Let the too big to fail FAIL and the sickening process will reverse. Smaller companies will pick up the parts and convert these into a rewarding economic activity. Employment will improve and the Middle-class (which makes a poor country rich) will prosper. 

Monday August 31, 2009

Port St-Lucie City Council meetings turn ugly. Social unrest and sometimes WAR always follow an economic Depression. It's an era of anger in America and probably not the best of times to be a politician. Nationally, town hall meetings where "Obama-care" is routinely decried have degenerated into hate-fests. Reports of people arriving armed to the teeth with semi-automatic weapons are really scary. The 2nd revolution has in fact already begun. No taxation without representation. Remember the Tea parties? It was only months ago and it is getting worse. We have more than an economic problem...

Democracy has ceased to exist. The election process has become a Political Reality show with a known outcome. Politicians get elected from Father to Son and from Man to Woman. Authorities and Bankers have become the Modern Kings, Barons and Nobles. Which ever political party gets elected, the outcome and the way elected politicians rule a country is the same for they have become a breed of their own living for themselves and not for the People.

Natural market forces are being corrupted because of the principle of "Too Big to Fail" and large uncompetitive, uneconomic companies are incorrectly kept alive hereby destroying the last bits of Free market entrepreneurship and sound competition. The larger and the more complex an organization (J. Tainter) the more expensive and harder it is to operate it in a profitable way. Globalism is nothing but a false myth sold by the very companies and Governments benefiting from it. In reality it is immoral because it kills local manufacturing (no country can survive by selling "Services" only). Supra-national Fiat Paper currencies (Euro, Dollar) ensure a country cannot adjust its domestic economy properly. Such results into a two class system with rich and poor which doesn't work, never has and never will.

Examples of such huge companies are:

• Banks and Financial sector: Goldman Sachs, Morgan Stanley, AIG, Citicorp, Wall Street, Soc. Générale, ABN-Amro, ING, UBS, Banco Santander [Banks too big to fail have become even bigger]

• Automobile sector: GM, Ford

• Military Equipment co's: Halliburton, Boeing, McDonnell Douglas, Lockheed Martin, Dassault Aviation,

• Agricultural sector & chemicals: Monsanto (Roundup and genetically engineered seeds), BASF

• Telecommunications: ATT, Telefonica

• Airline companies: Air France-KLM,

• Pharmaceutical co's: Pfizer, Bayer, GlaxoSmithKline, Novartis (Sandoz & Ciba-Geigy)

• Food distribution: Wal-Mart, Carrefour, Food Lyon

• Oil Companies: even the 7 sisters have been taking over each other.

• Breweries: Anheuser-Busch InBev

• Food manufactures: Health food, Bio-food (all food is biologically grown)

• Media (when you own the Media and the Banks you can play 'ALL' the games you want)

As the middle class is being destroyed and we have moved into an Oligopoly where a handful of uneconomic companies rule the world we now see that we are moving towards Fascism.

A similar process was experienced prior to the Second World War and it was in fact the Big German Industry which put Hitler into power.

Assuming we have social unrest and/or War, there are (unfortunately) few good investing solutions.

• Gold coins, Gold and Silver are obviously important.

• Agricultural land is a lot better than Commercial Real Estates, Condo's and Single Family homes.

• If only there was a country not running on Fiat Paper Money and debt: Having Global Markets, it is extremely difficult to select a country of which the Stock and the Bond market will survive. When the Rule of Law becomes the self-interest of the state, no one is safe. Your future is destroyed and not even your savings are secure. Whenever the rule of law gives way, the collapse of the state is not far behind. All excess capital flees the country and investments that create employment disappear. It becomes a vicious circle of which there is no escape until all is lost.

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