Hugh Hendry Channels Irony And Paradox In His Latest Financial Outlook
Submitted by Brett of Contrary Investing
Hugh Hendry Channels Irony and Paradox in His Latest Financial Outlook
Yesterday I had the great honor and opportunity to sit courtside for a live one-hour presentation from our favorite contrarian, irreverent hedge fund manager – Hugh Hendry himself. What a thrill!
Hendry, as you may know, is partner and Chief Investment Officer at Eclectica Asset Management. While his claims to fame are numerous, his two most notable (for those getting to know him for the first time) are:
- A 31.2% *positive* return in 2008
- Some truly hysterical TV clips (See: Hugh Hendry’s Greatest Hits for four minutes of financial bliss)
Hendry is a big favorite of ours at ContraryInvesting.com. I also just learned that he was “The Plasticine Macro Chapter” interviewed (at the time) anonymously by Steven Drobny in his excellent recent book Invisible Hands: Top Hedge Fund Traders on Bubbles, Crashes, and Real Money – which profiles a select group of hedge fund managers (all “off the record”) that made money in 2008. I went back and re-read this chapter the night before Hendry’s preso, to re-familiarize myself with his investing/trading philosophy.
Hendry electrifies his Sacramento audience.
The Power of Irony and Paradox
Rather than trying to compete pure “intellect-for-intellect” with the likes of George Soros, Julian Robertson, and the other great minds of the hedge fund world, Henry instead relies upon what he calls “the power of irony and paradox” to foil the logically minded and deliver his superior returns.
In other words, he bets on strange events happening – those not anticipated by the mainstream.
This strategy paid off in a big way in 2008, when his out-of-the-money options hit big, and his fund returned 31.2%. It has tended to underperform, though, when (to paraphrase Hendry) “bad stuff doesn’t happen.” Fortunately for Eclectica investors, he sees a bad moon rising once again.
Why China is Not 19th Century America
While many economic observers have drawn an analogy between China's ongoing industrialization and that of America’s, Hendry sees a critical difference.
In the US, he says, capital has always been allocated where it could achieve the highest return. In the 19th century, when America was the economic upstart on the block, it was also on the gold standard. Which is very important, according to Hendry, because it allotted entrepreneurs one – and only one – chance to succeed. It was not a time of bailouts and multiple bankruptcies!
China is different, he believes, because it is industrializing with a fiat currency. Thus they fall into the trap of misallocating capital – building bridges to nowhere, towers for nobody, and so on. China’s goal is similar to that of 1980’s Japan in his opinion – full employment, rather than maximizing return on capital. A critical, and even fatal, difference, in his mind.
The New Model for the Global Economy
You know the old drill – China and Asia produce, the US consumes. They cycle their greenbacks back over this way, finance our debt, we buy more of their stuff, and the beat goes on.
This model officially stopped with the launch of QE2, Hendry says, as the US officially started rejecting the globalization that had made the global economy hum (perhaps largely at the expense of US employment and manufacturing). With QE2, dollars were printed and exported – along with inflation – to Asia.
This led to the countries in Asia – and Europe, too – raising rates to combat inflation. The result, he says, is that global economic growth has essentially ground to a halt.
So what’s next?
A crash, of course.
Europe’s Debt Spiraling Out of Control
Hendry then pulled up a chart of US and Europe non-financial debt to GDP, illustrating that Europe’s debt has been spiraling out of control ever since the formation of the European Union.
Participant nations, he puts it, received initial “ALT-A” rates – nice low German interest rates – for signing on. But the fixed exchange rate that the euro imposes on the peripheral nations started the time bomb ticking.
Hendry, in fact, is very down on fixed exchange rates, and believes the euro and the dollar/renminbi peg are at the heart of global economic insecurity today.
He believes the recent referendum in Greece could be a very significant event, likening it to a 1931 mutiny in England that forced the Brits off the gold standard. He things the Greek referendum could be the trigger to disengage from their fixed exchanged rate (and cited everyone’s lack of anticipation for the referendum as a classic example of irony in finance).
Stage Not Yet Set for Hyperinflation and Gold $3000
The high CPI numbers being reported in the UK and other Western nations are “meaningless”, Hendry says, because in today’s economic environment, it does not translate into wage growth. (In the 1970’s, it did).
Because wage labor is approximately 70% of total business costs, he does not see meaningful inflation without wage inflation.
He’s also down on gold because it is not a contrarian investment today as it was 10 years ago (he had a nice year in 2003 buying gold and gold stocks when nobody wanted them).
The widespread belief among the greatest financial minds today that hyperinflation is inevitable greatly disturbs him.
In the Western world, he sees hyperinflation as a political choice – one that requires the will of the populous. (Forget Zimbabwe, he says – that might as well be Timbuktu. It’s not our culture.)
He sees society’s current mood as “dark” (Tea Party, Occupy Wall Street, and social unrest in Europe to name a few), and believes this makes bailouts and money printing very hard. The only environment that makes hyperinflation possible is “the mother of all depressions” he says.
In keeping with his anticipation of paradox, he quipped that if you believe in hyperinflation, then you should be levered up long on 10 and 30-year Treasuries…because in order for hyperinflation to become a political reality, deflation must arrive first.
2012 Economic Outlook and Investment Positions
Of the many places Hendry doesn’t want to be long, China is near or at the top of the list. He thinks China could be subject to a 25% (!) decline in GDP over the next five years.
How is that possible?
He draws an interesting analogy: “UK GDP fell 8% in the Great Depression, while US GDP fell 25%.” Inferring, of course, that today’s China is the upstart US to our current “UK peak empire” role.
In what he calls “the great unwinding”, the strongest economies in the world are also – ironically – the most vulnerable.
But that doesn’t mean he’s bullish on the developed world, either. He has an aversion to just about everything.
“It’s checkmate. Everywhere it’s checkmate.”
He believes Italy is insolvent, citing their huge borrowing binge over the last ten years that has only achieved 0% growth.
He loves Japan – as a culture and place to visit – but is especially bearish on several Japanese sectors. He’s long credit default swaps with respect to cyclical, leveraged Japanese businesses. He’s also bearish on Japanese utilities, which have issued tremendous amounts of debt since the Fukushima disaster.
Hendry’s favorite sacred belief – which he’s betting against, of course – is the fact that no one believes the ECB will ever cut rates below 1%.
He’s made bets that he says will deliver a 40-to-1 return if the ECB cuts rates below 1% next year.
Big thanks to the CFA Society of Sacramento for hosting the event, and to my pal Jonathan Lederer for landing Hugh and letting me crash the event as his guest!
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He's not bearish on gold anymore, but long CDS on Japanese sectors.
Too bad the first has only been worth something for thousands of years, while the latter was proven last week to be useless last week....
"The only environment that makes hyperinflation possible (& gold golden) is “the mother of all depressions” he says."
I think Hugh underestimates western populations impatience with pain...
We've got the embers of unrest now....
How much farther into deflation do we need to go till Argentina? Not as far as he thinks, imho
every month more and more baby boomers retire and expect fat pensions. Goverments might think, oh just a little, just a little bit more easing
meanwhile china says, hmmm like to expand the military and take more control in africa, dollar becoming worth less and less, lets just dump a few more billion
and with the velocity picking up the money supply is already big enough to lead to hyperinflation
Having said that I do think we'll see massive deflation first
Depends on the definition of massive, it tends to be very subjective. Western society mentality seems to be stuck in "entitlement mode" for quite some time. can really blame them either. Many people paid contributions to a national insurance/security system that spent their money instead of saving it for them. They will be righteously angry when financial reality hits and they will have to be satisfied. Running the printing press seems to be the most efficient means of doing so, so far. Very few people understand the implications of CB actions. Most of them are happy with a scape goat like evil commodity speculators, hedge funds shorting bonds etc.
The countries involved in the Asian financial crisis (400 million people) did not experince "deflation" first.
The easiest way to determine what TPTB will do (regarding inflation/deflation) is to indentify which demographic has the most money to lose, then bet that they will suck that money from them. In my opinion the retirees have the most money to grab, so the easiest way to grab it is to inflate their money into irrelevence. The majority of retirees are already investing in bank CDs yielding NEGATIVE real returns.
Unfortunatly allot of people look to be dumb enough to hold these bonds while their capital gets destroyed. Negative returning assets actually destroy capital.
Spitz, please,
it's "... a lot of... .
"Allot" has a completely different meaning. Cheers.
agree, totally overlooked aspect of todays trade. I also wonder about Deflation, despite all the arguments bla bla bla ....simply because its what they fear the most and if there is Any semblance of a mkt left, it finds a way to punish you in the end. In this case it may just be deflations.
"The easiest way to determine what TPTB will do (regarding inflation/deflation) is to indentify which demographic has the most money to lose, then bet that they will suck that money from them."
Another thing to consider is: what has worked in the past? Looking to the 1970s inflation is the answer. If we look to the 1930s we see deflation, but that is the period that is marked as a mistake and a never-to-be-repeated calamity. The 1970s is just another decade. So the answer is inflation. 2% to 10% a year until this blows over. This might take a generation.
Everyone on ZH believes banks rule the world. So hyperinflation will never happen because that frees everyone from their debt.
The banks already have their perfect setup. Zero interest rates, which allows them to slowly suck the retirees savings.
If you (wrongly) believe in hyperinflation, don't just buy gold. Get as heavily into debt as you can.
but wage inflation, to be fair
It's never been "either/or" it's been whether hyper-inflation would follow the deflation that is looming.
Deflation is assured at this point. If loans aren't being made at a rate to pay the interest on the current debt-load - our debt-based system will collapse out of necessity.
Do our "leaders" have the will to idle the printing presses in the face of catastrophic deflation?
I'm with M. Faber: NO.
PMs Bitchez.
Deflation is assured at this point? Are you aware that there are individuals at ZH who don't believe in deflation? They think it's a myth.
*LOL*
Inflation, deflation or hyperinflation are policy decisions, IMHO. If the economy was left to its own devices there would just be deflation. Does anyone believe that the economy will be left to its own devices? Deflation will be tolerated to a point when it is helpful e.g. driving down gas prices in an election year. The long term solution is inflation and lots of it. They will not allow hyperinflation. It's not helpful to TPTB.
Zactly! & yes, we can "forget about Zimbabwe" (maybe?) , but what of the litany of all other inflationary examples throughout the world & history? Untenable debt is untenable, even in bizarro land where debt = *money*...errr, currency. Default or Inflate (or do I repeat myself?) ~ those are the only options. Place yer bets &/or prepare accordingly.
The 2 leading causes of hyperinflation are, foreign denominated debt, and war.
who says you cant have inflation with out wage incresses? why? why cant you have staghyperinflation?
Capacity?
http://www.joc.com/maritime/container-lines
Hyperinflation will come when all money on the side, in preservation mode, will start bidding on something real.
Does not have anything in common with wages this time, because is going to be run by a minority.
Where's Tyler's lampost pick again, lol. We'll see how long the minority lasts.
Someting real? Groupon IPO'ed at $20/share. As explained to me, you are going to take one of these into a local business and have the lost in translation soup nazi negotiation with your local small businessman. That sounds real funny!
Because inflation is self-limiting unless labour can demand higher nominal wages. In a low-skill, globalised economy obsessed with free trade and a bottomless pit of slave labour (ie, China), it ain't gunna happen. But hey, buy gold, right? You know better than Hugh Hendry.
You could not be more wrong. Ever since the Roman Empire inflations were created by debasing the currency. Higher wages are never necessary if your central bank keeps printing.
If you are speaking of physical gold, then yes, I guess I do. Hendry likes to tell people his judgement of whether they are true contrarians, but it is still a most accurate assertion that owning bullion is a contrary position. ETFs, shares and rolling futures are something fundamentally different from bullion, the ultimate contrarian position.
Inflation without wage inflation means a lower standard of living. Well we know that could never happen. LOL.
Yep- Hugh needs to update the value on those CDS's to "when they don't feel like honoring them" on his balance sheet....
Hendry obviously has an impressively keen mind. I think his weakness, however, is that is pride is so wrapped up in identifying with being contrarian that his mind is biased against strategies that happen to be even somewhat widespread (the key of course being to figure things outs before the masses do). Being a contrarian may pay off well in minor to moderate turning points in history, but when the insolvency of the G8 is becoming increasingly clear to even the most wool-headed financial minds then guess what: we're getting close to the rapids and waterfall. The sad thing is that most people are still in subconscious denial in what's ahead, so in that way it's still not even contrarian to to be positioning in common-sense trades that will payoff when things start to go nuts.
Zh posted that four part video of Hendry a week ago, and to me it was really apparent how much on the edge of sanity that guy is.
Sanity is overrated. Could it be said that the definition of INsanity is NOT doing something repeatedly and expecting a different outcome (read: sit idly by as fraud and corruption rule the day)? Short ban pfft! ES pump pfft! PM manipulation pfft! Regulatory capture pfft! Moral hazard pfft! Have honesty and transparency always been so elusive?
Yeah, you're totally right, plus I'd be the first to agree with the fine line between genius and insanity augment. I suppose my criticism should have been more thought out. Now that I'm putting my finger on it (and I thank you for your comment), I suppose that it was comment about his long term return figure written on a piece of paper that he said what he was most interested in. It made me think that although being right in trades can feel good and do amazing things to a life, I'm pretty sure it's not healthy for that to be the most important thing. It's the same affliction as any of these bankers have, except that Hugh runs his own show.
Some of them are full on pathological. How else could they sleep at night with their shenanigans? And we only know about the few things that get reported...
.
Groupon business model by CNBC
http://www.youtube.com/watch?v=tikRd_pTteo&feature=youtube_gdata_player
Bad moons, and facials, and money shots, oh my!
I generally dont like low humor, but man, that was funny. On the more up and up side of humor, bloomberg had a "Formal Federal Prosecutor" on the phone today around 15:00 EST re: MF Global.
Maybe my eyes are bad, but for the entire telephone conversation segment they had the guys portrait on the screen and his title was "Formal Federal Prosecutor" what woud an "informal" federal prosecutor be?
Probably was a "former federal prosecutor" and the person typing it in heard it wrong.
Ohh I know. I was just kinda wishful thinking that there is a shadow government that catches the bad guys like corzine. (legally, without violence)
Likely a shadow government, but they do not catch bad guys like corzine (unfortunately).
FORT KNOX HAS NO GOLD.
http://www.youtube.com/watch?v=_oc3hiZoP7M
So dollar is not currency of capital, but fake confidence without manufacturing production backing with it.
Nuclear Bombs? Plenty of countries have them these days. Not a big deal.
Hugh Hendry Long CDS? good luck with him. Hope you can dress them AS underwear in the bedroom and put your food on the tableI reckon that Fort Knox is stuffed full of gold, 'however' it's probably mostly illegally looted gold from post WWII Germany and Japan, and more recent exploits in Iraq and Libya.
All the gold that the US doesn't want the rest of the world to know it has in its possession.
What exactly could they do about it? The world pulled more gold out of the western hemisphere than is still there (above or below ground) regardless of who "owns" what chunk.
Even if you can "prove" or at least provide a compelling argument that there is no god, the blind faithful will still go to church.
Yes, we are a faith based economy. Geitner et al have been complaining about the loss of faith, and what to do about it. So, the question is, what happens to a society who has lost it's faith. Your argument is that we will "still go to church" ie use this instrument we have lost faith in and I agree. But this site is not for those who want to get by. This site interests those whos' persuit is profit.
Let them print some more, real incomes will fall even faster.
Engaging site. Happy surf & turf all you can Heat branding.
HH is Legendary
HH is legenday - no doubt. He is right on the fucking money. The only thing he doesn't do (because it would be moot in his position) is outright connect the dots a little further outside the economic spectrum. What I am talking about is the obvious unsustainable, silly notion of perpetual exponential growth based on a monetary system that generates malinvestment on the basis of pure profit (serving those closest to the creation of various fiat currencies most) over what is best for society as whole. "Checkmate" alludes to this though - so I have to give another favorable nod to HH.
I like Hugh a lot, but his timing has been absolutely fuking awful these past 2 years, then again so has mine....it does not mean he is wrong - just early, which is wrong no?
When it comes to trading, yep, early is wrong. When it comes to preparation for a cataclysmic event, early is genius.
"Because wage labor is approximately 70% of total business costs, he does not see meaningful inflation without wage inflation."
His analysis is partially incorrect. There will be huge wage inflation in the BRICS, which will be exported back to the developed countries. Food & Energy costs will soar in the BRICS, fueling non-core CPI, in developed nation, pushing non-core CPI higher.
Walmart will be the first to experience a margin squeeze, after they finish fiddling with item sizing.
Really? Chinese companies are getting hammered by wages and input costs.
So does the rest of the World.
Wage inflation over there is moderating, companies can't payout what they dont' have. All printing will do is translate into more unrest.
Exactly.
There you go. I could say the same to US jobs figures. So basically that's why there were Occupying everywhere these days. Not really a I gain - You lose situation.
That's exactly the point Dormroom was making. China (our creditor) gets hammered - particularly from within on wage side. Or risk major civil unrest. Not like they haven't been playing the wage arbitrage game all along anyhow. Net result falls back on us anyhow. Checkmate no matter how you slice it. Welcome to the new battlefield.
It remains to be seen if they can internalize demand given the overcapacity there.
http://cnbusinessnews.com/imported-iron-ore-prices-fall/
Good point. That would be a real trick. If they fail to internalize demand and allow a middle class to organically form as a result, they are toast.
And if they succeed in creating a middle class, we are ALL toast!
http://www.reuters.com/article/2011/11/03/china-shipping-idUSL4E7M307M20111103
That results the lose of purchasing power of the dollar. How are the US companies would be able to afford rising prices of raw material or shrink work insurance for the American workers going back to work for less pay?
So the US companies never worry about losing their money?
The point is simple. For us peasants, there is nowhere to run. The goal of these assholes in power is simply to crush the creditor and keep the game going so they can party like rock stars forever. They dont give a shit about us or US companies. They will simple move onto the next business opportunity, whatever it might be (or wherever it might be).
I feel the pain for you and I can say the world right now is fucked every corner without exception. However, it's not about creditor would have the biggest gain or lose in this case, it's the fact that most of the US public fund or pension, social security net is also being funded by with the creditor under this giant house of cards, but I am not saying China in particular, I am saying the world's central banks and millions of private employers too.It's the financial side is mostly exposed. Considering US is having so many trade deficit with other countries via US companies' names to provide the goods and service. The Powers would be extremely stupid if they are shooting their organs in the name of saving themselves. Unless they have the guts of totally get rid of FED, I cannot imagine they have a shortcut of success to occupy the working people's lives any further.Even French at this point, would try to totally vote by their feet or even arms.....So complicated. Just Get your Gold fast and leave to a safer place.
"Business opportunity" being a euphemism for "steal" or "pilfer".
yes, steve keen said it. it is not wage inflation that results in
inflation, first comes credit expenditures due to systemic loan "money"
creation. people spend debt, causing
price increases first. what do wages have to do with it? (they are minimal
to be calculated to sustain interest payments and survival, nothing more,
that is the plan in the model ) this is the real
current model contrived by the lenders to maximize their interest in the game
that leads to now here. ... ( see compensation mostly from bonuses )
and it is meaningful. it just defies ones sense of temporal reality for the
sake of banker control of humanity. will not work !! kill the beast. !!
squid.
end the fed !!
Huge wage inflation in BRIC might bring jobs back to the West, won't it? Why pay extra for tranportation when there's no wage arbitrage?
The black swan event IMHO will be a war in Asia, probably intitiated by Pakistan and backed by China. And I shudder.
It is bringing some jobs back, it's going to be a very slow process, imo.
jobs are never coming back here. It's a global market. Firms in China will move factories to vietnam or bangladesh, or some other deprived nation. Capital will get funnelled back to Western banks from these ventures, but you and I are not going to see any benefits in terms of higher wages, better benefits, or more government spending. The entire globe is being carved into have & have nots. 1% or 99%.
Think about this: 0.1% (top of the 1%) x 7B (world's population)= 7M! That's the oglicarchy that run everything.
Very entertaining but he's up against the system. He's going to lose more money with that mindset than working under the rigged system
If we begin to debase, we can ride the petrodollar recycling revenue bubble. Starting a new war will create cash revenue inflows by 10x.
LOL
War does not stimulate the economy, it destroys it. Witness the rationing, forced recycling and "doing without" rempant during WWII.
War does keep the rabble in line. Rationing introduces an economy ruled by state central planning even in countries that are imbued with a free market philosophy. Then, ala Orwell, don't end the war ever.
"Why China is Not 19th Century America"
Comparing 19th century America to current China is as foolish as comparing America to China at all.
Oh never mind, Carry on.
I agree on that. My first argument is population density. 18th Century America had one of the lowest population densities in the world. In other words there was virtually unlimited space to expand and resources to grab, as opposed to China which is pretty much packed. The parallel between 18th century US and China fails immediately on this commonly overlooked fact.
There are so many different variables.
China has a 4000 year history. 4 fucking thousand years.
The US will be lucky if they make it to ~240 (Declaration of Independence) years before they implode and melt to the core.
Of course Israel will make off with the spoils but who's counting.
As for "history", there is a big difference between "The history of the various peoples who have inhabited the land mass currently known as China" and "The history of the Communist-party-owned state of China", the latter has a history of less than 70 years. Various regimes ruling in the land of China, as you think of it, have imploded and melted to the core many times, as has Europe countless times, as did the US during its Civil War and its Great Depression... Things fall apart once or twice a century and people rebuild from the ashes, flexibility is the key and if the CCP can be flexible enough, they will survive and thrive.
I wish the best for the people of all nations, the politicians can suck it.
"China, as you think of it, have imploded and melted to the core many times".
You have not been paying attention over the last few ZH years. The Tyler's have promised us a meltdown leading to NWO. (buy gold, food, guns). Global homogenization. Where a nation completely loses it's identity. Global .gov, currency, law.
For the sake of clear definitions.
OK guys what is the long term track record of HH ??? A legendary HF manager is someone exceeding 20%+ annualized over 20years. I dont think he falls in that category...
He sure talks a good talk, but his funds havent out performed gold over the past decade...maybe thats why he doesn't like it; buying gold is just too simple and easy; you have to trust a hedge fund or "someone who knows what they're doing" with money
Gold cuts out a lot of investment professionals. economists and politicians. It easy to see why it is easy to hate.
He sure talks a good talk, but his funds havent out performed gold over the past decade...maybe thats why he doesn't like it; buying gold is just too simple and easy; you have to trust a hedge fund or "someone who knows what they're doing" with money
well the precious metals bull market will last forever in my opinion. the experts say 25 years. it started about 2001. so we have a ways to go. i look around i don't see anything being fixed. i don't see any progress. i see debts that cannot be paid. i see a nation dying in so many ways. gold and silver bullion take people like hendry out of the loop. these finanical advisers need your money in order to play with it. when you buy bullion, they are left holding the paper bag and you have your bank in your control and at your finger tips. the world does not understand metals, never did. the world only understands paper. that is all it understands. it has learned this by being trained in that way of doing business to the point where shear fraud vis a vis paper instruments based upon promises have now over the last hundred years or so, been made into something that they never have been, authentic investments. everything worked until it didn't. now we have these pension fund bombs sitting around , with 8 percent per annum promises on the books to the baby boomers who are now at the age where they will start pulling on these funds in order to live in their retirements. but , a bad thing happened on the way to the party. the money is not there. now these funds double down in this market hoping that they can recoup the money they lost in 2008. that has not worked too well for the most part. the weird part about it, is that they are not allowed to purchase bullion. such is life in the world of paper. so now the baby boomer pension funds wait until the day when the sheerers come again to sheer some more sheep ......and they are coming......because it is like george carlin said one time, ladies and gentlemen, they want it all............they want it all...............
He can't believe there will come a day when no one believes in fiat currency. That is hyperinflation.
Fiat will sing the same old song it has sung so many times before:
"There will come a day, when youth will pass away; what will they say about me? When the end comes I know, I'm just a gigolo; life goes on without me. 'Cuz..."
like madeoff
Nice analysis but who are his counterparties and what makes him think that they will be around to pay off on his bets?
JUNK SILVER BITCHEZ........!!!!
He sees society’s current mood as “dark” (Tea Party, Occupy Wall Street, and social unrest in Europe to name a few), and believes this makes bailouts and money printing very hard. The only environment that makes hyperinflation possible is “the mother of all depressions” he says<<<<<<<<
what does society and any protest or the desires , wants and needs of anyone in this world for that matter , out in flyover country have to do with financial and monetary policies of any nation on this earth? none whatsoever. mr hendry does not understand the kind of people he is dealing with or else he does and is afraid to say it because he swims in the shark infested waters of world finance and we all know who runs that show........and so does he.......
Agreed. But my take away is that the sting of deflation needs to be felt in order to print. Such is about placing blame. Ultimately the politicians and even the public are the patsies for this. The stage is being set now. The big question is whether or not they pull it off.
imho, they are going to do what they want when they want. it is a sign of the times we live in. the contract has always been there. they offered and we accepted. it takes two to tango. the founding fathers distinctly mentioned the usage of silver and gold as our currency. they knew these bastards like they know themselves. perhaps they were conflicted men and complex men who had struggles within themselves about doing the right thing for the people. one of our last great presidents, president jackson, old hickory said by the Eternal God i will route you out of this land and he worked hard to do that. but if a nation is full of people who do not understand what good citizenship is and that it requires constant and fervent vigilence, then all of his work was for naught. john adams said one time that a democratic republic will not work without good Christian principles at work. for too long the moneylenders came with their sirene songs of money created out of thin air and we absorbed it like it was something good when it was bad. it went down sweet but made our stomachs sick. but we came again and again to the table requesting more and more and so now we see the final destination of this soul train. the station is in sight. most americans are not paying much attention and when you talk to them about such things they give you this blank stare. who are you sir? what planet are you from? what are you talking about? let talk about good things like jersey shore or the kardashian divorce or some stupid television show but never do i want to hear about real issues and real life or anythings that will affect my lives and the lives of my children. no, these americans did not listen then and they do not listen now and nothing will ever change for them i say. so what to do for this miserable one percent who refuse to bow the knee to moloch.......
My rebuttal:
"then all of his work was for naught" I wouldn't call America up until we went off the gold starndard "naught".
"will not work without good Christian principles at work" We are, and always have been, the most highly churched industrial country in the world. Our true problem is our RELIANCE on faith.
Who is moloch?