Older Posts not working

Hello,

I am using a custom theme, and the Older Entries link of the post section is not working.
It brings me to website/page/2/ which has the same latest posts.

My blog.php code is:

<?php if (of_get_option("blog_display") == "on") : ?>

<div id="blog" class="panel box">

	<div class="in">

		<h2><?php echo of_get_option("blog_label"); ?></h2>

		<?php echo apply_filters('meta_content', do_shortcode( stripslashes( of_get_option("blog_text") ) )); ?>

		<?php if (have_posts()) : ?>

			<div id="blog_posts">

				<?php

				query_posts("orderby=date");
				while (have_posts()) : the_post();

				?>

					<?php

					$format = get_post_format();
					get_template_part( "formats/".$format );

					if($format == "")
					get_template_part( "formats/standard" );

					?>

				<?php endwhile; ?>

			</div>

			<!--=== Begin Post Navigation ===-->
			<div class="post-navigation">
				<div class="alignleft older"><?php next_posts_link( __("&laquo; Older Posts", "shorti") ) ?></div>
				<div class="alignright newer"><?php previous_posts_link( __("Newer Posts &raquo;", "shorti") ) ?></div>
				<?php wp_link_pages(); ?>
			</div>
			<!--=== End Post Navigation ===-->

		<?php endif; wp_reset_query(); ?>

	</div>

</div>

<?php endif; ?>

Could anyone please help me?
I dont know what to modify.

The website is:
http://twistedperfectionism.com