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Why the US is collapsing - by a Swede Rick Falkvinge

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March 23, 2008 – Comments (11)

Why the US is collapsing

There is a belief among many that the US is collapsing. Fear sells and this story is selling well as the dollar falls and gold/oil has gone parabolic (in dollar terms). The story sells well in socialist dying Europe and overcrowded, over polluted, over stimulated Asia (Yes, the BRIC story is just a "story" that has worked. IMO the "BRIC story" will seem laughably ridiculous in a couple years). 

Real or perceived weakness in the US makes the EU seem like a better run or managed economy. The EU members can take pride believing they are not part of or impacted by the debacle taking place in the US, because they are _____________ (smarter, better managed, whatever).  

Rick Falkvinge provides a good review of the history and belief prevalent in the World that the US is in major economic trouble.

The story is important to know because there is a major investment theme behind it. Additionally, Rick does a good review of the history of the dollar. Take a gander at the 70+ comments behind the post.

http://falkvinge.com/2008/03/why-us-is-collapsing.html

For the record: My view is the US dollar will collapse, just like every other paper currency in history and so will the Euro. Tomorrow, next week, next year, 2020, who knows.... 

 

11 Comments – Post Your Own

#1) On March 23, 2008 at 8:38 PM, bullshiite (31.90) wrote:

Great article that you linked.  I think I'll watch the two 45 minutes videos included by the author too.

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#2) On March 23, 2008 at 8:55 PM, lquadland10 (< 20) wrote:

Good fact finding.

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#3) On March 23, 2008 at 9:37 PM, MakeItSeven (31.64) wrote:

Very good article, thanks for the link.  The short article by Paul Craig Roberts is great too.  Good thing he was Assistant Secretary of the Treasury under Reagan and a Contributing Editor of National Review now so Bush supporters cannot claim that he's merely one of the "unpatriotic" Dems who wishes ill to the US economy.

One most notable statements is:

"The American economy has been devastated by offshoring, by foreign competition, and by the importation of foreigners on work visas, while it holds to a free trade ideology that benefits corporate fat cats and shareholders at the expense of American labor."

Note he admits that profits to the corporate fatcats do not bring any benefits or jobs to the US economy at all unlike the lie which has been propagated in the last 20+ years that the more money the government gives to the corporates the more jobs they will create as if jobs created by the government such as teachers, police, firemen, librarians, etc were not real jobs.  The extremes between communism and corporatism can swing both ways, not just one way.   Right now, the pendulum swings way too far to the Corporatism end but the propaganda is trying to make people believe that the policy is merely in place to fight socialism.

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#4) On March 23, 2008 at 10:15 PM, abitare (38.89) wrote:

ALCON,

Thank you for the replies.

MakeItSeven,

Very good link from PCR. I have read him before.

To be honest, there have been many credible Americans  (GAO David Walker) coming forward speaking against the current policies. It should surprise no one, who is paying attention if there is a severe fall out from these policies.

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#5) On March 23, 2008 at 10:19 PM, EScroogeJr (< 20) wrote:

A variation of the "why capitalism is collapsing" message that I've heard so often in childhood.

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#6) On March 23, 2008 at 10:29 PM, abitare (38.89) wrote:

EScroogeJr,

Happy Easter. 

No doubt, there is always a fear story in the markets. I remember the Cold War and thought the movie Red Dawn might actually play out for real.

But there has been some scary history that actually does play out. I do see some severe fall out coming, not sure how the US dollar is going to survive in the long run.

The inevitable collapse of the dollar

When are you going to get a positive score? I am happy that you keep up the good fight and try to recover. 

"There but by the grace of God go I."

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#7) On March 23, 2008 at 11:54 PM, EScroogeJr (< 20) wrote:

hi abitar,

RedDawn was a ridiculous movie, which sold well because geography has never been a favorite pastime of the brave :) 

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#8) On March 24, 2008 at 2:07 PM, leohaas (31.35) wrote:

abitare, nothing lasts forever. You may be right that the dollar will soon be out of favor as the international trade currency. And that has serious consequences for everyone holding dollars.

But to link to a radical like Mr Falkvinge and his Pirate Party does not do your credibility a lot of good. Mr Falkvinge's goal is to abolish intellectual property. If he succeeds, innovation will stop almost completely. After all, there will not be any incentive to innovate. Have you become a communist?

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#9) On March 24, 2008 at 3:14 PM, madcowmonkey (< 20) wrote:

Red Dawn was good because of Patrick Swayze (spelling?) telling everybody to pee in the radiator. Wolverines!!!!!!!!!

what a day read comments please!

Your prediction reminds me of a great mathematician that said if he had a large enough lever he could move the earth!

Nice job with the RAM lyrics on another post. I had to stop by and check out your page after the comment.

I will leave you with, Some Precious Metals Producers Struggle 

 

 

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#10) On March 24, 2008 at 6:47 PM, abitare (38.89) wrote:

leohaas,

Thank you for the reply. Good link to the PP.

Mr Falkvinge is not as radical as you might think. Even so, he has written down the belief that is widely held in the world. His story is supportted by the decline in the dollar, parabolic rise in commodities and a panicy FED.

Mr Falkvinge's goal is to abolish intellectual property.

He is not alone. The belief is rampant in youth culture. Have you heard of limewire and Napster?

If he succeeds, innovation will stop almost completely. After all, there will not be any incentive to innovate.

Then explain this:

List of free massively multiplayer online games Report this comment
#11) On March 25, 2008 at 12:05 PM, leohaas (31.35) wrote:

yeah, abitare, I have heard of Napster, and I know there are a lot of young people (and hippies) who would like to see IP abolished. No doubt there will be lots of online games (very useful). And there is always Linux as the hackers' operating system.

But without IP laws not many people will write books, create new music, or perform any kind of research. Why would they? It simply does not pay. In a capitalist society innovation is rampant because of the potential pay-off which is protected by IP laws.

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