Archive for January, 2011


There goes the news media again parroting what they have heard others say and not explaining what it means to the American people. $200 barrel oil to the average citizen does not explain the cost per gallon to them. Americans know it means much higher prices but how much higher? Americans do not buy their gasoline by the barrel; they buy it by the gallon.

So I will tell you what it means so the average American can understand it and maybe the news media will eventually report it or maybe not. $200 barrel oil means gasoline will be $5.50 per gallon. The news media says it will be very bad for the economy, well what does that mean? We all know it would be bad for the economy but what does that really mean for the economy and how bad? What is the cost in the number jobs that will be lost? Exactly what does it mean for the country other than just high gasoline prices which also forces up food prices and the cost of everything else we buy?

All these questions could be answered by the media but I guess none of them own a calculator, not even Neil Cavuto. Perhaps it could be because they really don’t understand how the economy works. So I am going to explain what it means and answer all the questions above using my calculator. We’re going to do the math that no one else wants to do and we will draw a factual conclusion to what this will do to the economy if gasoline does go to $5.50 a gallon. Let’s do the math.

We use 550 million barrels of crude oil each month. There are 42 gallons of crude oil in barrel of crude oil, this translates to 21 billion gallons of crude oil each month to supply the country with gasoline and diesel and all the other many uses of crude oil. Here is how I get a $5.50 a gallon price. At $200 a barrel at 42 gallons within each barrel we get $4.72 a gallon. On average adding the taxes and state and federal shipping and profit is approximately $.70 above that price. That gives us $5.42 which I have rounded off to $5.50 because state taxes vary from one state to another and get even higher than a dollar a gallon in states like California.

These taxes are charged per gallon basis and you know that. American oil companies make $.09-$.10 a gallon in profits. The federal government and state governments usually get over $.42 a gallon and they do nothing for it but collect the money. They have zero investment in any oil rigs and pipelines or refineries and they make over four times more than the oil companies. What’s wrong with that picture?

I believe the threshold of affordability for a gallon of gas is at about $2.50 a gallon and everything above that starts immediately to affect the economy in a negative way. In any case this is where we’ll start to figure the amount of money that will disappear as we spend more for the same amount of product.

The difference between $2.50 gallon and $5.50 is an additional $3.00 per gallon that we will have to pay at the pump. We use 21 billion gallons of crude oil each month and at three dollars per gallon that is $63 billion a month that can no longer be spent on other items in the economy as it is diverted from other sectors to pay for that higher price of crude oil. To get the big picture on a yearly basis we just multiply that times the 12 months of the year and we get $756 billion that just disappears. So now we have a monthly number and a yearly number to figure the job losses based on 31% of the gross domestic product is spent on labor. This comes from the numbers given from the Department of Labor and statistics.

This $756 billion that just disappears is also about 4% of the gross domestic product of the whole country. Another way to put this is all other sectors of the economy will shrink by 4% as the money is diverted to pay for the higher price of gasoline or crude oil.

Some people will say we don’t use all our crude oil just for gasoline and that is true but we do use it for many other products and there is always a write-up on the price of that gallon for the byproduct from refined petroleum and that is at least equal to the same amount of dollars per gallon that we pay at the gas pump and can be a lot higher. For example a quart of oil for your automobile engine runs about three dollars and that translates into $12 a gallon. Do you see what I mean; the byproduct of crude oil is even higher than the gasoline. So these numbers should be fairly accurate if not understated to show the big picture of where we’re headed economically from $200 per barrel or $5.50 a gallon gasoline.

So now we’ll figure out the lost jobs based on $63 billion a month in additional cost due to $200 a barrel crude oil. Let’s do the monthly figure take $63 billion and divide that by the average wage of approximately $50,000 a year. that translates into 1,260,000 jobs lost every month. Then we just simply multiplying that times one year or 12 months it comes to 15,120,000 jobs lost each year. That’s two times the current amount of unemployed people and that would put the unemployment rate at nearly 20%.

Do I have to tell you what job losses in excess of 1 million a month will do to the country. This is direct number based on the dollar amounts that go missing due to these higher oil prices. This does not include the dollar amounts that will be lost from the jobs that no longer exist which further exaggerate the problem. This would be one of the biggest economic disasters in the history of mankind. This will ripple around the world and every economy in every country of the world.

It’s not all about us, the same thing will happen to Europe because we import a lot of the products that Europe makes, we are one of their biggest customer. As money goes missing from these higher prices of crude oil many billions of dollars won’t be there anymore to purchase or import from Europe and they will collapse too – right along with us.

Here are the many reasons why this cannot be fixed in the short-term. We get 72% of all of our crude oil from foreign countries. We cannot make up the difference here in the United States and allow me to explain why. If you could open up every oil field in the continental United States and Alaska it would take the least three years to get the first gallon of crude oil out of the ground. For any offshore drilling it takes gigantic offshore oil rigs that take between two and three years just to build one and we would need thousands, at a cost of $750 million each.

Currently the oil companies have in excess of 900 offshore oil rigs in the Gulf of Mexico at a cost of $750 million each they have invested $675 billion just for 900 offshore oil rigs and only produce about 28% of our total crude oil consumption. Almost all of our crude oil that American oil companies produce comes from the Gulf of Mexico. It took over 50 years to get all these oil rigs built-in place.

We get almost nothing from Alaska as their fields are drying up because they’re so old. The federal government has not allowed Alaska to open up any new oil fields to replace the old ones. It is my understanding that we use less than 5% of the capacity of the Alaskan pipeline. With the exception of Alaska and the Gulf of Mexico is the no other area that the United States government allows the oil companies to drill in.

The only lands that have been opened up for any oil drilling in the past 30 years are in international waters not too far off the northern coast of South America. These lands that were opened up in early 2009 are in water over 5000 feet deep and in international waters not on US soil. Not one oil rig has been put there because it is so dangerous and expensive to drill in deep water.

The Alaskan pipeline was built to reduce our dependency on foreign oil. But as with everything else the liberal Democrats do, nothing ever adds up or makes any sense. We build the Alaska pipeline to reduce America’s dependency on foreign oil and then we never open op any new fields for the oil companies to drill. Instead we do the opposite of what would make sense.

We spend billions of dollars building a pipeline to where there are huge amounts of crude oil and then never allow the oil companies to open up one new oil field where we know there’s lots of oil.

This has been the case for over 30 years now and to this day nothing has changed. As long as the liberal progressive Democrats control the White House and the Senate this policy will not change. The liberal progressive Democrats want the price of gas to go to $8.00 a gallon. If you are unaware of this and you say that I am just crazy or I’m n nuts. It is not me that has said this it is liberal progressive Democrats that said it not me, they are the ones that are crazy.

It amazes me that American oil companies can get crude oil out of the ground ship it by tanker or by pipeline to the refineries, then refine the crude oil into gasoline and the many other products and the price is as cheap as it is. Then the American people do nothing but complain when it goes up $.10 a gallon like it is a birthright for Americans to get cheap gasoline.

The oil companies in America do not control the price of oil. The price is controlled by the commodities market exchanges. Currently what controls the price of crude oil is the Trading of a paper contract to take delivery at a certain date of a predetermined amount of crude oil. But none of these contracts purchased in the commodities exchanges ever get the delivery of the actual petroleum product. This is part of the problem but that’s not what this is about. This will not change until after our system collapses from the Las Vegas style gambling atmosphere of the commodities exchanges which are 98% speculation.

To understand fully what this means to the American economy is as follows. The oil companies only control 3% of world oil supply. We used 25% of the entire world crude oil supply. There is no way American oil companies have any power whatsoever to control the price of crude oil when the rest of the world controls 97% of world oil supply.

There is no way the government can legislate or put price controls on the cost of a barrel of crude oil. If they did the only prices they could control would be the 3% that the American oil companies control. The American government cannot make laws to regulate foreign oil companies pricing. They would have no control over the price the rest of the world want to charge us to purchase their oil. Since our consumption rate uses 72% imported crude oil from foreign countries we would find ourselves 72% short on crude oil and that would shut down our entire economy just like turning off a light switch.

This shortage would be almost instant and will be out of gasoline in just a few days. The American people did this to themselves by voting in the liberal progressive Democrats and giving them control over the government for all but 12 of the last 70 years. This is not a new problem is a very old one and the American people just haven’t paid enough attention to see what’s really going on in our government. The people and the government have put itself in a box, this is self-inflicted and there’s no way out in the short-term.

Now I am going to get real political and put the blame where the blame goes. This situation has been created from long-term heavy regulation all stacked one upon another over a period of more than 30 years by the liberal, progressive and Democratic Party. It is within the Democratic Party that all the nature Nazi’s exists. Whenever these bills come up to regulate the oil companies Republicans work to open new lands for oil companies to drill on. It’s almost party line vote that the Democrats want to shut the oil companies down and push prices up and the Republicans try to keep American oil companies functioning, profitable and the price affordable for the American people.

This is spun by the liberal progressive lame stream news media that the Republicans are for the big bad rich oil companies. But you will soon learn the truth the hard way, whether people admit to it or not, you will wish that the Republicans had opened up new oil fields 10 or 15 years ago as they tried and were defeated in their efforts by liberal progressive Democratic Party and just a handful rhinos in the Republican Party. What gets me is the American people are stupid enough to believe anything the liberal fringe lame stream news media reports.

The liberal fringe lame stream news media twists everything around and tries to make the Republicans look like the bad guys because they don’t care about the environment. We are going to learned very soon who the real bad guys are because there are no short-term solutions to fix a $200 per barrel crude oil problem. If conditions in the Middle East continued to deteriorate this is the problem we face and there’s no way out. The American people will also soon learn this has nothing to do with the environment; it’s all just to get more control over the American people.

The liberal progressive Democrats have made have made fools out of all of us. Well not me just the rest of you. Liberals and progressives have stated many times they want $8.00 a gallon gasoline so that bio fuels can become competitive and profitable, replacing gasoline. The cost per gallon of bio fuels is $6.50 per gallon and then you have to add taxes on top of that plus shipping and a profit. But as you can see from the $5.50 per gallon gasoline price or $200 for a barrel crude oil, it will devastate our economy way before the price comes close to $8.00 a gallon gasoline.

Liberal and progressive idiots have said many times we should tax gasoline five dollars a gallon so that people don’t use it and of course that pushes the price of gas up to $8.00 a gallon over its current $3.00. They’re actually right we will use less and we won’t use any at all because the entire economy will collapse. The numbers above prove what idiot’s liberals and progressives Democrats are. They either have extremely low math skills or their real intention is to destroy the economy and the country. Or could it be they don’t have six dollars to buy calculator?



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The talking heads make generalizations about the negative effects of higher priced gasoline and crude oil costs but they never seem to tell you what those effects are in numbers. What I will attempt to do here is show the math and how that translates into a specific number of jobs that are lost for the resent $.60 increase and every dollar increase in the cost of gasoline or crude oil. And the reason for this is what will come in the next few months as the current higher price of crude oil will divert about $13.9 Billion each month is diverted away from other industries. There is an equation to figure the number of jobs lost from higher crude oil prices. 31% of all dollars spent in the gross domestic product of the country is labor.

There is only so much money in the economic system at a given time. Just like a wage earner only gets a certain amount of money in his check every week and as prices go up on gas he has less money to spend on other items. When prices move rapidly upwards wages do not have a time to adjust to this increased prices. So any additional monies spent on higher priced gasoline as a direct and immediate effect on the overall economy. There are approximately 260,000,000 automobiles in America almost every one of them needs gasoline or diesel fuel every week. So even if people aren’t complaining about $12 a week increase it’s costing them for the gasoline it has to be multiplied by the total number of automobiles in the country and that number is huge as it numbers in the many billions of dollars every month that disappears and goes up in little puffs of smoke.

I know most Americans only think about gasoline prices in terms of how it costs them every week they complain about the $10 or $20 extra they’re spending. No one ever thinks about the many billions of gallons of gas we use every week and that translates into billions of dollars it costs the entire economy. No one ever seems to think of where the money goes or that it actually goes nowhere as it is used and it goes up in smoke. Most of the money goes overseas or to Canada or Mexico and even Venezuela. The government and the politicians always blame it on the greed of the big oil companies but are in fact the politicians that created the situation and conveniently blame it on the big oil companies. This obviously does work as everybody I’ve ever talked to blame on the gas station owner or the big oil companies so it works to give cover to the politicians that created the mess.

What I will use is the total number of gallons of crude oil used in the country which are refined into gasoline diesel fuel and many other products that we use. But to make it clear for the average citizen to understand I will use the price at the gas pump because that is what we see every week. Calculating it this way also will closely cover other uses for crude oil products like plastics fertilizer and anything else that comes from crude oil as it has many uses in manufacturing. Our entire economy has been built and structured around the automobile and the use of petroleum products. The higher prices of crude oil shows up in nearly everything we purchase. Here comes the math so you should get your bottle aspirin out in case it gives you a headache.

Now let’s take that number and figure out the actual job losses based on 31% of that money spent would be labor or jobs and this can be calculated from the hourly work week and wage averages at Department of Labor statistics. All money spent in the economy or the gross domestic product works out to be 31% is a labor calculation based on information provided at the Department of labor and statistics and calculated into estimated current $14.7 trillion economy.

We use 550 million barrels crude oil each month and 6.5 billion barrels a year. Each barrel of crude contains 42 gallons. The total gallons of crude oil used are 23,100,000,000 each month. (23.1 billion) If we take that and multiply it times a most recent increase of $.60 per gallon it totals $13.9 billion a month that just disappears. Gasoline price increases are Just like taking a $13.9 billion a month putting it in a pile and setting it on fire, it just disappears. We’re not buying additional product, we are paying more money for the same amount of product. This has the same effect as the gross domestic product shrinking by the same dollar amount on a yearly basis that is one $167 billion. This is just for a $.60 per gallon increase in price over the last 120 days.

If you take $13.9 billion a month at 31% the total labor amount lost is $4.3 billion. If you take the average national wage of $50,000 per year per employee you get a total job losses number of 86,000 jobs lost each month and this is a cumulative month over month. To get a yearly total at 86,000 lost jobs per month we have to multiply times 12 months to get the yearly total of lost jobs and that number is 1,032,000 jobs lost yearly. This is with just a $.60 per gallon increase over what I believe the price of $2.50 a gallon is the average threshold of affordability. The price has steadily increased over last four months. It takes 3 to 4 months for any changes in the economy actually show up in government employment reports. Next we will look at what happens if the price goes even higher. Doing this calculation you will see the extreme negative effect of higher priced gasoline or crude oil has on the economy and the job losses caused from the increase.

They are calling for the price of gas to increase by another dollar per gallon up to the old highs of $4.00 per gallon by July of 2011. I have done the math on that and it will absolutely force us into another recession and we really are not out of the one we are in yet. Let’s do a calculation based on the price of gas going from the August price of $2.50 and an increasing to $4.00 a gallon by July of 2011. The higher price of gasoline is not an investment it is something that we burn and it disappears. Gasoline or diesel is not a product that we can place in our house and admire. Once we’re done with it we cannot resell it as it no longer exists and is gone forever and so is the money we spend on it.

The total gallons of crude oil used each month are 23,100,000,000. (23.1 billion) if we take that and multiply it times a $1.50 per gallon increase over the $2.50 threshold of affordability we get the total dollar amount $34.65 billion spent monthly from the increased cost of crude oil. Then we calculate the labor of 31% of that number and we get $10.74 billion in lost wages every month let’s figure the lost jobs based on the $50,000 per year average salary in America. The total monthly lost in jobs from this increase of $1.50 a gallon is 214,800 jobs a month. To get the yearly we multiply that time’s 12 and we get 2,568,000 job losses on a yearly basis. This is what high-priced oil will do to the economy and the job market. This also coincides with the job losses back in 2008 when gasoline did go above $4.00 a gallon and stayed there for many months until the bank collapsed. The monthly job loss range in 2008 was between 250,000 to 480,000 jobs lost each month up until the banks collapsed in September 2008. Only then did the price come down because the money wasn’t there to buy the futures contracts in the commodities market to keep the prices high.

We have politicians like Al Gore who said we need $8.00 gallon gasoline so that bio fuels and other alternative fuels can compete with the cost of gasoline. We have liberal and progressive talking heads who say we should tax gasoline five dollars a gallon which of course would push it up to eight dollars a gallon that liberals and progressives want. We have had actions or regulations from the Democratic Party for over 30 years which have not allowed our oil companies in the US to drill for oil on any US lands where we know there is oil, like Alaska which is said to have more oil than Saudi Arabia. Our American owned oil companies are only allowed to explore for oil where we know there is none because the lands have already been explored. In offshore drilling oil companies are only allowed to drill in international waters hundred miles off the coast in 5000 to 7000 feet of water or over a mile deep which is very expensive. They do this when we already know that almost all the oil in the Gulf of Mexico lies between 15 and 50 miles of shoreline and in shallow water where it is very easy and cheap to get but liberal progressive Democrats will not allow our oil companies to drill there.

The oil industry is one of the heaviest regulated industries next to healthcare. We have gone from being 30% dependent upon imported crude oil to 72% reliant on imported crude oil since the creation of the Department of Energy.

Nothing the liberal progressive Democratic Party has done for more than 30 years makes any sense other than to do things that would potentially push the price of crude oil sky-high. It is by the actions of legislation and the regulation and the creation of the Department of Energy that has destroyed our oil industry. It has gone way past the point of being a national security issue. If something were to happen in the Middle East like a war between Israel and Iran that would cut off a part of the world oil supply. We get very little of our oil from the Middle East only about 10% but it’s not about how much oil we get from the Middle East it’s about the world oil market prices based on commodities exchanges daily trading. It would force the futures market price up dramatically and we could see $8.00 a gallon gasoline in just a few weeks. Looking at the estimate of just four dollars a gallon and job losses from a $1.50 a gallon price increase let’s take a look at what a $5.50 a gallon increase over the $2.50 a gallon price would do as the money disappears from the economy.

Let’s do a calculation based on a $5.50 per gallon price increase the numbers above comes out to be around 784,738 jobs per month lost or 9,416,856 a year and of course that would collapse the economy. I think that’s really what liberal progressive Democrats want to do because that’s what they say they want and that’s the way the math works out, if they get what they want. So destroying the economy is what they want to do. If they can’t do the math they shouldn’t be in the office that they hold because that means they’re not smart enough to see the consequences of their actions and they do not belong in Congress no matter who their constituents are.

The strategic oil reserve that the US government holds would last about 40 days if we have to supply all our own petroleum from it. Most people don’t realize how many billions of gallons of gasoline will use every week. The strategic oil reserve holds 727 million barrels are stored in four hollowed-out salt domes along the coastline of the Gulf of Mexico. At 550 million barrels a month or at 23,000,000,000 gallons of crude consumption we would use that entire strategic oil reserve every 40 days. This adds up to some 62 days’ worth of imports, we cannot rely on this in any long-term disruptions as wars can go on for years. Even though we may only need small amounts of the strategic oil reserve to supplement a shortage, the price is more about the commodities market price than it is how much crude oil we have to take from that reserve. There is another factor in that is the strategic oil reserve is in the form of unrefined crude oil and we only get 19 gallons of gasoline from every 42 gallons of crude oil or per barrel and that greatly reduces the number of days we will be able to fuel the fleet of 260 million cars.

The liberals and progressives or the Democratic Party and the talking heads run their mouths without ever doing the math and figuring out what they say will do to the economy. You ever notice when they talk about oil or coal how angry they get, they act emotionally disturbed. They have no real answers only complaints. Not one of them have ever figured out how devastating each additional dollar a gallon gasoline in price would affect the economy, not even that so-called genius Al Gore who only seems to be able to figure out the tonnage of carbon we dump into the atmosphere But not the cost of eight dollars gallon gasoline to the American people and the damage that does to the economy.

What will work is Slim Pickens plan to change the country over to natural gas. This idea is brilliant and the numbers work out in a way that would save the American economy about $378 billion per year in fuel costs when compared to $3.00 gasoline. Going by the price of three dollars a gallon for gasoline and translating that into natural gas gives you a price comparison of $1.50 per gallon to get the same mileage as a gallon of gasoline would give you.  Now this Slim Pickens number is based on $10 per CFM of natural gas. Here’s the beautiful thing about it, the current cost of the CFM of natural gas is in the $4 range not $10. So we are talking something like about $.60 per gallon. This would save the economy about $700 billion a year. This would create huge surplus amounts of money in the American people’s pockets that could be spent to increase the standard living. You would see an economic boom like we’ve never seen before. The balance of trade would come into line because 72% of all that crude oil money goes out of the country every month. The trade imbalance we have with other countries is more than 50% because of imports of crude oil. Mr. Slim Pickens is a great American, a real patriot who cares about the country and has done what he can to help preserve it. He can see that our dependency on oil is destroying us and he believes it is a national security issue on top of the peak oil theory that the world is running out of oil. Since our economy is 100% dependent upon crude oil we have to change to something we can supply in country at a reasonable price and that is natural gas.

In contrast with the Democrats plans like Al Gore, Nancy Pelosi and all the other famous liberals or progressives plan proposes the eight dollars a gallon gasoline this reduces the American standard living dramatically to a banana republic. The problem with a banana republic is the currency and economy collapses completely way before we ever get to the banana republic economy. We have so much natural gas in our country we could run 100% of our automobile fleet off natural gas in our supply would last for at least 50 years and that puts us into the year 2061. If we were to change to natural gas that industry alone is estimated to create 2.5 million jobs directly and many millions more from the high paying jobs created in the oil and gas industry. We would be in fact be taking jobs that are now in foreign countries and bringing them back into the United States by the millions. By the year 2061 our technology will have advanced enough to go to something that uses no fuels of any kind. We would probably have a colony on Mars by 2061 if we would use Slim Pickens plan we would have all kinds of extra money for all kinds of new technology

The current alternative energy, battery power or hydrogen is insufficient for our current economy and far too expensive. An example would be a hydrogen powered car I checked it out, is $900,000 how many Americans can afford that? The cost of the new Chevy volt is $40,000 and you can still buy a cheap new car for $16,000 so how does that help America? The answer is it doesn’t and it does quite the opposite it pushes up the cost of an automobile not down. The cost of manufacturing bio fuels when compared to gasoline is $6.50 a gallon. Americans incomes have not gone up in the last 10 years when adjusted for inflation incomes are in fact negative. But at the same time the Democrats want to double and triple the cost of transportation to the American people. Where is there any logic or common sense when it comes to the thinking process of a liberal progressive Democrat? They live in a dreamland or fantasy land, you take your pick they both fit. My thinking process deals with numbers and facts not fantasies.

Slim Pickens started to talk to Congressman and the president Barack Obama way back at the beginning of 2008 and even as far back as early 2007. To show you how interested the Liberal progressives Democrats really are about global warming or alternative energy, not one thing has been done and it’s been four years now. Not even one little thing or step towards using natural gas has been achieved.

Here’s an explanation to why and it’s just common sense. It takes away their whipping boy the big oil companies. it also takes away their big worldwide wealth redistribution program of tax and crap. So that should prove by use of common sense and their lack of interest in changing to natural gas this proves to me they have other motives and those motives are really bad for the American people. Natural gas has almost zero carbon emissions you cannot charge a carbon tax on fuel that has no carbon pollution and you would think the nature Nazi’s would like that but it’s not really about air pollution or carbon in the atmosphere, it’s is an excuse for furthering wealth redistribution that is built into their crap and tax plan, wealth redistribution is what Liberal, progressive Democrats are famous for.

As I have watched the liberal progressive Democrats try as hard they can to destroy the United States from within for about 34 years now. Here is the only thing that makes any sense. If I wanted to devise a plan to destroy the United States from within I would do exactly what the liberal progressive Democrats have done. Since I’ve been watching them for the last 34 years this is what I have observed as the results of their actions. Could it be that they are so stupid that they don’t see what they’re doing? Every single program and all of their actions that Democrats have taken since I’ve been an adult have had the opposite effect of what they tell the American people they are supposed to do. Like the Department of Energy for example created to reduce our dependency on foreign oil from 30% in 1978 when it was created but the results have been were now 72% dependent on foreign oil in 2010. And it’s killing our economy and our country.

All these numbers are rounded off but are very close to actual crude oil consumption and the prices are only a few pennies off. The number of job losses is only to show trends and the direction of economic activity based on simple math and how the economics of our country work. The information is either from the Department of Labor statistics or it comes from the Congressional Budget Office gross domestic product report. These numbers are not meant to be exact to the penny they are rounded off in dollars and depending on where you look there not going to be exact anyway. These numbers change all the time but only by small amounts. So the outcome one year from now will be very close to the estimates we made if gasoline does go to four dollars a gallon.

 2012 What's really going to happen in 2012

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What’s really going to happen in 2012 is a question that is asked about 1 million times a day worldwide on the Internet search engines. Many Webster’s have scurried to cash in on the near hysteria about 2012. There are hundreds of theories based on hundreds of theories with no facts to back any of their claims of disaster. At last count there were over 600,000 different websites based on the 2012 and end of the World theories. I can tell you right now it won’t be the end of the world. Although what I have to say will sure make it seem like the end of the world. I have researched many of these other 2012 websites of prophecies. I have researched the science and the history of man the geological history of the planet and there is zero evidence of any of the claims they make. They are all just making baseless claims to scare people and make money.

What I know and understand better than anyone is economics. 21 years ago I forecasted the scenario exactly like we now have in our politics and our economy. My focus has always been mainly on the US economy because it is the largest economy in the world. That 1990 forecast was that due to our politics and out of control deficit spending would eventually lead to a collapse banking system and a collapsed currency. I forecasted that we would have trillion-dollar deficits and it would lead to the destruction of our currency and our country and I wrote a book about it in 1990. I have recently written a new book to update the more current events and what will happen in the next few years up to 2013 and it’s all based on economics which has nothing to do with anyone’s prophecies just economic forecasting. This new book is called 2012 what’s really going to happen in 2012.

To be honest I’m trying to cash in on the 2012 hysteria just like everyone else by selling my book. Not for the same reasons as the others who have written about the end of the Mayan calendar in 2012 and then claiming it means some kind of end of the world scenario which it does not. The Mayans said little to nothing about any great disaster that comes on December 21, 2012. They’re in fact are no disaster Mayan prophecies only the end of the calendar and the start of a new one and that’s it. My purpose is to inform the public about the factual evidence. What I see coming in the form of economic forecasting for the American economy and the world economy. This happens in just two short years and needs to be told. It just so happens that my calculations and the amount of time it takes for this financial fiasco to completely unfold just happens to come around the year 2012 and could possibly happen in 2013 at the latest.

All the proof is within the government reports on the economy that comes out each month. Within these government reports you can find the evidence of everything that I say in the book 2012 or on this page or any other page that I write. The government just hopes you don’t find out or figure out what all these numbers really mean and who is responsible for this mess. I have a feeling that they’re not even smart enough to see it and that’s exactly what Alan Greenspan said about the bank collapsed in 2008. I knew what was going to happen to the banks and why in 2004, to me it was just simple mathematics. This really makes me wonder about the intelligence level of 800 economists’ that work at the Federal Reserve building in Washington DC and none of them saw it coming. I know a few people who work at the federal reserve and I know why they didn’t see it coming. I tried to warn people but nobody listened, they thought I was crazy and now we have exactly what I predicted in 1990 and in 2004, a collapse banking system and $60 trillion that just disappeared.

Now I will give an explanation of what I predict will happen in 2011 and lead up to the total collapse of the US economy in 2012.

This explanation will include the politics that created the mess and who the real culprits are that will eventually lead to the destruction of our country. To explain it without pointing out the people who did it would leave unanswered questions and cause people to blame innocent parties and that would be wrong.

Most people know about the more than a trillion-dollar per year deficit spending of the federal government. For those who do not know for the years 2008 two 2011 will have accumulated $6.1 trillion in additional deficit spending in just that four-year period. It took from the creation of the Federal Reserve in 1913 and up to the year 2007 for the total federal deficit spending to get the $9 trillion amount. That’s 94 years from the creation of the Federal Reserve. But it only took four years to add an additional $6.6 trillion to the public debt. With the passing of the bill that keeps federal income taxes to the current levels this will add an additional $450 billion to the deficit for the fiscal year 2011 which ends in September of this year. This will put the total public debt up to $15.6 trillion in this short period of just four short years. This was all done by the liberal progressive Democrats that controlled Congress from January 2007 to January 2011.

Presidents can’t spend one dime without Congress first approving the spending. The last budget that the Republican Party was responsible for had a $161 billion deficit and that was voted on by April 15, 2006 for the fiscal year 2007 that started October 1, 2006 and ended on September 31 2007. You can see the big difference after the democrats took control of congress and it cannot be blamed on the bank collapsed in 2008 because liberal progressive Democrats started their runaway spending by April 15, 2007 on their first budget which started in October 2007 and ran to September of 2008 and including off  budget deficits it was $900 billion the first year they took over Congress. Here is a chart to show all this out-of-control spending on this page.


This page called Will America survive, also explains in a lot more detail the dates these budgets are made and how politics plays out. All this deficit spending money has to be borrowed under normal economic conditions. The real problem is there’s nobody with any real profits to buy the U.S. Treasury bonds at the average rate of $125 billion every month. Remember that in 2008 all banks went broke with the credit default swaps going worthless. It was said to cost the World Bank’s an estimated $60 trillion. So the question is where is all this money is coming from since all banks went broke or bankrupt in September of 2008?

All the economic growth worldwide is currently from governments printing of money trying to stimulate their economies. The answer to the question is that governments all over the world are just making money up out of thin air. Countries are buying huge amounts of debt bonds from the US with their printed up money. So what we have is their buying our worthless dollars with their worthless dollars. There’s no way this can continue without somewhere along the line the general public finding out what’s really going on and a severe devaluation of all paper currencies. Once investors realize what these governments are actually doing the confidence in these currencies will be lost and smart people will try to get their money out of these markets and the banks, then transferring their paper in some kind of a hard currency like gold or silver.

Here’s the problem; if everybody tries to sell all at once and creates another panic selloff much like we had after the 2008 bank collapse. If Stocks sold off very quickly and our markets dropped by as much as 1000 points a day like in 2008 and into early 2009. A panic of some kind is what I believe will trigger this next panic selloff in the bond markets and the trigger could be anyone of the major markets collapsing and that panic selloff going into the bond markets. It could be a major stock market correction or it could be the bond market itself in a panic selloff. But what I really think the trigger will be is a municipal bond market collapse here in the United States that will ripple into all markets here in the United States and around the world.

The most likely trigger setting all this on into motion will be the American municipal bond market. There are $2.8 trillion in city and state municipal bonds. These are bonds that were sold by the state or the city’s to build infrastructure like roads and bridges. This is additional money that is considered public debt is like U.S. Treasury’s but issued by the states and it should not be confused with the federal deficit it is additional to the federal deficit. A lot of these municipal bombs are held by union pension funds. There are currently many cities that have already default on these bonds and there are many more much larger cities that are threatening to file for bankruptcy wiping out these bonds entirely. (New York City and Los Angeles) We also have states right now like California and New York that are going to try to change the state laws to where they can also file bankruptcy because they can no longer afford to pay the interest on their municipal bond debt. Just one large union pension fund pulling a couple of billion dollars out of one particular municipal bond fund could set the whole thing in motion and create a panic. I saw something exactly like this happen to a bank back in 1985 and it caused a run on the bank and in three days it was closed. It was $1 billion bank and everybody lost their money.

The true status of the economy can be seen in tax collections by the states. Every quarter the states are reporting lower and lower tax collections on both employee’s wages and taxes on corporate Profits. So how can the economy be growing like all economists and talking heads are claiming on the boob tube, if every 90 days the states are collecting less in tax money? This evidence shows that American people are once again being lied to. All the evidence you need is on the Internet and all around you, all you need to do is look. The states and the federal government collect taxes on a percentage basis and if incomes are down and corporate profits are down; the dollar amounts in taxes collected also go down. This is the current situation in most states in America.

This collapse in the municipal bond market could be followed very closely by a collapse of the U.S. Treasury bond market which would trigger a huge selloff worldwide of all government bonds. The only thing that backs up these bonds is faith that they have worth or value. Faith is a thought and people can change their mind in a matter of seconds. A lose of faith is what causes panics and when people think they’re losing all their money they really panic. Here’s the problem: this is only the beginning. When this crash of the municipal bond market does take place it will domino into every major market in the country.

The bond market is tied directly into the banking system. Most banks keep their reserve funds invested in U.S. Treasury bonds and municipal bonds. Not only would the banks lose face value on the bonds they held if they didn’t sell them in the panic. It would put them under the legal reserve requirements required by the federal government and make many of the banks insolvent once again just like in 2008. This gives us a repeat of the 2008 bank collapse which triggers many other markets to collapse as well. This is where our real problems start.

Once this happens whole world will know that we have just been printing of money out of thin air to pay our interest on all are borrowing of money. Here’s a list of effects of a bond market collapse and it may not be in order but all these markets will be negatively affected at the same time as the bond market collapse. It will just take a longer for each affected market to show up publicly, depending upon which one it is. For example the real estate market would take two or three months to show up in any economic numbers even though the effects would be immediate.

When the bond market collapses the interest rates will skyrocket on that day and in the weeks to follow. The more people would continue to try to sell in the days that would follow a market crash higher the interest rate will go and the lower the face value would go. Under normal conditions the governments by intervening and buying their own debt bonds in the markets can keep interest rates low just like the record low-interest rates we have right now and the last two years. But in panics the government loses control and interest rates go to very high undesirable levels.

It’s at this point the cat is out of the bag and if the government wants to try to regain control to bring down interest rates as they were before the panic they have to come up with hundreds of billions and even trillions of dollars of more money made up out of thin air, digitized or printed up phony money. This money printed up out of thin air adds to the deficit and further exaggerates the problem. This is the exact scenario that can cause the hyperinflation of a currency.

If they try this, it takes a devaluing currency from the panic selloff of the bonds and devalues it even more. This is not really an option but it’s what governments normally do to try to keep the economy going as long as they can for the purpose of buying time and just praying by some miracle that the problem will go away on its own. We have survived these type panics in the past but we have never had the huge federal budget deficits as we have now. We have never been in a position that looks anything like what we have now. However we have a lot of history of countries and currencies collapsing. Looking at this history we are doing the exact same things to collapse our currency and that will destroy a country.

These higher interest rates on the bonds will directly affect the interest rate on a home mortgage loans. For Every percentage point in higher interest rates on bonds, the mortgage lenders will increase their interest rate at about the same amount. If the bond interest rate increases 3% then mortgage loans would go up from their current 5% to 8%. This leads to a second collapse in real estate market just like we had after the 2008 bank collapse. The value of real estate has dropped 30% or more since 2008. Only this collapse will be worse than the one you’re still in now and the reasons are as follows. Under the current economic conditions we could see an additional 30% drop in real estate values within months of this scenario and not over a three-year period. This has a secondary effect of causing all the collateral that the bank holds in real estate being worth less money than the dollar amount of the mortgage on the house. This makes all the banks in fact insolvent with loans outstanding much greater than the collateral that backs them up.

The higher interest that would be demanded by the holders of U.S. Treasury bonds would dramatically increase the interest that the federal government would have to pay on all its $15.6 trillion worth of debt by the end of 2011. The current interest paid on the US debt for 2011 is estimated to be $250 billion at about 3.3% interest. If this interest rate doubles so does that $250 billion and this would have to be added to the estimated deficit for 2011 of $1.5 trillion bringing the total to $1.75 trillion and that is only the on budget deficit and does not include off budget spending and adding the off budget deficit would put us in excess of a $2 trillion deficit for 2011. This will probably trigger another panic selloff as soon as these numbers are realized by the public and investors. What comes after the year 2011 is the year 2012.

The stock market will no doubt have a major correction if the bond market collapses. There’ll be trillions of dollars lost in the stock market and many trillions more in the bond markets face value of U.S. Treasury’s. These losses will be magnified in that U.S. Treasury’s are often borrowed against as collateral in the stock market by the big players like mutual funds and the like. As the face value the bonds dropped radically combined with large losses in the stock markets. There will be margin calls for cash to keep the portfolios solvent. When these things happen they feed on themselves because these portfolios are invested in stocks and bonds have to be sold to cover the losses from the leveraging. This feeds the panic and drives prices down and even more money is lost. This usually doesn’t stop until the markets are closed at the end of the day or they just stop all trading to halt the panic.

I have seen this happened two times before in the last 30 years. Back in the 1987 stock market crash and again at the September 2008 bank collapse. I was directly involved in one of these knowing it would happen before it happened to try to make money from the crashes. But in either case I lost money even know I was right about the crashes I still lost money, because you get caught up in the market and can’t get out. Because your positions are in the money they will not cash them in because someone has to be on the other end of the deal or trade and most people don’t understand that. The brokers never explain that to you because they make money off of buying and selling or the commission they received to make the trade.

There was a Treasury bond collapse around 1980 when Jimmy Carter was president. I was following politics and the economy very closely but I was not directly involved in the bond market or the stock market at that time. I can’t tell you much about that T-bill crash. I was too busy running my own business and watching its demise right along with the rest of the economy. The losses in that collapse of the bond market was said to be $2 trillion and that was 30 years ago. The bond market is many times larger now than it was in 1980.

The general public thinks the stock market is like a lottery with a pool of money just sitting there waiting to pay off your winnings, but it’s not. There are not billions of dollars sitting there to cash in your positions. But whether an investor is short or long on the market there has to be someone to take the other end of each position and if there’s not, you’re not going to get your money out. Even If you outright own the stock and want to sell it there has to be a buyer or else you’re stuck with it. You can lose it all if you’re highly leveraged or buying on a margin. I learned that the hard way and I didn’t lose all my money but it was enough to teach me not to be involved when these things happen. You may get lucky and be able to get out of market with a profit, but you can also lose more than half the money you had in the market as wildly fluctuating prices force your position from a profit to a loss. So my recommendation is stay away from all paper trades in any of these markets. If you do buy gold or silver don’t buy certificates or allow anyone to hold it for you and above all do not play the commodities market you’re almost guaranteed to lose your money there. Take delivery of the physical precious metal and keep it close to home.

Now comes inflation and hyperinflation or on more personal level that affects you and every citizen every time they go to buy food or gasoline you will see price increases weekly that will make your head spin. Every week when you go to buy food or gas you could see the price of gasoline increased by $.50 to one dollar a week. You could see food prices go up by 10% a week. Do I have to tell you how quickly this will destroy what’s left of the economy? It is at this point that we only have a few months left until total collapse af the economy. The average citizen can only afford inflation on these items in small amounts each year but not every week. The higher price of gasoline affects everything we buy as everything gets shipped to a store by truck. There is also petroleum in almost every product we buy. The farmers use a waste product from petroleum for fertilizer and this is one aspect of what pushes groceries up when petroleum prices increase.

As the cost of food and gas goes up dramatically other sectors of the economy will shrink for every dollar we spend on these two weekly expenses. Currently with crude oil at around $90 a barrel, gasoline at three dollars a gallon and food prices being what they are. We spend about 9% of the total economic output a year on these two commodities. (GDP) One way to do simple math and keep it easy to understand is that if these prices double then the additional 9% of the money we spend on food and gasoline will be diverted from other sectors of the economy. This will have the exact same effect on other sectors of the economy shrinking by 9% from their current levels when the money is diverted to the higher prices of food and gas.

The gross domestic product may increase just slightly to 3% or more, all of that growth will be from money diverted from other sectors of our economy. So while the government is telling us the economy is growing because they believe their own phony baloney headline numbers. The economy will actually be losing jobs at the rate of several hundred thousand each month from all the money being diverted to higher food and gasoline prices.

As our dollar devalues against all major currencies around the world they will demand more money on whatever they are selling us. We import about 70% of the products that are on the shelves of all stores in the United States. So what that means is almost everything we buy prices will increase dramatically. There is only so much money in the economy at a given time. The Federal Reserve is not going to rain trillions of dollars into our households like they did with the banking system. So what will happen is an any and all industry will be very negatively affected by all this diverted money being spent on higher food and gasoline prices. Like the services sector for example which makes up 80% of the economy will shrink and millions of jobs will be lost. So now we get the higher unemployment that comes along with higher food and gas prices as this money is diverted from all the other sectors of the economy.

This has the effect because of unemployment compensation of pushing deficits of both the states and the federal government even higher. Federal budgets and state budgets will collect even less in taxes month over month than they anticipate. This is very much like the scenario is playing out right now but the one I’m talking about will be much worse and a lot faster than our current slow decline. This would translate into either higher taxes or huge layoffs for state workers making things much worse than the current economic conditions.

This leads to the second big collapse of the world banking system. There will be millions more homes mortgages going into default on top of the 300,000 per month we have now. There’s also the effect in addition to all this, the treasury bonds that banks hold as their reserve requirements will have diminished greatly as the face value drops dramatically and this will put much the banking industry into an insolvent condition.

This almost complete collapse of the banking system will force the government to take over almost 100% of the banking system. Considering the faith that people have in their government right now I would say this will cause a physical run on the banks much like in the 1930s Great Depression. Here comes the biggest problem of all, if these physical runs take place there is nowhere as near enough paper money or cash in our system to cover the withdrawals. If just 10% percent of the people with bank accounts try to get their money out, all the banks and all at once the banking system will run out of money and collapse in two or three days. Banks are only required to keep about 7% of their total deposits in cash. A lot of this so-called cash reserve is invested in treasury bills. Just like back in the 1930s most of the money was loaned out and does not exist anymore. As soon as the paper money or digitized money runs out and it will only take a few days, all the banks will close. There was a run like this on a bank in California in 2008 with lines outside the door and around the building. I believe the banks name was indie Mac.there was also the unseen run on the banks using computers to transfer money from money market funds into other accounts at local banks. This has been directly attributed to the actual collapse of the credit default swaps that created a $60 trillion loss in the banking system.

If we get a panic like this and there is a physical runs like this, in three days the federal government would have close all the banks and this is exactly what happened in the 1930s Great Depression. Once this occurs and all the banks are closed, the whole economy stops dead in its tracks. This would mean the distribution system would collapse in just a few days and this is probably the worst thing that could take place in all of the things I have discussed.

If the distribution system collapses what does that mean? That would mean that all the gas stations would not have any gas. All the grocery stores would run out of food within a few days and very possibly within a few hours of something like this happening. No jobs will exist anywhere and the unemployment rate would be 100%. This all would be much worse than what happened on the Great Depression of the 1930s. Think about it for a minute; if all the banks were closed and you had a pay check to cash, where would you go to cash it if all the banks were closed. Your pay check would be worthless.

In the Great Depression of the 1930s most people were farmers or self-employed. The country was much more self-reliant back then. The situation we have today with 308 million people in the latest census of 2010 is that more than 50% of the population lives in or around cities and that means over 150 million people will have to migrate to where there is food and water. With large concentrations of huge numbers of people who live in cities and no food in the grocery stores and no farms nearby to get food from. No gasoline to put in your car to go to a farm to buy food or to hunt for your food. This will be much worse than just an economic collapse. With the collapse of the distribution system and closing of the banking system there will be no coal for the power plants and electricity will shortly afterwards just go off-line. This means no television and no entertainment centers in your house will work and no lights or anything else that runs off electricity would completely stop working.

There will be no government of any kind. There will be no police departments, fire departments or emergency services. All the hospitals would be closed. Everything that exists right now will stop if all the banks are closed.

We would literally within 2 to 3 weeks be living in the Stone Age. Every single piece of technology we have would no longer exist. This also means no fresh water supply as it stops with the electricity going off. People cannot live without fresh water to drink for more than three or four days. For survival city dwellers will have to leave the cities in huge numbers, by the tens of millions nationwide. This will be a disaster like mankind has never seen before. This will also be the situation in Europe as well as any developed country that uses large amounts of technology and is dependent upon the world distribution system.

This is all self-created and is primarily due to our politician’s lack of action going back to 2001. It is not George Bush’s fault as he and others like Alan Greenspan warned about this potential for a bank collapse like we finally did have in 2008. This was all self-inflicted and Due to a lack of regulation of the two mortgage banks Freddie and Fannie which are the two biggest mortgage lenders in United States and which are both partially government-owned. This is in fact were all the mortgage-backed securities originated from that caused the collapse of all the worlds banks in 2008. I have a video dated from 2001 it shows Alan Greenspan warning Barney Frank of a problem with Freddie and Fannie and nothing was done from 2001 and even up to now in 2011 these banks have not been regulate.

From what I’ve observed of the Federal Reserve and other government entities reporting on the economy for over 30 years of adjusting interest rates and regulations they are almost always wrong. Could it be that their numbers are so deluded or delusional that decisions based upon their phony baloney headline numbers is why they always overshoot when raising or lowering interest rates in the past? These bad decisions can directly be attributed to all our recessions over the past 30 years that I have been watching the Federal Reserve actions. I seem to know exactly when they’re going too far the day they go too far one way or the other.

The deflation or decrease in price in real estate will be zero help in this scenario as is not any help right now. Unless you’re buying a house the lower prices do not help you at all and should not even be counted in the equation of inflation or deflation under the current economic conditions. Under the current conditions of the housing market banks are requiring large down payments because the value of real estate is still dropping. This isn’t helping anyone.

The banks are also more reluctant to lend to people unless they have very high credit scores. Most activity going on right now in real estate that is being reported in the total housing sales numbers is just people refinancing their existing mortgages, it’s called a short sale. These refinancing numbers are included in the total number of houses being sold. This creates an allusion that things are better than they are. I just talk my buddy who’s been a real estate broker for over 30 years and he told me just what I told you here.

This is not old news it’s been going on for last three years and it’s still the same. If you really want to know what’s really going on in the economy you have to ask the business people on the streets. You cannot believe the propaganda of the news media like MSNBC business Channel who are actually spending all day long trying to get you to invest your money in the stock market. Their advertising base is almost all commodities and stock market brokerage firms and they make money off your money in the form of commissions on trades. Just like a salesman they have an interest in telling you everything you want to hear and everything is great so you will take your money and give it to them so they can make money off your money. If you shake the hand of these sales people you better count your fingers because you’re liable to be missing at least one if not a few.


Panic selloff in municipal bond markets

Causes panic selloff in U.S. Treasury bond markets

Causes panic selloff in world markets of all kinds

Causes second downturn in collapse of real estate market values

Causes second collapse of the banking system due to even more mortgage defaults

Causes collapse in real estate market due to higher interest rates and lack of affordability

All the above Causes huge layoffs and dramatically higher unemployment.

Higher unemployment causes further mortgage defaults and pushes Banks further into bankruptcy and insolvency.

Severe devaluation in the currency due to a lack of confidence in the government to bring its massive trillion-dollar deficits under control considering their now in excess of $2 trillion a year and growing.

This causes severe devaluation of the currency and much higher prices on commodities imported from overseas and in country. This means the price of gas and food could double or triple.

The doubling of the price of gasoline one which is currently three dollars a gallon and going to six dollars a gallon will by itself destroy what’s left of the economy.

The beginnings of the municipal bond market collapsing could be weeks or just a few months away as the state’s are seeking the right to file bankruptcies just like the cities already have. I believe this municipal bond crash could be the trigger that starts the whole of modern society to collapse. I wonder if the Republicans will be blamed for it. I’ll bet they do. I knew the liberal fringe lame stream news media better than they know themselves. I know what they’re going to do before they even know why they’re going to do it.

Just a little reminder for everyone to date this, today is January 25, 2011. The Democrats took office in January of 2007 and had control of Congress for four years. Everything that is going on right now with huge trillion dollars federal deficits can be very easily traced as 100% the result of the Democrats taking control of Congress in 2007. The banking system collapse of 2008 was from a lack of action from the two banking oversight committees that did nothing about a problem they were warned about at least 17 times starting at the very beginning of the Bush ministration in 2001. . These two banking committees were both chaired by Barney Frank and Chris Dodd. They are both Democrats and legislation to bring things under control and regulate the banks were brought up many times and these two Democrats stopped that legislation from even getting to the floor of Congress to be voted on.

I also believe that the huge deficit spending that the Democrats were orchestrating in 2007 and 2008 as soon as they took control of Congress was sucking all the money out of the banking system worldwide finance there deficit spending. If you look at the record of interest rates you can see how the Federal Reserve was steadily increasing the interest rate just six months after the Democrats took control in 2007 that was to attract the money to finance the runaway spending of the liberal progressive Democratic controlled Congress.

Doing just a little investigation on your own can prove what I’m telling you is the truth. It doesn’t take a genius to figure all this out. On this webpage you can research just about anything to do with government spending and it’s all based on government numbers it’s not my website, it all directly from the Congressional budget office and it supplies the actual downloads of the PDF for federal government spending.


I made a chart that just shows the total numbers of federal government deficits and in this chart you can see how the Democrats went absolutely crazy and I mean absolutely ballistic crazy on spending as soon as they took control of Congress in 2007. The liberal progressive Democrats grew the federal debt by $900 billion the first year they had control of Congress. It is my conclusion that all this was intentional to bring the country to the point of economic collapse and that’s why you need to buy my book and find out what I have observed from the liberal, progressive Democratic Party for over 30 years. This isn’t something I read in a book this is something I experienced in my life as a person who is self-employed and employer since 1978. I didn’t get this from Glenn Beck he was still a teenager when I was experiencing all this stuff as a business owner Glenn Beck was still in school. But Glenn is 100% corect in everything he says about the economy. I think he read my book 2012.

Go look at the chart I made which is a summary made from the prior webpage given or the Congressional budget office numbers. By 1980 when Jimmy Carter was president and the Democrats had control both houses and the Senate and at that time I had already made conclusion that democrats wanted to destroy the country economically and that was 30 years ago. These people have not changed their goal as it is the same now as it was then. They may be different people but I believe they have the same goal as the Democrats that were in office back then in 1980. Jimmy Carter was president from 1977 to 1981 with a democratically controlled Congress they brought this country to its knees. It was as intentional then as it is now from 2007 to 2011. It is just a repeat of history and history always seems to repeat itself.

See my chart here federal deficit spending from 2001 to 2012.


You won’t even be able to paper your walls with the worthless paper money because most of the money only resides on computer hard drives as digital money. This means you can’t even joke about papering your wall with the worthless paper dollars. Maybe you can gather up all the hard drives and make something out of them.

2012 What's really going to happen in 2012

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Fromt cover of 2012 size 128 x 192 small

2012 cover

Representative Steven Cohen, a Tennessee Democrat, accused House Republicans of using the Nazi’s “big lie” strategy to try to discredit the health care law. Cohen accused Republicans of using Adolf Hitler and Joseph Goebbels propaganda Minister as an example of how Republicans were lying about the health care bill. Nothing could be farther from the truth and Steven Cohen proves in his statement that the real liars and the real Nazis are in the democratic party.

Point Number one is Hitler’s political party run by Goebbels was called the national Socialist workers party. You get the part about socialist workers party. The Republicans and what they stand for and what they have done throughout their history looks nothing like Nazi Germany’s Socialist workers party. The Republican Party governs more from the Constitution and the beliefs of our founding fathers more than any other political party other than the Libertarian party. Libertarians are not liberals in the modern sense they believe in the government should only do two things protect the borders and provide an army to protect the country and nothing else. They would be considered extreme right. Libertarians believe in no socialism whatsoever. I think the Libertarian party should change their name to the Constitution party. Libertarians vote for Republicans and never for Democrats. The Democrats have always practiced what looks more like National Socialism and they believe in and practice wealth redistribution policies and this leads to a one class economic system like that of Karl Marx in his Communist manifesto.

The lies and deceit which Joseph Goebbels depended upon to control the German people’s way of thinking and to get them to go along with killing 6 1/2 million Jews and an estimated total of over 13 million people in Hitler’s concentration camps. Do you remember the part of the debate that went like this, we have to pass a bill to know what’s in the bill? If that’s not premeditated deception than what is?

I have watched the Democrats lie about everything they do for the last 34 years. If anything this tactic of Joseph Goebbels deception has been practiced by the Democratic Party consistently for my entire adult life. The tactics of the Democratic Party the liberals and progressives has a direct resemblance of nazi Nationalist Socialist workers party propaganda practices, it’s a perfect match for what the Democratic Party practices. This is not from what I have read in a news paper or a book; this is from what I have observed from their actions and the results of their actions.

The exact words of Joseph Goebbels were the bigger the lie the easier it is to believe. I read about all this when I was a teenager more than 40 years ago. I had a great interest in what happened in the Second World War and how 13 million people were allowed to be murdered in gas chambers and then the bodies were burned. Now what I have observed in over 34 years of watching the liberal, progressive Democrats is that they are the most likely group that would do this sort of heinous thing to people to get what they want. Their actions have proven them to be exactly like the Nazis. The healthcare bill they passed was against the will of the majority of the people. This should be evidence that they believe in dictatorship, that’s what Nazi Germany was and that’s what the Democrats did when they passed the healthcare bill against the will of the majority of the people.

The Democrats practice dictatorships to in their style of governance. That has no resemblance whatsoever to the Republican Party. When the Republicans were in charge of the House and Senate Congress tried to pass an amnesty bill for 20 million illegal aliens. That also included allowing 42 million more extended families of Mexicans to legally come into the country. The people were against it and the Republicans knew it and Republicans did not pass the bill. This was by the will of the majority of the people. There is a dramatic difference between the way the Democrats govern against the will of the people and the Republicans governed by the will of the people. The liberal and progressive Democrats think that the American people are stupid. They found out after just two years of having a supermajority and losing it, that the American people are not stupid and the Democrats are still in denial.

While the Democrats were trying to get the healthcare bill through when they had the supermajority of votes in both the House and the Senate. They couldn’t get the bill passed within their own parties supermajority. They constantly blamed it on the Republicans and they did not need even one Republican vote to pass the bill. This is just more lies and deception, more proof of who the Nazi’s really are. They still to this day blame the Republicans for having such a hard time passing the healthcare bill. Just like the Democratic senator Steven Cohen said the longer you tell the lie sooner or later people will believe it. This tactic is being practiced by the Democrats not by the Republican Party. But what I have seen the Democrats do over the last 34 years is exactly what Steven Cohen is doing by blaming the Republicans for what the Democrats are guilty of. This is what I have observed coming from the Democratic Party. So who are the real Nazis that are practicing the bigger the lie and the longer you tell it the easier it is to believe.

Here is what I have found the new healthcare bill is doing to the American people right now. The truth is not what the Democrats are telling us the truth is they are just lying to the public, but what is actually happening to the people and what I know for a fact is that people with their own paid health insurance coverage and everyone I know has gotten huge premium increases in their healthcare ranging from 12% to as high as 37%. The Democrats told us that it would make insurance cheaper. But 34 years of observation and watching what the Democrats say and the actual results are always much different. This proves again that Democrats are using the tactics of the Nazi party.

The very titles of their bills are a complete deception when compared to what’s actually in these bills. The people who have to pay these higher insurance premiums know who’s telling the truth and who is lying. Another example is the fair credit act passed in early 2009 after the Democrats got super majority control of Congress. This bill is primarily directed at credit cards and pushed the cost of using them up increasing the cost to the taxpayer. While at the same time giving people who don’t pay their bill special rights, projections and privileges. Who pays for this? The people who do pay their bills in the form of higher interest rates and fees. There was nothing fair and the fair credit act for the people who pay their bills. This is what I mean by a deceptive title, the facts are everything that Democrats do seems to be full of deceptions and this is why the Democrats lost control of Congress. 

Now the Republicans have more seats in the House of Representatives than they ever have in our history. Even though the evidence is in and the American people are on to Democrats tactics of deceit and we see the proof by the evidence of the results of the election on November 2, 2010. The Democrats continue to practice Joseph Goebbels tactics of the longer you tell the lie and the bigger the lie the easier it is to believe. But it’s not working for them anymore the American people are on to their lies more so than ever before, because it’s costing them and people vote their wallets.

If you look into what the National Socialist workers party was in Hitler’s Germany and then you look at socialism and modern socialist Europe and then you compare that to Karl Marx communism, you’ll see there’s very little difference in what they all believe and practice. They are all so much alike it’s hard to understand why Hitler hated communism so much, when their beliefs were so close you could not tell them apart. These are all political systems that are also economic systems. They are all a derivative of Karl Marx’s Communist manifesto. The problem I have with any form of socialism or communism is the economics never works out for the people. It’s about the math and you can ask any European how their socialism works for them and how their socialized medicine works, you will get the same answer from all of them, it just doesn’t work. This is exactly the same economic system that the Democratic Party and Barack Obama (B.O.) is trying to force on the American people against their will.

Here are the facts and the numbers to show there’s no common sense or logic in the way that liberal, progressive Democrats think. They put 180 million Americans who are already covered with their own health insurance in a position of having to pay much higher premiums for the year 2010 and 2011 and all years that follow. To provide health insurance for just 6 million people starting in 2014. Where is the logic in that? Nancy Pelosi said we had to pass the bill to find out what’s in the bill and where’s the logic in that?

The liberal, progressive Democratic Party is claiming they’re going to provide insurance for 31 million people, but that’s a lie. What the new healthcare bill is going to do is force an additional 25 million people to purchase health insurance from insurance companies. You have to add the 180 million who already have health care insurance and the additional 25 million that will be forced to pay into the health insurance system just to pay for 6 million people who can’t afford healthcare insurance. The new healthcare bill is just another form of further wealth redistribution. The Democrats have found a way to force 205 million people to pay more money in insurance premiums to cover just 6 million people.

The Democrats have the public believing and they have stated many times (specifically Nancy Pelosi and the liberal fringe lame stream news media) that they’re going to provide health insurance for 31 million Americans. But the facts have shown since they have passed the bill so we could know what was in the bill. The new healthcare bill will force 25 million people to pay into the system and it’s not free. 25 million people are being forced into the health insurance system are going to have to pay for health insurance or pay a fine if they don’t comply inforced by the infamous IRS. More lies and deceit coming from the liberal progressive Democratic Party

This is exactly what all the lawsuits from the states are about; claiming that forcing the people to buy health care insurance or any product is unconstitutional. One court in Virginia has already made a decision that the new healthcare bill is unconstitutional. There are many more lawsuits to be heard and what the states really have a problem with his they’re going to have to pay part of this new healthcare bill and they just don’t have the money to do it.

So once again we have the Democrats who are practicing Adolf Hitler’s tactics of the longer you tell a lie and the bigger lie the easier it is to believe. This looks like it benefits the insurance companies more than it does anyone else. While the Democrats have demonized the insurance companies and are making charges that they make too much money (A 1.6% profit) they turn right around and pass legislation in the healthcare bill that puts 25 million more people into the healthcare system paying premiums to the insurance companies. Another lie told by the Nazi Democratic Party.

Representative Steven Cohen made statements accusing the Republicans of acting like Nazis and he says he will not apologize. I will not apologize for what I have put in these pages and I have no reason to because I am telling the truth and Steven Cohen is practicing propaganda of Adolf Hitler’s Nazi Germany and he’s just flat-out lying to the American people. What I have learned in life is that everything we do matters. There is no such thing as it’s irrelevant, everything is relevant, everything we say and every action we take has consequences. I will finish with this. There is zero resemblance of Nazi practices in the Republican Party, but there is a 100% resemblance of Adolf Hitler and Joseph Goebbels Nazi Germany within the Democratic Party by the lies they tell, in what they say and what they practice. They look exactly like the Nazi party to me and this is from 34 years of observation.

 These are not my opinions these are just the facts and truths.I find it funny how liberals and progressive Democrats will say well that’s your opinion when you are stating facts. This is just another form of deception. liberal,progressive Democrats don’t really have an argument that deals with the truth or the facts. They cannot argue with the facts they can only argue with opinions and views which are not facts. They live and operate in a fantasy land of a psychologically and mentally defective environment completely void of logic and common sense. They seem to act like a trained seal only repeating what they have heard others in their own ilk say.

In Steven Cohen’s rant he cited the cost of health care being $210 billion in the first 10 years. He said that this was done by the congressional budget office. Why is it everything I read says the cost will be $1 trillion over the first 10 years? Is this just more disinformation coming from the liberal progressive Democratic Party practicing their tactics of Adolf Hitler and Joseph Goebbels. Then there’s the other part no one mentions. What about the cost and higher insurance premiums for the first full year of 2011 to the 180 million Americans that will have to pay directly through their higher insurance premiums. I have done the math on this and it works out to be $252 billion just for 2011.

This isn’t in any of the Congressional Budget Office numbers because they don’t know what the insurance companies are going to charge and it’s not something the government will have to pay so it is not their concern. They didn’t know when the bill was being written and they still don’t know. These are my numbers based on the amount of money that is paid from insurance companies each year on health care and using the lowest percentage of increase premium of 12%. The actual cost will probably be much higher than my estimate of $252 billion for 2011. This will show up in the next six months as $21 billion a month is diverted from other sectors of the economy to pay for these higher healthcare insurance premiums. It doesn’t matter whether you pay it or your employer pays for your healthcare all that money still goes missing. No economists have even recognized this yet and perhaps this is because they to think money just falls out of sky or we all have a printing press in our basement,  just like the liberal, progressive Democratic Party seems to think.

2012 What's really going to happen in 2012

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I made this chart to show the out-of-control spending since Democrats took majority control of Congress in January of 2007. Most of the deficit is from out-of-control spending not from a lack of taxes collected. Notice the huge increase in spending from 2007 fiscal year and up to the 2009 fiscal year. These budgets are done by April 15, of each year and they start on October 1 at the end of the year and run up to their name given year like the 2008 started on October 1 2007 and ended September 2008. This 2008 budget was done before the bank collapsed in September of 2008. The April 15, 2009 budget for fiscal year 2010 total amount of federal spending went from $2.7 trillion when the republicans controlled congress in 2006 and went up to $3.7 trillion by April 2009 or the point is, in a 27 month period after the Democrats took control of Congress in the November elections of 2006 they immediately exploded federal government spending by $1 trillion in just two short years.

year Oct.1, to Sept. 30 controlling majority votes Deficitsbillions dollars Gov. Total Spending Total accumulativeDeficit Federal taxCollected.
2001 REP -128.2 1,863.2 5,807.5 1,991
2002 REP 157.8 2,011.2 6,228.2 1,853
2003 REP 377.6 2,160.1 6,783.2 1,782
2004 REP 412.7 2,293.0 7,379.1 1,880
2005 REP 318.3 2,472.2 7,932.7 2,153
2006 REP 248.2 2,655.4 8,507.0 2,406
2007 DEM 160.9 2,728.9 9,007.7 2,568
2008 DEM 458.6* 2,982.6 9,986.1 2,523
2009 DEM 1,412.7* 3,517.7 11,875.9 2,104
2010 DEM 1,555.6* 3,720.7 13,786.6 2,165
2011 DEM 1,645.1* 3,833.9 15,476.2 2,567
2012 REP/DEM 1,242.5 3,754.9 16,335.7 2,926
2013 REP/DEM 1,141.3 3,915.4 17,453.5 3,188
2014 UNKNOWN        
2015 UNKNOWN        


This has been blamed on the Republicans, but as you can see it’s a spending problem not a tax collection Problem. It was done by the democrats and not due to anything Republicans did and most of this problem was created by expansion in the dollar amounts spent not by the lack of taxes being collected. It is however due to a combination of both a huge drop off of $400 billion in tax collections because of the bank collapse in September of 2008, but as you can also see their $1 trillion in added spending is the real problem giving us the $1.4 trillion 2009 budget deficit

 In the elections of November 2006 when the Republicans lost majority control of the House and the Senate, Democrats ran on a more responsible government more transparency and lower deficit spending. But as you can see from the chart above they did exactly the opposite of what they said they would do. If they had kept additional spending down and not exploded spending we would not have the trillion dollars a year deficits that we now have as far as the eye can see since they did extend the current tax rates. If Democrats had held the line on spending the deficit would have only been $400 Billion not $1.4 trillion. I would also point out here the chart shows a deficit of $828 Billion for 2012 and that number is no longer a valid number. Extending the lower tax rates and adding other pork barrel spending increased the deficit by $450 billion which now brings the total deficit to $1.278 trillion for the 2012 budget year. Like I said trillion-dollar deficits as far as the eye can see.

The liberal progressive Democrats in Congress and liberal progressive lame stream news media were telling the public that the Republicans are spending too much money in the 2006 election cycle. If you take noticed the deficit in the last year that the Republicans control Congress was only $161 billion and the very first year that the Democrats got control of the purse strings democrats pushed that up to $458 billion this was an all time record high. This did not include spending for the wars we are in or other off budget deficit spending. If we add off budget spending the total deficit for 2008 was $979 billion. This was not all from the cost of the 2 wars we were in. This budget was supposed to be voted on by April 15, 2007 four months after they took control of the House and Senate. To clarify this explanation by April 15, 2008 they increase the top line spending an additional $535 billion which brings the total increase in additional on budget spending to $789 billion from April 15, 2007 to April 15, 2008 and only been in office for 16 months. In the same period of time the on and off budget deficit for that same time period was $979 billion very close to $1 trillion in just 16 months.

I would make this charge. This was done on purpose to intentionally explode the deficit to the trillion-dollar amounts that it wound up being. As you can see looking at the numbers and going into early 2009 that $1 trillion was additional spending and the other $400 billion was from because of the bank collapse from September 15, 2008. If was not done intentionally, that would mean it was done by accident and that would mean that Democrats are incompetent. In either case this was an act of incompetence whether they did it by accident or on purpose. If they did it on purpose it is an act of seditious treason. Seditious treason is a law that prohibits trying to destroy or cause damage to the country from within the government or outside the government. In either case democrats didn’t belong in office and given control of all three branches of our government. That should be obvious to any moron by now.

Additionally this does not include the $864 billion stimulus package passed in February of 2009 as you can see it in the $1.9 trillion total accumulative deficit for 2010 which ended September 30, 2010 this is the year where most of the stimulus money was spent as that was an emergency spending off budget Bill that would not be included in the regular deficits reported yearly. This is way past out-of-control spending is just plain nuts.

It took from the creation of the Federal Reserve in 1913 and up to the year 2007 for federal spending to get the $2.7 trillion federal spending amount. That’s 94 years from the creation of the Federal Reserve. Then in just over two years from April 2007 to April 2009 for total federal spending to get to $3.7 trillion and that’s a 37% increase in spending. The situation we face now is that we are borrowing 40% of all the money the federal government is spending. That is what they are telling the public, but the truth is we are printing or digitizing 40% of all the money the federal government is spending. No one is really lending us any money, remember all the banks went broke all at once in 2008 and $60 trillion went missing. So where is all the money coming from? Here’s what I have noticed, China and other countries are running their printing presses and buying our bonds with their phony baloney money so what this really means is their buying our worthless paper with their worthless paper. China for example reduces their bond holdings from $800 billion to $750 billion in 2009 and then increases that amount to $900 billion in 2010 using their phony baloney money.

Let’s correct the disinformation campaign still ongoing from the liberal progressive lame stream news media. With the chart above I would also like to clarify that the news media which reports that the federal deficit as $10 trillion when democrats took office and Obama took office is inaccurate as you can see from the chart above when the Republicans left office at the end of 2006 the total federal deficit was only $9 trillion and the debt ceiling not shown on the chart was $10 trillion. You can see by the end of this year the total public deficit has gone from $9 trillion when the republicans lost control of congress in 2007 and now its up to the current $15.1 trillion in just four short years. What did the Democrats do with $6.1 trillion in just four years they had controll of congress? It took more then 94 years to get to $9 trillion in total public debt and the democrate increased it to $15.1 trillion in just 4 years.

I would also like to point out that from the creation of the Fed 1913 and up to 2009 the inflation rate is 1900%. In the following years we will see something similar as we are getting close to doubling the debt in just a five-year period. To figure out how this will affect you figure a small portion of that 1900% and let’s say using a much smaller number of a 300% inflation rate. What that means for you is you just multiply everything times three. 3 times your grocery bills, three times what you spend per week in gasoline and pretty much everything else. Of course the number is ridiculous and you would not be able to afford to live, nobody could and that’s exactly what I think is going to happen. However this would affect you is how it would affect the rest of the country. We have to multiply that by the other 300 million people in the country and it will affect them in the same negative way. Then we get the big picture of how this will affect the economy nationally. I believe the point of an economic collapse is much lower than 300%.

I would say the magic number is somewhere below a 100% inflation rate or just something less than a doubling of prices would collapse the economy. The inflation rate will never get to 100% before the economy collapses. A doubling of prices means production only needs to be half of what it is today and that means more or less, half the people in the country would suddenly find themselves out of work or going to work with nothing to do. That means somewhere in the neighborhood of 75 million people would be unemployed. The official number of unemployed right now is around 15 million people as of January 7, 2011. That’s the way the math works out. You know as I do that the economy would collapse way before it ever got to 75 million unemployed.

I hear the talking heads say that we’re going to live in a banana republic, but I believe will be much worse than that. I have done the math and it just doesn’t work out to be a banana republic. The math works out that the economy will totally collapse and the currency. This will happen at somewhere between 50 and 70% inflation if it happens over a two-year period. This is due to there is only so much money in the system. As the things we need to buy each week like food and gasoline increase in price this takes hundreds of billions of dollars from other discretionary spending. As these dollars literally disappear into the thin air they come out of, other sectors of the economy will shrink in the same number of dollars we spend additionally on food and gasoline. There is only so much money in the economy at any given time. An example would be if food and gasoline doubles in price where will you get the additional money from. This will affect 80% of the working public the same way and they will stop spending on other items and the economy will take a nose dive and retail sales will plummet.

Food and gasoline are the two most important items necessary to live in our modern society. If Congress passes legislation to keep the oil companies from drilling where we know there is crude oil. These policies will eventually create shortages and shortages force up the price of any commodity. This is what the Democratic Party has done since the creation of the Department of Energy. The Department of Energy was created to reduce the dependency on foreign oil, but what it has done in reality is the opposite. This seems to be the norm for government as they tell us that something is good for us but it turns out to be the opposite of what they claim it is, just like the Department of Energy. Since the creation of the Department of Energy we have gone from 30% Dependency on foreign oil to 72% dependent on foreign oil.

When something happens to our currency and it will, the value or buying power of the dollar drops radically from this devaluation and our trading partners around the world require more of our phony baloney money to purchase crude oil. It does not matter where the crude oil will come from Canada, Mexico, Venezuela or the Middle East the currency devaluation will have the same effect friend or foe. This will force up the price of everything including food which is directly attached to the cost of crude oil. It seems to me that no one has bothered to do the math. I will do an article to show that the equivalent of one dollar increase for 1 gallon of gasoline is equivalent to $30 billion each month and that’s $360 billion a year that just disappears from other sectors of the economy. This does not count the additional money that food would go up but I do remember spikes in food prices when gasoline was four dollars a gallon and in just one month food prices went up 5% and that is a 60% yearly average food increase from inflation.

You know what happens to food after we eat it, we would like to think it disappears and it does. Just like we burn gasoline and it disappears the same goes with food and it disappears. The additional money from high inflation spent on these two commodities in fact does disappear. We are not buying more product we are spending more buying the same quantity of product. I’ll say it again that as this money is spent on food and gas for every dollar we spend on those items additionally the rest of the economy will shrink by the same dollar amounts. The gross domestic product number will be reported as increasing because we are spending more and everything will look good like the economy is growing and the talking heads will be scratching their heads wondering why retail sales and other sectors of the economy are shrinking. They will be telling us that it’s a jobless recovery; I believe there is no such thing as jobless recovery. They just don’t know how to do the math to figure out why the economy is not actually creating any jobs. They’re really not that smart people we would like to think they are. That’s why we call them the talking heads because they talk and all you see is their heads and they’re not really saying anything.

Here are a few notes in the chart above that the news media is not reporting and they are very important. The 2011 deficit being reported currently is no longer a valid number. The $1,266.7 trillion for 2011 will increase by $450 billion each year for 2011 and 2012. Because of the extension of the bush tax rates adding $900 billion total for 2011 and 2012 budget years. The new yearly deficit for 2011 would be $1.716.7 trillion and the total public goes up from $15,144.0 trillion to $15,590 Trillion for 2011. No one has bothered to do the simple math yet and you can see it in the chart above and the expected tax collections for the year 2011 shows tax collections increase by about $300 billion shown in the chart for the year 2011. This shows the simple math that the lame stream liberal progressive news media seems to be incapable of doing. The deficit Winds up being a $1.7 trillion deficit in the fiscal year 2011. This also brings the total accumulated deficit held by the public to $15.5 trillion and this exceeds current gross domestic product by $700 billion. By the middle of 2011 around July or August or in just six months. Our debt will be more than 100% of our total gross domestic product projected to be $15,299 trillion for 2011. It is at this point  when the national debt exceeds gross domestic product we’re all foreign debt holders of US treasury bonds could panic and start to bail out. If they do start to dump US treasuries then interest rates on home mortgages would skyrocket. This could cause a second big bank collapse way worse than in 2008.

Next we have the debt ceiling as it will be reached in just 3 months and has to be increased by congress by April 15 2011 and if the debt ceiling is not raised the Federal Reserve can no longer print money or digitized or barrow any more through the sale of debt bonds. The federal government will be short over $1.6 trillion to pay out entitlements and other operating cost. What do you think the American people would do if all the sudden all there entitlement programs were cut by one-third? For that matter what will government workers do if they are all sent home for three or four months. If there is a big fight in Congress over raising the debt ceiling and it goes on for several weeks. The indecision or the prolonged fight could cause panic in the stock markets and bond markets around the world. This is just around the corner and it will be interesting to see the outcome.

 Because the way the government uses the calendar fiscal year the total deficit they report for the year 2011 may show up to be less than $1.7 trillion. There is a reason governments do things the way they do. What I have seen for more than 30 years is they change the rules of their bookkeeping to hide what is really going on from the public. Off budget deficit spending is an example of how they get away without reporting the true total deficit to the public. It all has to do with tricks of the calendar and constantly change the rules of how they keep their books. Here’s an example: I used to work six days straight 12 hours a day on the docks in Baltimore. Because of the way they ran their schedule I never got more than 12 hours of overtime. It was six days on three days off and it would change every shift from day shift to-night shift. The pay period ended on Wednesday in the middle of each week. But the bottom line was I never got more than 12 hours of overtime when I should-be been getting 32 hours a week of overtime for working six days straight 12 hours a day or 72 hours. This was a union job to, so much for that. It was all a trick in the calendar; they always split the shifts so they would always work out to their advantage so they would not have to pay the 32 hours of overtime. The government makes up its rules in the same fashion and uses different calendar years than the rest of us do. This is meant to hide things and confuse people. Just like the date April 15, 2007 is the deadline for the 2008 budget which starts October 1, 2007 runs to September 30, 2008. This gives cover for the politicians and keeps people confused.

The latest change that the federal government has made comes from Department of Labor and statistics in the most recent report they have stated that they are going to start to include the self-employed as being employed. This will add hundreds of thousands to the number of people who are employed and it will make unemployment look like it’s improving even though there’s been no real change in the number of people with jobs. There is a distinct difference between people who are self-employed and people who are employed. Self-employed people are business owners and are not employed by employers. They are in fact employers of people not employees. But this is what I mean by how government changes the rules when it benefits them politically. So you can expect to see unemployment numbers looking better but the real situation will remain the same. (You can hide the truth but the truth is still there.) It does show up in their last report as it is stated they are going to include the self-employed. I followed these numbers month over month and the total number of employed in the body of the report did go up 700,000 between December 3, 2010 report in the January 7, 2011 unemployment report revised for the year 2010. It was not reported in the headline number however. So there they go again changing the rules so the politicians look good even when things are continue to be really bad. Prior to that January 7, 2011 report total number of people employed had only gone up 507,000 from November of 2009 to November of 2010. This is also something I haven’t heard the lame stream news media report on this and if they have, I must have missed it. The lame stream news media seems to make a big deal out of things that really don’t matter as they drone on for weeks on matters of no importance and completely ignore the things that really do matter to everybody.

 *On the chart for the year 2001 -128.2 is a surplus not a deficit. That’s kind of backward as the negative is actually a positive and a deficit which is actually the negative is considered a positive. Wow that even confuses me just a little.


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Every One seems to still have the attitude that the government can somehow create jobs. Here are A few questions to logic and common sense. The last 4 budget years from 2008 and up to the current year 2011 the government has spent almost $5.6 trillion in deficit spending when adding in the so-called stimulus of February 2009. If you can fathom how much money that is without me going into the clichés of football or it’s like this or that. It should be obvious and plain to see that no matter what the governments do and no matter how much they spend, governments cannot create any meaningful long-term employment. 

So what is the answer to the problem? First we must answer to what is the problems that are holding thing up in the private sector and the economy and why the private sector is not creating any jobs. This is a long-term problem of over regulating everything under the sun. This is nothing new but over the past 100 years, every single year the state governments and the federal government add new regulations and restrictions on businesses all under the guise of safety, public health or because someone complained about something and said the government should do something about it and they did. 

Governments have a fixation for controlling every aspect of your life that’s what governments do by their very nature and that’s why the constitution was written to keep from happening, but it happened anyway. Governments both federal and state have piled up one new regulation upon the other until it has become a blur of literally tens of millions of regulations that a person that wants to start their own business has to deal with. This compilation of tens of millions of regulations keeps new businesses from starting up and puts existing businesses at a disadvantage to compete in the global economy. This will not change because it is a totally unrecognized and denied as being the problem by the liberals and the progressive  democrats who still control the senate and the white house. This will not change till after 2012. 

Regulation is a very large part of why the economy is stagnant and not going anywhere in a hurry. This is just one of the many problems for a new or an existing business. Then we have the next problem and that’s getting the capital to expand an existing business or to start a new one. For an existing business they must use their own available money. Remember the banks are broken and banks are still not lending to business. This is also a worldwide problem not just here in the United States. If an existing business has the money to expand it first must have the demand of their product or service to do so. If demand is not there they will not invest their cash on hand, until the demand exists. What is going on in the United States and the world banking system is governments deficit spending is sucking up all the available money in the banking system, leaving no money for businesses to barrow and expand.  As usual your being lied to and its being done to protect the politicians.

 The $2 trillion that big bad evil businesses are hording from the public is 70% to 80% operating money. If anyone of these talking heads ever ran a business and actually did the book-keeping they would know this to be a true statement. As things are most of these people reporting the so-called hording haven’t got a clue about how businesses are run and how much money it takes to keep them running. So until we get someone in charge who really understands how businesses work and what makes them grow or what stops them from growing nothing will change. One example is Government motors (GM) needed to barrow $50 billion just to stay in business for a few months and this was not 100% of their operating expenses only a small part of it. This is just another way for politicians to shift the blame from them back to the greedy, mean, evil big corporations. Just like the putting the blame on Wall Street that they caused the banks to collapse when all the while it was the federal government’s failure to properly regulate 2 banks they owned and controlled Freddie and Fannie. (Barney Frank and Cris Dodds failure to regulate caused the world banking system to collapse, both are democrats)

I can tell you with absolute certainty that as long as we have a liberal socialist in charge and we still have them in charge of the Senate and the white house, everything will stay the same and the economy if it grows at all it will be the dollars spent on higher prices on gas and food not from real economic growth. B.O. has been promising jobs for over 2 years now and the few that have been added have come from the private sector not something the government did. They have passed several infrastructure bills and no one bothers to do the real math on how few jobs these road and bridge building jobs will create. I have done the math and the number of jobs comes out to be so pathetically small they would not even register as a positive in the national employment numbers. 

Unless the private sector economy starts to expand due to real demand for products and services there will be very slow or no job growth and if gasoline goes back to $4.00 a gallon, the existing jobs will disappear as the price goes up, so will the unemployment numbers.

 James Garrett: business owner 1978 – 2009

2012 What's really going to happen in 2012

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Do not be disappointed that we lost control of the House or Representatives we still control the Senate and the White House. The Republican wing nuts will not be able to change anything are liberal and progressive leaders have done to change the country in the last four years. But get ready for what comes next everything is going as planned but we would like to get you prepared for what comes in the next two years. 

The final solution was to destroy capitalism as we will be successful in short order with these $1.3 trillion to $1.5 trillion deficit spending it will not be long now before the system collapses. We have worked long and hard to achieve this goal and after more than 100 years the time is at hand, so you need to be prepared for the collapse of the capitalist system and the aftermath of our success. 

We want all our progressive and liberal friends to be ready for what happens next. Take special note that this will happen very soon. You will start to see the severe devaluation of the currency within the next six months. You can see it now in the cost of the gasoline at the pumps and the higher price food at the grocery store and we expect this to get much worse. This is just part of our plan that is currently unfolding. We have already been successful in overloading the government with social programs and growing the cost of government to the point of collapse, it is only a matter of time now. So we want you to be ready for what is going to happen next.

We are on a short timeline and expecting a severe devaluation in the dollar and this will come in the next 18 months. There’s not much time left to prepare for this so you must heed this warning and take action as soon as possible. Gasoline will soon go to five dollars a gallon probably by the end of the year 2011. Due to severe devaluation of our currency and due to the high cost of gasoline we will use a lot less of it and we won’t pollute the air as much. Very soon after the gasoline goes to five dollars a gallon it will probably go up to eight dollars a gallon sometime in early 2012. Once this happens the economy will certainly collapse and the capitalist system will no longer exist. After 100 years we will finally get what we want, so what comes next?

With the success of the collapse of the capitalist system, there will be riots and the distribution system will also fail completely. There will be no food in the grocery stores of any kind anywhere the United States. So you need to stock up on lots of canned foods, it will take years to get some kind of normalcy back into the new socialist Democratic system. We are planning to rebuild and go green; the new economy will be under a new progressive, socialist economic system and will be environmentally friendly. 

Under the new system there will be no middle class everyone will be the same class so there will finally be equality and there will be no rich people and no middle class. We will change to a one class system where everything is fair and equal. With the collapse of the capitalist system this will make the dollar totally worthless, this means we will all be on the same page and flat busted broke. So we recommend you buy some gold or silver because our paper money will be totally worthless. There will be no state governments as they will collapse right along with the federal government because they use the same paper money made up out of thin air by the federal government. This means we will be able to take total control of all the governments in the country at the same time. This also means there will be no local police protection so you must prepare to defend yourself until we can establish a new police force. 

With the collapse of all governments and the capitalist system we need you to prepare for the following list of everything that will no longer exist. These services will not exist anymore once we achieve success in collapsing the capitalist system. There will be no banks, No grocery stores, No food any were to be found in or around the cities. No jobs, 308 million people will be out of work with no jobs anywhere to be found, remember our goal was to collapse the system. No food stamps and no food, No wealth to redistribute and there will be no welfare checks or social security. No Medicare, No Medicaid and no hospitals.

This will go on for many years and once it’s gone. There will not be any distribution system at all, it disappeared with the collapsed value of the dollar. This also leads to No electricity, No water, each collapsed system reinforces the collapse of the others as each system mentioned above keeps the others running in some way, so get prepared for this. It will take a very long time to start-up again once the distribution system stops. This also means no gasoline and no cars. The haves and the have not’s will be the ones who have the guns and the ones that don’t. If your one of those people who doesn’t believe in owning a gun, get a base-ball bat to protect yourself because everyone will want to kill you for the food they think you may have even if you don’t head this warning. We estimate based on history that with destabilization of the economic system we expect this condition will go on for at least 7 years. This will not be over within a few weeks. So I wish all my liberal and progressive democratic friends good luck and may god be with you even if you don’t believe there is one.

2012 What's really going to happen in 2012

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