And yet,
this is by far not the end of the until now, well-hidden currency
inferiority. If the unofficial data of annual debasement since 1940
are applied to the per capita money supply figures, the last illusions
of Washington's ability to successfully manage and control the
countryŐs currency simply vanish. Applying the unofficial deflator,
whereby only 5cents are left of the purchasing power of the prewar
Greenback, the per capita money supply dropped not less than 74% in the
past 40 years, tumbling from US$317 to US$84. It can be safely said
that none of the news media would dare publish this tables of
statistics. The real decline in the per capita money supply was, and
is, contrary to gvernment expectations. Under such conditions this
radical decrease in purchasing power makes sustained economic recovery
-- much less currency stability -- as elusive as the legendary unicorn.
That is why, as the CURRENCY BECOMES WORTH LESS AND LESS, ITS VELOCITY
INCREASES MORE AND MORE which, in turn debases further the purchasing
power of the monetary unit. And that is also why all attempts by the
new currency managers to control the money supply in order to stop the
dynamics of inflation will fail. For each decrease in the money supply
will be neutralized by a speedup in the velocity of currency and demand
deposits. Moreover, what none of the money supply dogmatists knows, or
dares admit, is that the current high interest rates are a sign not
only of a relative so-called tightness of money, but also that the
FORCES OF INFLATION CONTINUE TO FLOURISH by means of a well-greased
credit system that is beyond anyone's control.
Me: I remember not who said it but it is so true today, that decay of a
great nation comes from within, usually, not from without. The USA
continues in its going to hell-in-a-handbasket by destroying its money.
Why does it destroy its money? Because it is easier to get political
power by handing out free money for peoples votes. A Democracy such as
ours is doomed to extinction. No purse or treasury is infinite in coin.
I have proposed years ago that the best form of government is a
benevolent dictator. But benevolent ones are hard to find though. So I
propose making a modification by a collective dictatorship by retired
CEO's of major corporations forming the world's political power unit.
They will try to prevent wars not make them because wars spell
destruction to their own companies. I envision them as political
leaders because they can respond to real problems in a timely manner,
and not sit around b-s-ing like they do in Washington DC and never get
much done. Real problems with real solutions. Problems like global
employment. Money only in exchange for productive work. Overpopulation.
Air pollution and other pollutions. Call this new form of world
government by the retired CEOs of the worlds major corporations, call
this a "Production Plutocracy". IMHO, the USA Democracy had died as an
efficient form of government by 1963 when the USA stopped minting
silver coins. That year showed that the USA was hell bent on the utter
destruction of money to permit politicians their whim and fancy. They
not only opened Pandora's box but they wanted to eat off the fat of the
land. Since 1963 the USA has gone deeper and deeper into a hole which
is a nightmare. One day when the USA currency collapses into its gutter
of shame, Americans will eyewitness bloodbaths in the streets a la Road
Warrior style and it is a good bet that someone will panic and a
nuclear war will be triggered. Horrible, horrible to what the founding
fathers of the USA wanted for this country. They wanted hard working
and sacrificing Americans in order to make the future brighter and
better for its children, better than what the parents had it. Instead
the politicians of the USA in order to feed their greed into getting
into office have pissed on this country. They could care little if this
country is going to hell in a handbasket as long as they are in for
another term of office.
Let us look at the USA objectively since 1940. What do we have in the
late 1990's but 60% of USAers supporting parasitic 40% USAers who want
never to work and feel they are entitled to a livelihood from birth. We
have all working people working from Jan 1 until May 1 just to pay
taxes so some parasites do not have to work for a living. That is what
the picture of the USA is here in 1995. How sick.
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Archimedes Plutonium
Jun 22, 1995, 2:00:00 AM
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In article <3s5696$e...@dartvax.dartmouth.edu>
Archimedes...@dartmouth.edu (Archimedes Plutonium) writes:
> PICK REPORT, June 10, 1981 VIOLENT VELOCITY
FORCES OF INFLATION CONTINUE TO FLOURISH by means of a well-greased
credit system that is beyond anyone's control. In the meantime, much
propaganda is being poured out by the news media about the slowdown in
the rise of the cost-of-living as represented by the official Consumer
Price Index. At this stage of currency debasement where money velocity
approaches stratospheric levels, such official indices - the Consumer
Price Index, Gross National Product Deflator, etc. - subject to
political manipulation become meaningless and cease to be benchmarks of
the inflationary process. What should be considered instead is the
sustained daily decline in the standard of living of all Americans - a
condition which cannot be officially measured, but is painfully felt
and known by those who use the Minidollar as a means of payment. For
there is no doubt that the standard of living in the United States is
declining every day not only in terms of purchasing power of the
Greenback, but also in terms of the quality of goods and services.
While the official indices become an illusion, THE MONETARY AND
ECONOMIC FANTASIES of the new regime dominate the political life of the
politicians in Washington. A reduction of personal income taxes by 10%
will not generate miracles of savings and investment as advertised.
With wages and salaries in America increasing an average 10% each year,
these higher labor costs can only be passed on to the public, keeping
currency destruction at a rate of at least 10% annually. Budget
deficits will remain massive. And if some wily politicians have their
way, the statutory ceiling on the Federal debt will be raised
automatically and surreptitiously by at least US$145 billion,
eventually bringing the total national debt to an unchallenged US$1.080
trillion.
THE PRESENT MIRAGE OF SO-CALLED DISINFLATION remains just that - a
mirage in the desert of currency ignorance. The heat of currency
debasement has not cooled. It will rise again in the near future
bringing precious metals to the boiling point. The dynamics of
inflation are now a law unto themselves fueled by the treacherous
whirlwinds of soaring currency velocity.
DURING A PERIOD OF HIGH INFLATION, as reflected in the double-digit
price inflation which has dominated the Minidollar for mare than a
decade, the dynamic force of inflationary destruction of purchasing
power assumes a life of its own, which is beyond the control of any
Central Bank or governmental authority. It is a terrifying force that
gets the upper hand and goes beyond human control. It goes by the name
of "the velocity of currency circulation", which increases in almost
geometric proportion, as the dynamism of currency debasement
intensifies. It signifies that as a monetary unit progressively loses
purchasing power, it has to work harder and harder to match the ever
rising level of prices. Thus, the speed at which checks and banknotes
change hands to maintain economic activity becomes faster and faster.
Although humankind has been able to send a man to the moon as well as
conquer many virulent diseases, it still has not been able to regulate
the velocity of currency circulation or measure it accurately. However,
hidden away in the monetary data published monthly by the Federal
Reserve System there is a statistical series which can serve as a
rather good proxy for how often a currency is used to make a payment.
In this fashion, the velocity of circulation can be fairly
approximated. The following data, known as THE ANNUAL RATE OF TURNOVER
OF DEMAND DEPOSITS
Me: Well, Dr Pick wrote that in 1981 and the National Debt has
increase 7-fold within the 14 years elapsed time. I saw in USA TODAY,
Money section where the National Debt was 7 trillion (if memory serves
me correctly). Only instead of calling them the Minidollar, I like to
think of them as the Microdollar.
As I have asserted all along that I do not agree with Dr. Pick
concerning the stock market. Dr. Pick likes foremost the precious
metals and perhaps some bare land or farmland. I on the other hand
prefer foremost good stock. Oh, yes, they will hurt when a currency
collapse occurs, but my trick is to wait when the new currency comes
into being. Germany has had a recorded history of a currency collapse
and a WW2 following and good German companies went through all of that
nightmare. It is still my contention that more than any other single
factor which caused WW2, the factor of the "experience of the
Reichsmark collapse" ushered in WW2. Other factors helped but it was
the German currency collapse which was the main cause.
What will happen with the USA when its currency collapses? Will the
President and Congress hideout in the Colorado mountain where they have
that warroom? Will most USA big cities burn down from Road Warrior type
vigilantes? Will the President have the military and National Guard
spray bullets on anyone seen going into a food store? Would Russia try
a sneek attack on the USA thinking it is most vulnerable with a
currency collapse?
Well, Dr. Pick's readings sound as if they were premature. But it is
just type of wise readings that perhaps can avert the colossal disaster
awaiting this country. And I may add to those skeptics of Dr. Pick.
Recall the year 1987 when the stock market plunged drastically. The
primary cause of that plunge was the circumstances surrounding the "non
following" by Germany of agreeing to destroy their currency in order to
accomodate further the USA wish to destroy the Greenback. Investors
quickly sensed that a global trade war, with severing of international
trade would ensue, something on the lines of Smoot-Hawley for the
1920's Great Depression. The Stock plunge of 1987 was just a reminder
of how close we are to the tinder box.
And another true prediction which is quite obvious. Our standard of
living is being reduced whether we like it or not. One only has to try
a vacation in Europe or Japan to see how lower we have fallen. And soon
we will not be able to "get" or afford luxury cars from Japan. Already,
merchandise from Europe such as Swiss chocolate is going to be
unaffordable by most USAers. And the prime reason is that we want to
continue to give away free money to people in the USA for doing no
economic work for that free money. Welfare, food stamps, all of that is
to buy votes and destroy our money and eventually destroy this country.
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Archimedes Plutonium
Jun 27, 1995, 2:00:00 AM
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PICK REPORT, June 10, 1981 VIOLENT VELOCITY
PICK: The following data, known as THE ANNUAL RATE OF TURNOVER
OF DEMAND DEPOSITS, i.e., checking accounts in American commercial
banks, can be considered as being reliable and untampered with, since
they are completely ignored by the new currency managers in Washington
and without political interest. As can be observed on the cover of this
REPORT, the number of times a Minidollar on deposit in a checking
account has been used has soared in the last decade, as the buying
value of the Greenback has plummeted.
DEMAND DEPOSIT TURNOVER
YEAR ANNUAL RATE
1940 19
1945 18
1950 22
1955 27
1960 36
1965 48
1970 63
1975 105
1980 223
More graphically, in 1940 an average US$1,000 checking account balance
resulted in total check payments of US$19,000. In 1980, the same
checking balance generated total check payments of US$223,000. THE
RATHER CONTROVERSIAL MONETARY DOGMA OF REGULATING THE MONEY SUPPLY,
which currently echoes in the corridors of the U.S. Treasury,
contemptuously disregards the momentum of the currency velocity which
drives the forces of inflation to higher levels. The money supply of
the United States, i.e. currency in circulation plus demand deposits,
when analyzed on a per capita basis, also presents a grim picture - as
seen from the following table extracted from the soon-to-be-published,
revised and enlarged second edition of THE UNITED STATES DOLLAR,
1940-1980: AN ADVANCE OBITUARY:
PER CAPITA MONEY SUPPLY
END NOMINAL CONSTANT 1940 DOLLARS
OF YEAR DOLLARS OFFICIAL UNOFFICIAL
1940 317 317 317
1945 732 569 564
1950 763 444 433
1955 815 426 416
1960 798 378 367
1965 882 391 355
1970 1,081 390 320
1975 1,380 360 188
1980 1,684 286 84
+431% -10% -74%
MEASURING INFLATIONARY DESTRUCTION is seldom an agreeable job for
governments. Authorities, whether inside or outside the Iron Curtain,
do not like to show that they lack the ability to keep the purchasing
power of their monetary unit at a stable level. During and after World
War I legislation had been voted or decreed in most countries to reduce
the negative effect of rising prices on the willingness of the public
to buy government bonds. Such legislation was revived in the form of
price regulations for essential commodities, fuel and food items during
World War II in Europe and in the United States. In all these attempts
to reduce the general knowledge of inflationary destruction,
countrywide black markets developed for every price-controlled item and
for currencies better than the national monetary unit, thus making
official efforts at control a farce. During World War II, THE OFFICE OF
PRICE ADMINISTRATION
ME: I love the way Dr. Pick does not mince words, he lays the facts
right out in the open. Franz talks completely the opposite of how a
politician talks -- hedging, sugar coating even the worst, never go
into details, divert the issue.
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Archimedes Plutonium
Jun 29, 1995, 2:00:00 AM
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In article <3snkil$l...@dartvax.dartmouth.edu>
Archimedes...@dartmouth.edu (Archimedes Plutonium) writes:
PICK REPORT, June 10, 1981 VIOLENT VELOCITY
PICK: During World War II, THE OFFICE OF PRICE ADMINISTRATION in the
U.S. administered prices to minimize the impact of statistics showing
the growing loss of purchasing power of the Greenback. With the U.S.
Dollar losing 22% (officially) between 1940 and 1945, and with this
loss widening because of the postwar splurges on formerly rare consumer
goods and housing, it became necessary to reform the system for
measuring currency destruction in order to keep the public in the dark
about the process of monetary expropriation,
THE OFFICIAL CONSUMER PRICE INDEX (CPI), generally known as the
cost-of-living index, is published monthly in Washington by the Bureau
of Labor Statistics of the Department of Labor. Monthly changes in the
prices of the weighted items that form the CPI are widely disseminated.
The CPI in use during 1940 was based on components and their
corresponding prices for the years 1934-1936, establishing a base of
100 for this index. The base years were later revised to
1935-1939=100. During 1940, the last year before systematic price
inflation began, prices did not show any significant change. However,
in the following years they certainly did. World War II, the public's
eventual craving for all the good things it could not buy before, as
well as U.S. foreign aid and other activities required to maintain a
worldwide network of military bases, pushed the price level, based on
the 1935-1939 index, to 159 by 1947. A 59% increase in the
cost-of-living in eight years was no item of pride for the managers of
the then most powerful and most demanded currency on the globe. But
winning a gigantic war without any domestic devastation, piling up a
sensational amount of gold -- nearly 21,861 metric tons (about 680
million ounces)--running budget deficits totaling US$198 billion for
the fiscal years 1939-1946, and other problems finally created a
currency emergency. Prices were still rising, and Washington needed
more funds from the public for the new economic, social and welfare
needs. To successfully "roll over" maturing Federal bond issues, the
U.S. Dollar had to be made to look "good" for the financial community.
A "friendly" cost-of-living index had to be created to give the
uninformed the impression that the price inflation was preceding by
negligible fractions.
THE SOLUTION TO THE PROBLEM WAS INDEED SIMPLE. A new cost-of-living
index was created with a base of 1947=100, which simply camouflaged the
59% rise of the index from 1940 to 1947 by reducing the size of the
numbers. The public seemed to accept it. This system of the
"statistical white lie" eased, temporarily at least, the problem of
selling government as well as other bonds. It was a "happy" expedient
for the financial fraternity and for labor unions which began to deal
with the idea of wages linked to the cost-of-living. The innovation
became a permanent fixture of Federal policy.
THROUGH 1967
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Archimedes Plutonium
Jun 30, 1995, 2:00:00 AM
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PICK REPORT, June 10, 1981 VIOLENT VELOCITY
PICK: THROUGH 1967, the scheme of adapting the cost-of-living index to
"new conditions" every ten years had created the following
constellation in the United States:
YEAR Original Index Revised Index
1940 100 100
1947 159 100
1957 201 100
1967 238 100
This kind of statistical magic is a recognized political technique for
hiding debasement of the currency, and has been used repeatedly by
every country in the world. Needless to say, this technique has
certainly helped maintain the widely accepted fantasy that "A Dollar is
a Dollar." However, in 1978 and with no fanfare, A TWO-TIER CONSUMER
PRICE INDEX had been created to minimize the debasement of the
currency. Still using 1967 as the base year, the CPI was transformed
into a so-called Consumer Price Index for All Urban Consumers reputedly
covering the broadest expansion of the population to include very high
incomes as well as the very poor on welfare. It is this CPI which
receives the greatest publicity every month. The original narrower
index for wage earners and clerical employees has been maintained,
since it is this index which is used for increases in social security
payments and other government programs as well as for most labor
contracts. Now, both of these indices are to be revised in 1983 and
1985, respectively, inasmuch as the DOUBLE-DIGIT INTEREST RATES,
reflected in the mortgage interest rates component of the CPI, have
devastated the credit markets. Since they are correctly anticipating
more debasement of the currency, it has become more and more difficult
to sell long-term government bonds. The logic behind the proposed
changes in the CPI is not even worthy of an imbecile. By decreasing the
statistical level of price inflation, the public will then think that
the inflation is going away. And if it is "disappearing", then interest
rates will go down, and the public will rush to lend the government its
money to finance the seemingly bottomless budget deficits. Contrary to
official projections of a budgetary shortfall that can be managed by
spending cuts or finding other sources of tax revenue, the debt
managers in the U.S. Treasury secretly fear that the total deficit for
fiscal 1982 - including all off-budget borrowing - will amount to at
least US$100 billion. Under such conditions government bondholders will
eventually be facing the prospects of one of the following forms of de
facto expropriation: (A) The breaching of the obligation to pay
interest, which would involve either a reduction in the interest
payment, or postponement of the interest payment, or a repudiation of
the interest payment, or the annulment of the interest payment by means
of special coupon taxes. (B) The breaching of the obligation to repay
principal, which would involve either a postponement of redemption, or
a forced conversion into other types of debt, or a reduction of the
principal, or the forced conversion of precious metal debt into paper
debt. (C) The breaching of the obligation to repay interest and
principal, that would entail either the reduction in the value of
interest and principal, or the repudiation of both. In all these forms
and variations of government bankruptcy the expropriation generally
takes place without discrimination among creditors. However, there have
also been instances of discriminatory treatment between resident and
nonresident owners of government bonds, as well as discriminatory
treatment according to the creditors' wealth. However, before such
techniques of confiscation are decreed, the American public may be
subjected to more subtle ones, such as the removal of anonymity of gold
dealing, as has been just done in France, so the individuals can place
their savings in government securities rather than in the yellow metal.
It goes without saying that the intelligentsia in America is as
fervently against gold as ever - despite the recent publicity.
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Archimedes Plutonium
Jun 30, 1995, 2:00:00 AM
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PICK REPORT, circa 1981 VIOLENT VELOCITY
PICK: "SPUTNIKS" circling the globe, Washington panicked and abandoned
its conservative principles of finance for the quick and easy
techniques of the inflationary process with its instant prosperity.
With money and credit shoveled into the economy, the net result was
that it took 96 cents of credit to produce the one Dollar of real GNP,
nearly double the amount of the previous business upswing. And ever
since, the amounts of money and credit that have had to be created to
keep unemployment down have been double the total expended during the
previous cycle of expansion. As for the so-called "glory" days of the
Kennedy-Johnson regimes, US$1.74 of credit was required between 1960
and 1965, rising to US$3.38 for the period from 1966 to 1968. With Mr.
Nixon in the White House the credit infusion doubled to US$6.00 for the
1970-1974 era. And in the most recent period of paper prosperity
complete with double-digit inflation and double-digit interest rates,
it was US$13.70 in credit that had to be produced to have one lonely
single Dollar's worth of real GNP spill out of America's great
industrial machine.
INFLATIONS DO NOT WIN ELECTIONS in the bourgeois societies of the
Western world. And to liquidate America's debt structure by deflation
would be political suicide for the party in power. The only other
alternative is to have the debt repudiated by further debasement of the
currency by means of another massive creation of debt of colossal
proportion - if the above table is any guide. With at least US$28.00 of
credit to be required for the one Dollar of future real GNP, titanic
infusions of money credit will be needed to reactivate economic
activity. Although the Central Bank will eventually begin the process
slowly, it will find that more and more will not be enough. What will
be needed is the inclination of entrepreneurs and the public to take on
more debt -- an activity that they will shun for quite a while, since
they are at present too worried as to how they are going to meet their
current financial obligations. However, new debt creation will not
begin until, and only until, corporations and households in the United
States subconsciously convinced that such new debt will be repaid with
further debased Minidollars, or better yet, Microdollars. Since
POLITICS, IN AN AGE OF INFLATION, IS MADE IN THE STREETS, it will not
be difficult for the politicos of whatever persuasion to find the
necessary rationale to wipe out more of the Greenback's purchasing
power. Politicians are fundamentally overgrown adolescents with too
much self esteem, too little self-respect, and absolutely no shame. By
means of the artifices of deception and duplicity they build castles in
the air - and then try to live in them! In non-political terms such
personalities are usually found as inmates of mental institutions, and
are generally known as schizophrenics.
AS FOR THE SCANDAL OF THE BUDGET DIRECTOR who told the truth about
the numbers in the ruler's household plan (the manufacture of numbers
along the banks of the Potomac is a prime industry), this intelligent
gentleman is to be banished eventually to the Siberia of honest
lawmakers -total political obscurity! No one in Washington wishes to be
reminded of the fact that the budget of the United States has become,
since 1933, an instrument of electoral bribery, with its costly social
programs as well as subsidies to business and, especially, to the
agricultural and housing industries that have become the spoiled brats
oft country's economy.
THE FOOLS IN THE CENTRAL BANK, while making pious pronouncements
about fighting inflation and holding the money supply in check, do not
for a moment hesitate to panic immediately when they see signs of
distress borrowing in the banking system, as debtors, many of whom are
corporations having interest payments larger than their pre-tax
profits, try to keep their enterprises from going under. Although he
Federal Reserve System makes a lot of noise about controlling the money
supply and reaching monetary targets, it is at times difficult to
understand just what exactly they are controlling. Be that as it may,
they will in time revert to form and resume the process of what is
coyly referred to as "reliquifying the economy", thus laying the
groundwork for another cycle of currency destruction which could assume
unprecedented dimensions. Though "to deflate or not to deflate: may be
the question, to debase is the only answer to America's growing
financial and economic malaise.
Me: I agree with Dr. Picks characterization of politicians except where
he calls them inmates and schizos. I just make the following
characterization of politicians from FDR on. Politicians = charismatic
dingbats.
And Franz's last line, I push it to its probable conclusion -- a
currency collapse means a bloodbath. A currency collapse by a country
most likely leads to a violence which is horrible to have to live
through if you make it through.
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Archimedes Plutonium
Jun 30, 1995, 2:00:00 AM
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In article <nomail.49...@me.net>
nom...@me.net (REVEAL) writes:
>
> FALSE: Selling assets it the only rational way to retire this massive
> "public" debt. Any businessman, even Perot SHOULD know that.
It is about 10 trillion Greenbacks at the present time. What can you
possibly sell for that amount that anyone would want? You would have to
sell off entire States of the Union for anyone to be interested. Japan
and Europe and Middle East Oil countries would pay to buy whole states.
Japan would love to buy Hawaii for a trillion or two. Germany would
probably buy some farmbelt states or a trillion or two and eventually
place right of domain on its current landowners. If you sell say the
National Parks and National Forests without the States they are in, few
with large amounts of money would be willing to buy them, suspecting
that the USA would simple make a new law in 10 years henceforth, and
kick their owners out.
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Archimedes Plutonium
Jul 1, 1995, 2:00:00 AM
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PICK REPORT, circa 1981 VIOLENT VELOCITY
PICK: EVERY CURRENCY SYSTEM AROUND THE GLOBE is now geared for
inflation. Virtually every country in the world has smashed any link
its currency has had to bullion for one reason and one reason only-- so
that governments can inflate with impunity to avoid, if not overcome,
economic contractions and maintain the dual illusions of paper
prosperity and full employment. The worldwide floating exchange rated
system is the inflationary process operating in the foreign exchange
markets. It is not surprising then, that RECENT TESTIMONY IN PUBLIC
HEARINGS before the Commission was overwhelmingly against any place for
bullion in America's currency system. Learned and unlearned wise men of
various degrees of academic prestige paraded their wisdom, each
assuming that the rational (?) acts by American politicians would
control the irrational excesses of the inflationary process. What was
left unmentioned, if not realized, at these hearings was that the most
powerful force militating against any restoration of gold in the
monetary system is America's biggest growth industry - - corruption!
The billions of Minidollars that clandestinely change hands in the
narcotics trade, the kickbacks in government and construction
contracts, the bribes for various public and private services, the
tax-free "black" or underground economy, et al, could not exist without
having first been generated by the engines of inflation fueled by
massive debt creation. There are still A NUMBER OF GOLD ADVOCATES who
believe fervently that the yellow metal can be immediately introduced
into the currency system. Unfortunately, their frivolous public
performance is more in the interests of their professional reputations
rather than in recognition of the fact that the Greenback in its
present miserable state cannot respond to a gold cure. As a sidelight,
a faddish variation of the gold bond mechanism was recently proposed in
Washington whereby such government obligations would be denominated in
1.5 kilograms and 10 kilograms of the yellow metal. These bonds would
have a maturity of five years and a 2% coupon, and would be payable in
gold or in Minidollars at the owner's choice.
AS THE AMERICAN ECONOMY ENTERS A SHARP BUSINESS CONTRACTION, which
may be far more complicated than the seven previous cyclical downturns
since 1945, and with national elections to be faced next November, the
ruler of America, given the only alternatives of either deflating the
multi-trillion debt structure which would be political suicide, or
debasing the currency to relieve the debt burden that will be crushing
the public and private sectors, will resort to the political expediency
of the latter. Thus, his actions will be reflected in gold price
movements as they probe to reach higher levels.
THE EIGHTH BUSINESS CONTRACTION in the American economy since the
end of World War II has brutally begun, as the apparatus of economic
activity quickly falls apart like a house of cards. Output, employment,
corporate profits along with the sales of retailers are shrinking
rapidly. Although this slump has been well advertised months in
advance, as the automobile and housing industries lay idle, the
swiftness and intensity of this snowballing decline has surprised the
gentlemen who allegedly guide the financial and economic destiny of the
United States. Caught unawares, these fellows are already talking of a
short and shallow recession which will end in the first part of 1982,
to be followed by a speedy recovery that will take the gross national
product to new highs and the inflation rate to new lows. While the
present state of affairs is being referred to as "spongy" or "soggy"
economy, tidy scenarios are being pasted together with gooey
statistical data to show that the only thing that has to be feared is
an over-enthusiastic snapback in economic activity sometime next year.
These figures may be fine, but the facts are ugly.
AFTER FOUR DECADES OF CONSTANT CURRENCY DEBASEMENT, the financial
and economic state of the country is in the weakest position it has
ever been, making it highly doubtful that it can recover at all without
renewed massive doses of money and credit. In the face of continually
declining purchasing power, which has lowered standard-of-living
practically every day along with the double-digit interest rates that
inflationary process has generated, corporations have eaten up their
capital while individuals have devoured their savings. At the same time
both enterprises and the public have taken upon themselves immense
amounts of debt to maintain their purchasing power. But as the
financial situation of enterprises and households has appreciably
deteriorated, early signs of an involuntary deflation have begun to
appear. Inasmuch as the current Minidollar has only less than 17 cents
of buying value left in terms of Official Constant 1940 U.S. Dollars,
and is worth a bit more than 4 cents in purchasing power in terms of
Unofficial Constant 1940 U.S. Dollars, the onset of the terrifying
force of a full deflationary wave would unleash social as well as
financial havoc. A multi-trillion public and private debt pyramid
resting on a Minidollar without substance, having lost almost all of
its "Substanzwert" as the Germans would say, is a structure ripe for
ruthless liquidation.
FOR THAT IS EXACTLY WHAT DEFLATION MEANS - THE PAYING OFF OF DEBTS
MOSTLY VIA BANKRUPTCY. That is the paramount problem with which the
ruler of America should occupy himself, and not whether the budget will
be balanced or not, or what spending cuts should or should not be made.
The hundred billion Minidollar deficits that will be generated by the
regime in the years to come are puny in comparison to the
multi-trillion debt that will have to be repaid in one way or another.
If the public and private debt of America had been held to modest
proportions relative to the output of goods and services during the
post-World War II era, thus avoiding the inflationary process with its
incessant debt creation. The cyclical downturn in economic activities
would only be a temporary interruption in the flow of real and not
paper prosperity guaranteed by a currency of stable purchasing power.
But in the last four decades it has been easier to embrace the
inflationary process to buy votes and create the myth of infinite and
unstoppable economic expansion.
Me: Well Dr Pick wrote that in 1981-1982 and here it is 14 years later.
Some may want to fault Franz for mispredictions, not me. I do and did
not enjoy reading Franz for his predictions, rather, I enjoy reading
him for his humor but much more for his steadfast logical vision of
what a destruction of currency does to a country. When politicians duck
the real issues and make white lies, it is refreshing to read someone
like Franz. And although Franz was say off by many years, we all know
that no country can have infinite debt. We all know instinctively that
some generation of people in a society gone wrong will pay the piper.
We instinctively know that as we live off of the fat of the land that
our children, they will pay for our excesses. And a currency collape
has happened many times in the past history. What do you think lead up
to Germany's World War and holocaust? It was the destruction, the
currency collapse of the Reichsmark in the 1920's
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Archimedes Plutonium
Jul 1, 1995, 2:00:00 AM
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PICK REPORT, circa 1981 VIOLENT VELOCITY
PICK: THE ECONOMIC EXPANSION OF AMERICA since 1945 has been based on
the infinite creation of debt which, it has been assumed, will not be
repaid. As for debt that has to be repaid - such as home mortgages, the
assumption has been that it would be paid off with ever-cheapening
Minidollars. The inflation plus debt creation process can best be
observed from the following table. Seven economic expansions are
represented from 1949 through 1980. Some of theses cyclical upturns
have been as short as two years, while the most recent one has extended
to over six years. The data for the gross national product in terms of
nominal paper Minidollars generated during these periods are also
depicted. These are followed by the deflator based upon the Official
Consumer Prices Index with the year 1940 as the starting point,
inasmuch as 1940 was the last year of price stability in the United
States. Applying the deflator to the amounts of paper GNP, the output
of goods and services in America in real terms, i.e., in terms of
Official Constant 1940 U.S. Dollars, is then calculated with the
excesses of price inflation squeezed out. The increase of real GNP at
each stage of economic expansion is also shown. Along with these GNP
statistics is the amount of domestic credit expansion generated for
each period, and also the rise in the credit outpouring for each time
span. The final column is the result of dividing the increase in
domestic credit during a period by the increase in the real GNP during
the expansion. In other words, this statistic shows how much credit was
needed to generate one Dollar's worth of goods and services in real
terms! Between 1949 and 1953, the time of the Korean War and the
immediate postwar inflation, 88 cents in credit were needed to turn out
a Dollar's worth of real GNP. From 1954 through 1957 under the reign of
Eisenhower, only 45 cents in credit were needed to keep prosperity on
the move, during which Wall Street invented the myth of the "growth
stock".
PICK: Some years ago by the late Milton Gilbert, who was the eminent
economist of the superbly managed Bank for International Settlements
located in Basel, Switzerland. At that time, bullion prices were in the
doldrums. But while the general public ignored and/or neglected the
yellow metal, more astute individuals and enterprises were slowly and
carefully stocking up. For these entities were very knowledgeable and
quite aware that the forces of currency debasement were thriving and
teeming beneath the surface of economic activity despite the placid air
of complacency and general euphoria generated by declining consumer
price index. What does not seem to be understood is that in a
inflationary age A RISING PRICE LEVEL DOES NOT HAVE TO BE THE SOLE
REASON FOR BUYING BULLION. Price inflation is only a symptom of the
basic dynamism of currency debasement, with the rise and fall in
consumer prices moving in waves or cycles. The regime of floating
exchange rates which characterizes the world monetary system at the
present time virtually guarantees that the monetary and credit
inflation generate by the Minidollar will be transmitted to others.
And what is also completely overlooked is that HIGH INTEREST RATES are
a sign not only of the so-called tightness of money, but that the
momentum of inflation is still intact. Credit is still easily available
in America, but at a price of course, since the Central Bank has
absolutely no intention of generating a credit crunch that could
collapse the banking system and America industry into an earth-shaking
deflation. The high cost of money in the United States is currently
looked upon by lenders as an opportunity to make a profit. But it
remains to be seen how long it will be before these very same lenders
regard these very same high interest rates as the red flag of
inflationary currency instability. Although the money supply in the
United States is to be brought under rigorous control, the powers that
be still cannot decide which definition of money supply is the one that
is suppose to be generating the inflation. At the same time, the
velocity of turnover of money (currency and demand deposits) within the
country continues to rise to stratospheric levels. making all attempts
to tame the money supply an exercise in futility.
THE DESIRE FOR GOLD CAN ALSO BE INTENSE, even if there is no
excessive price inflation. From 1937 until 1964, the consumer price
index in the United States rose at an average annual rate of only 1.6%
- an era of so-called stable prices. Nevertheless, gold was leaving the
coffers of the U.S. Treasury by the ton, as foreign central banks were
exchanging their excess Minidollars for the yellow metal.
INFLATIONARY PRICES ARE STILL BEING PAID! Why should a self-portrait
of Picasso be auctioned off for US$5.3 million, when it sold for only
US$650,000 as recently as 1975? Has its esthetic or scarcity value
increased that much? A walk through the commercial and savings banks in
America reminds one of what one sees in similar institutions in Brazil
and Argentina - huge placards advertising a variety of interest rates
with depositors continuously shifting money from one bank to another to
cash in on a supposedly higher paper profit.
EVEN THE RECENT PRICE ACTION IN THE GOLD MARKETS reflects an intense
tug-of-war between the highly knowledgeable buyers and the insecure
sellers, who have been taken in by the psychotherapy practiced by the
new regime in Washington that emulates the tactics of autosuggestion
developed by the famous French Dr. Coue'. One has only to repeat again
and again that every day and in every way the inflation will soon be
less and less. Meanwhile, the current downphase in bullion is rapidly
approaching a critical climax. Even if it should drop to the
US$440.00-US$450.00 per-ounce-level, it should be no cause for anxiety.
Any subsequent rally would of course be limited in extent and price,
for the technical position of the markets has not as yet improved to
support a major uptrend. Meanwhile, there is the threat of special
taxes being levied on the owners of precious metal. Legislation has
been proposed in Washington to do away with the capital gains tax
provision for gold, silver and other so-called nonproductive assets.
Needless to say, with all the public relations campaigns being waged to
talk down inflation, no one understands what is really wrong with the
currency.
Me: This was the last Dr. Pick report. I am taking a vacation from the
Internet to work on some math. I will be back sometime in August or
Sept. Let me recap what I think of Dr. Pick's views. I agree with him
that currency destruction is the number one evil that this country must
tackle. If it does not then it will lead to a currency collapse and a
bloodbath. Wether a bloodbath Road Warrior style or a bloodbath that
spills over into a nuclear war. I disagree with Dr. Pick that the stock
market is no good. I think good stock is even better than gold.
Archimedes Plutonium's profile photo
Archimedes Plutonium
Jun 8, 1995, 2:00:00 AM
to
In article <3q7ur0$l...@dartvax.dartmouth.edu>
Archimedes...@dartmouth.edu (Archimedes Plutonium) writes:
>PICK: As for the generals in the Pentagon, they have been completely
>indifferent to the deterioration of the American monetary unit which,
>unfortunately, has destroyed most of what was once Washington's
>political superpower superiority.
> These developments are easily readable from the chronology of
>budgetary deficits and balance of payments shortfalls in the post-World
>War II era. They remind the currency analyst of the dilettantish
>mismanagement of the Pound Sterling in the postwar years of 1919-1931,
>which eventually forced the liquidation of the British Empire.
> "ALL POSSIBLE PUBLIC RELATIONS TECHNIQUES HAVE BEEN USED TO
>TRANQUILIZE THE HOLDERS OF NEARLY US$1 TRILLION OF GOVERNMENT DEBT
>CERTIFICATES."
PICK: The road to this record decline of the Greenback was gilded with
all possible public relations techniques explaining to the public at
home and to the world that whatever Washington did was good for all the
people on this planet.
The object of this propaganda was to tranquilize all the capitalistic
and patriotic holders of the nearly US$1 trillion of government debt
certificates issued to pay for Washington's expenditures that could not
be covered by receipts.
It goes without saying that all these shortfalls were covered by the
printing press in the form of engraved paper. To reduce public fear,
abundant monetary sugarcoating was applied to harsh facts with
masterful virtuosity.
The official cost-of-living index was changed at least once every ten
years to deceive the public and prevent them from having qualms about
any kinds of bonds. It was always a policy of sweeping past blunders
under the carpet of history. In the meantime, the money supply rose and
rose.
"AMERICA IS WHOLLY DEPENDENT ON MERE DEBT AND MORE INFLATION, MERELY TO
PREVENT A DEPRESSION OF GIGANTIC PROPORTIONS."
The result is that America is wholly dependent on the creation of
more debt and more inflation merely to keep an economic contraction
from snowballing into a depression of gigantic proportions.
Nowhere is there mentioned by the new regime what is the sine qua
non of any attempt to bring a halt to the debasement of the monetary
unit -- currency stabilization, in terms of foreign exchange value as
well as purchasing power.
As long as this most fundamental thought remains absent from the
thinking of the new managers of the Minidollar, whatever new edicts
come from the occupant of the Oval Office will meet with little
success.
Furthermore, if there are any good intentions by the new
Administration to stabilize the Greenback and with it the price of gold
at much higher than present levels, they will be frustrated by the
innumerable booby traps laid down by the entrenched anti-gold
bureaucracy of the US Treasury.
Indeed there have already been trial balloons sent up about the
possibility of raising revenue for the government by selling gold.
Apparently, the recent fiasco of bullion sales has made no impression
whatsoever.
Me: The above was written by Dr. Franz Pick in Late February 1981
under the title "40 YEARS OF DOLLAR DEBASEMENT CANNOT SUDDENLY BE
REVERSED". I myself remember the year 1981 well. Dr. Pick mentioned
that USA debt was 1 trillion. A few weeks ago reading USA TODAY money
section it had printed that the debt now is near 7 trillion. But that
debt is the official stated debt whereas Dr. Pick would probably come
up with a figure that was over 10 trillion. That is really serious and
awful news. For if a nation goes down the tube,the fastest way is to
destroy the money itself. A bloodbath results.
Archimedes Plutonium's profile photo
Archimedes Plutonium
Jun 12, 1995, 2:00:00 AM
to
40 YEARS OF DOLLAR DEBASEMENT CANNOT SUDDENLY BE REVERSED by Dr.
Franz Pick, SGR Contributing Editor, Late February 1981
PICK: Debasement of the Dollar has become the indispensable means of
pushing the economy to greater increases in so-called "growth." The
inflationary process, after 40 years, cannot be reversed by suddenly
embracing monetary puritanism.
Prospects for a gold standard for the Minidollar still remain a big
question mark. Under present conditions it simply could not function.
The basic prerequisite for linking a monetary unit to the yellow metal
is that the currency must first be stabilized in terms of purchasing
power as well as in foreign exchange value.
Then and only then, can the unit be given a new definition in terms
of gold.
Moreover, it goes without saying that if a country has a stable
currency, it does not need gold -- witness Singapore with its superbly
managed dollar. And even if a country does have substantial gold, the
horrible mismanagement of the currency can only lead to a bankruptcy of
the gold reserves.
Fifty years ago, Argentina, Brazil and Uruguay had as much gold in
their Central Banks as West Germany, Switzerland, and Italy have today.
Five decades later, the Brazilian Cruziero and Uruguayan Peso are
mangled by double and triple digit inflation with their monetary
reserves virtually bare of the yellow metal.
"FULLY PAID HOLDINGS OF GOLD BARS AND COINS SHOULD NOT BE SOLD."
Me: I maintain that Dr. Pick is on the mark. One of the worst troubles
of USA today is that politicians feel nothing bad can come of the USA.
They feel that they can correct any problem that comes their way. They
are so very ignorant of complex problems such as the destruction of the
USA currency. And of course they have had little living memory of
failed USA currency such as the Continental Dollar. USA Democracy is a
band-aid fixer-up-er of major problems that come and to some extent the
politics of the USA today are the major cause of our problems. Our
so-called Democracy is more of a system where politicians destroy the
currency in order that the elected officials remain in office by
promising more free give-away money to the populace which votes them
back into office. Even a fool, if she or he reflects long enough can
see that our system cannot last indefinitely. Someone has to pay the
piper of a govt that is 10 trillion dollars in the red and where 40% of
the populace live on welfare. Welfare creates overpopulation. Welfare
creates heavy taxes on people who do work for a living. Welfare
eventually creates a bloodbath to purge the system from its decay. The
trouble with a nuclear war to purge the system is that the warheads
just cannot distinguish between people who work and people who are
living parasites.
Archimedes Plutonium's profile photo
Archimedes Plutonium
Jun 15, 1995, 2:00:00 AM
to
In article <3rg440$3...@dartvax.dartmouth.edu>
Archimedes...@dartmouth.edu (Archimedes Plutonium) writes:
> 40 YEARS OF DOLLAR DEBASEMENT CANNOT SUDDENLY BE REVERSED by Dr.
> Franz Pick, SGR Contributing Editor, Late February 1981
PICK: The outlook for gold cannot be regarded as a dim one. The
various pressures, mostly psychological, which are working against the
yellow metal will eventually subside -- but not the dynamics of
inflation.
It is the Greenback which is unstable, and not bullion. Double-digit
interest rates will not remain a permanent fixture in American money
markets. And since all economic activity in America is geared to the
debasement of currency, fully paid holdings of bars and coins should
not be sold.
Me: I agree and think that all smart people should own a little of the
precious metal as a form of insurance. By little I mean something like
1% of portfolio worth. And here I disagree with Dr. Pick for I believe
good stock has a chance of making it through a currency collapse. And I
believe it is the corporations of the future who will politically rule
the Earth and not our present outmoded system of elected officials.
Gold and silver holdings as an insurance policy. It is to be put in
safekeeping such as buried in the ground should the world go through a
currency reform or cataclysm which requires you to use it. Gold and
silver have always been the world's real money. Government's go off of
the metals only to get a free ride for a length of time, but they all
are forced back onto the precious metals when their sins catch up with
them.
One only need look at the coinage to see the history. It is now the
case that a copper penny has more copper value than the 1 cent
purchasing power. And that a steel company can just buy rolls of
nickels and melt down the nickels for their steel. When the day comes
that the metal content of a Susan B dollar of aluminum is worth more in
purchasing power than the actual dollar will be scary times to come.
AMERICAN INDUSTRY, DECAPITALIZED BY 4 DECADES OF INFLATION, IS LIVING
ON CASH FLOW AND BANK LOANS TO STAY IN BUSINESS by Dr. Franz Pick, SGR
Contributing Editor, Late March 1981
PICK: Throughout history, governments have always spent more money than
they've received from revenues. In order to keep this up, governments
have had to cheat their citizens -- by borrowing money in exchange for
unkept promises to pay it back with interest.
This is a charade which regimes and a gullible public continue to
play today.
In the United States, the new ruler confronted this age-old problem
by making a widely praised "speech from the throne." In it, he proposed
to master the problem with some sort of four-year plan to wipe out the
budget deficit.
"POLITICIANS THROUGH THE AGES HAVE KNOWN THAT THE VOTERS DO NOT WANT
REALISM; THEY WANT MAGIC!"
And it seems as if the new ruler and his technicians fancy themselves
as prestidigitators par excellence.
Me: The above writing was done in whose administration? I forgot and
could care less. But it brings up a thought in me again of how
inadequate is USA politics. Because when a new president is elected for
a 4 year term, he/she does nothing for 4 years except prepare for
re-election. So in USA politics, at least 4 out of every 8 years is
sort of like a lame-duck presidency of not very good quality
leadership. The chances of doing good politics is in the second term
where the president can devote all the time on doing something that
will have importance.
Archimedes Plutonium's profile photo
Archimedes Plutonium
Jun 18, 1995, 2:00:00 AM
to
In article <3ro9ma$o...@dartvax.dartmouth.edu>
Archimedes...@dartmouth.edu (Archimedes Plutonium) writes:
> AMERICAN INDUSTRY, DECAPITALIZED BY 4 DECADES OF INFLATION, IS LIVING
> ON CASH FLOW AND BANK LOANS TO STAY IN BUSINESS by Dr. Franz Pick, SGR
> Contributing Editor, Late March 1981
PICK:
> "POLITICIANS THROUGH THE AGES HAVE KNOWN THAT THE VOTERS DO NOT WANT
> REALISM; THEY WANT MAGIC!"
PICK: Stopping inflation, or even reducing it below 10% a year, is a
political illusion. So long as all the so-called "off-budget" borrowing
by the various virtually autonomous agencies remains practically
untouchable, then it is an act of hypocrisy to believe that the
finances of the government can ever be sanitized.
Nonetheless, optimism of almost messianic proportions has greeted
the speech from the throne. The new ruler says that taxes are being cut
to alleviate a fresh avalanche of goods into the market-place-- and
this will meet the so-called inflationary demand supposedly resulting
from too much money chasing too few goods.
But the automobile showrooms are filled with vehicles that cannot be
sold, while residential housing finds few buyers.
As for increased productivity reducing the rate of currency
debasement, how much more hair can a barber cut, or how many more shoes
can a cobbler repair, or how many more pastramis on rye can a
delicatessen put together?
"THE GREAT AMERICAN INFLATION IS THE RESULT OF WILLFUL ABUSE OF THE
CREATION OF MONEY AND CREDIT"
The 'Great American Inflation' is not the result of too much demand
and too little supply. It is the result of the willful and
irresponsible abuse of the creation of money and credit.
Spending cuts and tax cuts tied together with the pink ribbon of
statesmanship have dazzled holders of the Minidollar into believing
that the American currency has finally left the primrose path of
debasement.
Unfortunately, nothing could be further from the truth. The titanic
abuses in the creation of money and credit since 1940 have irreversibly
undermined the financial structure that underpins the Minidollar. So
now even if a balanced budget were to be realized, it could in no way
reduce the Greenback's loss of purchasing power.
After four decades of maltreatment of the nation's money, the vested
interests of inflation have become too powerful and too influential.
They have absolutely no desire to see their financial empires and
attendant political privileges dismantled by such an obscene thing as a
monetary unit stable in purchasing power as well as in foreign exchange
value.
Moreover, American industry, decapitalized by the four decades of
inflation, is now living on cash flow as well as bank loans to stay in
business -- not to mention paying out dividends.
"ALL ATTEMPTS BY THE NEW REGIME TO COPE WITH THE DEBASEMENT OF THE
DOLLAR WILL PROVE TO BE IN VAIN."
It is no accident that the same familiar faces of money moguls can
always be noticed at the fringes of the Oval Office regardless of who
the occupant may be or his publicly professed politics.
Therefore, all attempts by the new regime in Washington to cope with
the debasement of the Minidollar will, in the end, prove to be in vain.
Whatever successes it may have will be short-lived. And they will have
been achieved more by accident than by design.
Me: Well, Dr. Pick wrote that in 1981 and this is 14 years later. There
is talk of a balanced budget kicking around Capitol Hill but that talk
is for action to start no sooner than 10 years from now. But isn't that
your usual politics -- just talk, promises and no action, the sit
around and do nothing but talk about the problem. I kind of think that
the state of California is a better political entity than Washington.
Notice how California legislated air pollution to have electric cars
there. California had balls, they just wrote it into law expecting
everyone else to comply with their new found law. I like that, and I
sincerely respect that. If California can lead the nation on air
pollution. Let us dump Washington as inept clowns and give California
permanent White House and Congress privileges. I suppose the
Californians tackling the deficit problems would just simply legislate
that by 1997 there can never be a budget deficit. You see how easy that
was. And we would not have to pay these fat cats in Washington and see
them take away news space for their "dumb running for office."
And a few weeks ago I noticed in the Money section of USA TODAY
where it showed the government debt approaching 10 trillion dollars
where as when Dr. Pick was writing back in early 1980's it was 1 or 2
trillion.
Whatever, there are some sure signs for me. I used to pay a nickel
for a Peter Paul Almond Joy in the 1950's and now it is 50 cents. As
are most candy bars now cost 50 cents.
Is there more value of nickel metal in the 5 cent coin then its
purchasing power? That is, would it be more profitable for a steel
company to just get sacks of nickels from the bank, melt them down to
make stainless steel rather than bother with the mining and refining of
nickel? I think so. And the copper in a penny has probably transcended
its purchasing power. I had read in the Money section of USA TODAY
where the mint was thinking of replacing all 1 dollar paper bills with
coins. I think that is a bad idea because it will not be long where the
aluminum content of the 1 dollar exceeds the purchasing power of the
coin itself.
Archimedes Plutonium's profile photo
Archimedes Plutonium
Jun 18, 1995, 2:00:00 AM
to
In article <3rvs81$k...@dartvax.dartmouth.edu>
Archimedes...@dartmouth.edu (Archimedes Plutonium) writes:
> Notice how California legislated air pollution to have electric cars
> there. California had balls, they just wrote it into law expecting
> everyone else to comply with their new found law. I like that, and I
> sincerely respect that. If California can lead the nation on air
> pollution. Let us dump Washington as inept clowns and give California
> permanent White House and Congress privileges. I suppose the
> Californians tackling the deficit problems would just simply legislate
> that by 1997 there can never be a budget deficit. You see how easy that
> was. And we would not have to pay these fat cats in Washington and see
Actually this may be a good idea. Give Sacramento the permanent job
of politics for the USA. They have done a great job so far with just
their own state. They have lead the nation with air pollution and other
good ideas. Let them run the country altogether. Nothing seems to
really come out of Washington for the past 50 years but exclamations
like "wait another 10 years".
You and I both know that a double term for a president is 8 years, so
who do they think they are trying to kid with these 10 year IOU
promises? Let California run the whole show. Then we would not be
bothered with the Mickey Mouse type campaigns every 4 years that wastes
so much money, and the Mickey Mouse type flooding of the airwaves with
news few want to hear. Personally I prefer the "All Creatures Great and
Small" show over any campaign newscoverage, even on election night I
would look for anything else. Don't you? At least that is what I did
when I was younger and dumber than I am now. At least now I never watch
TV anymore. Please do not tell me that "All Creatures Great and Small"
has been taken off the air.
Anyway, I have an immediate suggestion that would solve alot of our
problems. Let us put the seat of the USA govt in Sacramento. Let us
thus sell off Washington DC in little chunks of the sort of time share
condos-- what is left of DC is a National Park and you vacation there,
peering out of your tent at the Washington monument or in your
time-share-condo which is transferable to all other US National Parks
or as a elderly group package. All the money will go to paying off the
National Debt.
And I should say, we will not have to worry about the Californians
one bit, because they have True Grit Cowboy blood in them and they will
pass a law that no budget deficits will ever occur again after 1997 or
there will be hell to pay for, pilgrim!
For you see the way California does government is fast and
efficient. They look at a problem. Assess it in terms of how many
months or years people need to get their act together. Then they go
into the marble halls of Sacramento and bang the gavel and give the
world so many minutes, days, months and years to get their act
together. It must be because of that Cowboy rich blood out there and
the corn fed filet mignon with baked potato, butter and sour cream with
chives that they are so efficient and the envy of all of Western
Europe.
So, what has been a burden, a perplexion, a big problem, a
conundrum, a nightmare for Washington DC to solve, ie, balancing the
budget. California will wave its gavel and by 1997 it will be solved,
fertig (in English-- completed).
Oh yes, there will be rebel states, and probably Chrysler and GM
will lobby the new law thinking that California has it in for them;
that we can be sure of action, and those states with the most welfare
and free-lunchers who will cry with the loudest mouths will not have
their way as they did with Washington. Californians have balls, have
backbone, have courage and the will to live. And California is so
diversified that she can handle all of these cry-babies. She can
withhold shipments of lettuce to any rebelling state and GM. What is a
big Mac without lettuce, or a proscuito on rye with dijon mustard
without lettuce? I will tell you, it is nothing any good. That is an
erosion of the American standard of living. And no American will stand
for a minute without the unalienable right to lettuce their sandwich.
American arms, men and women with their automatic rifles will show
their force and once again the Californian law will be obeyed. And so
all rebelling states will knuckle under such pressure from the threat
of the great Californians.
Archimedes Plutonium's profile photo
Archimedes Plutonium
Jun 20, 1995, 2:00:00 AM
to
In article <3rvs81$k...@dartvax.dartmouth.edu>
Archimedes...@dartmouth.edu (Archimedes Plutonium) writes:
> Is there more value of nickel metal in the 5 cent coin then its
> purchasing power? That is, would it be more profitable for a steel
> company to just get sacks of nickels from the bank, melt them down to
> make stainless steel rather than bother with the mining and refining of
> nickel? I think so. And the copper in a penny has probably transcended
> its purchasing power. I had read in the Money section of USA TODAY
> where the mint was thinking of replacing all 1 dollar paper bills with
> coins. I think that is a bad idea because it will not be long where the
> aluminum content of the 1 dollar exceeds the purchasing power of the
> coin itself.
PICK REPORT, June 10, 1981 VIOLENT VELOCITY
PICK: THE TRENDY INTELLIGENTSIA TO INSPIRE STUPID LAWS. Not so long ago
the newest glamour boy of the academics, whose books adorn the
best-seller lists, suggested that a special tax be levied on precious
metals, antiques, art, land etc., labeling them as speculative and
unproductive investments.
For someone who is currently hogging the limelight of fashionable
economic wisdom, this scholar obviously does not and cannot understand
the current problem at hand -- which is the virtually unlimited
destruction of the Minidollar. Nevertheless, an equally ignorant
politician in Washington has proposed legislation to prevent the
current favorable capital gains tax laws from being further applied to
proceeds from the sale of precious metals and other nonproductive
assets.
PICK: Taking into consideration the nearly 73% increase in the
population between 1940 and the end of 1980, the per capita money
supply in nominal terms advanced from US$317 for each American in 1940
to not less than the seemingly opulent US$1,684 by the end of 1980, a
jump of 431% and a highly respectable achievement -- if this were an
increase in stable currency units. Unfortunately, the steady and
controlled increase in the money supply, which, according to current
official dogma, would sustain the political and economic goals of
so-called prosperity and full employment has not been able to arrive at
such a dreary constellation. In terms of the Official Constant 1940
Dollar, which was worth only 17cents of prewar value at the end of
1980, the money supply per capita had, by the close of 1980, declined
to only US$286, a drop of 10% from the 1940 figure of US$317. And yet,
this is by far not the end of the until now, well-hidden currency
inferiority. If the unofficial data of annual debasement since 1940
are applied to the per capita money supply figures, the last illusions
of Washington's ability to successfully manage and control the
countryŐs currency simply vanish. Applying the unofficial deflator,
whereby only 5cents are left of the purchasing power of the prewar
Greenback, the per capita money supply dropped not less than 74% in the
past 40 years, tumbling from US$317 to US$84. It can be safely said
that none of the news media would dare publish this tables of
statistics. The real decline in the per capita money supply was, and
is, contrary to gvernment expectations. Under such conditions this
radical decrease in purchasing power makes sustained economic recovery
-- much less currency stability -- as elusive as the legendary unicorn.
That is why, as the CURRENCY BECOMES WORTH LESS AND LESS, ITS VELOCITY
INCREASES MORE AND MORE which, in turn debases further the purchasing
power of the monetary unit. And that is also why all attempts by the
new currency managers to control the money supply in order to stop the
dynamics of inflation will fail. For each decrease in the money supply
will be neutralized by a speedup in the velocity of currency and demand
deposits. Moreover, what none of the money supply dogmatists knows, or
dares admit, is that the current high interest rates are a sign not
only of a relative so-called tightness of money, but also that the
FORCES OF INFLATION CONTINUE TO FLOURISH by means of a well-greased
credit system that is beyond anyone's control.
Me: I remember not who said it but it is so true today, that decay of a
great nation comes from within, usually, not from without. The USA
continues in its going to hell-in-a-handbasket by destroying its money.
Why does it destroy its money? Because it is easier to get political
power by handing out free money for peoples votes. A Democracy such as
ours is doomed to extinction. No purse or treasury is infinite in coin.
I have proposed years ago that the best form of government is a
benevolent dictator. But benevolent ones are hard to find though. So I
propose making a modification by a collective dictatorship by retired
CEO's of major corporations forming the world's political power unit.
They will try to prevent wars not make them because wars spell
destruction to their own companies. I envision them as political
leaders because they can respond to real problems in a timely manner,
and not sit around b-s-ing like they do in Washington DC and never get
much done. Real problems with real solutions. Problems like global
employment. Money only in exchange for productive work. Overpopulation.
Air pollution and other pollutions. Call this new form of world
government by the retired CEOs of the worlds major corporations, call
this a "Production Plutocracy". IMHO, the USA Democracy had died as an
efficient form of government by 1963 when the USA stopped minting
silver coins. That year showed that the USA was hell bent on the utter
destruction of money to permit politicians their whim and fancy. They
not only opened Pandora's box but they wanted to eat off the fat of the
land. Since 1963 the USA has gone deeper and deeper into a hole which
is a nightmare. One day when the USA currency collapses into its gutter
of shame, Americans will eyewitness bloodbaths in the streets a la Road
Warrior style and it is a good bet that someone will panic and a
nuclear war will be triggered. Horrible, horrible to what the founding
fathers of the USA wanted for this country. They wanted hard working
and sacrificing Americans in order to make the future brighter and
better for its children, better than what the parents had it. Instead
the politicians of the USA in order to feed their greed into getting
into office have pissed on this country. They could care little if this
country is going to hell in a handbasket as long as they are in for
another term of office.
Let us look at the USA objectively since 1940. What do we have in the
late 1990's but 60% of USAers supporting parasitic 40% USAers who want
never to work and feel they are entitled to a livelihood from birth. We
have all working people working from Jan 1 until May 1 just to pay
taxes so some parasites do not have to work for a living. That is what
the picture of the USA is here in 1995. How sick.
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Archimedes Plutonium
Jun 22, 1995, 2:00:00 AM
to
In article <3s5696$e...@dartvax.dartmouth.edu>
Archimedes...@dartmouth.edu (Archimedes Plutonium) writes:
> PICK REPORT, June 10, 1981 VIOLENT VELOCITY
FORCES OF INFLATION CONTINUE TO FLOURISH by means of a well-greased
credit system that is beyond anyone's control. In the meantime, much
propaganda is being poured out by the news media about the slowdown in
the rise of the cost-of-living as represented by the official Consumer
Price Index. At this stage of currency debasement where money velocity
approaches stratospheric levels, such official indices - the Consumer
Price Index, Gross National Product Deflator, etc. - subject to
political manipulation become meaningless and cease to be benchmarks of
the inflationary process. What should be considered instead is the
sustained daily decline in the standard of living of all Americans - a
condition which cannot be officially measured, but is painfully felt
and known by those who use the Minidollar as a means of payment. For
there is no doubt that the standard of living in the United States is
declining every day not only in terms of purchasing power of the
Greenback, but also in terms of the quality of goods and services.
While the official indices become an illusion, THE MONETARY AND
ECONOMIC FANTASIES of the new regime dominate the political life of the
politicians in Washington. A reduction of personal income taxes by 10%
will not generate miracles of savings and investment as advertised.
With wages and salaries in America increasing an average 10% each year,
these higher labor costs can only be passed on to the public, keeping
currency destruction at a rate of at least 10% annually. Budget
deficits will remain massive. And if some wily politicians have their
way, the statutory ceiling on the Federal debt will be raised
automatically and surreptitiously by at least US$145 billion,
eventually bringing the total national debt to an unchallenged US$1.080
trillion.
THE PRESENT MIRAGE OF SO-CALLED DISINFLATION remains just that - a
mirage in the desert of currency ignorance. The heat of currency
debasement has not cooled. It will rise again in the near future
bringing precious metals to the boiling point. The dynamics of
inflation are now a law unto themselves fueled by the treacherous
whirlwinds of soaring currency velocity.
DURING A PERIOD OF HIGH INFLATION, as reflected in the double-digit
price inflation which has dominated the Minidollar for mare than a
decade, the dynamic force of inflationary destruction of purchasing
power assumes a life of its own, which is beyond the control of any
Central Bank or governmental authority. It is a terrifying force that
gets the upper hand and goes beyond human control. It goes by the name
of "the velocity of currency circulation", which increases in almost
geometric proportion, as the dynamism of currency debasement
intensifies. It signifies that as a monetary unit progressively loses
purchasing power, it has to work harder and harder to match the ever
rising level of prices. Thus, the speed at which checks and banknotes
change hands to maintain economic activity becomes faster and faster.
Although humankind has been able to send a man to the moon as well as
conquer many virulent diseases, it still has not been able to regulate
the velocity of currency circulation or measure it accurately. However,
hidden away in the monetary data published monthly by the Federal
Reserve System there is a statistical series which can serve as a
rather good proxy for how often a currency is used to make a payment.
In this fashion, the velocity of circulation can be fairly
approximated. The following data, known as THE ANNUAL RATE OF TURNOVER
OF DEMAND DEPOSITS
Me: Well, Dr Pick wrote that in 1981 and the National Debt has
increase 7-fold within the 14 years elapsed time. I saw in USA TODAY,
Money section where the National Debt was 7 trillion (if memory serves
me correctly). Only instead of calling them the Minidollar, I like to
think of them as the Microdollar.
As I have asserted all along that I do not agree with Dr. Pick
concerning the stock market. Dr. Pick likes foremost the precious
metals and perhaps some bare land or farmland. I on the other hand
prefer foremost good stock. Oh, yes, they will hurt when a currency
collapse occurs, but my trick is to wait when the new currency comes
into being. Germany has had a recorded history of a currency collapse
and a WW2 following and good German companies went through all of that
nightmare. It is still my contention that more than any other single
factor which caused WW2, the factor of the "experience of the
Reichsmark collapse" ushered in WW2. Other factors helped but it was
the German currency collapse which was the main cause.
What will happen with the USA when its currency collapses? Will the
President and Congress hideout in the Colorado mountain where they have
that warroom? Will most USA big cities burn down from Road Warrior type
vigilantes? Will the President have the military and National Guard
spray bullets on anyone seen going into a food store? Would Russia try
a sneek attack on the USA thinking it is most vulnerable with a
currency collapse?
Well, Dr. Pick's readings sound as if they were premature. But it is
just type of wise readings that perhaps can avert the colossal disaster
awaiting this country. And I may add to those skeptics of Dr. Pick.
Recall the year 1987 when the stock market plunged drastically. The
primary cause of that plunge was the circumstances surrounding the "non
following" by Germany of agreeing to destroy their currency in order to
accomodate further the USA wish to destroy the Greenback. Investors
quickly sensed that a global trade war, with severing of international
trade would ensue, something on the lines of Smoot-Hawley for the
1920's Great Depression. The Stock plunge of 1987 was just a reminder
of how close we are to the tinder box.
And another true prediction which is quite obvious. Our standard of
living is being reduced whether we like it or not. One only has to try
a vacation in Europe or Japan to see how lower we have fallen. And soon
we will not be able to "get" or afford luxury cars from Japan. Already,
merchandise from Europe such as Swiss chocolate is going to be
unaffordable by most USAers. And the prime reason is that we want to
continue to give away free money to people in the USA for doing no
economic work for that free money. Welfare, food stamps, all of that is
to buy votes and destroy our money and eventually destroy this country.
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Archimedes Plutonium
Jun 27, 1995, 2:00:00 AM
to
PICK REPORT, June 10, 1981 VIOLENT VELOCITY
PICK: The following data, known as THE ANNUAL RATE OF TURNOVER
OF DEMAND DEPOSITS, i.e., checking accounts in American commercial
banks, can be considered as being reliable and untampered with, since
they are completely ignored by the new currency managers in Washington
and without political interest. As can be observed on the cover of this
REPORT, the number of times a Minidollar on deposit in a checking
account has been used has soared in the last decade, as the buying
value of the Greenback has plummeted.
DEMAND DEPOSIT TURNOVER
YEAR ANNUAL RATE
1940 19
1945 18
1950 22
1955 27
1960 36
1965 48
1970 63
1975 105
1980 223
More graphically, in 1940 an average US$1,000 checking account balance
resulted in total check payments of US$19,000. In 1980, the same
checking balance generated total check payments of US$223,000. THE
RATHER CONTROVERSIAL MONETARY DOGMA OF REGULATING THE MONEY SUPPLY,
which currently echoes in the corridors of the U.S. Treasury,
contemptuously disregards the momentum of the currency velocity which
drives the forces of inflation to higher levels. The money supply of
the United States, i.e. currency in circulation plus demand deposits,
when analyzed on a per capita basis, also presents a grim picture - as
seen from the following table extracted from the soon-to-be-published,
revised and enlarged second edition of THE UNITED STATES DOLLAR,
1940-1980: AN ADVANCE OBITUARY:
PER CAPITA MONEY SUPPLY
END NOMINAL CONSTANT 1940 DOLLARS
OF YEAR DOLLARS OFFICIAL UNOFFICIAL
1940 317 317 317
1945 732 569 564
1950 763 444 433
1955 815 426 416
1960 798 378 367
1965 882 391 355
1970 1,081 390 320
1975 1,380 360 188
1980 1,684 286 84
+431% -10% -74%
MEASURING INFLATIONARY DESTRUCTION is seldom an agreeable job for
governments. Authorities, whether inside or outside the Iron Curtain,
do not like to show that they lack the ability to keep the purchasing
power of their monetary unit at a stable level. During and after World
War I legislation had been voted or decreed in most countries to reduce
the negative effect of rising prices on the willingness of the public
to buy government bonds. Such legislation was revived in the form of
price regulations for essential commodities, fuel and food items during
World War II in Europe and in the United States. In all these attempts
to reduce the general knowledge of inflationary destruction,
countrywide black markets developed for every price-controlled item and
for currencies better than the national monetary unit, thus making
official efforts at control a farce. During World War II, THE OFFICE OF
PRICE ADMINISTRATION
ME: I love the way Dr. Pick does not mince words, he lays the facts
right out in the open. Franz talks completely the opposite of how a
politician talks -- hedging, sugar coating even the worst, never go
into details, divert the issue.
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Archimedes Plutonium
Jun 29, 1995, 2:00:00 AM
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In article <3snkil$l...@dartvax.dartmouth.edu>
Archimedes...@dartmouth.edu (Archimedes Plutonium) writes:
PICK REPORT, June 10, 1981 VIOLENT VELOCITY
PICK: During World War II, THE OFFICE OF PRICE ADMINISTRATION in the
U.S. administered prices to minimize the impact of statistics showing
the growing loss of purchasing power of the Greenback. With the U.S.
Dollar losing 22% (officially) between 1940 and 1945, and with this
loss widening because of the postwar splurges on formerly rare consumer
goods and housing, it became necessary to reform the system for
measuring currency destruction in order to keep the public in the dark
about the process of monetary expropriation,
THE OFFICIAL CONSUMER PRICE INDEX (CPI), generally known as the
cost-of-living index, is published monthly in Washington by the Bureau
of Labor Statistics of the Department of Labor. Monthly changes in the
prices of the weighted items that form the CPI are widely disseminated.
The CPI in use during 1940 was based on components and their
corresponding prices for the years 1934-1936, establishing a base of
100 for this index. The base years were later revised to
1935-1939=100. During 1940, the last year before systematic price
inflation began, prices did not show any significant change. However,
in the following years they certainly did. World War II, the public's
eventual craving for all the good things it could not buy before, as
well as U.S. foreign aid and other activities required to maintain a
worldwide network of military bases, pushed the price level, based on
the 1935-1939 index, to 159 by 1947. A 59% increase in the
cost-of-living in eight years was no item of pride for the managers of
the then most powerful and most demanded currency on the globe. But
winning a gigantic war without any domestic devastation, piling up a
sensational amount of gold -- nearly 21,861 metric tons (about 680
million ounces)--running budget deficits totaling US$198 billion for
the fiscal years 1939-1946, and other problems finally created a
currency emergency. Prices were still rising, and Washington needed
more funds from the public for the new economic, social and welfare
needs. To successfully "roll over" maturing Federal bond issues, the
U.S. Dollar had to be made to look "good" for the financial community.
A "friendly" cost-of-living index had to be created to give the
uninformed the impression that the price inflation was preceding by
negligible fractions.
THE SOLUTION TO THE PROBLEM WAS INDEED SIMPLE. A new cost-of-living
index was created with a base of 1947=100, which simply camouflaged the
59% rise of the index from 1940 to 1947 by reducing the size of the
numbers. The public seemed to accept it. This system of the
"statistical white lie" eased, temporarily at least, the problem of
selling government as well as other bonds. It was a "happy" expedient
for the financial fraternity and for labor unions which began to deal
with the idea of wages linked to the cost-of-living. The innovation
became a permanent fixture of Federal policy.
THROUGH 1967
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Archimedes Plutonium
Jun 30, 1995, 2:00:00 AM
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PICK REPORT, June 10, 1981 VIOLENT VELOCITY
PICK: THROUGH 1967, the scheme of adapting the cost-of-living index to
"new conditions" every ten years had created the following
constellation in the United States:
YEAR Original Index Revised Index
1940 100 100
1947 159 100
1957 201 100
1967 238 100
This kind of statistical magic is a recognized political technique for
hiding debasement of the currency, and has been used repeatedly by
every country in the world. Needless to say, this technique has
certainly helped maintain the widely accepted fantasy that "A Dollar is
a Dollar." However, in 1978 and with no fanfare, A TWO-TIER CONSUMER
PRICE INDEX had been created to minimize the debasement of the
currency. Still using 1967 as the base year, the CPI was transformed
into a so-called Consumer Price Index for All Urban Consumers reputedly
covering the broadest expansion of the population to include very high
incomes as well as the very poor on welfare. It is this CPI which
receives the greatest publicity every month. The original narrower
index for wage earners and clerical employees has been maintained,
since it is this index which is used for increases in social security
payments and other government programs as well as for most labor
contracts. Now, both of these indices are to be revised in 1983 and
1985, respectively, inasmuch as the DOUBLE-DIGIT INTEREST RATES,
reflected in the mortgage interest rates component of the CPI, have
devastated the credit markets. Since they are correctly anticipating
more debasement of the currency, it has become more and more difficult
to sell long-term government bonds. The logic behind the proposed
changes in the CPI is not even worthy of an imbecile. By decreasing the
statistical level of price inflation, the public will then think that
the inflation is going away. And if it is "disappearing", then interest
rates will go down, and the public will rush to lend the government its
money to finance the seemingly bottomless budget deficits. Contrary to
official projections of a budgetary shortfall that can be managed by
spending cuts or finding other sources of tax revenue, the debt
managers in the U.S. Treasury secretly fear that the total deficit for
fiscal 1982 - including all off-budget borrowing - will amount to at
least US$100 billion. Under such conditions government bondholders will
eventually be facing the prospects of one of the following forms of de
facto expropriation: (A) The breaching of the obligation to pay
interest, which would involve either a reduction in the interest
payment, or postponement of the interest payment, or a repudiation of
the interest payment, or the annulment of the interest payment by means
of special coupon taxes. (B) The breaching of the obligation to repay
principal, which would involve either a postponement of redemption, or
a forced conversion into other types of debt, or a reduction of the
principal, or the forced conversion of precious metal debt into paper
debt. (C) The breaching of the obligation to repay interest and
principal, that would entail either the reduction in the value of
interest and principal, or the repudiation of both. In all these forms
and variations of government bankruptcy the expropriation generally
takes place without discrimination among creditors. However, there have
also been instances of discriminatory treatment between resident and
nonresident owners of government bonds, as well as discriminatory
treatment according to the creditors' wealth. However, before such
techniques of confiscation are decreed, the American public may be
subjected to more subtle ones, such as the removal of anonymity of gold
dealing, as has been just done in France, so the individuals can place
their savings in government securities rather than in the yellow metal.
It goes without saying that the intelligentsia in America is as
fervently against gold as ever - despite the recent publicity.
Archimedes Plutonium's profile photo
Archimedes Plutonium
Jun 30, 1995, 2:00:00 AM
to
PICK REPORT, circa 1981 VIOLENT VELOCITY
PICK: "SPUTNIKS" circling the globe, Washington panicked and abandoned
its conservative principles of finance for the quick and easy
techniques of the inflationary process with its instant prosperity.
With money and credit shoveled into the economy, the net result was
that it took 96 cents of credit to produce the one Dollar of real GNP,
nearly double the amount of the previous business upswing. And ever
since, the amounts of money and credit that have had to be created to
keep unemployment down have been double the total expended during the
previous cycle of expansion. As for the so-called "glory" days of the
Kennedy-Johnson regimes, US$1.74 of credit was required between 1960
and 1965, rising to US$3.38 for the period from 1966 to 1968. With Mr.
Nixon in the White House the credit infusion doubled to US$6.00 for the
1970-1974 era. And in the most recent period of paper prosperity
complete with double-digit inflation and double-digit interest rates,
it was US$13.70 in credit that had to be produced to have one lonely
single Dollar's worth of real GNP spill out of America's great
industrial machine.
INFLATIONS DO NOT WIN ELECTIONS in the bourgeois societies of the
Western world. And to liquidate America's debt structure by deflation
would be political suicide for the party in power. The only other
alternative is to have the debt repudiated by further debasement of the
currency by means of another massive creation of debt of colossal
proportion - if the above table is any guide. With at least US$28.00 of
credit to be required for the one Dollar of future real GNP, titanic
infusions of money credit will be needed to reactivate economic
activity. Although the Central Bank will eventually begin the process
slowly, it will find that more and more will not be enough. What will
be needed is the inclination of entrepreneurs and the public to take on
more debt -- an activity that they will shun for quite a while, since
they are at present too worried as to how they are going to meet their
current financial obligations. However, new debt creation will not
begin until, and only until, corporations and households in the United
States subconsciously convinced that such new debt will be repaid with
further debased Minidollars, or better yet, Microdollars. Since
POLITICS, IN AN AGE OF INFLATION, IS MADE IN THE STREETS, it will not
be difficult for the politicos of whatever persuasion to find the
necessary rationale to wipe out more of the Greenback's purchasing
power. Politicians are fundamentally overgrown adolescents with too
much self esteem, too little self-respect, and absolutely no shame. By
means of the artifices of deception and duplicity they build castles in
the air - and then try to live in them! In non-political terms such
personalities are usually found as inmates of mental institutions, and
are generally known as schizophrenics.
AS FOR THE SCANDAL OF THE BUDGET DIRECTOR who told the truth about
the numbers in the ruler's household plan (the manufacture of numbers
along the banks of the Potomac is a prime industry), this intelligent
gentleman is to be banished eventually to the Siberia of honest
lawmakers -total political obscurity! No one in Washington wishes to be
reminded of the fact that the budget of the United States has become,
since 1933, an instrument of electoral bribery, with its costly social
programs as well as subsidies to business and, especially, to the
agricultural and housing industries that have become the spoiled brats
oft country's economy.
THE FOOLS IN THE CENTRAL BANK, while making pious pronouncements
about fighting inflation and holding the money supply in check, do not
for a moment hesitate to panic immediately when they see signs of
distress borrowing in the banking system, as debtors, many of whom are
corporations having interest payments larger than their pre-tax
profits, try to keep their enterprises from going under. Although he
Federal Reserve System makes a lot of noise about controlling the money
supply and reaching monetary targets, it is at times difficult to
understand just what exactly they are controlling. Be that as it may,
they will in time revert to form and resume the process of what is
coyly referred to as "reliquifying the economy", thus laying the
groundwork for another cycle of currency destruction which could assume
unprecedented dimensions. Though "to deflate or not to deflate: may be
the question, to debase is the only answer to America's growing
financial and economic malaise.
Me: I agree with Dr. Picks characterization of politicians except where
he calls them inmates and schizos. I just make the following
characterization of politicians from FDR on. Politicians = charismatic
dingbats.
And Franz's last line, I push it to its probable conclusion -- a
currency collapse means a bloodbath. A currency collapse by a country
most likely leads to a violence which is horrible to have to live
through if you make it through.
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Archimedes Plutonium
Jun 30, 1995, 2:00:00 AM
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In article <nomail.49...@me.net>
nom...@me.net (REVEAL) writes:
>
> FALSE: Selling assets it the only rational way to retire this massive
> "public" debt. Any businessman, even Perot SHOULD know that.
It is about 10 trillion Greenbacks at the present time. What can you
possibly sell for that amount that anyone would want? You would have to
sell off entire States of the Union for anyone to be interested. Japan
and Europe and Middle East Oil countries would pay to buy whole states.
Japan would love to buy Hawaii for a trillion or two. Germany would
probably buy some farmbelt states or a trillion or two and eventually
place right of domain on its current landowners. If you sell say the
National Parks and National Forests without the States they are in, few
with large amounts of money would be willing to buy them, suspecting
that the USA would simple make a new law in 10 years henceforth, and
kick their owners out.
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Archimedes Plutonium
Jul 1, 1995, 2:00:00 AM
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PICK REPORT, circa 1981 VIOLENT VELOCITY
PICK: EVERY CURRENCY SYSTEM AROUND THE GLOBE is now geared for
inflation. Virtually every country in the world has smashed any link
its currency has had to bullion for one reason and one reason only-- so
that governments can inflate with impunity to avoid, if not overcome,
economic contractions and maintain the dual illusions of paper
prosperity and full employment. The worldwide floating exchange rated
system is the inflationary process operating in the foreign exchange
markets. It is not surprising then, that RECENT TESTIMONY IN PUBLIC
HEARINGS before the Commission was overwhelmingly against any place for
bullion in America's currency system. Learned and unlearned wise men of
various degrees of academic prestige paraded their wisdom, each
assuming that the rational (?) acts by American politicians would
control the irrational excesses of the inflationary process. What was
left unmentioned, if not realized, at these hearings was that the most
powerful force militating against any restoration of gold in the
monetary system is America's biggest growth industry - - corruption!
The billions of Minidollars that clandestinely change hands in the
narcotics trade, the kickbacks in government and construction
contracts, the bribes for various public and private services, the
tax-free "black" or underground economy, et al, could not exist without
having first been generated by the engines of inflation fueled by
massive debt creation. There are still A NUMBER OF GOLD ADVOCATES who
believe fervently that the yellow metal can be immediately introduced
into the currency system. Unfortunately, their frivolous public
performance is more in the interests of their professional reputations
rather than in recognition of the fact that the Greenback in its
present miserable state cannot respond to a gold cure. As a sidelight,
a faddish variation of the gold bond mechanism was recently proposed in
Washington whereby such government obligations would be denominated in
1.5 kilograms and 10 kilograms of the yellow metal. These bonds would
have a maturity of five years and a 2% coupon, and would be payable in
gold or in Minidollars at the owner's choice.
AS THE AMERICAN ECONOMY ENTERS A SHARP BUSINESS CONTRACTION, which
may be far more complicated than the seven previous cyclical downturns
since 1945, and with national elections to be faced next November, the
ruler of America, given the only alternatives of either deflating the
multi-trillion debt structure which would be political suicide, or
debasing the currency to relieve the debt burden that will be crushing
the public and private sectors, will resort to the political expediency
of the latter. Thus, his actions will be reflected in gold price
movements as they probe to reach higher levels.
THE EIGHTH BUSINESS CONTRACTION in the American economy since the
end of World War II has brutally begun, as the apparatus of economic
activity quickly falls apart like a house of cards. Output, employment,
corporate profits along with the sales of retailers are shrinking
rapidly. Although this slump has been well advertised months in
advance, as the automobile and housing industries lay idle, the
swiftness and intensity of this snowballing decline has surprised the
gentlemen who allegedly guide the financial and economic destiny of the
United States. Caught unawares, these fellows are already talking of a
short and shallow recession which will end in the first part of 1982,
to be followed by a speedy recovery that will take the gross national
product to new highs and the inflation rate to new lows. While the
present state of affairs is being referred to as "spongy" or "soggy"
economy, tidy scenarios are being pasted together with gooey
statistical data to show that the only thing that has to be feared is
an over-enthusiastic snapback in economic activity sometime next year.
These figures may be fine, but the facts are ugly.
AFTER FOUR DECADES OF CONSTANT CURRENCY DEBASEMENT, the financial
and economic state of the country is in the weakest position it has
ever been, making it highly doubtful that it can recover at all without
renewed massive doses of money and credit. In the face of continually
declining purchasing power, which has lowered standard-of-living
practically every day along with the double-digit interest rates that
inflationary process has generated, corporations have eaten up their
capital while individuals have devoured their savings. At the same time
both enterprises and the public have taken upon themselves immense
amounts of debt to maintain their purchasing power. But as the
financial situation of enterprises and households has appreciably
deteriorated, early signs of an involuntary deflation have begun to
appear. Inasmuch as the current Minidollar has only less than 17 cents
of buying value left in terms of Official Constant 1940 U.S. Dollars,
and is worth a bit more than 4 cents in purchasing power in terms of
Unofficial Constant 1940 U.S. Dollars, the onset of the terrifying
force of a full deflationary wave would unleash social as well as
financial havoc. A multi-trillion public and private debt pyramid
resting on a Minidollar without substance, having lost almost all of
its "Substanzwert" as the Germans would say, is a structure ripe for
ruthless liquidation.
FOR THAT IS EXACTLY WHAT DEFLATION MEANS - THE PAYING OFF OF DEBTS
MOSTLY VIA BANKRUPTCY. That is the paramount problem with which the
ruler of America should occupy himself, and not whether the budget will
be balanced or not, or what spending cuts should or should not be made.
The hundred billion Minidollar deficits that will be generated by the
regime in the years to come are puny in comparison to the
multi-trillion debt that will have to be repaid in one way or another.
If the public and private debt of America had been held to modest
proportions relative to the output of goods and services during the
post-World War II era, thus avoiding the inflationary process with its
incessant debt creation. The cyclical downturn in economic activities
would only be a temporary interruption in the flow of real and not
paper prosperity guaranteed by a currency of stable purchasing power.
But in the last four decades it has been easier to embrace the
inflationary process to buy votes and create the myth of infinite and
unstoppable economic expansion.
Me: Well Dr Pick wrote that in 1981-1982 and here it is 14 years later.
Some may want to fault Franz for mispredictions, not me. I do and did
not enjoy reading Franz for his predictions, rather, I enjoy reading
him for his humor but much more for his steadfast logical vision of
what a destruction of currency does to a country. When politicians duck
the real issues and make white lies, it is refreshing to read someone
like Franz. And although Franz was say off by many years, we all know
that no country can have infinite debt. We all know instinctively that
some generation of people in a society gone wrong will pay the piper.
We instinctively know that as we live off of the fat of the land that
our children, they will pay for our excesses. And a currency collape
has happened many times in the past history. What do you think lead up
to Germany's World War and holocaust? It was the destruction, the
currency collapse of the Reichsmark in the 1920's
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Archimedes Plutonium
Jul 1, 1995, 2:00:00 AM
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PICK REPORT, circa 1981 VIOLENT VELOCITY
PICK: THE ECONOMIC EXPANSION OF AMERICA since 1945 has been based on
the infinite creation of debt which, it has been assumed, will not be
repaid. As for debt that has to be repaid - such as home mortgages, the
assumption has been that it would be paid off with ever-cheapening
Minidollars. The inflation plus debt creation process can best be
observed from the following table. Seven economic expansions are
represented from 1949 through 1980. Some of theses cyclical upturns
have been as short as two years, while the most recent one has extended
to over six years. The data for the gross national product in terms of
nominal paper Minidollars generated during these periods are also
depicted. These are followed by the deflator based upon the Official
Consumer Prices Index with the year 1940 as the starting point,
inasmuch as 1940 was the last year of price stability in the United
States. Applying the deflator to the amounts of paper GNP, the output
of goods and services in America in real terms, i.e., in terms of
Official Constant 1940 U.S. Dollars, is then calculated with the
excesses of price inflation squeezed out. The increase of real GNP at
each stage of economic expansion is also shown. Along with these GNP
statistics is the amount of domestic credit expansion generated for
each period, and also the rise in the credit outpouring for each time
span. The final column is the result of dividing the increase in
domestic credit during a period by the increase in the real GNP during
the expansion. In other words, this statistic shows how much credit was
needed to generate one Dollar's worth of goods and services in real
terms! Between 1949 and 1953, the time of the Korean War and the
immediate postwar inflation, 88 cents in credit were needed to turn out
a Dollar's worth of real GNP. From 1954 through 1957 under the reign of
Eisenhower, only 45 cents in credit were needed to keep prosperity on
the move, during which Wall Street invented the myth of the "growth
stock".
PICK: Some years ago by the late Milton Gilbert, who was the eminent
economist of the superbly managed Bank for International Settlements
located in Basel, Switzerland. At that time, bullion prices were in the
doldrums. But while the general public ignored and/or neglected the
yellow metal, more astute individuals and enterprises were slowly and
carefully stocking up. For these entities were very knowledgeable and
quite aware that the forces of currency debasement were thriving and
teeming beneath the surface of economic activity despite the placid air
of complacency and general euphoria generated by declining consumer
price index. What does not seem to be understood is that in a
inflationary age A RISING PRICE LEVEL DOES NOT HAVE TO BE THE SOLE
REASON FOR BUYING BULLION. Price inflation is only a symptom of the
basic dynamism of currency debasement, with the rise and fall in
consumer prices moving in waves or cycles. The regime of floating
exchange rates which characterizes the world monetary system at the
present time virtually guarantees that the monetary and credit
inflation generate by the Minidollar will be transmitted to others.
And what is also completely overlooked is that HIGH INTEREST RATES are
a sign not only of the so-called tightness of money, but that the
momentum of inflation is still intact. Credit is still easily available
in America, but at a price of course, since the Central Bank has
absolutely no intention of generating a credit crunch that could
collapse the banking system and America industry into an earth-shaking
deflation. The high cost of money in the United States is currently
looked upon by lenders as an opportunity to make a profit. But it
remains to be seen how long it will be before these very same lenders
regard these very same high interest rates as the red flag of
inflationary currency instability. Although the money supply in the
United States is to be brought under rigorous control, the powers that
be still cannot decide which definition of money supply is the one that
is suppose to be generating the inflation. At the same time, the
velocity of turnover of money (currency and demand deposits) within the
country continues to rise to stratospheric levels. making all attempts
to tame the money supply an exercise in futility.
THE DESIRE FOR GOLD CAN ALSO BE INTENSE, even if there is no
excessive price inflation. From 1937 until 1964, the consumer price
index in the United States rose at an average annual rate of only 1.6%
- an era of so-called stable prices. Nevertheless, gold was leaving the
coffers of the U.S. Treasury by the ton, as foreign central banks were
exchanging their excess Minidollars for the yellow metal.
INFLATIONARY PRICES ARE STILL BEING PAID! Why should a self-portrait
of Picasso be auctioned off for US$5.3 million, when it sold for only
US$650,000 as recently as 1975? Has its esthetic or scarcity value
increased that much? A walk through the commercial and savings banks in
America reminds one of what one sees in similar institutions in Brazil
and Argentina - huge placards advertising a variety of interest rates
with depositors continuously shifting money from one bank to another to
cash in on a supposedly higher paper profit.
EVEN THE RECENT PRICE ACTION IN THE GOLD MARKETS reflects an intense
tug-of-war between the highly knowledgeable buyers and the insecure
sellers, who have been taken in by the psychotherapy practiced by the
new regime in Washington that emulates the tactics of autosuggestion
developed by the famous French Dr. Coue'. One has only to repeat again
and again that every day and in every way the inflation will soon be
less and less. Meanwhile, the current downphase in bullion is rapidly
approaching a critical climax. Even if it should drop to the
US$440.00-US$450.00 per-ounce-level, it should be no cause for anxiety.
Any subsequent rally would of course be limited in extent and price,
for the technical position of the markets has not as yet improved to
support a major uptrend. Meanwhile, there is the threat of special
taxes being levied on the owners of precious metal. Legislation has
been proposed in Washington to do away with the capital gains tax
provision for gold, silver and other so-called nonproductive assets.
Needless to say, with all the public relations campaigns being waged to
talk down inflation, no one understands what is really wrong with the
currency.
Me: This was the last Dr. Pick report. I am taking a vacation from the
Internet to work on some math. I will be back sometime in August or
Sept. Let me recap what I think of Dr. Pick's views. I agree with him
that currency destruction is the number one evil that this country must
tackle. If it does not then it will lead to a currency collapse and a
bloodbath. Wether a bloodbath Road Warrior style or a bloodbath that
spills over into a nuclear war. I disagree with Dr. Pick that the stock
market is no good. I think good stock is even better than gold.
--- end quoting alt.sci.physics.plutonium---
Archimedes Plutonium
Apr 19, 2026, 7:21:13 PMApr 19
to Plutonium Atom Universe
Yes, the Nobel Committee for Economics missed its wisest of all economists, Dr. Franz Pick, a giant in economics science, may he rest in peace.
I surely believe that Trump will take the USA off the precipice by 2028. And that USA will become a satellite of Russia. Every action done by Trump, whether it is to campaign for the Russian puppet of Orban in Hungary to the tariffing of Europe allies, to threatening Greenland to the relaxation of oil sanctions on Russia--- everything Trump does--- Russia gains--- Europe loses, and he hates even the USA.
--- quoting BBC---
Zelensky condemns US extension of Russian sanctions waiver
--- end quoting BBC---
Hey, Dondolt Trump, why not give away all of Europe while you are at it.
In memory of FRANZ PICK , 1898-1985, rest in peace, atom
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I am going to start a thread on a friend of mine who I had never
met, but whom I cherished reading his ideas. And although Pick's
dislike for stocks was an error for him in my humble opinion, his main
idea that paper currency is the opening of Pandora's box is now truer
than before for the USA. So, in memory of my dear friend Mr. Pick, I
want to quote many of his passages and then modify or apply to present
day USA. The thing I liked most about Dr. Pick was his style of
writing, and although I disagreed completely whenever he raised the
subject of the stock market, his argument against paper currency and
gold and real estate I am in near total agreement. I think the readers
out there will get a kick out of reading these Pick Reports and perhaps
some readers can see that the flavor of humor of sarcasm that Dr. Pick
had, is the same with me. I will start it off by quoting his reported
decease in 1985. And I do not know when Usenet or Internet first had
public access, whether in 1985, but I feel sure that Dr. Pick, bless
his soul, if he were alive would be happy to see that he had one
follower, .. amplification-- follower + stock market with gold currency
I have no compulsion to defend myself or Dr. Pick so any follow-ups
will probably remain unanswered by me. I intend to drag this thread out
for a long time and post whenever it nears chopping off of my last
entry.
I start it with the obituary notice.
The New York Times, tues , Dec 3, 1985
page B12
---start of quote---
FRANZ PICK
Franz Pick, an international currency analyst, died of a brain tumor
Saturday at New York Hospital. He was 87 years old and lived in
Manhattan.
Mr. Pick, an ardent advocate of gold as world currency, had been
head of Pick Publishing Company, which put out Pick's Currency Report,
a monthly newsletter, and Pick's Currency Yearbook. He disposed of theMr. Pick, an ardent advocate of gold as world currency, had been
head of Pick Publishing Company, which put out Pick's Currency Report,
company three years ago.
He was born in Bohemia, now part of Czechoslovakia, and studied at
the Universities of Leipzig and Hamburg in Germany. He later moved to
Paris where he worked as an economic consultant and was paymaster for
the Czechslovak underground.
Mr. Pick came to this country in 1940 and first lived in Chicago. He
moved to Manhattan in the mid-1940's.
He wrote more than 50 books on currency, and gave seminars on
currency theory in this country, South America and Europe.
There are no immediate survivors.
--- end of NYT newsflash----
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In article <3ogtn1$q...@dartvax.dartmouth.edu>
Archimedes...@dartmouth.edu (Archimedes Plutonium) writes:
> Mr. Pick, an ardent advocate of gold as world currency, had been
> head of Pick Publishing Company, which put out Pick's Currency Report,
> company three years ago.
Now, I do not want to break any laws. So if I quote too much please
stop me and cite the law to me. I am going to quote from a number of
sources in my own personal collection of Dr. Pick. They are so old that
the papers are yellowing and I thought of photocopying them onto
acid-free, but one of the motivations for me to put much of them on the
Internet is that way I will save them electronically. I wish I could
put his picture which I am staring at now-- the old gentleman-- on the
web for posterity. For I have the feeling that I will not save these
papers once on disc.
Some of the papers were collected by me out in Moab Utah circa 1980.
Then I was able to add to my collection out in San Diego at the
Univer.Cal, La Jolla which has that architectural white elephantish
library.
From "SILVER & GOLD REPORT" copyright 1980
---quoted -----
"THE DOLLAR WILL BE WIPED OUT; THE US WILL ISSUE 1 NEW DOLLAR FOR 100
OLD ONES"
World-famous currency and precious metals authority, in our latest
interview, says governments will continue to inflate, and "gold will go
to astronomic prices." Dr. Pick reviews past currency reforms and says
the dollar is rapidly approaching zero value. Finally, a warning on
keeping precious metals in safe-deposit boxes and the dangers of
investing in certain gold coins.
We first interviewed Dr. Franz Pick, author, currency specialist, and
publisher of the highly respected Pick's Currency Yearbook, in August
1976. Gold prices at that time were collapsing, with some analysts
warning that gold could fall to $50 or $60 an ounce. We asked Dr. Pick
if the drastic decline had shaken his long-standing faith in gold. "Not
in the slightest," he told us. "Gold has no master. It is always
victorious." He also predicted that the US would be forced to adopt a
currency reform within two or three years that would include an
exchange of 20 old dollars for one new "hard" dollar, similar to the
reform Alexander Hamilton imposed in 1789.
That interview was an instant success, with requests for thousands
of copies pouring into our offices from all over the world. When we
interviewed Dr. Pick again in 1977, he forecast the next price runup in
gold would take it to about $165 per ounce, which in fact occurred by
November 1977. In July of 1978, Dr. Pick told us gold would go to "$200
an ounce, perhaps $220", by the end of the year. By December 1978, gold
had reached $226 per ounce.
---end of quoting for now-----
Some choice words as a preview to future quotes from Dr. Pick
"The sins of the US Treasury war on gold have not yet been paid for,
but they will be."
"To observers who have studied currency theory, the end of the gold
price rise is not yet in sight."
"It is the destiny of paper currencies to lose their purchasing power,
and I have seen nothing in the past year to change that fact. We are
now living in the 40th year of the legal expropriation of every owner
of paper dollars in which so-called "securities" are denominated, and I
guarantee you, gentlemen, there will be more expropriation in the
months to come."
"SGR: Do you agree with the recent Federal Reserve actions to stiffen
bank reserve requirements and tighten credit?
PICK: The present Administration is helpless. They don't know what to
do and they take any stupid advice they can get from whatever
overambitious people happen to be in favor at the moment. Washington
cannot master the power of the OPEC countries. Raising interest rates
will not be any great help in reducing the cost of living, and will
only bring about a wave of bankruptcies of small and medium-sized
businesses.
No gentlemen, the US government is not adroit enough to master the
currency problem. There is not one institution of higher learning in
this country teaching a full-time course in currency theory. So how can
the civil servants who run the show for the whole nation learn
anything? Will Mr.Volcker succeed with these measures? I say no. He is
intelligent, but he is against gold, and he cannot cure a currency
which has lost unofficially 93% of its purchasing power since 1940. He
cannot bring it back to life."
Archimedes...@dartmouth.edu (Archimedes Plutonium) wrote: > cannot bring it back to life.
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In article <3oh0lc$1...@dartvax.dartmouth.edu>
Archimedes...@dartmouth.edu (Archimedes Plutonium) writes:
> From "SILVER & GOLD REPORT" copyright 1980
> ---quoted -----
> "THE DOLLAR WILL BE WIPED OUT; THE US WILL ISSUE 1 NEW DOLLAR FOR 100
> OLD ONES"
Looking at that title now here in May95, I agree the US dollar will
be wiped out. But, I believe it will be a violent and quick act. As
Pick titled one of his later reports VIOLENT VELOCITY. That is how I
think it will go. Some really bad economic news will trigger it. And,
by Pluto, I hope that currency collapse does not trigger a nuclear
holocaust.
> he told us. "Gold has no master. It is always
> victorious."
I loved those above lines. GOLD HAS NO MASTER. IT IS ALWAYS
VICTORIOUS. And applying that thought, not for money, but to physics
and biology to my situation after 1990 when I discovered the Plutonium
Atom Totality Whole theory. Radioactivity and the radioactive elements
have been around longer than humans, than life, and so U, Pu and the
other radioactive elements will be around long after we are gone. They
are more natural than we are, no matter what kind of definition you try
to pin to the word "natural".
Unless Silver & Gold Report stops me, I am going to post the whole of
that Pick interview with SGR Contributing Editor. The world needs to be
made aware of what suicidal trigger they are creating for themselves.
And hopefully some smarter people than our politicians will avert this
catastrophy. As it stands now the politicians are the main architects
of our and our childrens destruction.
-----start of quote from SGR report,1980, with Dr. Franz Pick------
Dr. Pick was born in 1898 in Bohemia. He studied law at the
University of Leipzig, currency theory at the University of Hamburg,
and inflation/deflation theories at the Sorbonne in Paris. His degrees
include BS, MA, MBA, LLD, and PhD.
During World War II, Dr. Pick served as paymaster of the French
Resistance and played a major role in currency intelligence and
underground finance. As a result of this experience, he acquired a
practical education in black markets, and has become expert in this
area which most governments deny exists....
.
.
"The sins of the US Treasury war on gold have not yet been paid for,
but they will be."
.
"To observers who have studied currency theory, the end of the gold
price rise is not yet in sight."
.
.
"It is the destiny of paper currencies to lose their purchasing power,
and I have seen nothing in the past year to change that fact. We are
now living in the 40th year of the legal expropriation of every owner
of paper dollars in which so-called "securities" are denominated, and
I
guarantee you, gentlemen, there will be more expropriation in the
months to come."
"SGR: Do you agree with the recent Federal Reserve actions to stiffen
bank reserve requirements and tighten credit?
PICK: The present Administration is helpless. They don't know what to
do and they take any stupid advice they can get from whatever
overambitious people happen to be in favor at the moment. Washington
cannot master the power of the OPEC countries. Raising interest rates
will not be any great help in reducing the cost of living, and will
only bring about a wave of bankruptcies of small and medium-sized
businesses.
No gentlemen, the US government is not adroit enough to master the
currency problem. There is not one institution of higher learning in
this country teaching a full-time course in currency theory. So how
can
the civil servants who run the show for the whole nation learn
anything? Will Mr.Volcker succeed with these measures? I say no. He is
intelligent, but he is against gold, and he cannot cure a currency
which has lost unofficially 93% of its purchasing power since 1940. He
cannot bring it back to life."
----end of quoted SGR report of 1980 with Dr. Pick-----
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In article <3onk69$n...@dartvax.dartmouth.edu>
Archimedes...@dartmouth.edu (Archimedes Plutonium) writes:
> From "SILVER & GOLD REPORT" copyright 1980
> ---quoted -----
> "THE DOLLAR WILL BE WIPED OUT; THE US WILL ISSUE 1 NEW DOLLAR FOR 100
> OLD ONES"
> > he told us. "Gold has no master. It is always
> > victorious."
>
> I loved those above lines. GOLD HAS NO MASTER. IT IS ALWAYS
> VICTORIOUS.
In 1951, he first published his Black Market Yearbook, the first
attempt by any economist to analyze currency black markets. He has
published Pick's Currency Yearbook since 1955, a standard reference
work comprehensively reviewing over 110 currencies each year.
In 1955 Dr. Pick initiated his now-famous currency seminars which
have attracted top officials from the world's corporations and
governments. His deep knowledge of currency matters has put him on a
first-name basis with the leaders of many nations and central banks.
"THE SINS OF THE US TREASURY WAR ON GOLD HAVE NOT YET BEEN PAID FOR,
BUT THEY WILL BE."
SGR: Dr. Pick, when we first spoke, your final bit of advice was "buy
gold and sit on it." Since then, the price of gold has shot up from
$183 per ounce to over $850. Now there's a lot of talk that the time to
be in precious metals may be drawing to a close. What is your current
outlook on this question?
PICK: Gentlemen, I have been right for 40 years, and my outlook has not
improved. It does not interest me that the so-called experts may not
agree with me. To observers who have studied currency theory, the end
of the gold
price rise is not yet in sight. The sins of the US Treasury war on
gold have not yet been paid for, but they will be.
You know, I have a neighbor across the lawn who is in the bullion
trade, and yesterday afternoon we had a little argument. He roasted me
for about an hour, a real Sunday barbecue it was. We did not see
eye-to-eye about my completely pessimistic outlook and the need for a
reform of the currency. But let me tell you a little story. I told you
before about my tailor who made me a suit in 1945 for $75, and how a
suit I bought last year from the same man cost 900 mini dollars.
Saturday morning I went to see Mr. Stewart about a coat. He
criticized the suit I was wearing and said, " Dr. Pick, a man like you
should have a new suit." I said, "OK, what do you want to charge me? He
held up two fingers.
"You don't mean two thousand dollars?"
He said, "NO--two Krugerrands!"
Mr. Blakely, the craving for gold is increasing every day all over
the world. My tailor, who is 76 years old, knows more than all the gang
of idiots at the US Treasury put together. It is the destiny of paper
currencies to lose their purchasing power, and I have seen nothing in
the past year to change that fact. We are now living in the 40th year
of the legal expropriation of every owner of paper dollars in which
so-called "securities" are denominated, and I guarantee you, gentlemen,
there will be more expropriation in the months to come.
SGR: Do you agree with the recent Federal Reserve actions to stiffen
bank reserve requirements and tighten credit?
PICK: The present Administration is helpless. They don't know what to
do and they take any stupid advice they can get from whatever
overambitious people happen to be in favor at the moment. Washington
cannot master the power of the OPEC countries. Raising interest rates
will not be any great help in reducing the cost of living, and will
only bring about a wave of bankruptcies of small and medium-sized
businesses.
No gentlemen, the US government is not adroit enough to master the
currency problem. There is not one institution of higher learning in
this country teaching a full-time course in currency theory. So how can
the civil servants who run the show for the whole nation learn
anything? Will Mr.Volcker succeed with these measures? I say no. He is
intelligent, but he is against gold, and he cannot cure a currency
which has lost unofficially 93% of its purchasing power since 1940. He
cannot bring it back to life.
I am sorry to say, the situation is hopeless no matter what Mr.
Volcker does. The inflationary process has its own dynamics and the
pattern is always the same. I have lived through the destruction of the
Austrian krone, the Czech koruna, the German mark, the French franc,
the British pound. The scheme of destruction was exactly the same as in
the United States today, with intermittent deflationary trends along
the way. The French franc went through numerous devaluations -- maybe
that is in store for us, too. By debasing the currency, we have
endangered the economic existence of the US. We may be the richest
nation in the world, but our assets are melting away before our eyes.
American currency policy since 1940 has been nothing but an
unbroken series of flops. By the end of October 1979 the unofficial
purchasing power of the greenback had shrunk from 100 cents to only
seven cents. This destruction and irreversible rise in the cost of
living has been hidden by a deliberate lie called the Consumer Price
Index. Most of those who own imaginary paper assets, including cabinet
members, presidents of blue-chip corporations, and pension fund
managers, do not want to know about the decomposition of what they
believe they own. So you see, I have little hope that Mr. Volcker will
be able to single-handedly correct such a bad situation.
"GOVERNMENTS AND CORPORATIONS PREFER TO HIDE THE TRUTH."
SGR: Why do you call the Consumer Price Index a "deliberate lie?"
PICK: The debasement of statistics is as much a part of the whole
scheme as the debasement of the currency. How many people know that the
Consumer Price Index has been periodically and systematically falsified
since 1947, as a result of the gigantic creation of additional
banknotes and bond issues that began in 1940?
The undisputed domination of the United States over the
International Monetary Fund has also led this organization to adopt a
similar system for its statistical publications, which has changed the
base for its cost of living data six times since 1948. But nobody wants
to know about this. The general public, along with the generally
unintelligent investor, must be kept ignorant of their willingness to
lose most of their assets. The press, radio and television constantly
babble about inflation, but they do not analyze the problem in terms of
constant dollars. It is nothing but a massive self-deception.
SGR: For the benefit of our newer readers, Dr. Pick, would you
discuss "constant dollars?"
PICK: The idea of a balance sheet in constant dollars is nothing
new. It arises as a necessity whenever a currency loses its value. The
man who calls himself an "investor," the completely immoral so-called
"securities analyst," the administrator and operator of mutual or
pension funds, the corporate president -- all bear responsibility for
cheating the public, and, what is even more tragic, for cheating
themselves. They do not want to acknowledge that between 1940 and 1979,
by official government figures, the US dollar lost 81% of its domestic
purchasing power, the Swiss franc 78%, the British pound 95%, the
French franc 99%.
Austria, Germany and Hungary in 1920, France in 1922, and
Czechoslovakia and Italy in 1923 adopted constant-dollar balance sheet
methods. Large companies had to have some means of analyzing the real
value of profits. All of these countries created excellent laws that
filled volumes, whose purpose was not only the adoption of figures to
new currencies, but also involving taxes, rents, debts and liabilities.
The currency adjustments worked smoothly and created few complications.
SGR: Are you saying that such laws are needed today in the US?
PICK: Mr. Blakely, I have been trying for years to get governments
and corporations and individuals to revise their accounting methods in
terms of constant dollars, and I have learned only that I will never be
recognized in the balance sheet field.
An executive today who thinks he makes $50,000 a year in reality
makes no more than about $3500 constant dollars, but he doesn't want to
hear about it. What would happen if we forced the practice of making
balance sheets in constant dollars upon America's leading companies? If
we undertook such an unwelcome system of telling the truth, we could
perhaps be on the road to a stable currency, but governments and
corporations prefer to hide the truth. The paper illusion cannot be
erased from the brain and from the pocketbook of the average
individual, nor from the rich or even the super-rich who do not want to
accept monetary truth. Nobody wants to believe himself a sucker, having
accepted the government's propaganda as gospel.
To discuss such facts with government lawyers or to mention them at
cocktail parties of industrial and financial big shots is considered in
bad taste. But they cannot overlook, for example, that one of the
finest flowers of the New York Stock Exchange, the common stock of IBM,
was listed at $53 per share in May 1980, but was really worth only
$9.02 in official purchasing power of the 1940 greenback.
Should we become nasty and disrespectful of government public
relations, we would have to dig a bit deeper in our analysis of
Washington's pseudo-truth and discover that the IBM share is worth no
more than $4.41 in unofficial constant dollars. Of course, this figure
would not be believed by brokerage houses here or abroad. Such
computations make unpleasant reading for "investors." To print them in
the prospectus of a new stock issue or in a promotional folder for some
investment trust would not meet with the approval of the Wall Street
moguls, and I do not think they would appear in the announcements of a
new government bond issue.
"THE PEOPLE ALWAYS LOSE THEIR MONEY ON BONDS."
[MY COMMENTS----The USA has had little experience with the downside
into a currency collapse, a destruction I would say 10 times worse than
the US Civil War. Currency collapse in Europe brought about a Hitler's
Germany which brought about WW2. Some countries can have peaceable
currency collapses, but I for one who have observed US people for 40
years of my life now know that a currency collapse here will be a PU
awful holocaust. The obvious reason I am posting as much of Dr. Pick as
I can, although I disagree totally with his anti stock market, for I
suspect good stock will outlast a currency debacle and the best stocks
are better then gold itself (see German and Swiss companies that made
it through the German currency collapse and WW2), but the reason I post
Dr. Pick is because he tells it like it really is, no sugar coated
poison that you hear from government or stupid security analysts or
even obtuse economists and professors of economy thereto. ]
[from Pick Report 10June1981] CURRENCY BECOMES WORTH LESS AND LESS,
ITS VELOCITY INCREASES MORE AND MORE which, in turn, debases further
the purchasing power of the monetary unit. And that is also why all
attempts by the new currency managers to control the money supply in
order to stop the dynamics of inflation will fail. For each decrease in
the money supply will be neutralized by a speedup in the velocity of
currency and demand deposits. Moreover, what none of the money supply
dogmatists knows, or dares admit, is that the current high interest
rates are a sign not only of a relative so-called tightness of money,
but also that the FORCES OF INFLATION CONTINUE TO FLOURISH by means of
meantime, much propaganda is being poured out by the news media about
the slowdown in the rise of the cost-of-living as represented by the
official Consumer Price Index. At this stage of currency debasement
where money velocity approaches stratospheric levels, such official
indices - the Consumer Price Index, Gross National Product Deflator,
etc. - subject to political manipulation become meaningless and cease
to be benchmarks of the inflationary process. What should be considered
instead is the sustained daily decline in the standard of living of all
Americans - a condition which cannot be officially measured, but is
painfully felt and known by those who use the Minidollar as a means of
payment.
about a currency collapse and a PU awful bloodbath that the USA will
likely go through in such an event. Long before the news that the Yen
hit historic highs against the USA dollar. There will be more and more
of this currency fighting as the months go by. And, also I posted long
time ago that Germany has learned her lesson, it is far easier to win
wars with money than ever fighting. The reason East Germany is now part
of Germany is because the Germans know that unero numero, of prime
importance above all else for a nation is to keep the MONEY good. In
this regard, if half of continental USA were of say Japanese
background, with the yen and with time Japan will increase in country
size and the USA politically and land area would shrink further and
further. IT IS ALL IN SIMPLE ARITHMETIC. If the USA wants everything
for free, well of course there money the greenback gets worthless.
Almost half of NYC and Chicago are inhabitated by people who get money
for doing no honest labor for that money. Of course the greenback
becomes toilet paper.
But the quality of Japanese products is far better than US and our
standard of living is VISIBLY going to deteriorate as we go to buy a
Japanese radio or microwave. And of course travelling in Europe will
get to the point that only the President and staff can afford it. Thank
you, thank you kindly charismatic dingbats. US politician =
charismatic dingbats
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In article <3p0e42$4...@dartvax.dartmouth.edu>
Archimedes...@dartmouth.edu (Archimedes Plutonium) writes:
> > From "SILVER & GOLD REPORT" copyright 1980
> > ---quoted -----
> > "THE DOLLAR WILL BE WIPED OUT; THE US WILL ISSUE 1 NEW DOLLAR FOR 100
> > OLD ONES"
>
> > > "Gold has no master. It is always
> > > victorious."
> > "It is the destiny of paper currencies to lose their purchasing power, . > > . "
----start of part of 1980 interview with Dr. Franz Pick -------
"THE PEOPLE ALWAYS LOSE THEIR MONEY ON BONDS."
SGR: The Federal Reserve System's financing of continued deficits
through the purchase of government bonds is, of course the main force
behind inflation. What is the real national debt in terms of constant
dollars?
PICK: This is a problem that aggravates me very much. I was shocked
when I finally realized that total public and private debt in this
country now amounts to approximately nine trillion minidollars. There
is no chance of it being repaid with the same purchasing power
originally invested by the buyers of these debt obligations. They are
not bonds, they are certificates of guaranteed confiscation, as I told
you before.
The deficit financing techniques of practically all governments,
unopposed by docile editorialists and glorified by generally stupid
bond dealers, lead to inevitable bond issues which are not backed by
anything harder than hot air. Since most ordinary people, bankers and
company presidents have never studied currency theory, they swallow the
government's propaganda that "a dollar is a dollar." It is impossible,
for instance, to ask life insurance companies to print on their
policies that the nominal dollar is officially worth only 19 cents,
unofficially only 7 cents, and that it will be worth even less before
the year has ended.
If computed in 1940 unofficial constant dollars, not more than
$2,464 still exists of the US $35,200 per capita gross public and
private debt. More than $32,000 has been destroyed by inflation, but
sadly, Mr. Blakely, the owners of this debt do not want to hear about
it. They do not wish to know that there has not been one case in the
history of the world of a government bond being redeemed to the person
who bought it with its purchasing power intact. The people always lose
their money on bonds.
" THE MINIDOLLAR WILL BE ABSOLUTELY AND TOTALLY WIPED OUT."
SGR: Do you still feel, as you told us last year, that the inevitable
result of this situation will be the announcement of a new currency,
the replacement of 20 old dollars with one new one?
PICK: I am sorry to say that I no longer believe a currency exchange of
20 to 1 can solve the problem -- it will have to be at least 100 to 1.
That $9 trillion worth of debt must be accommodated and only by such an
exchange can we start a new economy.
SGR: How would such a currency exchange solve anything? Surely there
are an awful lot of creditors who would stand to lose everything?
PICK: The creditors can hang themselves. Reform must be accepted as
inevitable. The minidollar will be absolutely and totally wiped out; it
will be finally buried and will take into its paper tomb all dollar
debts. Such a worldwide repudiation of debts will lead inevitably,
despite the opposition, to a currency reform, since all assets and
liabilities must be defined in the new currency. The debts of the
corporations will be adjusted to the factual level of the debased
minidollar. Most likely, they will simply be written off according to
the amount of their outstanding bonds.
Top officials all over the world seem to agree that the dollar will
continue declining until it becomes valueless, to be replaced by a
newly created banknote. The exchange of bank notes into one new, "hard"
dollar will wipe out all debts, official and private.
"A CURRENCY REFORM IS NOTHING BUT A FANCY NAME FOR STATE BANKRUPTCY."
SGR: Dr. Pick, in our last interview you said the currency reform could
come before 1980, and evidently it's not going to happen. Does this
lend support to the people who don't agree with your predictions?
PICK: Mr. Blakely, I already told you, the fact that so-called
"experts" do not agree doesn't interest me. I never wanted to be
popular. If I were popular, you wouldn't come to see me. As one of my
banker friends said, "Pick, you are not popular but you are respected."
I didn't steal anybody's assets, I didn't lie to people to make them
lose their money, and I have always fought governments.
The contracting economic cycle has already begun and will perhaps
end in a full-scale depression. This will of course increase the
present unemployment figures and also lead to more inflationary
measures by governments. It will force not only the United States but
also most other industrial nations to proceed with devaluations and
drastic currency reforms in order to put people back to work. I now
believe it will take 12 to 24 months more for the greenback to dwindle
to less than 5% of its official 1940 purchasing power, at which time
Washington will be forced to create the new "hard" dollar. You see, a
currency reform is nothing but a fancy name for state bankruptcy.
SGR: Perhaps this wouldn't seem like such a radical idea if more people
were aware that such reforms have already taken place, in America and
elsewhere. Would you review for us some of these?
PICK: Inflations always run their course until there is little or
nothing left of the purchasing power of the currency unit. After World
War II, most South American countries became victims of the currency
printing press. Brazil called in 1000 old cruzeiros for one new one;
Argentina, Bolivia, Chile, Uruguay all had to reform their currency
systems. Greece exchanged 1000 old for one new drachma. France had a
100 to 1 franc exchange.
America's Continental dollar was first issued in 1775. By 1779 the
amount in circulation had risen from $6 million to $242 million. By
1781, 225 Continentals were needed to buy one dollar in specie coin,
and final quotations ranged from 500-1000 to 1. Finally in 1789,
Alexander Hamilton redeemed one hundred Continental dollars for one
"hard" dollar. Out of the original issue of $241.5 million, only $168.3
were presented for redemption, which simply cost the Treasury only
$1.683 million. The only one to profit was the government.
Of all the numerous currencies created since 1789, very few still
exist in their original form. Practically all of them ended in the
dismal gutter of shame, becoming virtually worthless except for the
paper on which they were printed. All of them eventually expropriated
their owners who had no recourse to the government that created them.
This monetary shame is a substantial, if not the dominating, aspect of
our present civilization.
"WE WILL SEE THE CREATION OF A NEW CURRENCY UNIT WITH SOME LINK TO
GOLD."
SGR: What specific events would bring a radical currency reform?
PICK: Unstoppable inflation, balance of payments and budget deficits,
record gold and silver prices -- these signs tell us that the reform
process is already underway. After seeing the futility of IMF and US
gold sales, the Administration is considering controls for the economy
in the faint hope that this will stop the decline of the greenback.
These plans center around wage and price controls, and lower taxes. The
creation of such controls will immediately lead to "unsupervised" wage
and prices and the controls will flop -- even though the public today
favors such measures.
As the dollar continues to drop, the amateurs in various government
departments will demand stronger controls with heavier penalties for
disobedience -- Iron Curtain style -- and then, finally they will
propose foreign exchange controls. International transfers of capital
would be allowed only under special license, foreign currencies would
be surrendered, gold would be nationalized, and the futures markets in
precious metals would be closed. This will only transfer the trading
activity to Canada, England, Switzerland, Singapore and Hong Kong.
"A CURRENCY REFORM WILL BE IMPOSED WITH SWIFTNESS AND BRUTALITY."
-----end of that part of 1980 interview with Dr. Pick for this
post-------
A@P COMMENT: Where Dr. Pick said that curreny destruction is the main
feature that dominates our political lives in the USA is so very true.
The genetic bringing of this situation started with FDR and that is why
Pick refers to the year 1940 so often. But in 1940, politics of the USA
learned that to get voted in needed only to pass out free money for
votes. You see this pathetic situation throughout the USA where people
from birth live off of the govt with free money for doing nothing.
Human parasites. And most hard working people in the USA now have to
work until June just to pay taxes, those taxes going mostly to parasite
people who do no work for their money. The USA taxpayers have payed for
these USA parasites for 55 years. Now, Washington, via currency
devaluations to the Japanese yen and German mark, hopes to get Japan
and Germany in on the act. Washington, can you believe it, is trying to
arm twist Japan into supporting USA parasites with free money in order
to vote Democratic. Great leadership that Washington is. If Washington
pulls that off, an amazing feat, for then, a Japanese factory worker
who is very productive will go to raising illegitimate bastards who
Washington will send out its master politicians such as Moynihan to
give the message that Democrats will keep the USA parasite system
going.
A@P COMMENT: Dr. Pick obviously jumped the gun as to when the Currency
Collapse would come. He said that in 1980, and this is 1995. I would
predict that within the next 5 years or in the early 2000's something
will trigger it off. Japan and Germany will not play fools to
Washington. Germany already learned that a powerful currency can easily
win back East Germany. If Japan applied the same currency power tactics
with Russia, Japan can easily win back its island (Sakahilin,
spelling?). Japan will slowly learn how to put its currency power to
good use. A powerful currency is much stronger than any physical
fighting war.
A@P COMMENT: Dr. Pick does not mention the biological root causes of
currency collapse. Here I want to touch on it. The destruction of the
USA dollar since 1940 parallels the number of nonworking people in the
USA. If a country gets to the point where 40% of its people live from
money given free to them for not doing any economic work for that
money, then, that system is just a ticking time bomb. At least with a
war, death can come fast, but if you struggle to live through a
collapse in currency, it is nasty, brutish, and nightmarish. Germany
had one of these nightmares in the 1920's and if you asked most Germans
how they felt about it, they would for the most part tell you it was
worse than WW2. In fact, that German currency collapse was the cause of
Hitler coming into power and WW2.
A@P COMMENT: Pres. Clinton, already in his past years in office has
indicated he is not smart enough for the job in the future. He, like
typical Democrat presidents as soon as in power has taken swings at not
the "parasites" of the system, no, instead, Pres. Clinton has attacked
the "workers" of the system. He has tried to chain and hobble the very
best workers of the USA -- the drug companies. Goofball administration,
try to suck more blood out of the very best of USA-- drug companies, in
order to feed more parasites who will vote Democratic Party, Republican
Party is no better. The only party that makes any commonsense with the
deep and profound problems and issues is the Libertarian party.
A@P COMMENT: Americans, I beseech thee, look at Germany with its strong
currency. It was the DM mark that unioned West Germany to East Germany.
Look at Japan, they are a nation of sacrificers, one of the best human
traits to have. If the Japanese sacrifice to have their currency
strong, they can conquer the USA without ever having fired a shot.
Think about it. Think about waking up to find that the dollar no longer
exists, no job, and you see violence and blood running in the streets.
Think about a Currency Collapse.
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In article <3pbdmp$t...@dartvax.dartmouth.edu>
Archimedes...@dartmouth.edu (Archimedes Plutonium) writes:
> A@P COMMENT: Dr. Pick obviously jumped the gun as to when the Currency
> Collapse would come. He said that in 1980, and this is 1995. I would
> predict that within the next 5 years or in the early 2000's something
> will trigger it off. Japan and Germany will not play fools to
> Washington.
What is the old saying? To get respect, you have to earn respect. And
another saying: give everyone starting out a fair break.
Well, then, Billy Clinton started out his administration to bleed the
very best of the USA, to bleed the drug companies. Why did Billy want
this? In order to increase the 40% human parasites of USA living off
the dole for doing nothing but voting Democratic of course. So, you
earned my respect Billy, your hillBilly Clinton.
HillBilly Clinton promises to balance the USA budget in what 2005?
How many times has a promise like that been made and Kept?
HillBilly Clinton has given us a dollar that makes travelling to
Europe and Japan almost impossible except for the very rich. Thank you
HillBilly.
HillBilly Clinton will soon make high quality cars from Japan an
impossibility to buy. Thank you HillBilly.
HillBilly Clinton? What will happen next Smoot-Hawley for Japan?
Didn't Smoot-Hawley trigger the great depression in the USA? Thank you
HillBilly.
Say HillBilly, you started it with Japan. How will Japan retaliate?
Will they cease from sending any and all computer technology to the
USA? Thank you HillBilly.
Gee, the Beverly Hillbillies must have moved out of California and
into the White House and Jethro is running the budget and trade policy.
Or is Elly Mae helping out? Please tell me if Elly is helping out
HillBilly, that would make me sleep much better tonight.
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In article <3pbdmp$t...@dartvax.dartmouth.edu>
Archimedes...@dartmouth.edu (Archimedes Plutonium) writes:
> A@P COMMENT: Dr. Pick does not mention the biological root causes of
> currency collapse. Here I want to touch on it. The destruction of the
> USA dollar since 1940 parallels the number of nonworking people in the
> USA. If a country gets to the point where 40% of its people live from
> money given free to them for not doing any economic work for that
> money, then, that system is just a ticking time bomb. At least with a
> war, death can come fast, but if you struggle to live through a
> collapse in currency, it is nasty, brutish, and nightmarish. Germany
> had one of these nightmares in the 1920's and if you asked most Germans
> how they felt about it, they would for the most part tell you it was
> worse than WW2. In fact, that German currency collapse was the cause of
> Hitler coming into power and WW2.
We have the word Balkanization in politics which means "to divide a
nation into small, often hostile units." Perhaps HillBilly Clinton will
see the USA dollar erode on par value to the Mexican dollar before the
re-election campaign in 1996? Will the newspaper headlines blair out a
new political term? The Mexicanization of the US dollar? And will it
cost 10,000 dollars to buy a loaf of bread? And, will the peso be a new
hard currency? Will Mexico be the North American Switzerland and
Americans swimming the other way for a better standard of living?
But this is all going too fast. HillBilly sees us all giving up on
Toyotas and Mercedes and BMWs. Soon the value of the USA dollar will be
such that the streets are full of aeros and converted shopping carts
propelled by lawnmower motors. The political incumbents will be quick
to point out that they put lawnmower motor and bicycle companies into
big business. Thank you HillBilly. Will you be campaigning out of a
USA-made aero?
Remember, HillBilly Clinton just made Europe and Japan vacations
unaffordable to the average hard working blue collar worker. And,
HillBilly is going to cure the ills of the microdollar with trade
sanctions. Forget that trade sanctions lead to wars and the root cause
of the Great Depression 1930. Forget Smoot-Hawley, just because trade
sanctions never, ever solved any past problems, perhaps HillBilly for
once will make trade sanctions work,. . .
Don't Worry HillBilly, the American parasites who get free money for
no work, just your vote are behind you HillBilly. Yup, thar behin,d
ya'all t'way. Just because the dinner table has possum on it and not
steak since steak is unaffordable except to food stamp and welfare
people. Don't worry HillBilly, America will always get out of its
problems.
Say, what is Bob Dole's campaign slogan? "More free dole from Dole,
vote Republican!" Or, "Dole can really dole it out"
I know what the Libertarian party slogan ought to be in the next
election. "Balanced Budget Amendment, live economically free or die"
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Archimedes...@dartmouth.edu (Archimedes Plutonium) writes:
From "SILVER & GOLD REPORT" copyright 1980
---quoted -----
"THE DOLLAR WILL BE WIPED OUT; THE US WILL ISSUE 1 NEW DOLLAR FOR 100
OLD ONES"
"Gold has no master. It is always victorious."
"It is the destiny of paper currencies to lose their purchasing power,
. . "
----start of part of 1980 interview with Dr. Franz Pick -------
"A CURRENCY REFORM WILL BE IMPOSED WITH SWIFTNESS AND BRUTALITY."
PICK: One or more foreign countries would stop accepting US dollars.
There will then be a statement declaring the US dollar in better shape
than ever, and Washington would freeze foreign assets. But all rescue
schemes by Treasury officials or Central Bank executives will not be
able to save the dollar, except by an official state bankruptcy, for
which tranquilizing words will have to be found by the public relations
artists. We will then see a "temporary" moratorium on all debts, as
well as international payments, the creation of a new currency unit
with some link to gold, and the issuance of new bank notes against old
ones. Keep in mind that although these conditions do not seem to be in
the near future, they could be triggered by the refusal of any country
to accept dollars in exchange for its currency or products.
SGR: If the currency reform is imposed, how will it affect such things
as bank accounts and mortgage payments?
PICK: Savings and checking accounts could be blocked under Emergency
Banking Regulation No. 1, but won't be. However, certificates of
deposit might face temporary delays of redemption before new
legislation copes with the problem. Mortgage payments would probably
not be subject to any moratorium in order to maintain the existence of
thrift institutions, which would fold up if their mortgage investments
became valueless. Bonds and preferred stocks would certainly stop
paying interest to their owners which would not only be individuals,
but all kinds of institutions, hospitals and universities. Annuities,
already a ridiculous item, may suspend payments or disappear
altogether. Life insurance premiums would have to be paid; death
benefits would not be affected.
A currency reform completes the expropriation of all kind of savings
of the population. It will be performed with swiftness and brutality;
it will wipe out all public and private bonds, most pensions, all
annuities, and all endowments.
"WITHIN 12-24 MONTHS, THE DOLLAR WILL SHRINK TO 1 CENT."
SGR: Are there any positive results of a currency exchange?
PICK: The positive side would be the consolidation of all public and
private debt, an easing of the budgetary problems of governments and
corporations which means they could float new bonds in the new
currency. But the shock to Wall Street will be considerable, and the
holders of paper in any form-- bonds, preferred stock, or ordinary
shares-- will suffer substantially. There is also the possibility that
taxes will be levied on "all other assets," from real estate to cattle,
art collections, furniture, etc. These domestic measures will have a
wide international influenced, as they will either be copied by most
Western countries, or lead to retaliation by all foreign owners of US
paper certificates without value. How Washington will deal with foreign
governments which own US Treasury bills, as well as bonds, I am not
intelligent enough to tell you. But the present US dollar, within 12 to
24 months, will have shrunk to not much more than one cent of its
unofficial 1940 purchasing power.
SGR: One of your projections -- the refusal of a country to accept US
dollars -- has already come true, in the case of Iran and its oil. Do
you think this will lead quickly to a dropping of the dollar by all oil
exporters as a pricing and payment vehicle?
PICK: Much noise has been generated about this question in recent
months. I can only say, had America maintained a stable dollar, there
would not be any kind of OPEC problem. The leading OPEC powers have for
quite some time already repudiated the minidollar when they broke their
currency links to the debased greenback. Nigeria made her naira a
floating unit in April 1974. In March 1975, Kuwait attached her dinar
to a basket of currencies, while Saudi Arabia disengage the riyal from
the minidollar and linked it to the IMF's "Special Drawing Right." At
the same time, the Qatar riyal and the United Arab Emirates dirham
severed their ties to the greenback and became controlled, floating
currencies. So if the oil producers finally replace the minidollar with
some other scheme to guarantee the value of their receipts, it will
only be the open acknowledgment of a de facto situation. The only
tragedy will be for the foolish who still buy US government bonds
guaranteed by the "full faith and credit" of those who miserably
mismanage the currency.
It is redundant to stress the certainty that most OPEC countries
will continue to buy gold, via the West German banks, pushing the metal
to much higher levels in minidollars. Naturally, their holdings of US
Treasury bills and bonds will not only decline, but come to an end,
since gold has so far yielded more dollars that the holding of bills
and bonds has done. Therefore, the long rows of gas-hungary automobiles
will be the best promoters for hoarding gold or buying gold options. I
cannot say whether the OPEC countries will decide to sell their oil
only against payment of bullion, but should this happen the market
price of the metal will jump again, and the dollar will drop to much
lower levels.
"GOLD WILL GO TO ASTRONOMIC PRICES."
SGR: Are you worried that the new Treasury policy of holding "surprise"
gold auctions will add a new element of uncertainty for gold investors?
PICK: Look, the Secretary of the Treasury comes to the job up to his
elbows in manure from earlier bribery accusations, and he knows nothing
about currencies. The top currency people in West Germany refer to him
as a "complex-ridden upstart."
-----end of that 1980 interview with Dr. Pick -------
My Comments: As I said all along in these posts of Dr. Pick, I
disagree with him concerning stock securities after a currency
collapse. Stock made it through the German hyperinflation and currency
collapse. I figure that if you have stock in a currency collapse, you
must plan to wait in the new era of a new currency and the old stock
will carry through. Of course there is no guarantee, but it is plain
obvious that the producers of the world-- companies -- will resume
producing after a currency collapse and produce again in the new era
with a new hard currency. I think stock of great companies is even
better than gold or diamonds. And of course better than land or real
estate. In a currency collapse the essentials are staying alive in the
midst of all the bloodshed and violence. One of the things you would
not want to be tied to is protection and defense of property, instead
you would want to get away to a place in the world where the USA
currency reform is just an evening news item. Such as some South Sea
island or some country that is far removed from the bloodshed and
violence.
Dr. Pick really does not go into depth as to the root cause of all
of this horrible and ugly fate of a nation's currency. The root cause
is the giving away of free money for no work, welfare, food stamps,
entitlements, and on and on. Politicians love to give free money in
exchange for votes. The USA has been doing this at a rampant pace
starting 1940. It is so grave that in some USA cities almost 40% of the
residents live by doing nothing but walk to the post office or bank for
their free money, and of course vote for the politician who promises
more.
Reading Dr. Pick's conversation of 1980, I am not surprised with the
latest turn of events with the Stock Market hitting new alltime highs.
When a currency goes valueless, it seeks flight into anything which may
preserve value. And it is very, very , very surprizing to me to see
that most people know there is a direct connection between Stock
Market, trade wars, currency collapse, and fighting wars. Because in
this complex mix was the cause of the 1987 plummet in the Stock
Markets. It was that Germany was no longer going to play follow the
leader to the USA. And by all human rights, no country should be
coerced into accomodating the living standards of the citizens of the
USA of which 40% are parasites. That is why gold was the best form of
money, it kept populations in line with a natural growth rate. When a
currency is just paper and paper in the whim and fancy of dimwitted
politicians, or what I like to call politicians --- charismatic
dingbats. With time that country will go to hell in a handbasket over
its paper money. Then a bloodbath such as a fighting war, or perhaps a
civil war or something like in the movie Road Warriors will await the
USA in the midst of a currency collapse.
The recent signs are ominous. A trade war with Japan over luxury
cars. Trade wars if they escalate are the harbingers of a fighting war
to come in the future. But a trade war is an awful thing for it could
escalate to the point that many many connections of international trade
are disrupted all of which means our standard of living melts in front
of our eyes. Just in the last two months we USAers have to pay 20% more
for a vacation to Europe or Japan due to the downward spiral of the US
dollar against the DM or yen. Soon we will no longer be able to or very
difficult to buy a Japanese luxury car at a good value. What next?
Countries with bananas, coffee, chocolate, oil, chrome, diamonds, all
want their goods payed for in gold? That would certainly trigger a
currency collapse of the US dollar.
And you hear Washington talk of balancing the budget in 2002, just
talk so Dole can get public attention. Dole had not done anything
constructive for the budget in his entire career, and does anyone
really think he will start now?
What Clinton ought to trade for next with Japan is give half of NYC
and half of Chicago for Tokyo. I say that because half of USA cities
are at the point where half of those residents get free money for doing
no economic work for that free money. But in Tokyo, noone gets free
money. So HillBilly Clinton forget the luxury car trades, please start
trading off USA welfare and entitlement people and programs for say the
Mitsubishi Trading Company. Yea, HillBilly, show us you can be smart
and not just a charismatic dingbat.
You know they made a movie called "The Day After" about a nuclear
war. But I think a movie called "Day After US Dollar Disappears" is
almost as, or more so frightening. I doubt any job will be left except
the military and I cannot see them killing their own kind. What would
you do on such a day, for you know the angry will be very violent and
panic and you know USA has guns in almost every house.
A bright spot though. I expect the CEO's of major world companies to
start to prepare for this currency collapse. It will be the CEO's who
after the collapse will rule the planet. No longer will the world put
up with charismatic dingbats who cannot see anything except or beyond
their own election terms. CEO's of the major corporations, prepare, for
you in cohort will rule the world with your corporations private money,
especially the big food companies such as Nestle and P&G.
Our present political system of elected officials died in 1940 when
voting meant buying votes via paper money. The future political system
that replaces it is a governing body of all the major producers (major
companies) of their CEOs. Retired CEO as obligation to the world form a
world political body and pass the laws. These groups of persons, these
retired CEOs of major corporations are an organization of what could be
called benevolent dictators.
AT present our charismatic dingbats never want to solve any of the
major world problems, they for the most part are incapable and even too
stupid to recognize them as problems. See how Clinton's first major act
was to hobble the finest of the USA by trying to strip the USA drug
companies. No, the world's major problems are (1) overpopulation and
define what is a comfortable world population so that the people alive
live comfortably and can say "it is great to be alive" and once defined
draw measures to meet that supposedly optimum population size, so that
we do not rely on more wars whenever population gets out of hand (2)
get rid of all paper currencies and make all currencies in relation to
a basketful of hard things, gold being one of those hard things (3)
rethink the taxing of people so that it has an international basis,
because the planet is getting more international all the time, but of
course under a world CEO ruling body there are no taxes because the
needs of things like roads or bridges or the coining of money are all
privatized and companies need roads to deliver their goods.
The day when major companies rule Earth is getting closer all the
time, and it is becoming more and more obvious that elected government
officials is tending towards extinction. A currency collapse of the US
dollar will be the deathknell of elected officials. . . sinanora
good riddance
Readers out there, please take a guess at where the President of the
USA and his cabinet will go when a USA currency collapse and subsequent
bloodbath in the streets of the USA violently come in. Will he retreat
into that shelter underground in that mountain in Colorado? Or will he
have his own special submarine all decked out?
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In article <3pl4a2$e...@dartvax.dartmouth.edu>
Archimedes...@dartmouth.edu (Archimedes Plutonium) writes:
> From "SILVER & GOLD REPORT" copyright 1980
> ---quoted -----
> "THE DOLLAR WILL BE WIPED OUT; THE US WILL ISSUE 1 NEW DOLLAR FOR 100
> OLD ONES"
In Late February 1981 Dr Franz Pick was contributing editor to SGR, and
the title of this article was
"40 YEARS OF DOLLAR DEBASEMENT CANNOT SUDDENLY BE REVERSED"
talking to Dr. Pick. Realize that this was Feb1981 when Dr Pick wrote,
and my comments are May1995
PICK: The new administration has floated into Washington on a tide of
hopes and fears that the monetary crimes which have been committed
against the Greenback for the last 40 years will soon be undone.
New buzzwords have been invented and magical incantations intoned
that the degradation of the Minidollar will stop via tax cutting,
supply-side economics, and a balanced budget -- a document that does
not include all of the billions in off-budget debt.
ME: Agreed Dr. Pick, and it seems that previous presidents, not so
much Bill Clinton have made fronts for there administrations. Fronts
that make the generally apathetic and dumb masses feel as if something
is done for the utter destruction of the dollar. Administrations pluck
the newest economic "no-nothing" professor who has some "jingo" that
people can understand and for four years that massages, lulls and
soothes the large masses of dumb people. The day they wake up and find
all their paper money and all its equivalents are worthless but for the
paper printed on, then the politicians with their accompanying goofy
goofball economist are long gone. It just matters who the president in
office is, when the currency collapse materializes.
PICK: The new sorcercers are just as adept as the old ones in
spinning the fairy tales of so-called "economic growth," reduced
unemployment and declining price levels. "THE MISMANAGEMENT OF THE
DOLLAR IS SIMILAR TO THE MISMANAGEMENT OF THE POUND STERLING, WHICH
EVENTUALLY FORCED THE LIQUIDATION OF THE BRITISH EMPIRE."
ME: I concur Dr. Pick. And was it not Keynes who arose when the British
Empire was in the midst of its decline? And was it not Keynesian
philosophy that was soaked up by FDR administrations. Could we not say
that starting with FDR, the USA as a nation is driving to
hell-in-a-handbasket? And when the history books write of the USA
political system from 1940 to present 1995 that the USA was not a
capitalistic democratic society but instead was a parasitic vote for
entitlements society? Would it not be fair to say that in a hundred
years from now after the USA currency collapse and a newer and better
society run by retired CEO's of major world corporations, that all the
USA presidents from FDR onward will enter the Hall of Infamy, a little
better than the Hall of Criminals Fame?
Archimedes Plutonium's profile photo
Archimedes Plutonium
to
In article <3ptn9t$2...@dartvax.dartmouth.edu>
Archimedes...@dartmouth.edu (Archimedes Plutonium) writes:
> In Late February 1981 Dr Franz Pick was contributing editor to SGR, and
> the title of this article was
> "40 YEARS OF DOLLAR DEBASEMENT CANNOT SUDDENLY BE REVERSED"
>
> talking to Dr. Pick. Realize that this was Feb1981 when Dr Pick wrote,
> and my comments are May1995
PICK: Yet, the plain fact is that the new ruler of the United States
has inherited what is probably one of the shabbiest currencies in the
history of money. The once omnipotent Dollar, that was the glory of the
globe at the end fo World War II, had by the beginning of 1981 lost 83%
of its official prewar purchasing power and 95% of its unofficial
buying value.
ME: Yes, Dr. Pick, this gives away my age, but I remember candy bars
for 5 cents, and my mother would buy 3 large grocery bags full of food
plus an added sack of potatoes all for 5 dollars. Yes, Dr. Pick I see
so well what you mean by the utter destruction of the "money" itself. I
suppose when such currency destruction finally collapses, people will
have a bloodbath at the grocery store like in the Road Warrior movie .
.
PICK: These facts have never been publicized by the government or the
orchestrated press, nor have they been discussed on television. The
banking system and the stock exchange community including its assorted
indices have continued to ignore such details.
ME: Yes, I see that clearly. And I love your choice of word
"orchestrated". For the press and TV pretend as if they are above a
decayed system and can stand above the decay and point out the true
facts so that people can make intelligent decisions. But the press and
TV do not. For instance, when does TV or the press show the statistics
of how many people in the USA live and eat from money that was earned
by work, actual work. And then how many in the USA live and eat from
money that was given out for free under entitlements, welfare, food
stamps, and the many many give-away programs? How many times has the
orchestrated press gone through cities of the USA and shown the reality
of a "parasitic society"? The only times the orchestrated press and TV
ever displays the parasitic USA society is when they report the crimes
that are part and parcel to a parasitic society going to hell in a
handbasket.
By the way Dr. Pick, the current president, Bill Clinton is slated
to speak here at Dartmouth on June graduation. Will Bill say to the
audience that they have a social net should they not find a job. That
they do not have to go out and find a job but instead can live off USA
welfare and never have to work a day in their life? That they can get
free money (implicitly free in exchange for voting ) and can go
knock-up women who can get more welfare free money. Will Bill announce
to the Dartmouth graduating class of 1995 that the USA in 1930 had
virtually no human parasites, but now in 1995, 40% of USA people are
parasites? Will Bill hold up the back page of the IRS tax form which
shows the pie of where each dollar is spent as proof that 40% of USA
live off as parasites the other 60% of USA people? And will Bill ask
the graduating Dartmouth students to go out there and gladly work hard
from Jan to June of each year in order to keep the free loafing welfare
sluts in 8 illegitimate bastards with their pimps doing crime? Will
Bill Clinton make that the Dartmouth 1995 graduation speech? I hope so,
because then Bill will be the first truthful president of the USA.
Archimedes Plutonium's profile photo
Archimedes Plutonium
to
In article <3ptn9t$2...@dartvax.dartmouth.edu>
Archimedes...@dartmouth.edu (Archimedes Plutonium) writes:
> In Late February 1981 Dr Franz Pick was contributing editor to SGR, and
> the title of this article was
> "40 YEARS OF DOLLAR DEBASEMENT CANNOT SUDDENLY BE REVERSED"
>
> talking to Dr. Pick. Realize that this was Feb1981 when Dr Pick wrote,
> and my comments are May1995
PICK: As for the generals in the Pentagon, they have been completely
indifferent to the deterioration of the American monetary unit which,
unfortunately, has destroyed most of what was once Washington's
political superpower superiority.
These developments are easily readable from the chronology of
budgetary deficits and balance of payments shortfalls in the post-World
War II era. They remind the currency analyst of the dilettantish
mismanagement of the Pound Sterling in the postwar years of 1919-1931,
which eventually forced the liquidation of the British Empire.
"ALL POSSIBLE PUBLIC RELATIONS TECHNIQUES HAVE BEEN USED TO
TRANQUILIZE THE HOLDERS OF NEARLY US$1 TRILLION OF GOVERNMENT DEBT
CERTIFICATES."
awful currency collapse in 1920's which created the Hitler holocaust,
that keeping a strong currency equates with keeping a peaceful nation.
That devaluing a currency which the USA has done, means over-population
where the food supply cannot handle it and thus a ticking time bomb for
the next war to arrive and to reduce the population into a better
balance.
Germany had learned the hard way about currency and to keep the
currency strong and that is why East Germany is now part of Germany
without ever firing a shot. But pitifully, it looks as if the USA is
going to have to be taught this lesson. USA politicians are so arrogant
that they think this country is above everything. USA politicians which
I call Charismatic Dingbats never plan ahead. The USA will relearn the
lesson of Germany in the 1920's. Only history never repeats. Perhaps
the USA will have a civil war bloodbath in the streets Road Warrior
style. Or perhaps a trade war with Japan all due to, that is, the
trade war was originally caused by Washington wanting to destroy its
currency to make the USA a 60% workers and 40% voting parasites living
off those workers. A trade war caused by curreny devaluation of USA
which leads to a World Depression a la 1930 which leads to WW3 of a
nuclear war.
Archimedes Plutonium
Apr 19, 2026, 9:40:38 PMApr 19
to Plutonium Atom Universe
On second thought, I better make the Franz Pick commentary a new book in and of itself.
If Ukraine falls, is unrelated to Stock Market and AI bubble.
But, if Ukraine falls, is totally related to whether the US dollar remains the international currency or whether the Chinese Yuan takes over.
China could peg the Yuan to gold and silver or even Rare Earth's, forcing the USA into a Greater Depression than what we had in the past.
This is what happens when a country has a goofball in power who knows no science and is anti-science. The USA has 300 million people, and I figure that 50 million of those would make a better president than the current occupant of the Oaf of the Oval Office.
Archimedes Plutonium
Jun 13, 2026, 6:49:47 AM (4 days ago) Jun 13
to Plutonium Atom Universe
Living in the new era in the USA where no more pennies are used.
5:37 AM 13Jun2026
to Plutonium Atom Universe
So I went to the Post Office to mail some weighty letters. I was given a price and had my change packet with me. I did not want to give my pennies away.
I think it came to 72 cents, and handed him 75 cents. Thinking I would get back 3 pennies.
No, instead he "rounded it out" and gave me back a 5 cent coin.
So, well, this is how it is going to be--- we pretend the 5 cent piece is now the lowest coin.
I guess we go with the nickel for several years into the future, until we find that it costs more in metal than the nickel is worth, and then pretend the dime, the 10 cent piece is the lowest.
At the rate of inflation, it will not be long before the dollar bill itself is the lowest money, and deal only in paper cash.
Let me add this observation to the Dr. Franz Pick book.
Living in the new era in the USA where no more pennies are used.
AP
5:37 AM 13Jun2026
to Plutonium Atom Universe
So I went to the Post Office to mail some weighty letters. I was given a price and had my change packet with me. I did not want to give my pennies away.
I think it came to 72 cents, and handed him 75 cents. Thinking I would get back 3 pennies.
No, instead he "rounded it out" and gave me back a 5 cent coin.
So, well, this is how it is going to be--- we pretend the 5 cent piece is now the lowest coin.
I guess we go with the nickel for several years into the future, until we find that it costs more in metal than the nickel is worth, and then pretend the dime, the 10 cent piece is the lowest.
At the rate of inflation, it will not be long before the dollar bill itself is the lowest money, and deal only in paper cash.
Let me add this observation to the Dr. Franz Pick book.
Living in the new era in the USA where no more pennies are used.
AP
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