I have recently written two new articles that are posted on the site.  Check out "Too Big To Fail", a review and commentary concerning Andrew Ross Sorkin's book concerning the recent financial crisis.  Also check out Fiat Money, an article I wrote for www.relaxedfitezine.com. 

While the most difficult elements of the recent financial crisis appear to be in our past, the US continues to have major financial issues.  Today, gold is trading at almost $1250 per ounce.  Check out my article, The Case for Gold.

TPM

The battle of words concerning the proposed development of a Islamic community center and mosque near Ground Zero in New York continues to escalate.  Two rallies are occurring in New York City this morning, one in favor of the project and one against it.
 
It appears there are no legal barriers for the construction of the mosque.  I certainly believe in freedom of religion or no religion.  The builders of the proposed mosque have the Constitutional right to practice their religion of choice.  However, the builders of the proposed mosque must also respect the sensitivities of the people most directly impacted by the 9/11 attacks and the majority of NY and US citizens.

It is the responsibility of the majority to respect the beliefs of a minority in our country.  It is also the responsibility of any minority to respect the beliefs of the majority.  The 9/11 attacks were conducted by Islamic extremists that publicly stated they are trying to destroy our nation.  Every day we read and see actions taking place in Muslim controlled nations throughout the Middle East.  The more we learn about Islam and its impact on the lives of its believers the more incompatible it appears with the beliefs of the majority of US citizens.  Every Muslim in the US must understand that the social impact of their religious beliefs.

There is no fundamental reason for a mosque to be built near Ground Zero.  If a new mosque is truly needed in New York City it can be built in another section of the city.  The minority needs to demonstrate its respect for the majority, while enjoying its religious rights under the Constitution of the United States of America.

TPM

One of the "routine" news items today on CNBC was the announcement of another unpaid day off for many California state employees.  CNBC ran a segment in front of a closed DMV office on what should have been a normal business day.  Gov. "Arnold" continues to attempt to get the attention of the California State Legislature regarding a $15B deficit in the current year California state finances.  Apparently, California doesn't have an approved budget well after the fiscal year has begun. 

The California legislature's failure to properly address California's financial problems has been ongoing for a number of years.  The inability of the California to come close to developing a rational financial plan for the state is a national disgrace.  Since California has the highest population of any state in the union it holds the most seats in the US House of Representatives (currently 53 out of a total of 435).  The California governing philosophy of financial irresponsibility has been fully reflected in the actions of the House of Representatives under the "leadership" (I think I mean "failureship") of Speaker of the House of Representatives Nancy Pelosi from California's District 8.  California's limitless spending approach to government is beyond the comprehension of most Americans.   Are the citizens of California so irresponsible that are willing to bankrupt their state and perhaps eventually the nation in their desire for a lifestyle that hasn't been earned?

It has been said that many societal trends start in California and spread eastward across the country.  I am wondering if many other sections of the US have been contaminated by California's ignoring of its fiscal responsibilities since our collective national leadership appears equally clueless on the subject.

At some point California and the US as a whole will be forced to deal with its financial irresponsibility.  The numbers don't add up at any level.  All the real economists and financial experts know the truth.  Total spending must be dramatically cut.  Revenues must be increased to some degree. The collective standard of living of the US must be reduced from so we can manage our collective debt.  Continuing spending at current or higher levels simply doesn't work!

Government must take a reduced role in the overall economy of the US.  It is time for our government leaders to step forward and lead.  Most of us are tired of sound bites that do nothing to focus real efforts to implement real solutions to our national financial problems.  Our supposed leaders are running from their responsibilities.  Barrack Obama may be the President of the United States but it is clear he is not our leader.  We don't need Presidential commissions to analyze the financial condition of the US.  The situation is obvious and well documented and we have a Dept of the Treasury and Office of Management and Budget to do all the detailed work that is needed.   What we need is a President that will tell the nation the truth and lead the country through a restructuring process so we can regain our national financial sanity.  It is unfortunate that our President Obama has shown himself to be incapable of effective leadership during this critical time.  He is just as bad or worse as his recent predecessors.

I offer the following message to all of my countrymen in California.  You have a lot of smart guys in your state.  Elect a bunch of them to the State Legislature and get rid of the idiots that are "leading" California to disaster.  If California can finally address its financial problems maybe we can get something done here in Washington, DC.  Is it possible that financial sanity could sweep across the country?

TPM

I saw a reference to the article identified below in a tweet from www.zerohedge.com on Twitter.  The article was originally posted at www.theburningplatform.com.  The title of the article "Mass Delusion - American Style" is totally appropriate.  A Mr. Jim Quinn is identified as the author of this brilliant piece of work.
 
I encourage anyone that cares about the US and its future to read http://theburningplatform.com/blog/2010/08/14/mass-delusion-american-style-featured-article/.

The citizens of the United States of America need to wake up from their stupor very soon or there won't be much of the US left to care about.

TPM
 

I watched several "experts" today on CNBC argue about the future of the Social Security program. The segments were too short for anyone to put forth their detailed plans for restructuring the program. 

I also had a Facebook debate with a friend of mine about the fundamental goals of the Social Security program.  My friend described Social Security as "a pay-as-you-go insurance program and it does exactly what it's supposed to do by using benefits paid by today's workers to pay for today's retirees."  I disagreed that Social Security was an insurance program.  However, after some back and forth on the subject my friend wrote the following, "Social Security has a revenue stream it is just not big enough to cover the cost today. I again agree with your conclusion Social Security is not working and needs restructuring."

I made the point that I was "glad to see that we agree on the most fundamental point that Social Security is not working and needs restructuring. If our politicians would reach the same agreement and get started on the restructuring process we would be better off. I agree with a lot of experts that there are simple changes that almost everyone would accept to make the program solvent for the foreseeable future."

The bottom line on Social Security is that no matter which direction you come from on the need for Social Security and what the program truly represents, it is agreed that the program is not working and needs restructuring.  The Obama administration and Congress need to put this task at the top of their agenda and get it done.  We have had enough talk and it is time for action.

TPM

Check out my new article, Fiat Money,  at www.relaxedfitezine.com.  Everyone should know about the history of fiat money in the United States and learn about our political system is working to take our assets and the buying power of our income.

TPM

My partner, Mark Pond, and I have launched a new web site called Relaxed Fit E-Zine at www.relaxedfitezine.com.  The web site is an online magazine for grown men.  We plan to offer a wide range of articles and information that we believe will be interesting for our primary audience.  We invite everyone to check out www.relaxedfitezine.com.  Send us your comments and tell us how we can provide material of interest to you and improve our E-Zine.

TPM

There is a small but very important article in the Financial Times (FT) online today.  Check out www.ft.com to ready the details concerning the Chinese government's effort to liberalize the gold market in China.  China's investors are pouring record amounts of money into gold according to FT.  It appears the Chinese government has announced plans to further increase it gold bullion reserves.

We all know that the Chinese government acts very strategically and takes a long term perspective when it makes major decisions.  It is obvious that gold will plan a very important role in the creation and protection of wealth in China in the years to come.  China is acting very strategically while western governments, including the US, focus on managing their fiat currencies in a debt laden environment.

Don't be surprised when China declares its currency convertible into gold at some point in the future and becomes the holder of the world's new reserve currency.  Check out my article - The Case For Gold - for a perspective on the importance of gold.

Amazing that I have to find this information via FT.  I don't see or hear about this topic on any US based media outlet.


TPM