If you don’t know what Freedom Watch is then please check out http://freedomwatchonfox.com/. It’s an online only show hosted by the Judge catering to freedom-loving people everywhere.

Check out the excellent discussions from the show today below.

by Peter Schiff, president of Euro Pacific Capital and author of Crash Proof 2.0: How to Profit from the Economic Collapse

Two dissatisfied customers comment about a restaurant. One says, “The food here is terrible.” The other replies, “I know, and such small portions!” In many ways, they could be describing our current employment picture. Not only are the portions shrinking, but the jobs themselves are steadily losing quality.

Today’s release of the October jobs report showed the loss of another 190,000 jobs had pushed the official unemployment rate to 10.2%, only the second time since the Great Depression that unemployment was quoted in double digits (factoring in workers who had given up job hunting altogether or have settled for part-time work would push that rate to 17.5%). That didn’t stop Wall Street pundits from trying to fashion a silk purse of this sow’s ear. The ‘green shoots’ crowd focused on the slowing pace of job losses, the nascent economic ‘recovery’ (even if it is jobless), and the projected improvement in 2010. No mention was even made of the quality of what few jobs were being created.

The analysts completely ignored the continued trend of replacing goods-producing jobs with those jobs that require production from other sources. For example, we lost 61,000 manufacturing jobs last month, but added 45,000 jobs in education and health services. In particular, the addition of health workers is nothing to celebrate. Just as a family’s economic position is not improved by higher medical bills, the country as a whole does not benefit from increased health-care spending. Until this trend reverses, our unbalanced economy will not regain its stability, a real recovery will never take hold, and the overall job outlook will get much bleaker.

By spending trillions of dollars of borrowed money, President Obama hopes to engineer a recovery and create jobs. However, he has only succeeded in digging America into an even deeper hole than the one he inherited from his predecessor. He believes that if we can simply push up spending to levels seen during the “good times,” then those favorable economic conditions will return. The reality, of course, was that those good years came with a heavy price-tag that we have barely begun to pay.

In a press conference today, the President claimed that the latest extension of unemployment benefits will not only help the unemployed, but the overall economy as recipients spend the money. If spending government-granted money really were a benefit to the economy, why not simply increase the amounts endlessly? Why limit the benefits to the unemployed? Let’s make this recovery a real barn burner: send out million-dollar checks to everyone! Of course, what Obama and his economic advisors do not understand is that money spent by recipients of unemployment benefits is money not spent or invested by taxpayers. It’s a transfer of wealth, not a creation on new wealth.

In addition, policymakers are also struggling with diminishing returns on ultra-low interest rates. No matter how much monetary alcohol the Fed tries to pour down consumers’ throats, the swill simply will not go down anymore. Consumers have already had enough and are trying to sober up – by refusing to spend irrationally. The excess liquidity simply weakens the dollar and spills over into other pools, such as goods prices, money metals, commodities, and investment assets.

During the boom, we spent money we did not have to buy things we did not produce and could not afford. As a result, we are now deeply in debt and must sharply reduce our spending to replenish our savings. By focusing solely on consumer spending, the Administration is neglecting the capital investments necessary to improve our infrastructure and productive capacity.

To generate legitimate economic growth and meaningful jobs, we must reverse the trends that brought us down. Consumers may have led us into this recession, but they can’t lead us out. The road to recovery is a one-way street, and it’s paved with savings, capital investment, and production. It’s not an easy road, but we must follow it to ensure our future prosperity.

As a first step, our politicians must stop pushing us backward. Rather than imposing more market-distorting regulations, we should repeal those most responsible for inefficient resource allocation. Rather than creating new moral hazards, we should withdraw guarantees for large financial institutions and irresponsible consumers. Rather than continuing the Greenspan policy of keeping interest rates too low, we should let them rise. Rather than trying to prop up asset prices, we should let them fall to market levels. Rather than increasing the burden of bureaucracy on the economy, we should look for ways to lighten the load. Rather than encouraging people to borrow and spend, we should reward those who save and produce.

Until we acknowledge these fundamental errors, more of our citizens will lose their jobs. As those that stay employed are funneled into unproductive industries like the federal bureaucracy, the country will sink further into stagnation. Worse still, everyone taking jobs in these sectors will be laid off in the next phase of the crisis – and will have lost this opportunity to build practical skills for the new economy.

For a more in-depth analysis of our financial problems and the inherent dangers they pose for the U.S. economy and U.S. dollar, read Peter Schiff’s 2008 bestseller “The Little Book of Bull Moves in Bear Markets” and his newest release “Crash Proof 2.0: How to Profit from the Economic Collapse.” Click here to learn more.

More importantly, don’t let the great deals pass you by. Get an inside view of Peter’s playbook with his new Special Report, “Peter Schiff’s Five Favorite Investment Choices for the Next Five Years.” Click here to dowload the report for free. You can find more free services for global investors, and learn about the Euro Pacific advantage, at www.europac.net.

The bill is an unprecedented attack on personal liberty.

Please send a letter to Congress demanding they oppose Pelosi’s bill.

Here’s what I wrote:

HR 3962 will hamstring our finances. But it’s also full of blatant attacks on individual liberty.

For instance, chain restaurants and vending machine owners will be forced to publish calorie information on their menus. That’s not interstate commerce… unless the state line cuts through a McDonald’s counter. Congress can’t order private property owners around this way, and the Free Press clause of the First Amendment also clearly forbids this mandate. Calorie reports may be nice, but that’s outside of the government’s lawful scope.

HR 3962 also violates the broad 9th Amendment protection of individual liberty, and the 10th Amendment’s requirement that federal power be limited to only those functions listed in the Constitution.

Even though the Supreme Court has blown a gaping hole through many Constitutional protections of economic freedom — and blamed their lawlessness on the Commerce Clause power to regulate interstate commerce — it’s apparent that even this wide hole is too small for Congressional ambitions. Does anyone on Capitol Hill even know what interstate commerce is?

An example of this is the unprecedented, totalitarian attempt to force people to acquire government-approved insurance or face tax penalties. If Congress can force us to buy a particular grade of insurance, can it also force us to subscribe to “approved” newspapers?

The Supreme Court has ruled in Bailey v. Drexel Furniture (1922) that Congress can’t use the tax code to regulate behavior it doesn’t otherwise have power to regulate.

In United States v. Lopez (1995), United States v. Morrison (2000) and even Gonzales v. Raich (2005) the Court decreed that Congress cannot use the Commerce Clause to regulate activity that is NOT economic — such as NOT buying, NOT producing, or NOT making something. NOT buying insurance can’t be buying or making something.

That means, if you want to pay for this fancy plan, you’ll have to steal the money the old-fashioned way — a tax increase. You might want to review the matter in this Washington Post article:

http://www.washingtonpost.com/wp-dyn/content/article/2009/08/21/AR2009082103033.html

You swore an oath to obey and protect the Constitution. Please honor that oath. I insist that you stand up on behalf of liberty and oppose this bill.

END LETTER

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Assistant Communications Director
DownsizeDC.org

D o w n s i z e r – D i s p a t c h
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by John Browne – Senior Market Strategist, Euro Pacific Capital

Last week, to the delight of its media cheerleaders, the government announced that economic growth had returned and the recession had ended. But before we start celebrating one quarter of modest growth, we should realize the only force driving this apparent recovery is an enormous increase in government spending. To finance its largesse, the government is now borrowing at a rate that has ordinary citizens and the international community extremely concerned.

Leading into the first election season under Obama’s reign, this unprecedented government borrowing and spending is creating a false sense of security. The activity has allowed GDP to increase despite stagnation in corporate and consumer spending.

Small businesses – the most important creators of new jobs – are nervous. Due to uncertain economic conditions and a high degree of regulatory uncertainty, they are hoarding cash rather than investing. Indeed, their largest expenditures are often solely to replenish inventories.

Likewise, consumers are rationally hording their resources. Year over year, consumer spending – which constitutes 70 percent of GDP – is essentially flat. With such a large segment of the economy quiescent, the percentage increase in public sector spending has to be very large in order to push the GDP upward.

The new government spending spree has focused on major stimulus initiatives, including the new homebuyer tax credit and ‘cash for clunkers’.

Early results are showing that spending on autos dropped to recession-levels immediately after ‘cash for clunkers’ ended. Meanwhile, some reports are estimating that the program cost $24,000 for every additional vehicle it caused to be sold.

The multi-billion-dollar tax credit for first-time homebuyers juiced real estate sales and provided a strong boost to GDP in the third quarter. But the net result is that many responsible young people, who had chosen to rent and save in the face of a declining housing market, are now saddled with mortgages they cannot afford. These ‘homeowners’ will quickly join the ranks of the foreclosed.

Perhaps the most concerning aspect of GDP growth is that, even with a deeply progressive Administration spending our children’s children’s money, the best we can achieve is a modest, fleeting boost in growth. Even the government’s biggest apologists have a hard time explaining how these gains can last without continued stimulus. In short, this country is not just bankrupt today, but for generations to come. This is the real truth and should concern those with investments within the United States.

The unhappy situation in America, of which we have long warned, should be contrasted with the healthy growth experiences of other countries such as Australia, New Zealand, China and India.

The Australian central bank is now so confident in its growth potential that it has raised interest rates two months in a row. Though they have a center-left Government, the Aussies have managed to control stimulus spending and overall debt.

New Zealand is seeing an increase in real wages amid a strong Kiwi Dollar. Much more than GDP, this is a signal that economic growth is truly returning to this island nation.

China, a place where 9% annual GDP growth is considered a recession, is still developing its market economy while Obama cripples our own. Much fanfare was showered upon the launch of ChiNext, a stock exchange for privately-owned, small- and mid-cap Chinese companies. It surged in its first day of trading, showing the strength of that economy even outside the State-Owned Enterprise sector.

Finally, there is India. Though still far too closed to foreign investment, this country is making shrewd moves to protect its internal capital. In a deal announced today, India bolstered its gold reserves by 50% by trading $6.7 billion of its U.S. dollar reserve to the IMF. Not only is this a positive sign for India, it is a crushing verdict on our own lauded ‘GDP growth.’

A currency’s value reflects investors’ faith in a particular nation. Though commentators are seizing on this figure or that to make the bull case, the dollar index belies their claims.

Rather than dancing in the dollars falling from helicopters, we should be concerned about their worth when they hit the ground. Unfortunately, fiscal responsibility has moved abroad – and the smart money isn’t far behind.

For a more in-depth analysis of our financial problems and the inherent dangers they pose for the U.S. economy and U.S. dollar, read Peter Schiff’s 2008 bestseller “The Little Book of Bull Moves in Bear Markets” and his newest release “Crash Proof 2.0: How to Profit from the Economic Collapse.” Click here to learn more.

More importantly, don’t let the great deals pass you by. Get an inside view of Peter’s playbook with his new Special Report, “Peter Schiff’s Five Favorite Investment Choices for the Next Five Years.” Click here to dowload the report for free. You can find more free services for global investors, and learn about the Euro Pacific advantage, at www.europac.net.

That’s just a little over $30,000 per year.

Clearly the banking lobby is satisfied with Mr. Watt’s performance.

Last Friday, Rep. Ron Paul reported that our Federal Reserve Transparency Act (HR 1207) was “gutted” in Rep. Watt’s subcommittee.

In defense of Rep. Watt, however, it’s not totally his fault. His district is the most obviously gerrymandered in North Carolina, following I-85 like a snake from Charlotte to Winston Salem. It is overwhelmingly Democratic, and his re-election has never been seriously challenged. Why should he represent the people when he is electorally invincible?

While we may not be able to hold Rep. Watt accountable, we can fight back. His attempt to eviscerate HR 1207 must be approved by the full Financial Services committee.

We can block that approval, and restore the original bill. It is especially important that each member of the Financial Services committee hear from their constituents the clear message that Rep. Watt’s proposed changes are unacceptable. And you must act now because . . .

The Committee could meet as soon as today (Wednesday).

Every Representative should receive a message. But if your Representative is on the Financial Services committee, they should also get a polite phone call from you.

Please review the list of committee members to see if your Representative serves on the Financial Services committee.

This is what I wrote to one member of the Committee . . .

You may be aware that Rep. Mel Watt’s subcommittee on monetary policy introduced changes to the Federal Reserve Transparency Act (HR 1207) that restrict inquiry around transactions with foreign central banks, monetary policy deliberations, transactions made under the direction of the Federal Open Market Committee and communications between the Board, the reserve banks, and staff.

These changes have the practical effect of killing the bill, and eliminating the transparency that our economy and financial markets require for stability and sustainable growth.

It is also clear that Rep. Watt does not fear for his re-election, given his willingness to put the narrow interests of the banking industry, his top donors over the last decade, above those of the American people. I’m hoping you will be more responsive to the people.

HR 1207 has over 300 cosponsors in its ORIGINAL form. I trust you will use your influence to remove Rep. Watt’s changes, and bring HR 1207 to a vote on the House floor in its original form.

I’m also sending a copy of this message to my two Senators so that they too will know how important this HR 1207 is to me.

END OF LETTER

You can send your letter to Congress using the DownsizeDC.org Educate the Powerful System.

NOTE: In a video message, Ron Paul indicated that it is especially important that constituents contact the 13 Democrats on the Financial Services committee who already co-sponsored HR 1207, with a VERY polite reminder that you STILL want them to support the ORIGINAL bill, and to resist Mr. Watt’s amendments.

For your convenience, here is that list . . .

Rep. John Adler, NJ (202) 225-4765
Rep. Travis Childers, MS (202) 225-4306
Rep. Steve Driehaus, OH (202) 225-2216
Rep. Alan Grayson, FL (202) 225-2176
Rep. Rubén Hinojosa, TX (202) 225-2531
Rep. Suzanne Kosmas, FL (877) 956-7627
Rep. Dan Maffei, NY (202) 225-3701
Rep. Brad Miller, NC (202) 225-3032
Rep. Walt Minnick, ID (202) 225-6611
Rep. Ed Perlmutter, CO (202)-225-2645
Rep. David Scott, GA (202) 225-2939
Rep. Brad Sherman, CA (202) 225-5911
Rep. Jackie Speier, CA (202) 225-3531

Thank you for being a part of the growing Downsize DC Army,

Dr. William (B.J.) Lawson
Commentator
DownsizeDC.org, Inc.

D o w n s i z e r – D i s p a t c h
is the official email list of DownsizeDC.org, Inc. & Downsize DC Foundation

“The State is that great fiction by which everyone tries to live at the expense of everyone else.” — Frederic Bastiat, French economist of the 19th Century

“How did I go bankrupt? Two ways. Slowly, and then all of a sudden.” — paraphrased from “The Sun Also Rises” by Ernest Hemingway

“May you live in interesting times.” — a proverbial Chinese curse

• Retained, and in some cases expanded, all the Bush-era policies — the wars, the PATRIOT Act, warrantless spying, REAL ID, imprisonment without due process, extraordinary rendition, etc.
• Begun to extend the already existing foundations for a future socialist state with things like direct government ownership of businesses, the health care bill, cap and trade, and a host of other measures big and small

Put the Bush and Obama policies together, sprinkle in a couple more terrorist attacks, and one or two more state-caused financial calamities, and you have a recipe for . . .

• The destruction of American liberty
• The blossoming of a Leviathan State

Read the signs . . .

We are living through a Statist revolution.

Statism is a mindset that prefers coercion to cooperation. Statists love the State because they are blind to its fundamental nature . . .

• The State is a monopoly that you cannot easily fire, replace, or even control
• Everything the State does relies on coercion

If you decide that . . .

• You don’t want to pay for, or be subject to, the new health care plan, or that . . .
• You prefer to buy and sell using gold and silver instead of Federal Reserve Notes, or that . . .
• You want to do, or not do, a host of other things that the politicians either require or prohibit,
• Then eventually a policeman will come to your door and threaten you with a gun, to make you submit

People who advocate expansive State action are really saying, “I think you should be threatened with, or actually suffer violence, if you don’t fund my pet schemes, or live the way I think you should.”

Such people would never go door to door pointing a gun at their neighbors, but the second-hand mechanism of the State allows them to hide their eyes from the violence implicit in what they profess.

Our government was founded to limit this kind of coercion. The American State was given two main functions . . .

• To punish coercion committed by one citizen against another
• To deter coercion by foreign States

Beyond that, nearly the entire Constitution is devoted to prohibiting State violence. This was the purpose of the divisions of power, the checks and balances, and the Bill of Rights. But now those protections lie in tatters.

Everyone is trying to use the State to live at the expense of everyone else, or to micro-manage their neighbors. Our traditional culture of individual liberty, personal responsibility, and peaceful, non-violent cooperation, is slowly dying. We are nearing a point where it may even die completely, suddenly, when we least expect it. As a result . . .

We live under the Chinese curse of interesting times. But we urge you to resist despair. We are even prepared to predict . . .

The End of Statism

Our reason is simple. Statism doesn’t work. The violence at its heart always . . .

• Destroys more than it creates
• Multiplies its victims, who become increasingly deperate enough to resist

Our purpose is to recruit and organize that resistance into an army. It’s . . .

• Why we do
• What we do
• The way we do it

We know that successful resistance will come slowly, before it comes suddenly. Victory will take time, but the time’s going to pass anyway, so why not use it wisely? This is why . . .

We reject all “get powerful quick” schemes as inherently unworkable. We know that societies and movements evolve slowly more often than they leap. History is littered with causes that failed because they couldn’t wait to succeed.

We neither need, nor expect, overnight success. Do you?

What we need instead is constant and consistent progress. And for that we need you, and for you to need us.

Remember where we’re going. We’re building toward the day when we can . . .

• Reach everyone, everywhere, every day, with the case for freedom and against Statism
• Build a big parade — a movement — in front of which opportunistic politicians will want to march. They’ll claim we’re following them, and we’ll let them think that!
• Deploy a huge army to exert relentless, resistance-numbing pressure on Congress, to make them submit

And remember how we’re going to get there . . .

• Slowly and steadily, but also surely
• One person at a time
• One dollar at a time
• One simple action at a time
• With each small step building toward the next larger step

The end of the month is here. We did more this month than we did last month. Now we need your financial support to do even more in November. Please . . .

• Start a monthly credit card pledge
• Or make a one-time donation
• You can do so here

Your support is our progress.

Perry Willis
Communications Director
DownsizeDC.org, Inc.

D o w n s i z e r – D i s p a t c h
is the official email list of DownsizeDC.org, Inc. & Downsize DC Foundation

by John Browne – Senior Market Strategist, Euro Pacific Capital

Over the past two years, the federal government and the Federal Reserve have dispersed trillions of public dollars, run up enormous deficits, and kept interest rates at zero. In just about any economic textbook, this combination of policies would be described as the perfect recipe for inflation. Yet, with the exception of the usual increases in health care and education, prices by and large are not rising. Many have concluded that our economic leadership has simply outsmarted the textbooks.

The benign CPI figures are serving as a rallying point behind which the financial talking-heads are forming a parade of optimism. The low CPI is their ‘proof’ that inflation is not a pressing concern. This view is two dimensional.

Inflation is classically described simply as an increase in the money supply. Although these changes will impact price levels, it doesn’t necessarily follow that prices will rise when inflation is high. Instead, inflation may merely result in stable prices at a time when prices would otherwise be falling.

In the popular mentality, however, inflation is simply defined as prices rising. After decades of steadily rising prices, people seem to have forgotten that prices sometimes fall. In light of the bursting of a number of record-breaking, government-fueled asset bubbles, prices should be declining across the board (as they did in the Great Depression). The fact that prices are stable, or have even rallied in some sectors, indicates that inflation is already spreading across the economy.

After falling to just 6,547 in the months after the crash, the Dow has rallied past the 10,000 mark. This should strike even novice investors as unjustified. Jobs are still being lost, a massive healthcare entitlement and carbon tax are winding through Congress, and no one with at least one foot in the real world has a palpable sense of imminent recovery. Corporate earnings have fallen far behind the rally in shares prices, stretching valuation multiples to pre-crash levels.

While not quite as frothy, home prices are now moving up for all the wrong reasons. The seminal Case-Shiller Index of home prices is now up for the fourth month in a row. The index’s designer, Professor Robert Shiller, has stated recently that the current upward trajectory is unsustainable. In fact, the levels are still above the 50 and 100 year trend lines.

In the worst economic climate since the Great Depression, and after the largest housing bust on memory, single-family home prices should be falling well below the trend lines. But with a doubling of the monetary base and special interest programs like the homebuyers’ tax credit, home prices have stabilized and even increased in some markets. That’s the work of inflation.

With GDP growth now returning to positive territory, many inflation hawks ask why inflation has yet to truly manifest. The explanation can be found in the difference between monetary base and money supply.

The latest $1.9 trillion injection of government money was composed of some $900 billion of stimulus, of which only about 20 percent has been distributed. However, in its attempts to stabilize the financial system, the government has already spent some $1 trillion of TARP-type funds.

The TARP money, financed by an increase in the monetary base, has been provided to the banks at zero cost. And for the first time ever, the Fed is paying interest on bank reserves. Therefore, the banks can loan money to the Fed and to the government, via Treasury securities, at an interest rate spread of some 3 to 4 percent without risk. Given these incentives, it makes no sense to loan to anybody else. So, despite a massive increase in the monetary base, credit remains tight and price levels flat.

However, if the Fed stops paying interest on bank reserves or otherwise ‘persuades’ the banks to lend, the $1 trillion will be leveraged up by the banks and spewed out into the economy. Fractional reserve banking will transform a $1 trillion monetary base injection into a $9 trillion increase in money supply. When that happens, prices for everything will go through the roof.

So for now, inflation is like a ninja stalking our economy. It’s lurking in the shadows but can’t easily be seen. But once its strikes, it will be fast and deadly.

For a more in-depth analysis of our financial problems and the inherent dangers they pose for the U.S. economy and U.S. dollar, read Peter Schiff’s 2008 bestseller “The Little Book of Bull Moves in Bear Markets” and his newest release “Crash Proof 2.0: How to Profit from the Economic Collapse.” Click here to learn more.

More importantly, don’t let the great deals pass you by. Get an inside view of Peter’s playbook with his new Special Report, “Peter Schiff’s Five Favorite Investment Choices for the Next Five Years.” Click here to dowload the report for free. You can find more free services for global investors, and learn about the Euro Pacific advantage, at www.europac.net.

by Peter Schiff, president of Euro Pacific Capital and author of Crash Proof 2.0: How to Profit from the Economic Collapse

For the most part, the value of the dollar is given cursory attention by the financial media. Typically, its movements are assigned an importance on par with much less determinative metrics such as natural gas futures and construction permits. It’s only when major milestones are reached that anyone really takes notice of the dollar. We are living through one of those times.

The great dollar rally of 2008-2009 has come full circle. When the financial crisis exploded in its full ugliness in mid-2008, the dollar, which had steadily declined over the previous four to five years, put in a rally for the record books. By March 2009, as investors across the world sought safety from the financial storm, the index had surged more than 25%. Since then, the dollar has steadily declined to the point where nearly all those gains have vanished. In short, the panic rally has given way to the long term trend.

So, as the dollar index makes fresh 52-week lows on a nearly daily basis, discussion on the greenback is heating up. And while real insight on the topic is hard to find, the debate centers on the battle between two conventional opinions – both of which are wrong.

The first camp, which is generally supportive of government intervention in the economy, argues that dollar’s decline is a positive for both the economy and the stock market. The second camp, which tends to fall on the more conservative end of the political spectrum, views the dollar’s decline as a problem but feels that tough talk and slightly higher interest rates are all that is needed to restore ‘King Dollar’ to its throne.

First of all, a weak dollar is no better for Americans than a lower paying job is for a worker. And although I would prefer that the dollar remain strong, I know that currency values are a function of supply and demand, not wishful thinking. The past years of reckless monetary and fiscal policy have created conditions that must push the dollar down. Vastly expanded debt levels and monetary expansion have created a greater supply of dollars, while poor investment performance and diminished industrial capacity have lessened the demand for dollars.

The regrettable truth is that while the weak dollar will help rebalance the global economy, it is not a panacea for the U.S. The fall is no more worthy of celebration than a student celebrating falling grades on his report card. If the dollar does not recover eventually, Americans will suffer diminished living standards. To avoid this we must make difficult reforms now. If we continue our current policies, we run the risk of a complete dollar collapse. Far from helping to solve our problems, this would be a true nightmare scenario.

On the other side of the argument, those who correctly equate a weaker dollar with a weaker America mistakenly believe that mere posturing by officials or trivial rate hikes would be sufficient to restore the dollar’s lost vitality. We are long past that point. The best we can do now is to accept the penalty of a weaker dollar as punishment for our prior failures, and start building for the future.

To save our currency, the Fed must get very aggressive with interest rate hikes and reign in the supply of dollars that have flooded the world over the past few years. The federal government must also do its part by cutting spending, which means no more stimulus and no more bailouts. Undoubtedly, these actions will have unpleasant economic and political consequences. A student who studies harder may have to miss a party or two. A simple analogy, but unfortunately it is that simple.

Even in the unlikely event that our political leaders take these courageous steps, the near-term trajectory of the dollar may still be uncertain. A dollar rally that results from higher interest rates and a narrowing federal deficit may soon fade as the recessionary forces that such moves would unleash act to weaken the dollar once again. But at least we would be building a foundation upon which the dollar could eventually find some footing.

With a restructured economy, higher savings, more capital investment, lower government deficits, and higher interest rates, the United States would once again attract international investment. Funds would flow here not out of fear, as they did last year, but out of confidence. The dollar’s strength would not rest on the willingness of foreign governments to buy our debt, but the willingness of foreign consumers to buy our products.

Only then could King Dollar regain its throne.

For a more in-depth analysis of our financial problems and the inherent dangers they pose for the U.S. economy and U.S. dollar, read Peter Schiff’s 2008 bestseller “The Little Book of Bull Moves in Bear Markets” and his newest release “Crash Proof 2.0: How to Profit from the Economic Collapse.” Click here to learn more.

More importantly, don’t let the great deals pass you by. Get an inside view of Peter’s playbook with his new Special Report, “Peter Schiff’s Five Favorite Investment Choices for the Next Five Years.” Click here to dowload the report for free. You can find more free services for global investors, and learn about the Euro Pacific advantage, at www.europac.net.

In this interview they discuss the U.S. foreign policy in Afghanistan, Ron Paul’s new book “End the Fed“, and how the Fed can be audited and eventually abolished.

Watch it in two parts below.

(Thanks to great Minnesota Chris for the videos, check out his blog)