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Archive for December, 2010

James Garrett

December 28, 2010

We will take a look at Conservative Beliefs and compare them to Liberal Beliefs. To show how their Beliefs conflict within liberals own beliefs and defy logic and common sense.

Conservatives believe in personal responsibility, limited government, free markets, individual liberty, traditional American values and a strong national defense. Believe the role of government should be to provide people the freedom necessary to pursue their own goals. Their policies generally emphasize empowerment of the individual to solve problems.

Liberals believe in governmental action to achieve equal opportunity and equality for all, and that it is the duty of the State to alleviate social ills and to protect civil liberties and individual and human rights. Believe the role of the government should be to guarantee that no one is in need. Believe that people are basically good. Liberal policies generally emphasize the need for the government to solve people’s problems.

Abortion

Conservatives believe human life begins at conception. Abortion is the murder of a human being. Nobody has the right to murder a human being. Support legislation to prohibit partial birth abortions, called the “Partial Birth Abortion Ban” Partial birth abortion is the killing of an unborn baby of at least 20 weeks by pulling it out of the birth canal with forceps, but leaving the head inside. An incision is made in the back of the baby’s neck and the brain tissue is suctioned out. The head is then removed from the uterus.

Liberals believe a fetus is not a human life. The decision to have an abortion is a personal choice of a woman regarding her own body and the government should stay out of it. Women should be guaranteed the right to a safe and legal abortion, including partial birth abortion.

My comments

I find it moronic and totally illogical that liberals do not believe in the death penalty for criminals that commit crimes like murderer rape and child molesters. But they do advocate killing the unborn totally innocent beyond a shadow of a doubt, but it’s just fine to kill babies. How does that make any sense? Why do the liberals have such a big problem with conservatives siding with life rather than the liberals siding with death and somehow they think the choice of death is better and Conservatives are just stupid and we don’t get it. What’s there to get? It is what it is, killing the unborn.

Affirmative action

Conservatives believe People should be admitted to schools and hired for jobs Based on their ability. It is unfair to use race as a factor in the selection process. Reverse-discrimination is not a solution for racism.

Liberals believe Due to prevalent racism in the past, minorities were deprived of the same education and employment opportunities as whites. We need to make up for that. Support affirmative action based on the belief that America is still a racist society. Minorities still lag behind whites in all statistical measurements of success. Also, the presence of minorities creates diversity.

My comments

It is racist to create laws that discriminate against one race to give favor to another. That is exactly what Affirmative action is a racist law. As soon as this law was passed it discriminated against who ever was given favor over another because of skin color.

Death penalty

Conservatives believe the death penalty is a punishment that if it fits the Crime it is neither ‘cruel’ nor ‘unusual’. Executing a murderer is the appropriate punishment for taking an innocent life.

Liberals believe we should abolish the death penalty. The death penalty is inhumane and is ‘cruel and unusual’ punishment. It does not deter crime. Imprisonment is the appropriate punishment. Every criminal execution risks killing an innocent person.

My comments

No Death penalty for criminals but its fine to kill babies. That is an upside down and twisted way of thinking.

The Economy

Conservatives believe the free market system, competitive capitalism, and private enterprise afford the widest opportunity and the highest standard of living for all. Free markets produce more economic growth, more jobs and higher standards of living than those systems burdened by excessive government regulation.

Liberals favor a market system in which government regulates the economy. We need government to protect us against big businesses. Unlike the private sector, the government is motivated by public interest. We need government regulation to level the playing field.

My comments

Liberals favor a market system in which government regulates the economy. This is exactly what Fascism and Nazism believes how an economic system should be run. Do some searches on these types of governments and you will see I am telling you, the truth.

Education – school vouchers

Conservatives believe School vouchers will give all parents the right to choose good schools for their children, not just those who can afford private schools. Parents who pay the taxes that fund the schools should decide how and where to educate their child.

Liberals believe School vouchers are untested experiments. We need to focus on more funding for existing public schools to raise teacher salaries and reduce class size.

My comments

The public schools have been unsuccessful since I was in school this goes back to 1972. Nothing has changed now it’s still the same in 2010 or 38 years later and nothing changed. It’s still a very low-grade of education teacher’s salaries have quadrupled and the children still graduate with a six grade education and can’t even read. It’s another repeat of the traits of a liberal to keep trying what has consistently failed and to completely ignore what does work and deny the success of anything that contradicts how they think things should be.

School vouchers are not untested and they have been around for as long as the public schools have been around. Remember all the stories of how rich kids get the best education from going to private schools. That’s not because there just rich, it’s because private run schools are just better and today there cheaper to run then public schools. It’s all about the Unions that control the schools; it’s not about a better education the liberals would like for you to believe.

The Environment

Conservatives believe Desire clean water, clean air and a clean planet, just like everyone else. However, extreme environmental policies destroy jobs and damage the economy. Changes in global temperatures are natural over long periods of time. So far, science has not shown that humans can affect permanent change to the earth’s temperature.

Liberals believe that conservatives don’t care about protecting the environment. Industrial growth harms the environment. Global warming is caused by an increased production of carbon dioxide. The U.S. is a major contributor to global warming because it produces 25% of the world’s carbon dioxide. The U.S. should enact laws to significantly reduce that amount.

My comments

Scientists have only been able to measure the ozone since 1985 first liberals screamed about the whole in the ozone then it closed up on its own and the liberals shut up. Then came Global warming being caused by man and it has proven to be a hoax. The science now proves man has little to do with global warming or global cooling. It took $47 billion in tax payer money poured into the liberal toilet to come to that false conclusion that man is the cause of global warming or climate change.

Gun control

Conservatives believe The Second Amendment gives the individual the right to keep and bear arms. Gun control laws do not thwart criminals. You have a right to defend yourself against criminals. More guns mean less crime

Liberals believe the Second Amendment gives no individual the right to own a gun, but allows the state to keep a militia (National Guard). Guns kill people. Guns kill children.

My comments

The only way you can come to the liberal conclusion that the second amendment doesn’t give the people the right to the people to bear arms is if you don’t read the part that says, the right of the people to keep and bear arms, shall not be infringed. There is no other way to translate what it plainly spells out in the plainest English possible, unless you don’t read that part. The word in the original bill of rights is separated by a comma separates the militia and the people and these rights shall not be infringed upon. I have an original in my hand as I write this. I don’t need to lie or distort the truth as the liberals always do.

Guns don’t kill people or children, people do. If you left a gun sitting on the table and no one picked it up for 1000 years it wouldn’t kill anyone until a person picked it up and used it to kill someone. I once again find the logic of the liberal missing from their statements. It is funny how liberals blame an inanimate object like a gun for the crime of killing, yet the person who picks up the gun purposely to commit an act of murder is innocent. It’s not his or her fault it’s the guns fault.

Here is the truth of it all. The liberal progressive know they can’t take over the government and install their communist constitution style government as long as Americans are armed to the teeth as we are. This is also why they hate the military so much, as they take an oath to protect the constitution. It should be obvious by the liberals stated positions on constitutional law that they don’t like it and they want to destroy it.

Health care

Conservatives believe free healthcare provided by the government (socialized medicine) means that everyone will get the same poor-quality healthcare. The rich will continue to pay for superior healthcare, while all others will receive poor-quality free healthcare from the government. Health care should remain privatized. Conservatives support healthcare spending accounts.

Liberals believe Support universal government-supervised health care. There are millions of Americans who can’t afford health insurance. They are being deprived of a basic right to healthcare

Immigration

Conservatives Support legal immigration at current numbers, but do not support illegal immigration. Government should enforce immigration laws. Oppose President Bush’s amnesty plan for illegal immigrants. Those who break the law by entering the U.S. illegally should not have the same rights as those who obey the law by entering legally. If there were a decrease in cheap, illegal immigrant labor, employers would have to substitute higher-priced domestic employees or legal immigrants,

Liberals Support illegal immigration and increasing the number of legal immigrants permitted to enter the U.S. each year. Support blanket amnesty for current illegal immigrants. Believe that regardless of how they came to the U.S., illegal immigrants deserve U.S. government financial aid for college tuition. Liberals Support Visas for spouses and children to come to the U.S. Families shouldn’t be separated. Illegal immigrants do the jobs that Americans do not want to do.

Conservatives know these facts

In the last debate on Illegal immigration only 18% of Americans wanted amnesty for illegal aliens and 82% were against it. The liberal beliefs would open the flood gates to millions pouring over the border to take advantage of the amnesty. This has been done two times before and that’s what the result was. This also allows the extended families numbering as many as 48 million more people legally coming into the country. Here is the big problem with allowing 48 million more people into the country. The larger the labor forces the cheaper the wages of all people. It works the same as demand and supply. History proves the larger the work force available to employers, the cheaper the wages that have to be paid. Don’t tell me this is a myth because I have firsthand experience and I have worked with Department of immigration on this problem before it became part of homeland security. This is another example of the liberals defying common sense and it’s as if they want to do everything possible to damage the country and its people in every way possible. Conservatives and the people are the enemy from my observations of liberal democrat actions for more than 40 years

Religion

Conservatives believe the phrase “separation of church and state” is not in the Constitution. For a very good reason it’s not in the Constitution. The First Amendment to the Constitution states “Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof…” This prevents the government from establishing a national church. However, it does not prevent God from being acknowledged in schools and government buildings. Oppose the removal of symbols of Christian heritage from public and government spaces. Government should not interfere with religion and religious freedom.

The liberal supports the separation of church and state. Religious expression has no place in government. Support the removal of all references to God in public and government spaces. Religion should not interfere with government.

My comments

The very wording of the constitution says religion is allowed in public. The bill of rights specifically says Congress shall make no law respecting an establishment of a religion, or prohibiting the free exercise thereof, or abridging the freedom of speech. By prohibiting religion in public you are prohibiting religion and the freedom of speech. That would mean the liberal idea of prohibiting religion or prayer in public is against the law and is a direct violation of the bill of rights.

The phrase “separation of church and state” is not in the Constitution. That is just a fact. The liberal keep insisting it’s there but it’s not. The reason for that is they live in there fantasy land of just make it up as we go. They think you’re stupid and won’t check it for yourself and hoping you will believe that there telling you the truth. It clearly states in the constitution that no laws shall be passed that restrict religious freedom it is stated even in public. Separation of church and state is no were in the constitution, but liberals constantly lie to people and say it is.

Same-sex marriage

Conservatives believe Marriage is between one man and one woman. Opinions differ on support for the creation of a constitutional amendment establishing marriage as the union of one man and one woman. Believe that requiring citizens to sanction same-sex relationships violates moral and religious beliefs of millions of Christians, Jews, Muslims and others who believe marriage is the union of a man and a woman.

Liberals believe marriage should be legal for gay, lesbian, bisexual and transgender couples to ensure equal rights for all. All individuals, regardless of their sex, have the right to marry. Believe that prohibiting same-sex citizens from marrying denies them of their civil rights. Opinions differ on whether this issue is equal to civil rights for African-Americans

My comment.

Liberals and progressives Democrats are a very sick group of people and I suggest they all see a psychologist and get counseling.

Social Security

Conservatives believe the current Social Security system is in serious financial trouble. Changes are necessary because the U.S. will be unable to maintain the current system it in the future. Support proposal to allow a portion of Social Security dollars withheld to be put into an account chosen by the individual, not the government.

Liberals generally oppose change to the current Social Security system. Opinions vary on whether the current system is in financial trouble. Changing the current system will cause people to lose their Social Security benefits. Support a cap on Social Security payments to the wealthy.

Taxes

Conservatives support lower taxes and a smaller government. Lower taxes create more incentive for people to work, save, invest, and engage in entrepreneurial endeavors. Money is best spent by those who earn it.

Liberals Support higher taxes and a larger government. High taxes enable the government to do well and create jobs. We need high taxes for social welfare programs, to provide for the poor. We can’t afford to cut taxes.

My comments

Liberals support higher taxes to create government jobs that become an ever-growing burden on the American tax payer. Government doesn’t create wealth they destroy it. 230 years of American economic history proves this to be true. If you believe otherwise your information is flawed. I suggest you do some research on the subject of economics. You won’t find the truth at a liberal website or a liberal blog. There information is also flawed and it’s deliberate.

Liberals say we need high taxes for social welfare programs, to provide for the poor. Look at the section below on welfare. If we grow the economy and create jobs for these poor people they won’t need welfare.

United Nations (UN)

Conservatives believe the UN has repeatedly failed in its essential mission to preserve world peace. The wars, genocide and human rights abuses of the majority of its member states and the UN’s failure to stop them prove this point. History shows that the United States, not the UN, is the global force for spreading freedom, prosperity, tolerance and peace. The U.S. should never subvert its national interests to those of the UN.

Liberals believe the United States has a moral and a legal obligation to support the United Nations. The UN can be effective in promoting peace and human rights. The U.S. should not have acted in Iraq without UN approval. The U.S. should submit its national interests to the greater good as defined by the UN.

My comments

This is just another example of the liberal wanting to keep trying failed systems. The United Nations has never been effective in any way. They can’t even distribute food to starving people without stealing billions in food aid that the United States paid for they can’t be trusted to do anything humanitarian or peacekeeping. Conservatives believe the United Nations is a waste of valuable resources and should not be consulted about any matters of importance.

Bill Clinton once put our troupes under the United Nations flag in Bosnia and that is a direct violation of the constitution. This is just more proof the liberals have no respect for the constitution as they continually support any thing that violates constitutional law and try to make new rules as they go that circumvent or violates the constitution. Shame on them, these are a sick bunch of people who still support and trust this group of thugs.

War on terror or terrorism

Conservatives believe the world toward which the Militant Islamists strive cannot peacefully co-exist with the Western world. In the last decade, Militant Islamists have repeatedly attacked Americans and American interests here and abroad. The terrorists must be stopped and destroyed.

Liberals believe 9/11 was caused by America’s arrogant foreign policy. America needs to stop angering other countries. The threat posed by terrorism is exaggerated by President Bush for his own political advantage.

My comments

Sure it’s our fault by the liberal’s way of thinking, it’s always our fault. The perfect example of this attitude is president Obama going around the world apologizing for America everywhere he goes. He is a disgrace to the country and his attitude about the United States is a form of seditious treason. Conservatives have the opposite point of view based on facts as we see it and as it is in reality not in fantasy land. America has done far more good than bad. America has become the policeman of the world and what will they all do when we are gone?

Welfare

Conservatives Oppose long-term welfare. We need to provide opportunities to make it possible for poor and low-income workers to become self-reliant. It is far more compassionate and effective to encourage a person to become self-reliant, rather than keeping them dependent on the government for money.

Liberals support welfare. We need welfare to provide for the poor. Conservatives oppose welfare because they are not compassionate toward the poor. We have welfare to bring fairness to American economic life. Without welfare, life below the poverty line would be intolerable.

My comments

Welfare has destroyed the black American family and keeps those who are poor people poor. They keep voting for their pay checks by voting for the liberal, progressive democrats. There has been no improvement in the lives or standard of living of the poor until they get out of the government social systems. It’s another example of liberals wanting to continue failed programs even after 50 years of complete failure. After welfare reform 12 million people got off the welfare programs and no one starved to death. They simple just went out and got a job. These laws were reversed by Barak Obama in February of 2010. Being poor should be intolerable so people strive to get out of that situation. If you make them comfortable in their poverty most people will stay in it forever.

It seems to me that the liberal progressive democrats represent every social problem in our country. The liberals have created many programs to supposedly fix these problems and every one of their ideas has failed. But yet they consistently want to keep on trying these failed social systems. That’s Albert Einstein description of insanity and this is a conservatives take as well. The liberals own beliefs and their actions are in conflict with their stated beliefs. Liberals say we want to be the best we can be. We want as few people suffering as possible. Yet they keep on doing things that conflict with those goals and create an even bigger and ever-growing problem. This is all a distraction from matters of more importance and it’s a liberal tactic, while they change other things we aren’t paying attention to. This is how they got control over all three branches of government.

If you want to know what this will all lead to in the next 2 years you need to read the book 2012. Republicans winning the election in November of 2010 wont change the path we have been on for the last 100 years. We will soon have to pay the price for liberal, progressive ideology. The price will be more than anyone can afford to pay.

2012 What's really going to happen in 2012

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In the next 18 months there will be many very obvious signs that everyone will be able to see and follow our currencies demise. The evidence will be found in the two most noticeable commodities we purchase every week and that’s the price of Gasoline and food. While the governments’ bureau of labor and statistics is telling us we have no inflation reported to be 1.1% the cost of Gasoline and food will be skyrocketing upward.

 In the last report out December 15, 2010 the headline number on inflation came out at .8% or 8/10 of one percent. These numbers are calculated on a monthly bases and it seems no one ever looks at what’s in the reports. Here is the increased cost of the two most important items in America. The CPI report shows the last 12 month gasoline has increased 9.5%. Then if we look at food over the 12 month period we get 1.4% increase in price. The total of all items in all categories clams’ inflation is running at 1.1% per year. I think we all know that something is not right with these numbers. The cost of gasoline in just the last 3 months is up 20% where I live and I have seen that in other areas of the country is a lot higher.

 But the November Producer Price Index (PPI) for finished goods surged 0.8 percent it doubles most economists’ estimates. Moreover, the inflation is not stemming just from rising energy prices. Overall, the cost of food rose 1 full percentage point in November, which is equivalent to 12 percent annual inflation rate. Egg prices led the way higher, jumping 23 percent in November, while the price of fruit jumped an astounding 14 percent. Think these are one-time, freak price jumps? Think again, because since the first of this month… the price of corn is up more than 3 percent … coffee is up more than 8 percent … sugar is up 8.49 percent … oats are up nearly 6 percent … while cotton prices are up more than 16 percent — all of this in just 15 days!

 The consumer price index hasn’t started jumping yet. But just like night follows day, it will as companies pass on higher wholesale costs. The Fed SAID it would continue its QE2 policy, saying it would “promote a stronger pace of economic recovery” … But that reckless policy is driving interest rates skyward! In fact, two-year Treasury yields have doubled in 29 trading days. Five-year yields have surged 102 basis points, or 1.02 percentage points, while 10-year yields just hit a seven-month high. Thirty-year municipal bond yields soared to a 16-month high, as thirty-year mortgage rates jumped to the highest since the tail end of the spring home buying season.

 So not only is the Fed failing to promote recovery by driving borrowing costs down It’s actually hindering the recovery by driving costs up. Yet in the Fed’s fantasy world, everything is peachy keen! With interest rates rising and the Fed continuing to print money and buy bonds, despite a zero percent success rate so far, here comes hyperinflation!

 The price of gasoline has gone from under $2.50 a gallon to $3.00 that is a 20% increase in just 3 months. I do my own shopping and I believe food has gone up more than 1.4% in the last year. Any way my point is what we really need to buy every week is climbing at a much greater rate than the reports show. This is nothing new as I have notice this to be the case all my years of running a business. But in the following months because of the intentional devaluation of the dollar, the cost of petroleum products and food will increase as the dollar devalues against all other currencies. This is what happens when a country intentionally devalues its currency. Ben Bernanke has said we need to create some inflation because it’s to low at 1.1%.

 So here is what’s taking place right now and it’s the truth. I will explain how this will get out of control real fast. We will start with what the news media is referring to as QE-2 which translated means quantitative easing. The amount of money they are going to print or digitize is $600 Billion. Bernanke claims the purpose is to create liquidity in the banking system. The true reason is to finance the federal deficit of $110 billion a month. There are just moving digits from one Colum of a computer program and moving the digits to another Colum, there not even printing the money anymore. This has to be added to the federal deficit spending for all of 2008 and up to the end of 2010 and that dollar amount is around $3.9 trillion. Now we are adding $600 Billion for a total of $4.5 trillion. The money is getting into the streets with monthly government spending on entitlement programs.

 This QE-2 money will run out buy April of 2011, so what happens next? QE-3 will be another $600 billion and Ben Bernanke said this would be the case if needed and it will be needed. There’s no end in sight with the federal budget deficits of 1.55 trillion for 2011. That’s $129 billion on average added each month to finance the gap between government revenue and government spending. The QE-3 will run out by September 2011. So what comes next? QE-4, 5 and 6 there is no end in sight.

 Why does this matter and why should you care? As the Federal Reserve keeps propping up federal spending deficits over the short period of the next 18 months we will destroy what confidence is left in our paper currency. This means the prices of crude oil from were ever we do import it from will continue to rise with the continued intentional devaluation of the dollar. We import 72% of all the crude oil we use and we are not in control of the price. American oil companies only control 3% of the world oil supplies. Well why does this matter? For every dollar a gallon the price goes up it takes $27 billion each month out of Americans pockets they would otherwise spend on something else. We are not buying additional product we are just paying a lot more for it. $4.00 a gallon gasoline by July of 2008 is part of what caused the last recession or the one we are still in, that lead to a worldwide bank collapse. That recession started in December of 2007. If you find a chart of the price of gasoline and a chart for unemployment as the cost of gas went up so did unemployment. They move in lockstep for the following reasons.

 On a yearly base $1 in additional cost to a gallon of gas is about $300 billion that goes missing for other purchases. I believe the threshold for decline in other economic activity due to the price of gas is $2.50 a gallon and once we get above that we start to lose jobs because all that money goes missing. There is also the secondary affect the higher price of crude pushes up the cost of food and all other energy related categories. There is also another problem and its ethanol that is added to the gasoline. This comes from corn and corn is also the main food use for cattle, chickens and all farm animals. As we burn ethanol up we are forcing the cost up for farmers to feed their animals and this has a direct affect on the cost of all our food supply on top of the higher price from the higher cost of crude oil.

 In 2011 we can look for much higher Gasoline prices and much higher food prices. It will look like this by the end of 2011, gasoline will double to $5.00 a gallon and food will be up about 30%. The Bureau of labor and statistics will be telling us we have just 5% inflation. This is exactly what they were telling us in July of 2008 when gasoline was $4.00 a gallon in most parts of the country and in Crazy left coast California gasoline was over $5.00 a gallon. Most of the price increase in 2008 was from January to July or in just 7 months. That was all from speculation in the commodities market, not from the intentional devaluation of the dollar.

 The inflation of the currency has a quantitative number of jobs losses that will come from the money gone missing from the higher gas prices. Based on my numbers and numbers from the department of labor, I have calculated that for every $1.00 a gallon or $27 billion each month the job cost is 183,828 jobs that disappear with the money. On yearly bases that is 2,205,936 lost jobs and this doesn’t count all the income lost from the jobs incomes that no longer exist that will forces even more job losses. This is already happening in October and November of 2010 the last two unemployment reports have shown in the body of the report not the headline number, we have lost 503,000 jobs from the total number of jobs in the economic system. This coincides with the rising price of crude oil as it has crept up for the last three months. The headline numbers were positive, but just like all government reports they have diluted them in such a way the true state of the economy doesn’t show up until 3 to 6 months later, if it shows up at all. The interior of the reports show a decline in the number of people with jobs was negative 330,000 for October and 173,000 for November. So get ready for a wild ride as prices go back to $4.00 and then to $5.00 by the end of 2011

 The higher cost of food has the same results as the higher price of gas. Food has to be replenished on weekly bases we eat it and it disappears and if it cost more for the same amount of product the money just disappears. The money doesn’t exist anymore to purchase other products and the economy slows even more and even more jobs are lost. Currently the unemployment rate is at 9.8 % for November 2010. I expect at the very least we will lose at least another 6 million jobs by the end of 2011 if the above scenario plays out. This will put the unemployment rate at around 13% to 14% by early 2012, which will be catastrophic. The value of the dollar will have its ups and downs because of Europe’s economic problems but the long term direction over the next 18 months will be the same, a severe devaluation of the dollar. So what happens next?

 If you want to know the whole story on how we got into this position and were all this will take us and our country you have to buy my book called 2012: what’s really going to happen in 2012. There are no prophecies in the book, it’s not about wizards or any hocus pocus codes. It’s about sound economic practices that we have ignored within our own governments policies and how the very government we expect to protect the country has planned our demise and why. I show the proof based on simple math, a little common sense and the current history of the last 10 years to get us right where we are.

2012 What's really going to happen in 2012

Read Full Post »

In the next 18 months there will be many very obvious signs that everyone will be able to see and follow our currencies demise. The evidence will be found in the two most noticeable commodities we purchase every week and that’s the price of Gasoline and food. While the governments’ bureau of labor and statistics is telling us we have no inflation reported to be 1.1% the cost of Gasoline and food will be skyrocketing upward.

 In the last report out December 15, 2010 the headline number on inflation came out at .8% or 8/10 of one percent. These numbers are calculated on a monthly bases and it seems no one ever looks at what’s in the reports. Here is the increased cost of the two most important items in America. The CPI report shows the last 12 month gasoline has increased 9.5%. Then if we look at food over the 12 month period we get 1.4% increase in price. The total of all items in all categories clams’ inflation is running at 1.1% per year. I think we all know that something is not right with these numbers. The cost of gasoline in just the last 3 months is up 20% where I live and I have seen that in other areas of the country is a lot higher.

 But the November Producer Price Index (PPI) for finished goods surged 0.8 percent is doubles most economists’ estimates. Moreover, the inflation is not stemming just from rising energy prices. Overall, the cost of food rose 1 full percentage point in November, which is equivalent to 12 percent annual inflation rate. Egg prices led the way higher, jumping 23 percent in November, while the price of fruit jumped an astounding 14 percent. Think these are one-time, freak price jumps? Think again, because since the first of this month… the price of corn is up more than 3 percent … coffee is up more than 8 percent … sugar is up 8.49 percent … oats are up nearly 6 percent … while cotton prices are up more than 16 percent — all of this in just 15 days!

 The consumer price index hasn’t started jumping yet. But just like night follows day, it will as companies pass on higher wholesale costs. The Fed SAID it would continue its QE2 policy, saying it would “promote a stronger pace of economic recovery” … But that reckless policy is driving interest rates skyward! In fact, two-year Treasury yields have doubled in 29 trading days. Five-year yields have surged 102 basis points, or 1.02 percentage points, while 10-year yields just hit a seven-month high. Thirty-year municipal bond yields soared to a 16-month high, as thirty-year mortgage rates jumped to the highest since the tail end of the spring home buying season.

 So not only is the Fed failing to promote recovery by driving borrowing costs down It’s actually hindering the recovery by driving costs up. Yet in the Fed’s fantasy world, everything is peachy keen! With interest rates rising and the Fed continuing to print money and buy bonds, despite a zero percent success rate so far, here comes hyperinflation!

 The price of gasoline has gone from under $2.50 a gallon to $3.00 that is a 20% increase in just 3 months. I do my own shopping and I believe food has gone up more than 1.4% in the last year. Any way my point is what we really need to buy every week is climbing at a much greater rate than the reports show. This is nothing new as I have notice this to be the case all my years of running a business. But in the following months because of the intentional devaluation of the dollar, the cost of petroleum products and food will increase as the dollar devalues against all other currencies. This is what happens when a country intentionally devalues its currency. Ben Bernanke has said we need to create some inflation because it’s to low at 1.1%.

 So here is what’s taking place right now and it’s the truth. I will explain how this will get out of control real fast. We will start with what the news media is referring to as QE-2 which translated means quantitative easing. The amount of money they are going to print or digitize is $600 Billion. Bernanke claims the purpose is to create liquidity in the banking system. The true reason is to finance the federal deficit of $110 billion a month. There are just moving digits from one Colum of a computer program and moving the digits to another Colum, there not even printing the money anymore. This has to be added to the federal deficit spending for all of 2008 and up to the end of 2010 and that dollar amount is around $3.9 trillion. Now we are adding $600 Billion for a total of $4.5 trillion. The money is getting into the streets with monthly government spending on entitlement programs.

 This QE-2 money will run out buy April of 2011, so what happens next? QE-3 will be another $600 billion and Ben Bernanke said this would be the case if needed and it will be needed. There’s no end in sight with the federal budget deficits of 1.55 trillion for 2011. That’s $129 billion on average added each month to finance the gap between government revenue and government spending. The QE-3 will run out by September 2011. So what comes next? QE-4, 5 and 6 there is no end in sight.

 Why does this matter and why should you care? As the Federal Reserve keeps propping up federal spending deficits over the short period of the next 18 months we will destroy what confidence is left in our paper currency. This means the prices of crude oil from were ever we do import it from will continue to rise with the continued intentional devaluation of the dollar. We import 72% of all the crude oil we use and we are not in control of the price. American oil companies only control 3% of the world oil supplies. Well why does this matter? For every dollar a gallon the price goes up it takes $27 billion each month out of Americans pockets they would otherwise spend on something else. We are not buying additional product we are just paying a lot more for it. $4.00 a gallon gasoline by July of 2008 is part of what caused the last recession or the one we are still in that lead to a worldwide bank collapse. That recession started in December of 2007. If you find a chart of the price of gasoline and a chart for unemployment as the cost of gas went up so did unemployment. They move in lockstep for the following reasons.

 On a yearly base $1 in additional cost to a gallon of gas is about $300 billion that goes missing for other purchases. I believe the threshold for decline in other economic activity due to the price of gas is $2.50 a gallon and once we get above that we start to lose jobs because all that money goes missing. There is also the secondary affect the higher price of crude pushes up the cost of food and all other energy related categories. There is also another problem and its ethanol that is added to the gasoline. This comes from corn and corn is also the main food use for cattle chickens and all farm animals. As we burn ethanol up we are forcing the cost up for farmers to feed their animals and this has a direct affect on the cost of all our food supply on top of the higher price from the higher cost of crude oil.

 In 2011 we can look for much higher Gasoline prices and much higher food prices. It will look like this by the end of 2011, gasoline will double to $5.00 a gallon and food will be up about 30%. The Bureau of labor and statistics will be telling us we have just 5% inflation. This is exactly what they were telling us in July of 2008 when gasoline was $4.00 a gallon in most parts of the country and in Crazy left coast California gasoline was over $5.00 a gallon. Most of the price increase in 2008 was from January to July or in just 7 months. That was all from speculation in the commodities market, not from the intentional devaluation of the dollar.

 The inflation of the currency has a quantitative number of jobs losses that will come from the money gone missing from the higher gas prices. Based on my numbers and numbers from the department of labor, I have calculated that for every $1.00 a gallon or $27 billion each month the job cost is 183,828 jobs that disappear with the money. On yearly bases that is 2,205,936 lost jobs and this doesn’t count all the income lost from the jobs incomes that no longer exist that will forces even more job losses. This is already happening in October and November of 2010 the last two unemployment reports have shown in the body of the report not the headline number, we have lost 503,000 jobs from the total number of jobs in the economic system. This coincides with the rising price of crude oil as it has crept up for the last three months. The headline numbers were positive, but just like all government reports they have diluted them in such a way the true state of the economy doesn’t show up until 3 to 6 months later, if it shows up at all. The interior of the reports show a decline in the number of people with jobs was negative 330,000 for October and 173,000 for November. So get ready for a wild ride as prices go back to $4.00 and then to $5.00 by the end of 2011

 The higher cost of food has the same results as the higher price of gas. Food has to be replenished on weekly bases we eat it and it disappears and if it cost more for the same amount of product the money just disappears. The money doesn’t exist anymore to purchase other products and the economy slows even more and even more jobs are lost. Currently the unemployment rate is at 9.8 % for November 2010. I expect at the very least we will lose at least another 6 million jobs by the end of 2011 if the above scenario plays out. This will put the unemployment rate at around 13% to 14% by early 2012, which will be catastrophic. The value of the dollar will have its ups and downs because of Europe’s economic problems but the long term direction over the next 18 months will be the same, a severe devaluation of the dollar. So what happens next?

 If you want to know the whole story on how we got into this position and were all this will take us and our country you have to buy my book called 2012: what’s really going to happen in 2012. There are no prophecies in the book, it’s not about wizards or any hocus pocus codes. It’s about sound economic practices that we have ignored within our own governments policies and how the very government we expect to protect the country has planned our demise and why. I show the proof based on simple math, a little common sense and the current history of the last 10 years to get us right where we are. 

http://tiny.cc/ns56s

2012 What's really going to happen in 2012

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