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Where is the recovery?

Published May 04. 2013 09:01AM

I have been writing my weekly column for several years now. From time to time I review my past columns to ensure that I stay fresh and original. There is nothing worse than a writer who shouts the same message everyday from the rooftops. My goal with this column has been to provide the readers with my comments on America and our way of life. Today, I looked at an old article, originally written in 2011. I asked a simple question: Where are the jobs! (

According to the politicians we are now on the cusp of a recovery. If that were true, I must ask again, where are the jobs! This week's labor statistics were abysmal. Layoffs continue, while the numbers on new hires are declining faster than an elevator with a broken cable. Many of those dismissed from their jobs, whether through downsizing, off shoring, "early retirement" or "reduction in force" will not be able to get a new job. I know several people who have been unemployed for over a year. After months fruitlessly searching for a position, they become disheartened. At that point, my advice to them is to start a small business. Unfortunately, my voice falls often on deaf ears as many people do not believe that they can open and operate a business at their age, with their skills. In response, I tell them about an old man whose restaurant failed when the new Interstate Highway 75 rerouted traffic away from his small restaurant. To survive, in 1952, he took his best recipe and franchised it to a friend, Pete Harman, who opened the first KFC franchise in Salt Lake City. And, as they say, the rest is history. (

Sadly, Colonel Saunders would fail in today's business environment due to a weak dollar, excessive government regulation and the socialist practices of the current and past presidents. Free enterprise is a thing of the past. Over regulation makes starting a business almost impossible here in the United States. That is why many innovative companies are starting in China, Korea, Germany and even Indonesia. The Federal Reserve under Bernanke is keeping America afloat by printing money faster than Kaiser Wilhelm II of the Weimar Republic (

Our politicians are mortgaging our future by spending money faster than Ben can print it. Our national debt is approaching $17 trillion, an amount that can never be repaid. The only solution to the debt crisis is to deflate the value of the dollar. At the start of World War I, the U.S. dollar was worth 4.2 German Marks.

By November 1923, the American dollar was worth 4,210,500,000,000 Marks. Germany crashed, creating the financial crisis that enabled Adolph Hitler to be freely elected and ultimately led to World War II. A quick look at the U.S. dollar over our lifetime shows us the effect of devaluation. When I was a child, I could buy a bottle of Coca Cola for five cents and get two cents back when I returned the bottle. If you bought an item in 1950 for one dollar, it would cost $9.66 today. That results in a cumulative inflation rate of 865.9%.

Young people need to start saving for retirement as soon as they get their first job. It is the only way they can hope to save enough to survive. It also explains why so many of our seniors are in dire financial straights, even though they saved for their "golden years". Imagine what the same level of inflation will do to your retirement savings! When I was a child, I used to think that someone with a million dollars was exceptionally wealthy. Now, a couple that saves all of their lives to accumulate a million dollars for their retirement will likely run out of money in their 70's. When the money starts to run short, many retirees return to the workforce, serving behind the counter at KFC or Burger King. I doubt this was the retirement they envisioned.

The actions of Mr. Bernanke and our politicians have eroded our savings and left many retired folks destitute. To placate the multitudes on Social Security, they awarded us a 1.7 % increase this year. Hip Hip Hurrah! The fact is that the real inflation that retirees are experiencing is just over 8 percent! Ben and his minions are hiding the true inflation rate. Obviously, they do not shop for food, or pay rent. They do not know what it is like to have to choose between food and medicine. Yet they continue to B.S. John Q. Public with a plethora of lies and statistics that show how much better we are today.

My solution is to prepare for the worst and pray for the best. It is time to plant our garden. At harvest time, we will pull out our canning equipment, wash our jars and preserve our meager harvest. At least the government can't tax what we grow and preserve for our own use. But you can be sure they are thinking about it. After all, they know how to squeeze the lifeblood out of the recovery while draining our bank accounts and mortgaging our future. God Bless America! Never have we needed help more than we do today.

© 2013 Gordon Smith - All Rights Reserved.

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