Archive for the ‘Capitalism’ Category

Have you been watching, reading or following what has been going on in Europe with the Greek debt and now its Italy and Spain that may also need bailing out. What the hell is going on over there in socialist Europe? The socialist have finally run out of people to steal from! They can’t decide on how they’re going to print $600 billion in Euros and who’s going to be responsible to pay for that.

The latest speculation is a breakup of the European Union and a reforming of a smaller number of countries into a new union. If that happens what happens to the seven little pigs and France becomes one of them and they seem to forget that. French banks hold a lot of debt in Italy and Greek government debt. This debt is also termed by the media as sovereign debt which means government deficit spending just like we have in America it’s the same thing that’s currently destroying Europe.

What does this mean for America how will it affect you and your money?

First the liberal fringe news media whom you know are all liberal, progressives’ democrats or socialists by another name. They are hiding behind words in plain sight of a dumbed down undereducated public. While the liberals spin twist and lie about what is happening in Europe to hide the failure of their political beliefs that socialism is better than capitalism I will only tell you the scary truth.

Too much socialism worldwide has collapsed the capitalist system that supports the socialism and the parasite has killed the host. That’s why the wage base has dropped so severely in the last 4 years and now 52% of working Americans are under the middle class income bracket and the poverty level is increasing faster than it ever has before. We are turning into a third world country at lightning speed right now and the middle class only makes up 42% of the workers as wages keep dropping. The tax base hasn’t gone up in 4 years now and the federal deficits keep getting bigger.

The cost of labor keeps going up because of the new Obama healthcare rules which is included in wages cost to an employer that provides healthcare coverage to their employees. This is reported in the wage base numbers the department of labor monthly reports. Overall the wages being paid to employees are being forced down at the lower end and 49 million people have been pink slipped or fired in the last 4 years most have found new low paying Obama jobs at McDonald’s or wall mart. This is the liberal progressive democrats and Obama’s economy. This is what socialism does it redistributes wealth and creates a one class system just like in Marxist communism there is only one class and everyone is equally poor. That’s not a bumper sticker slogan that is how Carl Marx designed the communist economic system a one class system of poverty there’s your equality and everyone suffers equally.

America is getting a big sampling now of what Europe has had since the second world war an economy that only grows at the inflation rate or no real growth at all. How does it feel to be like socialist Europe?

What’s really going on now in Europe is they are trying to find hundreds of billions of dollars to put into the banks and they are blaming the banks for being under the 10% liquidity limits set by banking regulations. Where did all the money go? The government deficits and the barrowing by the governments from the banks took all their available cash and there’s none left to steal whoops I mean barrow, know I mean steal as in theft because eventually the end game is the people are responsible to pay the debt with their taxes thus they are stealing your future and the future of all the children just like we are in America. This is how socialism is supposed to work; wealth redistribution is what socialist economic systems do.

All the historical evidence of Socialism proves it is a parasite that always kills the host.

Now that banks have been dried out by the government’s barrowing all the money as the shell game goes on and on. If the European Union does get their act together and they do figure out a way and come to an agreement on how to print barrow or steal a total of about $600 billion it only fixes the problem for about 6 months and they will be back at this again by spring of 2012. (That year keeps coming up?)

The larger world problem is what happens if they don’t fix things now or later.

What is being reported is that American banks haven’t loaned any money to Greece or Italy directly but they have loaned money to France and German banks which are huge holders of Greek and Italy debt along with Portugal, Spain, Ireland, Belgium and most recently France is the new pig because it holds so much of the other pig’s debt. If Greece defaults on its debt than Italy will probably go with it as confidence in their ability to pay is lost. Than the French banks become at risk or insolvent than American banks are at risk for the money loaned to them for billions of dollars lost or at risk in this new self-created mess or a domino effect of bank failures due to government debt caused from all their socialism. The liberal progressive news media will continue to blame it on the banks.

American zombie banks will become the new pigs in America they will have to be bailed out by someone or become insolvent and close their doors like Indy Mac in California. Depositors could lose all their money if there’s another slew of bank runs like we had just 3 years ago because our government can’t afford to keep bailing out the banks there’s no more money left. The FDIC insurance just had to get a bailout last week as they ran out of money too.

We have even bigger problems this time for many reasons.

There is a market called the derivatives market which is like insurance on all forms of investments including government debt. This is like the credit default swaps that AIG sold insurance on that collapsed in 2008 when the entire banking system collapse and hundreds of billions had to be paid by AIG and other like kind insurance companies. The credit default swap market was valued at around $60 trillion in 2008 and now it’s about half that or about $30 trillion. Rumor has it that’s the credit default market has locked up again in the past few days in Europe.

The bigger problem here is this derivatives market it is over $600 trillion. (Yes that’s trillion with a T) This is why they had to bail out AIG it wasn’t just the jobs that would be lost from their collapse or the credit default swaps that the banks were holding. It was the derivatives market they needed to save by saving the AIG and make this overlapping insurance system whole again. Governments did not want anyone to know about the derivatives market at least not the general public anyway. They were afraid of a full-scale bank run that wouldn’t stop like in the 1930s bank collapse and that caused the great depression to be great and stay great. This is getting ready to happen again when Europe’s banks go down we will go with them because all our economic systems and the banks are so tied together it is unavoidable.

We are in really bad shape compared to 2008 let’s take a look at then and now. In 2008 we only had a $10 trillion federal debt now its $15 trillion and increases by $120 to $130 billion every month.

We are now barrowing or printing 43% of all federal government spending. In 2007 barrowing was only 3% the economy was bigger and the deficit was much smaller

We have very high unemployment 9.1% and that’s a very deluded number the real number is much higher around 17%. In 2007 unemployment was 5%

A disappearing middle class

Only jobs available are low paying jobs in Obama’s economy, except in North Dakota due to new oil being mined there but that not something that’s Obama’s idea if he could he would stop it.

Federal deficits of $1.9 trillion a year when including on and off budget deficits.

We are in an entirely different position now then back in 2007. The government cannot afford another bailout like in 2008. If the credit defaults swaps lock up again and if the derivative insurance market blows up there’s no one or any group of countries to bail that out again under existing circumstances.

I got news for you; that derivatives market doesn’t have to blow up to collapse the system. If you look at the hard time Europe is having trying to come to an agreement on how to come up with $600 billion and then consider the supper committee has made it public they will admit defeat on Monday October 21 2011 and they can’t come up with $120 billion in cuts and revenues/taxes. what do you thing will happen when they need trillions more to bail out the system again under all these circumstances and the clock will be ticking while fear and panic will be the only outcome.

Europe’s has no money left now and they need hundreds of billions to get them into next year. Even if they do get their act together this will be an ongoing continuous problem that will not end until it collapses the worlds banking systems.

Let me make this clear it’s not the banks it’s the government’s barrowing all the money from the banks that is causing the problems in Europe and here in America. This is the people’s money, the average saver/citizen that might have a few thousand or a few hundred thousand dollars in the bank. The liberal progressive socialist democrats are stealing all your money because they really believe its there’s not yours, its there’s to redistribute and there blaming the banks for being greedy. Keep your money in the banks at your own peril when you lose it all’ I warned you.

Get you money out of the banks before it’s too late!

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This is a record of monthly spending from the first year budget when the democrats took control of congress in January of 2007. This budget was to be passed by April 15 of 2007 and started October 1, 2007 and ended September 2008 the month the banks collapsed.

What is so important to know is that in the prior 5 months before the bank collapse in September 2008 the democrat’s on and off budget deficits were already averaging $130 billion a month.  The Federal reserve borrowed $683 billion in that 5 month period prior to the bank collapse. The Federal Reserve dried up the banking system financing deficits of the democratic party.

This spending level continues at the same level in all of the 2011 budget at $130 billion each month. It was the runaway purposeful spending of the democratic congress that caused the banks to collapse not the bankers as everyone has told you. I know you want to believe it’s the banks fault and their greed,  so does the government but who controls the banks? The government does.

Table 1

Date Fed. Deficit   $ Billions Off budget $ Billions Total year   deficits billions  Job creation New Housing sales yearly
04/2008* Surplus 160 -43.33 +117   +145,000* 526,000
05/2008* Deficit -166 -43.33 -209   -861,000* 512,000
06/2008* Deficit -33 -43.33 -76   -126,000* 530,000
07/2008* Deficit -102 -43.33 -145   -248,000* 515,000
08/2008* Deficit -112 -43.33 -165  -640,000* 460,000
09/2008* Deficit  -45 -43.33 -88/978  -403,000 464,000
10/2008* Deficit -155 -39.6 -194.6l  -320,000 433,000
11/2008* Deficit -171 -39.6 -210  -533,000 407,000
12/2008* Deficit  -83 -39.6 -122  -524,000 331,000
01/2009* Deficit -63 -39.6 -102  -598,000 309,000
02/2009* Deficit -193 -39.6 -232  -651,000 337,000
03/2009* Deficit -191 -39.6 -230  -663,000 356,000
04/2009* Deficit – 21 -39.6 -60  -539,000 352,000
05/2009* deficit 189 -39.6  -228  -345,000   342,000
02/2011* Much worse  2011 est.  $1.9 trillion   -N/A  270,000

How could a hand full of banks in the United States collapse the whole worlds banking system?

If it was the banks fault why does this same level of Federal Government deficit spending at $130 billion each month continues 4 years later?

Why was the trouble asset relief program (TARP) almost exactly the same amount $700 billion compared to $683 billion in deficit spending in the 5 months prior to the bank colapse in September 2008? A little close don’t you think?

Since when does the government ever tell the public the truth? That would be something new.

That movie they made about the bank collapse was so full of false information it was nothing more than a propaganda piece for the liberal, progressive Democratic Party, just a pack of lies. Look at where the movie originated in Hollywood a den of liberals.

See the carton below dated 1934 to show this is nothing new this is exactly what the liberals did in the great depression different day same old crap.

A combination of the deficit spending forcing the Federal Reserve to raise interest rates and an ever-growing need to barrow more and more in the world financial markets forced the collapse of the real estate market and thus the worlds banking system. In the last column I jump ahead to February 2011 to show that it’s just as bad and even worse as the Federal Reserve barrows, prints or digitized money to cover the $188 billion in March of 2011 this is an all time record high. This will get worse!

My most current yearly estimate of the 2011 on budget deficit is $1.6 trillion and an additional off budget deficit of $330 Billion this gives us a total of $1.93 trillion for 2011. The overall situation has gotten a whole lot worse and no one is reporting this. Don’t any of these people reporting the news own a calculator to figure all this out? I guess not. It all comes from public government records hiding in plain sight.

The cartoon from 1934 says a lot about how many times liberal progressive Democrats have tried to collapse capitalism. It reads Plan of action for the U.S. spend, spend, spend. Under the Guise of recovery Bust the government Blame the capitalists (BANKS) for the failure. JUNK THE CONSTITUTION AND DECLAIR A DICTATORSHIP.


Also take notice of who is riding in the wagon and who they are. Harvard and Columbia the same place they claim B.O. was educated.

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

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

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

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

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

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

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

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

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

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

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

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

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

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


2012 What's really going to happen in 2012

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What is a lobbyist and why do they exist? Lobbyists petition congressmen to prevent government from passing laws that will hurt their industry. On the other hand they petition congressmen to vote for laws that give them an advantage over competitors. This is a vicious cycle that never ends. First of all it’s a violation of the constitution to pass laws that restrict commerce. Secondly it would therefore be an obstruction of commerce to give one business favor over another by legislation that would restrict the free flow of commerce. This is also why under constitutional law we are not under a Nazi, Fascist socialist or Communist economic system. At least were not supposed to be.

But they do it anyway and here is why. This stated after the First World War and got a lot worse after the Second World War. The politicians learned they could make millions in campaign contributions, using first the threat of regulation on particular industries and then getting bribed or paid in the form of contributions not to pass those restrictive regulations. This is really illegal under the founding rules of our government, but congress has changed the original laws and made new ones to fit their greedy needs. Now we have the problems that we have on account of it. It is no more than legalized bribing of a politician. This as most know is also illegal. So what this all boils down to is we have a bunch of crooks in Washington running the country. But it has been made legal by the politicians.

At the same time the public blames the corrupt corporations for all their problems and the real truth is it’s the corrupt government that creates all the problems. The politicians and the unions are always blaming big business for why things are so hard on you. But I have asked many people who were on a rant about how it’s the corrupt corporations this question. I asked them to name one time you have been ripped off and had something taken away or stolen by a corporation. They had no answer. They were however smart enough to realize after a few seconds of thought that they never had lost anything to a corporation and that’s what their unions that told them all their problems were from the greedy corporations. Others said that’s what they had read it in an article. No one I had ever ask that question could answer, not one.

 This is a big part of the disinformation game of the politicians shifting blame. Everyone else is at fault and it’s never the politicians fault. The most recent example is the healthcare bill 2,700 pages of new regulation. It’s those greedy insurance companies and they are the cause of all your healthcare expense problems. But in fact it is the regulation on the healthcare industry over the past 40 years that makes the healthcare cost goes up a rate of 7 to 10% every year. But since you pay the insurance companies you believe they are the bad guys. It’s a giant shell game of shifting the blame and always hiding the truth from you. This is the case in every industry in the country. They are only trying to survive as a business. They provide jobs for 80% of the working public. How can they really be the bad guys?

 If government was not constantly passing new regulations or laws to restrict business in some way there would be no business for the lobbyists and if there no demand for an industry like the lobbyists then it would just disappear. The corruption is built into the system we now have. Since Washington has become nothing more than a law factory this will not change. If you don’t play the game, you don’t get the bribes or payoffs in the guise of contributions and you don’t have the money to get reelected. This has created a very corrupt political system and there seems to be no way to correct the problem. The only way we could possibly change it, is if we could get 535 new congressmen and women to promise in a written contract to stop it and that’s not going to happen.

2012 What's really going to happen in 2012

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Inflation comes from the government of any country printing up money or borrowing money in large enough quantities to expand the money supply. The expanded money supply allows for prices to be bid higher. The more money made available through the printing of money the worse the inflation becomes. An example would be the housing market from 2002 to 2006 as the banks would give anyone with a heartbeat a mortgage loan they flooded the housing market with trillions in easy money and that allowed the price of a home to more than double or the equivalent of a 100% inflation rate in just 4 years. That’s not the only cause of inflation as there are many.

 Another cause of inflation in a paper currency is the confidence that people have in the value of that paper currency. If a country like the United States is borrowing trillions of dollars as we are. The confidence can be lost, not by our own citizens but by our foreign trading partners. In our case we are borrowing currently at an average rate of 133 billion every month. The money is unearned there is no wealth being created with the money. In our case 100% of our borrowed money is going to our social systems. This over time can cause a huge devaluation in the buying power of our paper money. Where this shows up is in the cost of all imported products. As our trading partners lose confidence they demand more dollars in exchange for their products. This is the kind of inflation that will show up most noticeable in the cost of gasoline. But it shows up in all products and since we import 70% of all the products we purchase, this can become a huge problem very quickly.

 Inflation can be much worse than an increased income tax. In the late 1970s and in the early 1980s we had what was called runaway inflation rate of 15%. If that happens now with the already high prices we have on all products, it would have a much greater effect and much faster than 30 years ago. Inflation is like a thief that steals from the money you have sitting in a bank account or in any investment. If you had $10,000.00 in a savings account with 15% inflation, in just one year your money would lose $1,500.00 in buying power. I expect something far worse will happen in 2012. Never before in our history or in the history of the world has any country printed or digitized so much unearned money out of thin air in such a short period of time. Europe set up a 1 trillion euro fund to bail out several of their member countries but we have been printing many trillions of dollars to pay for entitlement programs each year for the last three years. If you want to know whats going to happen next get the book 2012. It will scare you and you should be very scared of what comes next.

2012 What's really going to happen in 2012

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Socialism, Communism or Capitalism?

The liberal, progressive democrats like both political and economic systems of socialism and communism. There only minor differences between the two different forms of political and economic systems. There is a very fine line in both systems they treat people the same economically. The whole social political system is designed around wealth redistribution and so-called safety nets that don’t work. European economies have failed for the last 40 years prior to that they were being rebuilt by the united states from all the destruction of the Second World War. Once they lost the support of all the American money from the rebuilding it was all downhill from there. The socialism political and economic systems that the Europeans like so much lead them to a stagnant extremely low growth rates of 1%, very high unemployment of 10% or higher and perpetual never-ending recession.

 I have studied and followed these political and economic systems for over 30 years and the only difference is the socialism in Europe allows some capitalism and the Europeans never murdered 50 million of their own people like communist Russia did. The liberal progressive fringe news media doesn’t want the American people to know how bad things are economically in Europe. The liberal progressive democrats want Americans to think there social programs are great. The truth is their economy stinks under Europeans socialism and has for a very long time. Five or six years ago the European people knew their socialism was unsustainable and were running from it as fast as they could in their elections. Now here we are running as fast as we can towards a political and economic System that has never worked. It won’t take 40 years for our economy to collapse because it already has.

The constitution allows for the capitalism that we have. Capitalism is within the constitution allows for capitalism to exist. There a place in there that says Congress shall pass no laws that will hinder the free flow of commerce, although they interfere with the free flow of commerce constantly with massive regulation.

2012 What's really going to happen in 2012

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