"He says one world government will fail and I believe him.....pic"

Different from the impression people maybe got from what I said over the weekend, I agree that ofcourse World Government will fail. Government can help to "prevent" excesses in the market and in the area of environmental disasters, they cannot "solve" them, particularly when these problems have grown as big as today's debt problem and today's environmental problems.

Armstrong rightly says that the problem is that bankers started to totally control the government, i.e. government stopped controling the bankers. He gives the example of Robert Rubin creating (from within Government) the fertile ground for today's abuse by the financial industry, bringing financial sector abuse one level higher than it already was.

You probably can see that a society has reached the end of economic prosperity by looking at what percentage of employment is located in or linked to the financial industry? In the Western economies that is a disproportionately high percentage. Where do all these bankers, fund managers, brokers etc live and feed on? On wealth created by the primary and secondary sectors. This is unsustainable, so they start robbing and committing more and more excesses of created banking. Judged by the salaries and bonusses it almost seemed that they were the creators of national wealth. A clear sign of decadency.

For me government is not the problem per se, but who controls it. For me the bankers are the main culprits, they are the ones that ought to be controlled and forced to play within the free market rules.

A small government can be very effective and the existence of a democratically chosen and controlled government is even a necessity. I do agree, however, that governments controlled by the wrong interests have not allowed economies to go from boom into bust to work off overcapacity. That is something governments (the people) have to learn.

If the COMEX fails today or tomorrow, it may be the start of a cleansing of the financial industry, the industry where overcapacity is more rampant than in any other sector of the economy.

A world Government is not going to solve today's debt problems, I agree, but what is? Traditionally, it has been economic collapse first followed by War. God forbid we have to go through an all devastating World War again. My hope is that international cooperation, which didn't exist in the past to the extent it exists today, may prevent a World War from happening, but it will be very tough to achieve that.

I am glad I own some ECU and other mining shares to somewhat mitigate the hard times that are inevitably coming.