We have an daily ever-escalating federal deficit of over 3 trillion dollars and this, along with Bernarke’s tactics to keep the interest rates abnormally low for extended periods of time to try and stimulate the economy, is actually adding fuel to an already out of control economy that is soon to experience, and is presently experiencing, hyperinflation, or the devaluation of the American dollar worldwide.

What this is doing is very scary because what is happening is that as Bernarke tries to woo investors to his “guaranteed” investments he is actually steering them away to invest in natural resources and agriculture and as long as compensation and bonuses are based on short-term performance in the market, that’s going to encourage risk-seeking behavior and Yanzhou Coal Mining; Votorantim Celulose e Papel S.A. and Rio Tinto; all stocks dealing with natural resources taken from the earth’s core are typical of where investors are being steered today, as China’s oil consumption has grown from 4.8 million barrels a day in 2000 to 8 million and worldwide demand for rare earths — 15 different elements — is expected to exceed supply by some 40,000 metric tonnes per year by 2012. China accounts for 97 percent of global production (139,000 metric tonnes of material in 2008) and about 60 percent of consumption of rare earths.

This week’s stock market report included: helping boost the metals stocks, gold futures closed at a new Comex record high of $1,005 Tuesday, up $5.10 per troy ounce. Gold’s recent ascent has coincided with the weakening dollar, a trend that continued Tuesday as the euro hit a new nine-month high against the U.S. currency.

Remember now, that these stocks are being sold by the very same “geniuses” that originated, packaged, rated, and insured all those subprime and Alt-A mortgages that became toxic waste, along with the commercial loans that are turning to waste as I write this and the credit cards, student loans, car loans, and the CDO’s, all toxic garbage that these guys rated as triple AAA and sold to investors, hedge funds and banks throughout the World. It was scary then and, brother, it is scarier, to me, now; in fact it is worse than any fictional nightmare I could dream up and, believe me; I’ve got a very vivid imagination.

Why does this scare me so much? Because I am a person who studies history and I realize that this life revolves in cycles, in a circle, and every time that circle is broken, by Mother Nature or by man, it creates an enormous danger to the human species’ chances for survival.

We see crisis’ made by Mother Nature all the time, hurricanes, tsunamis, earthquakes but these are very inconsequential when compared to those made by man, because war, and the hunt for wealth, have destroyed more of the human species, a thousand times over, than all of the earthquakes, tsunamis and storms in all of history and now man’s war appears to be coming to a very specific focal point because where America’s economy goes appears to spread further throughout the world and if the search for wealth is now being focused, once again and for the “last time” upon natural resources than I think that we, the human species’, are doomed because we have about “resourced” this planet out and we have to search for another way of living, other than putting such high values on gold and oil and wood and other of Earth’s natural resources and this “solely monetary” way of living. In other words, this eternal hunt for gold and oil and other natural resources to sell is the end of the circle because the world’s resources have run out.

Some day the earth will weep, she will beg for her life, she will cry with tears of blood. You will make a choice, if you will help her or let her die, and when she dies, you too will die.
—John Hollow Horn, Oglala Lakota, 1932.

May our friends respect us, trouble neglect us, angels protect us and heaven accept us; we are going to need it.

Peace,

Keith G.