Saturday, January 26, 2008

Cuban Silver Lining

Even when bad things happen good can arise from the ashes. If you have contacts inside of Cuba get word to them that the world economy is in for a realignment - a correction actually. Explain that the U.S. military empire has become so vast and expensive that the government has resorted to inflating the supply of dollars to pay the bill. The value of the pre 1959 dollar was enormous compared to today's minuscule over circulated version. But the point is many around the world stand to lose big and they won't be booking that Cuban holiday because they are busted and/or scared. Add to this misery the dramatic drop in oil consumption which will make these prices drop like a rock at the pump. Chavez is going to need every drop for his own needs so I would not count on free fuel from Venezuela. Mining demands will also drop with the decline in the world economic activity. Along with that decline will be the price of mining commodities further depleting Cuban GDP. The weather has already been Biblically bad recently so crops production is even worse with the added drag of their collectivist centrally planned madness. So the Castro gang cannot make the kind of money they use to be able to rake in and they have an angry, hungry population. That has always been a recipe for revolt. This is especially so since Raul is doing nothing to alleviate the needs of the Cuban people. There is a target on that boys head and the trigger will be pulled the day his brother dies.

"If" is not the question as to what will happen with the economy. All the experts disagree on is the timing of the event. I believe we are bolting out of the starting gate right now. But the two main variables are people's perception of how close the end is at any given time and how much more money will the central bank pump into the economy to delay that moment of reckoning. As in the 1970s the price structure of our needs are fluctuating wildly. When the world decides they've had enough and cut their loses our credit based consumption will screech to a halt. There will be a number of business failure and job layoffs.

There is a very quick way out of this mess though. I will work backwards in time. The government will save and even earn billions of dollars, an explosion of economic activity would occur in the United States of America while the 130 countries around the world where the people there hate us and burn old glory would see a large decline in their economies. Bring the troops home from overseas ending U.S. taxpayer defense of these other countries as well as sell off what ever practical from these 300 bases and remove the billions worth of military personnel economic spending from these foreign lands so our economy would grow. Remember after WWII there was an enormous economic boom. That was because of all the economic activity caused by the returning soldiers. Exporting our jobs overseas would be more expensive because those nations would need to pay for their own defense and would no longer be tax havens. Millions of volunteers from the Liberty Corps would be swinging hammers, painting, cleaning, etc. to bring hope for the restoration of the American dream. Elect Ron Paul.

So you see amigos. There is a silver lining. No matter what happens the economy is going down hard and taking the Castro regime down with it - probably in a gruesome spectacle of death for the top commies. Plus, exiles in Florida have a chance to elect the only man who can turn this economy around on a dime and return us to prosperity. The man's an economic genius!

2 Comments:

Blogger Sharpshooter said...

Tomas,
I think you are being a little paranoid. The US economy has had these ups and downs every few years and continues on as usual after a few corrections. I just don't buy this world wide mayhem and crash of the economies you talk about. I am sorry, but I don't believe it will happen. Disrupctions,yes, recession, yes, al of these are part of the capitalist society we live in, but a whole world collapse, I just don't believe that will happen.

9:00 AM  
Blogger Tomás Estrada-Palma said...

I hope you are right. I hope I'm just being a bit paranoid. But it is just a lot of different things that give me this uneasy feeling. However, history is filled with examples of the bankers backing both side of warring countries and making a killing. Watch for more signs amigo. Be careful with money and do not keep much in banks. If something bad does happen at least you will be aware.

9:11 AM  

Post a Comment

Subscribe to Post Comments [Atom]

<< Home