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Offline ms

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The Bush Dollar Trap
« on: January 23, 2008, 11:06:00 AM »


The Bush Dollar Trap

DAVE LINDORFF
Counterpunch
Wednesday January 23, 2008

The first government response to America's sinking economy was denial. We were told as recently as a month ago by administration officials and Wall Street charlatans that the economy was robust and that there would not be a recession. Now we are told that the economy is in trouble, but that the government is taking decisive action to shore it up.

We saw how effective the first "decisive" proposal was. Bush announced a plan to give every adult taxpayer (no poor people, thank you) $800 in a tax rebate this April. The stock market responded to this idea by dropping a few percent. The idea, as I wrote in my last column, was stupid to begin with because, with the US no longer producing much of anything, all that bonus borrowed cash would end up getting spent on imported goods anyhow, doing next to nothing for the US economy.

So now the Federal Reserve has weighed in with a 3/4 percent cut in the Federal Funds rate. Even though commercial banks followed suit, lowering the prime lending rate by a similar 3/4 percent, the stock market showed how much good that move would do, dropping almost 300 points at the opening bell today--about what it had been expected to do even without an interest-rate cut.

(Article continues below)


There was one place where the Fed's action did have an impact though: the exchange value of the dollar in foreign currency markets. No sooner was word of the interest rate cut announced, than the dollar fell against major currencies like the British Pound, the Euro and the Japanese Yen.

And there's the rub. The Fed is in a trap. It cannot cut interest rates much more without causing a collapse in the dollar, which, because of the huge US trade imbalance, and all those consumer goods and raw materials--especially oil--that are imported--would lead to serious and politically dangerous inflation. And there is another constraint: with the current rate cut, the US now has the third lowest interest rates in the world. If the Fed makes another cut, as it has hinted it might in a week or so, only Japan would have a lower interest rate environment than the US. That makes the dollar a very undesirable currency for foreigner investors, which means they won't want to hold dollars, and they won't want to hold US stocks.

Yet if the Fed doesn't cut interest rates even further, the stock market will continue to plunge, which again discourages foreign investors from pouring their money into the U.S., which in turn puts downward pressure on the dollar.

This was all predictable.

An economy that is almost wholly dependent on consumer spending, which is the case in the US, is in big trouble when consumers start to worry about the security of their jobs, and when they see inflation eating away at their disposable income. They naturally just stop spending. And that is happening, too.

So get ready for some hard economic times. The next step will be soaring inflation, as strapped companies in China, India and elsewere start raising their prices for goods shipped to the US and paid for in dollars. Then the Fed will have to respond by raising interest rates again, in an effort to shore up the currency. And with that will come deeper recession and an even lower stock market.

The Bush chickens--endless deficits as far as the eye can see, and a $2-trillion military debacle that has no end in sight and that is sucking money out of the country like a giant industrial vacuum cleaner--are coming home to roost. The President and Vice President clearly hoped that they could pass the wreckage of their eight years in office on to the next president and run off to retirement and senior stateeman status before it all blew up, but their luck ran out. The economic crap has hit the fan. Chances are that the war that they have tried to tuck away in the closet with a "surge" in troops and a brutal campaign of aerial bombardment, will also blow up on them before the year is out.

That's small consolation for all of us who have to live with the ensuing disasters, but at least--if we can't see them properly impeached and indicted, and if the Democrats in Congress don't manage to screw things up further so they can be blamed for the mess too--we'll have the satisfaction of seeing Bush and Cheney run out of town next January on a rail.
 This is not a conspiracy for all you bush lovers!!!!!!!!!!!!!!!!!!!!!
 
 

Offline Graybeard

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Re: The Bush Dollar Trap
« Reply #1 on: January 23, 2008, 11:42:17 AM »
Looking ahead to the next new administration I can see but one hopefully bright side. No matter how badly they mess things up they are not likely to do as poor a job as Bush has. That's sad I really believed in him especially the first time I voted for him but still had hope he'd do right by us the second time. Boy was I wrong. I'm not longer even sure that it really would have been worse if he had lost either time. Maybe in some things but over all I'm not at all sure of it.

I have to admit that Bush has been the single biggest disappointment to me of all the folks I've ever voted for. And I really thought we'd NEVER see a president worst than Klinton. I was WRONG.


Bill aka the Graybeard
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I am not a lawyer and do not give legal advice.

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Offline victorcharlie

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Re: The Bush Dollar Trap
« Reply #2 on: January 23, 2008, 11:51:09 AM »
The article is right IMO.....

The problem is complex but IMO the first thing that needs to be done is to eliminate the trade deficit.   Fair trade not free trade.

The second thing that needs to be done is reduce if not eliminate the national debt.

Fact is, the country can't afford any more entitlements and needs to learn something about pay as you go......
"Extremism in the defense of liberty is no vice. Tolerance in the face of tyranny is no virtue."
Barry Goldwater

Offline Dee

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Re: The Bush Dollar Trap
« Reply #3 on: January 23, 2008, 12:12:01 PM »
The article is right IMO.....

The problem is complex but IMO the first thing that needs to be done is to eliminate the trade deficit.   Fair trade not free trade.

The second thing that needs to be done is reduce if not eliminate the national debt.

Fact is, the country can't afford any more entitlements and needs to learn something about pay as you go......

victorcharlie, you, me, GB, nor anyone in D.C. will see the elimination of the national debt. Even if they tried they will not pay off 53 trillion dollars in our life time. We as a nation are no longer even paying the interest on the loan. It has been given up on.
You are right about the entitlements, but we cannot afford a never ending war anymore either. It EXCEEDS a billion dollars a day just for Iraq alone.
You may all go to hell, I will go to Texas. Davy Crockett

Offline ms

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Re: The Bush Dollar Trap
« Reply #4 on: January 23, 2008, 12:31:11 PM »
 

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 Knowledge is Freedom
How High Does The Nations Debt Go ?


I will keep this short, because I want as many people in this country as possible to read this article. It is by no means the whole story, just the basics and cold hard facts, concerning the enslavement of your children.

For years we have all been told about the National Debt, but I dare say 90 percent of Americans are ignorant of what and how
much it is, or that they and their children are collateral for the debt.

The principle cause of this Nation's debt goes all the way back to the foundation of our country, when Jefferson and Hamilton debated before President Washington, via letters, as to the best monetary system to have. Jefferson wanted to stay away from paper money and pay as you go, Hamilton wanted to operate on a system of credit controlled by the international bankers, with
the Nation constantly running deficits and living beyond its means. Well, obviously Hamilton won; true the nation progressed much faster in development operating off of credit, living beyond its means. However, thanks to the interest charged by the bankers, one of the most destructive forces known to man, second only to taxation, we are now a Nation of bankrupt financial slaves.

Living day to day, via a corrupt and fraudulent monetary system, we are drawn ever closer to our destruction. Struggling to earn more and more paper money, which further enslaves our Nation. Every time the federal reserve cranks up it's printing presses the bankers increase their hold on all Americans and the World. Our paper money has no value, other than the numerical stamp on the money and your faith in it, By definition it is fiat money:

The definition of fiat money is: "money composed of otherwise essentially valueless things that neither have a commercial use nor constitute a claim against anyone, but do have a special legal qualification. The money is not the material bearing the stamp as authority but the stamp alone."

The point I want you to grasp is, our money has no value, only your faith that it will be accepted by someone else, for the value stamped on it. Also, read what it says on the title of the money, "federal reserve note", it's not even money, it has been declared by Congress as our legal tender, but so could a box of rocks, it is quasi money, acting as money. It is a note, an I owe you, which is evidence of a debt. Trillions of dollars are owed to the Bankers and World financiers. I ask you, would you take a note as payment of a debt, when you know it has no value? When you know that all the land held by the corporation U.S. Government and it's people's lands are yours since there is no way for the U.S. Government to pay the debt, nor was it ever the bankers intention for us to pay the debt. There is not enough paper money in the world, or collateral backing it, to pay the debt. Bankers will not accept fiat money as payment, to retire the debt owed them. They are using the debt to acquire the World through receivership, bankruptcy, to create their one world government.

Unknown to Americans, bankruptcy (reorganization) has already taken place in this Country (1934), and now the debt has grown to such a large number, even the land and the financial slaves that are tenants on the land, cannot pay the debt. So what do the Bankers and the World financiers do? They use the USA and its people to conquer the rest of the World, through this fraudulent money system and an incredible propaganda machine that controls the public totally. This I'm sorry to say is where we find ourselves, sure there is much more to the this sorted history, but I'm dealing with just the money and debt created by interest, and the slavery that followed.

What does this mean? Well, lets examine the debt and your share of it, all based on fraud of course. I remember growing up as a young man hearing the share of the National Debt was 40,000.00 per capita. That's forty thousand dollars, today it is far greater. I found some interesting facts and figures in the USA Today (October 4, 2004).

Before I get to the stats published in the USA Today, I will have to get us to a multiplier, a common denominator that everyone can understand and relate to, so the final numbers will be relevant. I will start with some basic math, 1 bill, no matter the denomination measures .005, that is 5 thousandths of an inch. If you take 200 bills and multiply them by .005, it equals 1 inch. Still working towards a common denominator, lets make the bills 1000 dollar bills, to make our calculations easier, and come up with a multiplier everyone can understand, to get the full impact of USA Today's published numbers.

1 bill is .005" x 200 = 1"

200 bills are 1" x 1000.00 = 200,000.00 (2 hundred thousand dollars)

Now that you know the number and the value of 1" thick stack of 1000.00 bills, we can do some multiplying. Using 1000 as a
multiplier, example: 1000 x 1000.00 = 1 million dollars.

1000 bills are 5" x 1000.00 = 1,000,000.00 (1 million dollars)

1,000,000 bills are 5000" (416.666 feet) x 1000.00 = (1 billion dollars)

1,000,000,000 bills are 5,000,000" (416666 feet = 78.914 miles) x 1000 = (1 trillion dollars)

1 billion 1000.00 bills stacked flat 78.914 miles high = 1,000,000,000,000.00 1 trillion

Ok, now we have the multiplier and common denominator of 1 trillion dollars, broken down mathematically in a way you can understand. The height of the bills laid flat on top of each other reached a height of 78.914 miles. Now we can multiply the stats USA Today published by the multiplier 78.914 miles, to see how high the U.S. Government debt goes and your share of it.

As of 10-16-2004 the National debt, the only debt the American people are told about was 7.2 trillion dollars, x 78.914 miles high = 568.1808 miles high. However, we're told in the USA Today that the personal debt of Americans, credit cards and
mortgages etc., is 9.5 trillion which is an additional 749.683 miles high. The article goes on to tell us about the debt obligations of the U.S. Government, for social security, Medicare and government pensions which is owed now. A whopping 53 trillion dollars, based on the people alive now, that will draw at some point on the above systems, 53 Trillion dollars = 4182.442 miles high. Keep in mind, the paper fiat money will be worth less as time goes by, because the federal reserve has to keep printing more, which continual devalues all U.S. Dollars. That's why the price of everything keeps going up, it takes more of it to buy the same things. That's not all folks, no one is telling you about the corporate debt corporations owe Americans for pensions and the like, just as the federal government does, I think you get the picture.

Now, lets look at the total.
7.2 trillion = 568.1808 miles
9.5 trillion = 749.683 miles
53 trillion = 4182.442 miles

Total 69.7 trillion = a stack of 1000.00 = 5500.3058 miles high

To better understand this amount of paper money, if this 5500.3058 mile stack of money was laid down flat, it would stretch from Miami Florida to Anchorage Alaska, with 245.3058 miles left over, or the distance would be like driving from the beach in North Carolina to the Los Angeles then back to North Carolina. Keep in mind that's 1 bill .005 thick times 200 bills making 1 inch, going across the country twice. This again does not include the corporate debt, or the interest on the 7.2 trillion National debt, which is increasing about 1 trillion a year and climbing. At to days current paper money value, again the more they print the more it will take to potentially pay the debt. As I said before, only someone ignorant of the facts would take fiat money for payment of the National debt, and the bankers aren't stupid. I'm sure you would say, hey, I pay my debts every week, using paper money. I would say: "I rest my case"; but you are wrong, thinking you pay your debts. Through the use of fiat paper money, you have been allowed to discharge your debt, to the glee of some. However, your labor is constantly devaluing, thanks to the devaluation of paper money as stated above. The money you are paid is worth less, so you have to work longer to make the same amount of fiat money, but at the same time the money you were paid buys less, you loose twice. Since fiat money has no real value, it is your labor the Bankers are after, slave. Sorry, but that is the reality.

Now that you see the magnitude of the debt, what is your share, more importantly the share of your child just born, still in the doctors hands having just taken its first breath. I have to give you one more calculation to find out just how much every
person owes. There are an estimated 294,714,833 people in the United States, so we can divided the debt into this number.

Per capita

7.2 trillion National debt = 24,430.00
9.5 trillion personal debt = 32,235.00
53 trillion government obligations = 179,835.00
Total 236,500.00

USA Today reports their numbers by household.

9.5 trillion personal debt = 84,454.00
53 trillion government obligations = 473,456.00

So, per capita, meaning every man, woman and child owes 236,500.00. Your child that just took its first breath, never having harmed anyone is a financial slave, to a debt that is based on fraud and that can NEVER be paid back. Ok, you now know
what a serious problem we are facing and the harm and enslavement we have passed to our children.

I could stop here and be satisfied that I have passed on important information, and not face any retaliation by some that will read the below drastic changes that are needed to fix the above problem. I'm always asked via emails, what do we do to fix these problems, I've always made it clear that education is the key to freedom? To answer will draw visceral attacks and name calling by those that prefer the status quo and those that do damage control for the government, usually lawyers posing as patriots. We are at a time in history where Americans have to be made aware of these fundamental facts, and some how be shown their plight, truth does matter. Being a realist, I'm sure most Americans could care less about the above information, but I have to try. Most Americans only care about maintaining the status quo, but for those not self centered, with their heads buried in the sand and not afraid of debate, keep reading.

Here are just a few things that need to be fixed, all be it a simplistic list. For starters, ask yourself who is the root cause for this mess. Look in the mirror, we are, by not giving a damn as Americans, when it comes to what our government is doing. Ok, no need in beating a dead horse, this being addressed you are now aware of your lack of knowledge and hopefully you will now work to educate yourself making up for your many years of neglect and self indulgence.

The engineers and manipulators of this fraud on the American people were and are the Bankers, Lawyers, Corporations and
Politicians. Corporations have influenced the political structure and operation of our government from its inception. I deal with this in another paper and since brevity is the soul of wit, I won't cover it again here. Post Civil War, the Bankers, Lawyers and Corporations were able to overcome the U.S. Constitution through conquest. Lawyers, through legalese made it possible to circumvent U.S. Laws. Then through support of the Bankers, Corporations and Media, Lawyers were able to take over key political positions, making the conquest of the World by our government, as the new Roman Empire much easier.

The only way this problem can be fixed is the Public has to educated to this, which in itself is a huge task, since most Americans are oblivious to it, or do not have the political or moral will to change it. The Politicians are unwilling to remove the corporate special interest from Washington, since this is their life blood and connection to the money source. There are also political special interest, to list a few, ABA, DNC, RNC, ALCU and any other special interest you can think of, other than one, the American people.

The Constitution would have to be amended prohibiting lobbyist in Washington, it is the job of Congress to hear from the American people, their constituents at home, no one else, period. Congress is not sent to Washington to increase their holdings. Lawyers would be prohibited from holding public office, as did the original 13th Amendment. Also, restricting life time appointments to only the Supreme Court, but also making it easier to remove a justice who refuses to follow the Constitution. Admiralty law would be driven back into the sea, any and all laws to the contrary would revert back to pre Congressional act of 1845. The District would be restricted to it's Constitutional boundaries pre 1791. All preexisting declarations of War and Emergency not current would be canceled, and the Country governed by Constitutional limitations. No longer would U.S. Citizenship be tied to debt or taxation, but be synonymous with freeman, no longer as a 14th Amendment legal fiction "person". The 14th Amendment would be repealed.

The government would be trimmed in half as well as the needless laws created by years of legalese, rolling back Public Policy to the pre Civil War era, also reversing the social engineering experiments of 1934. Obviously the American public would have to be weaned off of these social programs, to do otherwise would bring about social unrest and needless anarchy. The restructuring of the social programs, would require reducing and reversing medical costs through price fixing, and strict control of frivolous malpractice law suits, while maintaining quality of the medical system.

Strict laws would be put place and enforced dealing with fraud and mismanagement of public funds by government employees.
Banking and Insurance laws would have to be reformed, returning control of these institutions to the states via the 10th Amendment, uniform guidelines would be set by Congress, complying with the Constitutional requirement to regulate commerce, to keep the laws uniform throughout the states. The reduction and restructuring of our military, closures of most overseas bases.
We would return to a noninterference policy, and make clear to the World that we would only attack or violate this new policy if
attacked, overtly or covertly. We would pull out of the United Nations and the other One World Government organizations.

Once a Republican form of government is in place, the debt owed to the Bankers and World financiers, based on fraud would be
canceled. A year of Jubilee would be declared for all U.S. Citizens, canceling all private debts. The monetary system would
start over with the new currency and banking regulations put in place, but with interest outlawed for U.S. Citizens. A set fee for a loan would be charged by lending institutions, to be paid over the life of the loan. The federal government would be required to balance its budget yearly, just as the states do. Any outstanding debt owed to foreign Nations would have to be re-negotiated through the state department, after the new banking regulations have been put in place, and the new currency is adopted, and put into circulation.

American corporations not located in this country would be subject to the same tariffs paid by foreign countries. Corporations, their monopolies and trusts would be strictly regulated and not tax exempt, and would be the only legally defined fictional, "person". The federal reserve would be reorganized and controlled by U.S. Citizens, subject to audits like any corporation. New York City banks and the other financial institutions would be governed by U.S. Constitutional law, as administered by Congress, and the Constitutional courts. A moratorium on lawyers and the legal profession would be put into effect, along with guidelines and strict restrictions on their profession.

The lands held in dead hands by the U.S. Government, bankers and corporations, would be freed once again for public use and
purchase. The laws governing the way land is held by the public would be amended, to free the public from confiscation of
property due to taxation so they would be freemen in person and holdings. The IRS would be done away with and the tax laws would be totally overhauled, to be based on a use or consumption tax, and foreign tariffs. Major corporations would pay a large but fair tax, based on their profits. Persons and families defined as living in poverty would pay no tax, exempt from the consumption tax. No longer would Churches be licensed under tax law, and would be protected by the 1st Amendment. Federal
licenses governing personal freedoms would be eliminated, however, the common law would be strictly enforced by the states
and federal government.

Immigration would be strictly enforced, all illegal immigrates would be returned to their Countries. The alphabet agencies would be prohibited from violating the Constitution and personal rights, strict penalties, including extensive jail time would be given to violators.

You get the idea, actions like these would no doubt be a huge shock to the Nation, but would be the only way to return to a Republican form of government, and a moral people. I know many would say, I would not want to risk my way of life and possible interruption of services provided by the government, for such an extreme restructuring of our government. Well, dad and mom, your saying you are willing to sell your children into financial slavery so you can live extravagant lives. Can you live with
that? There is a great deal I could add, but this should give you an idea of what it would take to fix the problems brought on
by our fraudulent money system and those that control and manipulate it, so your children are not enslaved from the womb to
the tomb.

Below is a prophetic statement by Thomas Jefferson, concerning paper money, bankers and corporations. He was 100% correct, but the American people were and are too selfish to care, or listen.

"If the American people ever allow the banks to control issuance of their currency, first by inflation and then by deflation, the banks and corporations that grow up around them will deprive the people of all property until their children will wake up homeless on the continent their fathers occupied."(Thomas Jefferson)

Is it too late America, are we doomed to die the same death as the Roman Empire?


10-31-04

James Montgomery
 
 

Offline Dee

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Re: The Bush Dollar Trap
« Reply #5 on: January 23, 2008, 12:52:11 PM »
Yes it is. Mr. Jefferson was what we have few of these days. He was a practical, and truthful man. And he knew what he was talking about.
You may all go to hell, I will go to Texas. Davy Crockett

Offline deltecs

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Re: The Bush Dollar Trap
« Reply #6 on: January 23, 2008, 02:26:32 PM »
Let's review some other facts in addition to the one listed.  First the facts as outlined are predicated on a population of approx 297,000,000 people.  I do not dispute the facts.  However, the population of the US is substantially over 300,000,000 people now, so the individual debt per person is less than indicated even with inflation and increased national debt from 2004 to current.  That is not to say that these statistics are not alarming.  They are.  We must remember something important that is most appropriate.

IT IS CONGRESS THAT ENACTS AND APPROVES SPENDING, NOT THE PRESIDENT. 

No President can spend what Congress doesn't approve first in one way or another.  Only the voters can control Congressional spending by forcing campaign promises to balance the budget, reduce taxation, and limit spending.  I agree with GBO Bill that I also had high anticipation for GW and conservative policies, but now am sad to say I am dissatisfied with his tenure.  I even more dissatisfied with Congress and the non bi partisan politics.  Congress is not so consumed with solving problems as it is with political party appearances.  This is not the way to survive as a government and we have only ourselves to blame.  I disagree with Graybeard on one issue though, I still hate Clintons more than GW and may have the occasion to increase it.
Greg lost his battle with cancer last week on April 2nd 2009. RIP Greg. We miss you.

Greg
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Opinion(s) are expressly mine alone and do not necessarily agree with those of GB or GBO mgmt.

Offline Dee

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Re: The Bush Dollar Trap
« Reply #7 on: January 23, 2008, 02:33:38 PM »
While your facts are straight on what congress is SUPPOSED to do deltecs, we have a bunch of weak kneed congressmen and the truth of the matter is GW, ran the Iraq war down their throats, just as he did the Patriot Act. He refused to give them time to read it and buffaloed them into signing it into law, and the cowards DID.
To me it is a combination of both GW (i.e. Napoleon II) and the Governors of Rome, all in one big confused, misguided MESS. JMO
THEY meaning ALL, have sold the American people out.
You may all go to hell, I will go to Texas. Davy Crockett

Offline deltecs

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Re: The Bush Dollar Trap
« Reply #8 on: January 23, 2008, 02:38:10 PM »
By the way, an even easier way to understand the significance of 1,000,000 (one million) to 1,000,000,000 (one billion) to 1,000,000,000,000 (one trillion).  Take and spend a dollar for every second, for every minute of every hour, for only one day and you have spent 86,400 dollars.  So, in 11.574 days you have spent a million dollars.  1,000,000.    A billion dollars would take 11,574 days or 31.71 years.  1,000,000,000    A trillion dollars would take 31,710 years to spend at the rate of one dollar, every second, every minute, every hour, every day for this time.  1,000,000,000,000   That is about 5 times longer than man's recorded history on earth.  
Greg lost his battle with cancer last week on April 2nd 2009. RIP Greg. We miss you.

Greg
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Detente: An armed citizenry versus a liberal society
Opinion(s) are expressly mine alone and do not necessarily agree with those of GB or GBO mgmt.

Offline deltecs

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Re: The Bush Dollar Trap
« Reply #9 on: January 23, 2008, 02:41:55 PM »
While your facts are straight on what congress is SUPPOSED to do deltecs, we have a bunch of weak kneed congressmen and the truth of the matter is GW, ran the Iraq war down their throats, just as he did the Patriot Act. He refused to give them time to read it and buffaloed them into signing it into law, and the cowards DID.
To me it is a combination of both GW (i.e. Napoleon II) and the Governors of Rome, all in one big confused, misguided MESS. JMO
THEY meaning ALL, have sold the American people out.

Agreed, however, we are the only ones that can hold them accountable though. 
Greg lost his battle with cancer last week on April 2nd 2009. RIP Greg. We miss you.

Greg
deltecs
Detente: An armed citizenry versus a liberal society
Opinion(s) are expressly mine alone and do not necessarily agree with those of GB or GBO mgmt.

Offline Dee

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Re: The Bush Dollar Trap
« Reply #10 on: January 23, 2008, 03:15:20 PM »
I will also agree with that, however I believe our real enemy in that regard is ignorance of the real situation, and apathy. Reckon?
You may all go to hell, I will go to Texas. Davy Crockett

Offline Swampman

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Re: The Bush Dollar Trap
« Reply #11 on: January 23, 2008, 03:37:35 PM »
Our real enemy is greed, envy, self centeredness, and constant mummuring.
"Brother, you say there is but one way to worship and serve the Great Spirit. If there is but one religion, why do you white people differ so much about it? Why not all agreed, as you can all read the Book?" Sogoyewapha, "Red Jacket" - Senaca

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Offline DDelle338

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Re: The Bush Dollar Trap
« Reply #12 on: January 24, 2008, 04:27:32 AM »
Our real enemy is greed, envy, self centeredness, and constant mummuring.

I second that!!!!!!!!
Life's a Bitch, But the puppies are cute.