Obama will be Americas Gorbachev

[RjBig]

How's that for a title...Now here goes nothing, short, sweet, and simple...

Gorbachev was the Leader of U.S.S.R. He was in power when the country faced economic collapse. Faced with the two options of either doing things as they always had in the past, using force to quell rebellion and going isolationist in economic terms but continuing the system of Communism, or they could take this opportunity to switch to Capitalism and end the totalitarian state. Gorbachev chose to switch to capitalism and Democracies...This was a good thing for the world and in the long run will be better for the people of the former U.S.S.R...

Okay so far so good, I am trying to keep it short and simple, I tend to go into too much detail so I am working on that....

Like the U.S.S.R. America is facing economic collapse, the inability to pay our debts. Sure I know it all looks rosy now, but, the eminent collapse of the Euro will take the US with it...the Fed will try to prop up Europe, without even asking US, and it will fail dragging us with it...Of course if we go everyone else goes with us...The Reserve currency status of the US Dollar will be lost. The world will no longer have the confidence in the dollar to use it as the Reserve Currency and so International trading virtually ceases...Worldwide Economic Collapse and it happens quickly, days...

This is the Scenario President Obama will be faced with...Worldwide riots...Fear of War...Total economic collapse...All of the money is Fiat Currencies which only have value if we believe in them...They have no inherent value...Obama, Like Gorbachev will be faced with doing things as we always have, use the military to quell rebellion, martial law, isolationist economic policies and War, use of our military to dominate resources worldwide, or Like Gorbachev he will be brave enough to say Enough is Enough we need to try something different, something that works better. Unlike Gorbachev though Obama won't only being making the decision for one Nation, No the World will watching and hoping and praying that we can do better...

Here is the rub...I got no clue what the new choice will be...We have tried Communism, Socialism, Capitalism, and hybrids of these and they all fail. We tweak them and try again and they fail...All of these are Top-Down systems...That is probably the problem...But I do not see a Bottom-Up model?...A model that does not put the Power or decision making into the hands of a small group...Most likely the only available choice, especially if we don't find something else before hand, will be some form of World Government and/or International Currency...And no that idea is not necessarily evil...all depends...on us...I think it will be Something Wonderful...

[Night]

There is nothing about gold that makes it somehow economically safer as a base currency. In fact, basing a currency off of gold is much worse than a fiat currency. This whole gold mania has been propped up by investors and sellers in gold trying to pump up the value of their gold assets on a gullible American public. Have you noticed that this whole Gold is Good craze is a recent occurrence?

Capitalism, communism, and socialism have not failed. People have failed, but economic models are just economic models. It is impossible to truly implement 100% pure capitalism, communism, etc.

I believe the recent economic crisis will either push us farther to the left (hopefully) or to the right.

I must say RjBig, your last sentence is a very refreshing break from the usual "the future is going to be terrible!" trash I hear from a lot of people who also discuss gold in the same subject.

[NoMoreDems-Reps]

Then that would make Ron Paul America's Yeltsin. But without the alcoholism of course.

[RjBig]

There is nothing about gold that makes it somehow economically safer as a base currency. In fact, basing a currency off of gold is much worse than a fiat currency.

I would tend to disagree with your statements here...A currency that has intrinsic value, like gold, will always retain its inherent value...Yes there are problems in having Currency in a limited quantity items thats value goes up and down...I believe we will soon see the introduction of a new reserve currency (not to replace sovereign currencies, just to be used for international trade) that will be based on a basket of Commodities and Soveriegn Currencies...So the basket would include Gold, Platinum, Silver, Copper, Coal, Oil, Wheat, Corn, and probably the G10 currencies...A currency based on a basket like this should add more stability...

This whole gold mania has been propped up by investors and sellers in gold trying to pump up the value of their gold assets on a gullible American public. Have you noticed that this whole Gold is Good craze is a recent occurrence?

Of course what you say is true...However the reasoning behind the Gold Sellers pitch...is a reasonable argument...ie..That we are likely to see high inflation and a devaluing of the Dollar...And no I would argue that this is not a recent occurence...This has ALWAYS happened in times of economic trouble...Probably because historically gold has always been acceptable in trade when currencies/governments went belly up...

Capitalism, communism, and socialism have not failed. People have failed,

Ok so I agree with your statement...Any of these systems should work fine...I was trying to highlight that in the above piece and obviously did not get that across...Any of these systems should work but don't because People fail, they get corrupted by Power and/or Greed which I think is inherent in these systems because Power and Decision making is done by a small group of people...

but economic models are just economic models. It is impossible to truly implement 100% pure capitalism, communism, etc.

Well I disagree with this statement also...Things might be difficult...but Impossible...No...But based on our experience I can not see a reason why we would want to...

I believe the recent economic crisis will either push us farther to the left (hopefully) or to the right.

Yes I agree 100%. As I state in the above piece I think we are going to see something new emerge...A new choice...We are going to be in a place where we are just going to have to wipe the slates clean and start over...

I must say RjBig, your last sentence is a very refreshing break from the usual "the future is going to be terrible!" trash I hear from a lot of people who also discuss gold in the same subject.

Thank you, I am an Optimist, I have a lot of faith in Humanity...And to be clear I am not Pushing Gold...Heck if I was pushing investments I would say jump on the bandwagon and short the Banks/Sovereign currencies of Europe...

Ron deserves credit for finally get people to discuss our Military Spending and the futility of the Drug war...but he is not electable...sorry...Thankfully we get another term with Obama...Assuming we have an election...Which to me is still in question....I expect the STHF by March-June...

[barts]

Gorbachev chose to switch to capitalism and Democracies...

I, for one, would applaud President Obama switching to capitalism and democracy, rather than serving an oligarchy that is above the law, and that is impoverishing America and eroding democratic rights.