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We don’t really have to January 2, 2013 to go off the fiscal cliff. It’s December 4, 2012 and congress goes on Christmas vacation Friday December 14th 2012 and they don’t come back till after we fall off the cliff. Taxmageddon will show up in the stock markets and will come well before January 1, 2013. If no deal is done before that date of Friday December 14th 2012. (There won’t be any deal) The stock market will show the results prior to the date not afterwards. If you have a 401-k or any other investment in stocks or bonds brace yourself for heavy losses.

This is a warning on Friday December 14th or in just 10 days all stock markets will start a rapid decline worldwide and this will continue into Monday the 17th and all the way to Friday the 21st December 2012 if no deal is done. The republicans will stay in Washington but the democrat controlled Senate will be ordered shut down by Harry read and the correction or crash will take place. The democrats will blame the republicans as that is what they are already doing even before there’s anything to blame anyone for. What will the blame game be like after markets crash? Friday December 14 is the normal scheduled Christmas break for congress.

The real cliff comes from a market reaction to the lack of any deal that stops America’s economy from a $600 billion shock. That shock comes from the shift in taxes and spending equal to a 4% negative to GDP and the biggest losses will not be the taxes themselves but the market’s reaction to those tax increases could cost trillions of dollars in lost stock values.

If the stock market’s losses are 2000 points on the DJIA for example in dollars it is equal to $2 trillion in lost stock values. This is the true result of Taxmageddon if congress allows us to go off the Cliff. It has been said for every 1000 points lost on the DJIA is approximately $1 trillion is lost in stock values across all U.S. markets.

Currently Republicans have no options to avoid the fiscal Clift or taxmageddon that will not destroy the economy and all the choices that democrats will allow to pass the senate will force a recession. All the options are really bad and the only one that will work for just a little while is keep everything the way it is and extend the current tax rates, but Obama has said and he insists he will not except that outcome of kicking the can down the road. If anyone is holding the middle class hostage it is Obama not the republicans in the house. Obama wants a grand bargain for which there is no good economic out come for anything he wants, what Obama wants will cost millions of jobs. That’s not an option Republicans can agree to.

Obama has proven over the last 4 years he understands nothing about economics, business or how jobs are created. It needs to be said Obama’s an idiot to top all idiots; he is the king of fools and will lead America to its complete economic destruction in the next few weeks. Obama’s winning of the election doesn’t prove his genius; it just proves how stupid the American people have become, all because of Obama phones that cheaply bought votes with tax payer’s money. (That is if he really won? As I believe the election was a complete fraud)

http://gulagbound.com/35972/nationwide-white-votes-down-by-16m-smell-like-election-tampering/#.UKEgkmfNPFw

Obama says he will only accept a full 4.9% tax increase to the wealthiest tax payers and they are the job creators. That’s not a bumper sticker slogan anymore or a political talking point, it is just the facts. By the numbers it can be proven true that what Obama is demanding will certainly put us in a recession according to the congressional budget office = CBO. Let’s look at what faces the American people in the next few weeks and what the democrats have done in the past 6 years of the control of congress since January 2007. The American people have been setup with this no win scenario that we now have and democrats will be able to blame it all on the republicans no matter what republicans do because democrats control 85% of what is so-called the main stream media.

If congress does nothing we get the full force of the fiscal Clift which is a $600 billion shift in taxes and spending cuts. The media has been talking about this fiscal Clift but no one clearly explains exactly what that means. I don’t think any of media types are smart enough to see what it is or what it truly means for the economy, but I will attempt to explain it here. It’s not a matter of speculation it’s just really simple math and understanding economics.

If Republicans do what Obama and the liberal progressive democrats wants here is what the congressional budget office said about a deal republicans offered to raise taxes on the wealthy in the budget act of 2011 debt ceiling increase that threaten to shut down parts of government.

The CBO scored the proposal the republicans offered in 2011 that would raise taxes on the wealthy by roughly $80 Billion. The result was a recession and negative GDP growth of .5% or ½ %. They also said it would force 700,000 private sector jobs to be lost and by the end of 2013 push the unemployment rate from the current rate up to 9.1%. Again this was in 2011 and now Obama and the democrats want double or two times that much to $160 Billion in higher taxes from the job creators or the wealthy and that means twice the job losses to 1.4 million and twice the negative GDP growth -1%. This is what Obama wants; this is his so-called grand bargain. Only a complete idiot would think that’s a good idea, but that’s just Obama.

This doubling of higher taxes to the wealthy tax payers is the option that Obama is giving the republicans and this is not an option republicans can except, but it is insanity to ask for a tax increase that will force 1.4 million jobs to be lost to the middle class then lie about wanting to protect the middle class and force a recession in an already very weak economy that will loss 1.4 million jobs in the middle class. (Twisted logic) The only ones here protecting the middle class is the republicans not Obama.

How can the republicans agree to such an insane proposal when Republicans know it will cost so many jobs in the middle class and force us into a recession at the cost 1.4 million middle class jobs? They cannot. What sane person would vote for that? No sane person would vote for Obama’s so-called grand bargain and it’s not a deal of any acceptable kind. This whole Obama so-called deal is like trying to make a bargain with a terrorist who wants to kill you.

The Republicans have offered some concessions to higher taxes on the wealthy in recent discussions, but not the $80 billion and certainly not the $160 billion as the economy is weaker now then in early 2011 and any sizeable tax increase would not be good for the economy. There is no such thing as a grand bargain in what Obama is asking for; it’s more like a grand screwing to the American worker. Republicans are being asked to accept our grand economic destruction and the complete collapse of America’s economy into a deep recession or will it be a depression?

Taxes on the wealthy doesn’t include the automatic spending cuts from The Budget Control Act of 2011 said to be about $150 billion more that comes out of the economy and will have an additional negative effect on the economy. Obama is not trying to fix our fiscal issues and problems; Obama is trying to destroy the Republican Party and America along with it. I am all for spending cuts we need to shrink the spending of the federal government but not this way, not while taxing the crap out of everyone and forcing a depression like economy. These budget cuts should be done in increments’ in separate pieces of legislation over time slowing as the economy grows. I know this will not happen but that is the way it should happen.

The options the republicans have are unacceptable and the whole problem with the country is making deals or compromising with the democrats a party that wants to intentionally destroy the country. Obama and the democrats have found a way to blame the whole thing on the Republican Party but the truth is the whole thing was contrived by the democrats. The democrats want America to go off the fiscal Clift because they can blame any deal and all of them are bad on the Republican Party.  No matter whose fault it really is the liberal fringe lame stream news media will carry the lie and the people will believe the lie. America’s favorite pastime is blaming someone else for what they did to themselves by voting for democrats and Obama to get the free stuff.

I have told you about what the CBO has said about just taxing the wealthy and it has a really bad outcome and now let’s have a look at the math on the even bigger problem going completely off the $600 billion cliff. There is very big chance of the whole economy completely falling apart if the full force of taxmageddon if the existing law isn’t changed. The cost is a dramatic 4% of GDP just disappears into thin air. This will have the same economic effect as a gallon of gasoline going from $3.50 a gallon to $6.00 a gallon. You can probably relate to that and you know what that will do to your finances then multiply that time 140 million working Americans and the national fleet of 250 million cars. I did do the math based on our usage and the $600 billion taxmageddon it’s a very close estimate. This is an example for the effects and it will not necessarily affect the price of gas but the overall economic effect will be the same. (Catastrophic)

This taxmageddon automatically just happens in less than 4 weeks on January 1st 2013 if congress does nothing because this is already the law. Again stock markets will react before that date of January 1, 2013 not after. The optimism market players have that congress will stop taxmageddon comes from fantasies of the media and or wishful thinking.

The last 2 years has proven we have a senate that refuses to bring anything that passes the house to be allowed an up or down vote. At last count the republican controlled House of Representatives has passed 39 bills and Harry Reid hasn’t allowed any of them to go to the floor of the Senate for a vote. The house of representatives is functioning just fine passing 39 bills proves that. It is the Senate and or Harry Reid that is completely dysfunctional. The house has also passed 2 bills to fix the Clift or taxmageddon but dirty Harry wont allow a vote on either one. The truth is the democrats are screwing things up they are the dysfunctional party and they want to force America to go off the fiscal Clift. There purpose is to destroy the Republican Party and America with them. Will the democrat’s devious plan work?

If congress does nothing we get the full force of the fiscal Clift the media has been taking about but no one clearly explains exactly what that means to you and the whole country and the whole world will suffer great economic distress from our taxmageddon. I don’t think any of them are smart enough to see what it really means but I will attempt to explain more clearly here.

Here is what taxmageddon or the fiscal Clift means to you and to the whole economy and this number seems to get bigger by the week as more deductions are found that just go away and the higher total of the taxes mount up. The total amount of higher taxes collected from the wealthy and the middle class and the working poor (now 28 million that now pay no taxes at all and probably voted for Obama) is now $ 538 Billion in higher taxes as all tax rates go up 5% higher than they are now and around 20 tax deductions go away. This huge number of $ 538 Billion and based on the CBO estimated results of what $80 billion in higher taxes to only the wealthy was projected to do can be used as a guideline to calculate the economic impact of going off the Clift or taxmageddon.

The CBO has currently stated they cannot do an estimate on taxmageddon deal because they need the legislation to score the cost to the economy but that legislation doesn’t exist yet so we have to use the last CBO estimate as a basis on the budget act of 2011 debt deal that got us in this mess.

The higher tax of taxmageddon of $ 538 Billion on every one that works or has taxable income is 6.7 times the $80 Billion scored by the congressional budget office in 2011. Logically and mathematically the higher taxes would have the same multiple in its negative economic effects of 6.7 times the money that goes missing from the private sector economy into the black hole of government deficits of $1.1 trillion for 2012. So the math is 6.7 times the 700,000 lost jobs or 4,690,000 jobs lost. The negative growth rate of -.5% will be 6.7 times more or -3.35% This is to show the trend that when this much money being taken from the private sector in just simple straight math and it shows it will be catastrophic for the economy and jobs. This will be worse than the 2008 bank collapse because it doesn’t stop this time. No big stock market corrections or crashes are in the CBO estimates, there not allowed to do that.

I can tell you it will be a lot worse than any CBO estimate and there are a number of reasons. Here are just a few: first people will change their spending habits according to affordability after a stock market correction or a market crash. The working population or the tax payers that support the whole economy and socialist system will pull back spending as 50% of the working population are somehow invested in the stock market like in a 401k retirement program and that hurts business even more as everyone feels poorer and spends less. Adding to the devastation caused from the $538 Billion in higher taxes. The stock markets worldwide will adjust to America going into a recession along with all American stock markets as we are all tied together economically whether we like it or not that’s just the way it is. The CBO is not allowed to speculate on how markets will react they have a stricter set of guidelines and that’s why they are way off on most of their estimates long-term. There estimates are good for a few weeks to maybe 6 months, after that as time goes by their longer term estimate are useless.

No matter what the outcome the Republicans will be blamed for it. The election didn’t change anything and we will get 4 more years of congressional gridlock and 4 more years of an Obama’s dictatorship.

Some examples you can reference to see how people react and change their spending habits after any economic catastrophe is the 2008 bank collapse the 1987 stock market crash and the September 11, 2001 attack on the twin towers in New York. People just stopped spending and the economy went directly into a recession and my point is – things will get a lot worse than the -3.35% negative economic decline and will more likely be in the 6% negative GDP range just like after the 2008 bank collapse and the first quarter of 2009 was negative – 6% GDP and we have still not fully recovered from that. On top of that the Federal Reserve can no longer bail anyone out they are out of options but they can take over the banks and federalize them.

The overall dynamics of the economy has changed dramatically since 2008. This decline will be worse than any decline before because of the huge $16.4 trillion total deficits and a much larger portion of that are held within the banking system now in 2012 than in the 2008 bank collapse. A GDP growing at only 2% and Inflation said to be low at 2.2% if you believe that? The economy isn’t really growing at all, it’s the inflation that makes it seem like it is. We are in a much weaker position economically in 2012 than in 2008. 

This is a worldwide problem as all the major economies are doing the same thing. The total world-wide printing by governments has increased $21 trillion in just the last 6 years and most of that new debt is in the banking system.

The middle class with 401k Retirement plans or any money involved in the markets stocks or bonds will likely lose 40% to 60% of their money in those retirement accounts. Just like in 2008 after the banks froze up and this is just to start with, so the working people who support the economy will not be spending at the same rates they are now and all the false optimism will be forced away with a collapse coming in just 10 days when congress goes home for Christmas vacations while the economy through the stock markets just falls apart.

I have followed and been directly involved in every economic catastrophe since Jimmy Carter was president as a business owner and Obama and the democrats’ have set us up for the biggest collapse in world history. (The political economy)

In the last 4 years since the bank collapse of 2008 here is what has changed and will give us a multiple of 3 to 4 times worse than in the last bubble bursting and all created by the Federal Reserve poor economic and monetary policies. The banks have been buying trillions in U.S. treasury debt adding to what they already hold and adding trillions to the problem because the Federal Reserve has been making up phony money with these dollar amounts in trillions and creating a new much larger bubble than we had in 2008. The Federal Reserve has been buying old debt with the Q.E 1-2-3, and the so-called twists and the banks have been investing some of the money into the stock markets and commodities as well and repurchasing new federal debt with the very same money the Federal Reserve has been putting into the banks. (A Ponzi scheme; if you or me did this we would go to jail for a very long time like Burney Madoff)

This pumping of artificial money into markets has artificially inflated stock prices by pumping trillions of dollars into the banks creating money out of thin air with nothing but faith to back it up. Markets will collapse quickly as that faith will evaporate in a steep decline or even worse a panic sell off like in the 1987 crash and like all other crashes will take everyone by surprise. The banks are holding this huge multi trillion-dollar bag of dogey doo in U.S. government debt and banks will be blamed once again for what the politicians did or didn’t do. This is a 1934 cartoon from the New York Times. This has happened before.

 65312741

The banks and the biggest investment firms which are banks are the biggest players in the artificially propped up stock markets and the bond markets. This is a worldwide condition that every government and economy in the world has been doing the same thing for the last 4 years. This bubble only needs a trigger to set it off and I believe the trigger is taxmageddon that comes in 10 days. This starts on December 14, 2012. The markets will decline and this decline will continue till Friday the 21st of December. The reason it stops there is because the 25th is Christmas day holiday and markets will be closed Saturday December 22nd to Wednesday the 26th of December. After that all the damage will be done and whatever congress and Obama do after that will make no difference, it’s too late to fix anything once the markets correct or collapse.

The economic losses will be similar to a repeat of the 2008 bank collapse only multiplied times 3 to 4 of what happen in 2008. There will be no rescue from the Federal Reserve and no bailouts of the banks as the federal government with the Dodd, Frank banking act allows the government to just take over the whole banking system there are no limits to what the government can do now under Dodd, Frank and that’s what will happen as that’s exactly what the bill is meant to do. Nationalize the banking system and here we go to the government controlling everything. (Communism) So what’s next? They’re going to steal all your money no matter where it is.

How much do you trust the government having control of all your savings and what do you think they will do with it once they have legally taken control of the banks and nationalizing the whole banking system and all the money? What did they do with the social security money? They spent it all, need I say more? If or when this happens think about what you will do if you have savings in the bank and that’s what everyone else will do. The results will be Runs on the banks just like in the great depression and finally just closing the banks as they run out of paper and digits in the computers. Banks only have about 10% of their deposits in cash or liquid assets the rest is loaned out to someone and even loaned to other banks that may go bankrupt and close their doors these loses quickly dominos through the entire banking system no matter who owns them.

The Federal Reserve has no bullets left and the bazooka doesn’t exist anymore.

In 2008 prior to the collapse of the banks the federal deficit total was about $9.6 trillion and its now $16.4 trillion. The interest rate set by the Federal Reserve was 5% in 2008 now its .5 or ½% it can’t get any lower than zero and lowering it 4.5% has done little good for the economy and reducing it, another ½% won’t make any difference after a market crash. We also will have reached the current debt ceiling of $16.4 trillion by the last week of December 2012 or first week of January 2013. Little has been said about this debt ceiling being reached but their parts of a grand deal Obama wants that’s no deal at all and will not come.

If I wanted to destroy America I would have done everything the democrats did since they took control of congress in January 2007 and I would refuse to change anything just as democrats and Obama have done and continue to do. If I wanted to destroy America I wouldn’t change a thing.

We are currently barrowing nearly $100 billion a month for deficit spending and just printing and digitizing most of that up in computers the paper doesn’t even exist, it’s mostly cyber money on a hard drive in computers. If markets do come crashing down in 2 weeks with the debt ceiling increase tied to a tax increase bill that will not come and congress is out on vacation it all comes to a head at the same time. Once things do fall apart it’s too late to fix the damage already done.

This is the perfect storm and America’s judgment day has arrived. If congress does pass something and it’s not economically sound like raising taxes on the wealthiest 2% the exact same thing will happen and markets will react as if congress did nothing at all. We will all pay a price for the people who backed Obama and voted for him. The utopia Democrats all dreamed of and like they have dreamed of in socialist Europe for the last 150 years that utopia never did materialize and will never come for America either. What is coming will be more like the opening of the gates of hell.

The Federal Reserve is a bank. It is not a branch of government and isn’t controlled by congress directly. When this bubble bursts there’s not enough money in the world to fix this crash. The Federal Reserve holds around $4 trillion in its own issued debt and when the crap hits the fan this time the Federal reserve bank will be just as broken as the banking system they artificially propped up for the last 4 years and its all self-inflicted from poor monetary policy’s mostly since 2007. They think they have it under control but if they did we wouldn’t be in this catastrophic position.

I am a realist and do not hope for any better outcome for which there is no evidence of any possible better outcome. Hope is like wishing for something it only works in fairy tales but not so much in the real world. I have watched and participated in the political economy for over 30 years and I know what the politicians will do before they know what they’re going to do.

There are no grand deals to be made and any choices they do make will be bad ones for the economy. The policies of the federal government and the democratic controlled congress have put us in a box we cannot get out of. All of the possible outcomes stink. The poorly contrived political economic policies of the past our going to haunt us and our children through eternity and the bill is coming due now,  in the next few weeks not in 5-10 or 20 years.

We are about to witness the destruction of America through its economy from within our own elected government. This is all absolutely intentional it is not by accident that this is going to happen. Liberal progressive Democrats are just the tool or the useful Idiots for the destruction of America. There is someone else behind all this but this article is not about that.

The visible and undeniable end of America starts in 10 days. Obama is not trying to fix our fiscal Issues and Problems; His s trying to destroy the Republicans and to do that Obama’s going to destroy the economy and the country with it.

Congress goes from one screw up to the next screw up and the reason for this is the compromise of capitalism in trade offs for a larger more expensive government and more socialism and wealth redistribution. This will only end when we collapse under the weight of too much socialism, the government will go away with it and that’s weeks away not years. The deal Obama and the democrat controlled senate offers are going to collapse the economy. Keeping taxes the same for everyone will just put off the date as it will come up again.

The bottom line on taxmageddon or the so-called cliff is no matter what happens Americans gets screwed.

 If we get exactly all that Obama’s asking for we go off the cliff and into a deep recession. The congressional budget office has stated this and I agree.

 If congress does nothing at all we go of the bigger cliff. So no matter what: deal or no deal we go off the cliff. That’s the deal, we go off the cliff.

 The only alternative is keeping all tax rates at their current levels for everyone and Obama said that’s not acceptable. So we go off the cliff.

 The republicans are already being blamed for this but they haven’t been in control of congress since 2006 and they still are not in control but the lying media says republicans are to blame.

  Lou Dobbs agrees with me 

http://video.foxbusiness.com/v/1998558236001/fiscal-cliff-is-no-joke

Paul Ryan: That leads us to conclude Obama’s trying to get us to our fiscal cliff,” Ryan said. “He doesn’t want to come to the middle.”

http://dailycaller.com/2012/12/04/paul-ryan-addresses-fiscal-cliff-were-nowhere-were-farther-than-where-we-started/

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Painting a happy face on this taxmageddon is just putting lip stick on a pig. It’s just 45 days away until the US falls off the fiscal cliff and around $600 billion or 4% of Gross domestic product goes into the black hole of deficit spending from $450 billion in higher taxes on everyone not just the rich and an automatic $150 billion in spending cuts for a total of $600 billion shift in economic activity. For those with poor math skills pay attention to this, the taxes are not a plus to the GDP it is taken from existing GDP wages to employees and profits of companies

 

The current GDP growth rate is only 1.7% so far in 2012 and 4% of that will shift into the oblivion of deficit spending and deficit reduction and still leave us with an additional shortfall of $600 Billion in deficit spending. The CBO – congressional budget office has stated in their testimony to congress that just an increase in taxes on the rich of an estimated $80 Billion in tax increases will force a lose in jobs of 700,000 and a negative .5% GDP (½%) and or a recession. Now that number is just on the wealthiest and business owners has doubled to $160 billion a year in higher taxes to the wealthiest since the election and the simple math is negative -1% GDP and 1.5 million jobs lost just from taxing the rich not the taxmageddon that will tax the crap out of everyone and everything which is 3 times that number if they don’t do anything.

 

If you allow the bush tax cuts to expire January 1, 2013 than taxes go up on everyone including 25 million low-income Americans that don’t pay any federal tax at all will pay taxes. This is what the democrats voted for on November 6 2012 and all this will at the very least cause a decline in real terms of GDP gone missing of a negative – 2.5% of the GDP growth rate figured strate line without the projection of how businesses will react or how the spending habits of people will change and they will change dramatically more negative than a -2.5% growth rate decline.

 

The dollar amount lost by doing nothing and allowing current law to expire on January 1, 2013 and then tax rates go up 5% on every one who works and or pays taxes. it will cost the American workers and the rich $450 billion total and 150 billion in spending cuts totaling $600 billion then my estimate of job losses of 5 times the 700,000 jobs or 3.5 million jobs lost and the job losses will happen as fast as the money disappears from paychecks every week. The moneys just not there anymore for us to spend or save as it is taxed away at a rate of $1.2 billion a day from higher taxes to everyone. I want to repeat this part and make this clear, this is already the law, congress doesn’t have to vote on anything the existing laws will allow this to happen January 1, 2013 and congress doesn’t need to vote on anything it’s automatic. Next is why a deal will not be made and everyone working will get the 5% tax increase unless you move out of the country or your state succeeds from the union which neither is likely.

 

The political blame games and the real goals of the Democratic Party are why no deals will be made and why we will go off this fiscal Clift or so-called taxmageddon. This will be once again blamed on the republicans for what the democrats did. (There’s a 100 year history of this) The progressive, liberal democratic parties goal has been and still is to destroy the constitutional America we know and change us into a socialist dictatorship (I believe all the evidence shows we are already a socialist dictatorship and have been the last 3 years and 10 months and even possibly the last 12 years) and doing away with the constitution and replacing it with a communist constitution and this taxmageddon is exactly what the democrats need to do that and they will try to make it look like the republicans fault (this is already being done) and the lame stream liberal progressive socialist media will help them do it with their normal lies and disinformation.

 

Here is what to expect in the next 47 days. A lot of grand standing by democrats telling you conservatives economic policies are why the economies is so bad and its Bush’s fault even know the democrats have controlled congress for almost the last 6 years.

 

It’s at this point I want to inform and or remind everyone who reads this. The democrats have now controlled congress for 5 years and 10 months the reason the economy went off the Clift and the banks collapsed in 2008 was under the control of the Democratic Party for 21 months it was not the Republicans it was the democrat controlled congress that did it by their actions or lack of actions. To believe otherwise means you have been misinformed and you believe the lies of the liberal progressive news media.

 

The democrats didn’t inherit this economic mess they caused it. http://wp.me/pO1Ho-9w 

 

So if you still think this was all done by Bush your eating the little balls of crap the liberal media has been feeding you for your entire life and the last 6 years. All you need to do is a search for congress January 2007 to 2012 and you will see the democrats have controlled everything for the whole time period and then blames republicans and Bush for what they did. To say well that’s just politics does not make it right and it doesn’t fix the mess we are in. If they are getting away with these lies it’s because some Americans like those voting in democrat party for the democratic party are allowing them to get away with it. I don’t get my news from fox I seek the truth always this is the real no spin zone. I go to the federal record and look at the numbers and if you really want the truth it’s in the numbers not the news media they all sound like parrots to me spinning their stories as they see the truth with 10 different versions or opinions about the same story and none of them are right.

 

Facts compared to opinion and views. The glass is half full or is it half empty? No matter what you opinion or view is; the same amount of water resides in the glass. its math and math is not an opinion or a view. This goes to the next part the historical events of the past that can give us a clear picture of the possibilities and the near term effects of economic events like taxmageddon.

 

I have seen many economist discuss this $450 billion tax increase like it’s a good thing and the value of the dollar will increase because the deficit would shrink and that’s would be a good thing under normal text-book economic conditions it would be, except for the facts they seem to forget that we would definitely go into a very deep recession or depression from a $450 billion tax increase and while we have a deficit of $16.4 trillion hanging over our heads that’s not good for bonds or the value of the dollar if we are borrowing $600 billion while the economy is shrinking at a rate of 3% and could quickly go 6% negative GDP  it is likely under these conditions no one will loan us any money and people who hold our bonds would sell them very fast causing a panic sell off or a crash in the bond markets.

 

This has happened before in 1980. I can tell you right now when the economy starts to decline and go into a recession under the new much higher tax rates that what the economist are telling you say it’s a good thing is idiotic and that’s being kind. As the whole dynamics of the entire economy changes very quickly in economic declines the stock markets and bond markets will change and go into a severe decline and bond markets will be up for a few days maybe and then be sold off to cover losses in other stock markets and commodities markets this is always a worldwide event and everything will all change dramatically as well. None of it will be good. It will all be bad news (do you have a 401-K) and even before the first dollar in higher taxes is stolen away from the rich, the middle class and working poor this will unfold and become history. When this happens and it will, the economists college degrees can all be thrown out the window or used as toilet paper because nothing works in severe declines. I have been in 3 severe economic declines or crashes as a business owner and an investor.

 

Currently what gives the dollars or the bonds the value they do have is the confidence that the government can pay the interest on the debt and that confidence level all changes if we go into a recession. Confidence is nothing more than a thought and as quick as we can change our minds or in one day that confidence could disipere and this could cause a second bond market collapse worse than the one in 1980 because the debt is 32 times larger than in 1980

 

The Bond Market Collapse of February 1980 The time is November, 1979; the place, the White House. Like in November 2012, a dark financial cloud hovers over Washington — not only fiscal troubles, but also the threat of hyperinflation.

 

President Jimmy Carter and Congress have been gridlocked for months, unable to deal with the brewing storm. Unlike November 2012, the next presidential election is a year away. But investors don’t wait for the ballots. Nor do they have to. They begin issuing their sell orders immediately, venting their wrath primarily in the U.S. bond market by dumping medium and long-term U.S. Treasury securities. Treasury bond prices collapse, while interest rates surge. (We are set up for this perfect storm once again triggered by taxmageddon)

 

The tipping point comes on February 5, 1980. That’s when Treasury bond prices fall so far that their yields surge above the 11% level the all-time peak reached during the Civil War. “Faced with a prolonged buyer’s strike,” says one bond market pro, “we decided to throw in the towel and get yields up to a level where some cash buyers might be shocked off the sidelines.” But the next day, panicky bondholders begin unloading bonds at any price … and there are still few takers even at record interest rates everyone is still selling. The selling is so intense that all except two of the largest, best-capitalized bond dealers on Wall Street Merrill Lynch and Solomon Brothers effectively abandon their market-making role.

 

Now, it’s no longer merely a case of a price collapse. It’s a market collapse in the literal sense of the word: The dealers themselves are packing up and going home! By February 19, the collapse gathers even more momentum, as Treasury bonds lose over 5% of their face value in a single trading day!

 

Investors aren’t just shouting their protests from the rooftops. They are shutting down the market for U.S. Treasury securities, making it impossible for the U.S. government to borrow the money it needs to stay alive — and to avoid defaults on maturing debts. 

 

Result: With Paul Volcker (idiot) at his side, President Carter (another idiot) acts, announcing an anti-inflation bombshell: An unprecedented package of CREDIT CONTROLS that clamps down on virtually all forms of credit. (Dodd-Frank bank regulations will have same effects) The U.S. economy is pushed over a cliff and into a tailspin. Carter’s chances for re-election are doomed. But the bond market recovers and the U.S. Treasury is able to resume borrowing. 

 

But this all happened when the total of all federal deficits was about $ 500 Billion and now its $16.4 trillion anything even ½ of that historical recount would destroy the country and the dollar. Inflation ran between 12% and 15% in that period from 1977 to 1982 and bonds sold are governments borrowing money to finance the spending of money they don’t have. Just imagine if this only in part happens in such a weak economy and with borrowed money amounts $16.4 trillion and a need for a least and additional $50 billion a month after taxmageddon. While at the same time the economy is in a steep decline with a president that’s adverse to business. (The perfect economic storm that will end America) This also really screws up all the CBO estimates of the impact of the recession caused by taxmageddon and things will get a lot worse than there projected declines. The economy is always a moving target.

 

It was massive deficits of that time period that caused this to happen and those deficits were only $50 billion to $75 billion a year and now there over $1 trillion a year. This extremely high 16% interest rate at the peak is what the market set is the sacrifice that investors demanded in order to kill the threat of hyperinflation or the extreme devaluation of a currency. It really never worked but they won’t tell you this because it makes both Carter and Volker look like the idiots they are. Inflation remained high and the higher interest rate had only one purpose atract money to finance deficit spending. The higher interest rates fueled inflation in higher cost to barrow money that doest reduce cost it increases cost thus inflation increases. Liberal progressives always get it backwards. This is what Washington ultimately delivered. That at least in part will happen with taxmageddon coming in just 7 weeks. (Merry Christmas)

 

The general notion here is that, given the root causes of our economic distemper, rampant financialization, over-leverage and over-indebtedness, a politically dominant parasitic banking sector, an aging population, over promised entitlements, a financial business model based on fraud, Federal Reserve monetizing of debt, and a dysfunctional political system, to mention only the top of the list how can the USD appreciate in real terms? It cannot! It only has one way to go and that’s down. There only needs to be a trigger to set this whole decline into motion and I believe its taxmageddon.

 

This is how investors play the markets and why the dramatic decline or a crash will become obvious in the next 45 days or less. Businesses and market players make their decisions based on future projections of business activity and profits or the lack of profits. All market investment is determined by future projections or guesses of economic activity 6 months before they accrue not afterwards. You can expect a crash or at least a major correction of a few thousand points in the next few weeks and up to the week before January 1, 2013. Just like the decline after the banks collapsed in September 2008 this decline will continue well into 2013 just like the one in 2008.

 

Either way whatever happens in Congress the democrats will not make a deal because they want the economic collapse. They want the crash and they need it because democrats want the country to end as we know it so they can abolish the constitution. Making a deal with the democrats and Obama will not happen and their actions and the long history of changing constitutional law through the Supreme Court in the last 100 years and especially the last 4 years of ignoring constitutional law and playing dictator or King at every turn should prove that to people who have been paying attention Democrats hate the constitution.

 

Liberal progressive democrats have worked hard to circumvent the constitution and make unconstitutional law legal through the courts. It’s a term called judicial activism. This entire deal making process will be like trying to negotiate with a terrorist that wants to kill you, it’s a useless endeavor. Democrats’ have a long history of behavior that never changes in the liberal progressive Democratic Party. So why would any sane reasonable person expect that to suddenly change now? Liberal, progressive, Democrats want an economic collapse.

 

The conservative media will keep doing what they always do giving the benefit of the doubt to the liberal democrats and they will hope and or wish that Obama and the democrats will find a middle ground or a compromise with republicans, but the last 4 years of their actions shows that doesn’t fit Obama’s or the democrats play book. It’s always their way or the highway anything else is just imaginings and hopeful thinking so far hope has gotten us into this horrible position. The only compromises made have gotten us to the current fiscal Clift otherwise known as taxmageddon everything else has been my way or the highway with the democrat’s control of the senate and Obama. I think the democrats set America up perfectly for total economic destruction with an expiration date January 1, 2013

 

You can’t make a deal with the devil and expect anything good to come from it. I don’t think John Bonner will make a deal with the devil and if he does there’s a price to pay either way all Americans will lose no matter what our politics are.

 

What you are about to witness few weeks and months no one alive has ever seen before. This will be way worse than the great depression or the civil war. Hell on earth is what is coming and it’s not years away it’s only a matter of weeks and months and I repeat it’s not years away. To think this destructive pattern of the democrats’ and Obama can continue and Americas economy can survive 4 more years is just wishful thinking.

 

You can Hope I am wrong as I really hope I am wrong, but I said in back in 2004 and in my book 2012 that came out in November 2009 this president Obama would be the last president of the United States and so far I was right. From 40 years of observing politics and studying political history. I understand how a liberal thinks and they don’t use logic. This lack of logic is why all their ideas and policies always fail it is a form of insanity and that’s why what I say here may not make any sense to a sane person but their is no logic to there thinking it is insanity.

 

We don’t have 4 more years under any president or any dictator. The book 2012 explains it all. I said in 2009 it would either happen in 2012 or by the middle of 2013 and now we are just weeks away. You will see this unfold in the next 6 to 7 weeks in the stock markets as I expect a 2500 point correction from the September highs and so far it 1000 points down with 1500 to go and it will get a lot worse in early 2013.

 

I really hope I am wrong and I know you do too.

 

By the way very soon after taxmageddon and I mean very soon after we fall apart, the real Armageddon between Israel and Iran will start. First it will be conventional weapons but it will escalate quickly after other Arab countries join Iran in an all out WAR and an attack on Israel. Israel is surrounded by nothing but enemies with combined armies in the millions and with no allies. Regardless of what Democrats say or Obama he will not back Israel, Obama is a Muslim he will side with the Muslims. If attacked by multiple countries at one time Israel will have only one choice and that’s nuclear weapons = Armageddon. Israel has claimed 80 nuclear weapons and that’s enough to destroy all the Arab or Muslim countries major cities. The deadline for this is March 2013 set by Israeli Prime Minister Benjamin Netanyahu. Here it comes! 200 million dead in one day is very possible with 80 nuclear weapons and the real sh-t hits the fan.

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There has never been a time in America’s history the evidence has been so strong and so out in the open for the charge of seditious treason. The liberal, progressive Democratic Party has done or tried to do everything in their power imaginable to hurt the economy and the American working class citizens.

The liberal progressive Democratic Party has intentionally tried to undermine the constitutional republic from within the governing bodies of the house the senate and the presidency. I will list the extensive damages they have imposed or tried to impose on the working class American citizens since they took control of the house and the senate in January of 2007.

Not properly regulating the banks.

Democrats Barney frank and Chris Dodd’s Failure to regulate the credit default swaps arm of the banking industry even know they were warned 17 times on the record by many republicans congressmen, president Bush, Alan Greenspan and John McCain who actually wrote a bill to stop credit default swaps in 2006 but it never even got to the floor for a vote because the chairmen of the banking committee Barney Frank wouldn’t allow it to. Now we have a zombie banking system that uses most of its available money to finance federal deficit spending by purchasing debt bonds rather than making loans to the public. This is why the economy is stagnant and not going any ware.

Regulations to control small business just like in a fascist government.

Democrat’s passed multiple bills to regulate and control the private sector small businesses that normally provide 70% of all the jobs. This was done in the identical fashion that the fascists under Mussolini’s government wanted to run their version of socialism in Europe. This is also very similar if not identical to Hitler’s national workers socialist party and how they would control privately owned businesses under Hitler’s regime through heavy regulation. Nancy Pelosi (D – CA) started this as soon as she became the speaker of the house in 2007

 I find it moronic that liberals try to tag republicans as being fascist when there’s not one thing in the republican party of Abraham Lincoln that even looks remotely like what the liberals progressive democrats practice which is fascism and Nazism, which are both based on socialism and they all came from Karl Marx communism.

Federal out of control deficit spending

The trillion dollars plus self-created Federal deficit spending by the liberal democrats was done as soon as they passed their first budget in April of 2007 for the budget year 2008 which ended September 2008 the month the banks collapsed. The media and what could be termed as common knowledge is in fact nothing more than the normal disinformation put out by the liberal fringe media. The general public still believes that the huge trillion-dollar deficits are the republicans fault but there’s no evidence of that except thousands of articles written by the great deceivers the liberal progressives in the media and the democrat party.

The records of the CBO, the federal reserve and the department of labor and statistics all show that it was the first democrat controlled congress in 2007 that blew up the budget by $1 trillion in their first budget as soon as they got control of spending and 18 months before the banks collapsed. (Seditious Treason)

Liberal progressive democrat’s refusal to cut any federal spending or any government program is lunacy and will lead to the demise of the currency stealing away all Americans wealth and savings through hyperinflation of our currency. We are barrowing or printing 43% of all federal spending and the democrats insist we need to do more spending. (Seditious Treason)

Republicans have voted unanimously against these out of control spending bills. Republicans had spending almost under control the last year they passed a budget it was 161 billion and now its $1.6 trillion or 10 times what the last republican budget deficit was. So how can anyone but an ill-informed person or a lying liberal make the claim that it’s the republicans fault, seek the truth I always do and you should too.

If I wanted to destroy the country from within I would do exactly what the democrats did from January 2007 to 2011 (and they are still trying to do) while they were in control of congress. (Seditious Treason)

Immigration laws

The federal government has been ignoring immigration laws and constitutional laws by refusing to protect the boarders of our country. We have been invaded by a foreign country and we have a government that refuses to repel that invasion. These 11 million illegal invaders are illegal and are stealing jobs away from Americans by the millions because of the policies of the liberal progressive Democratic Party. What part of the word illegal don’t they understand? (Seditious Treason)

Every time a state passes its own laws that mirror federal immigration law the department of justice sues the states. There have been six states so far that have passed their own immigration laws and Obama’s justice department has sued all six trying to stop the states from enforcing mirrored federal laws to protect their boarders and protect American citizens from an invasion of foreigners. (Seditious Treason)

I just can’t buy that crap line about Americans won’t do the work that they do because my whole family has been and still does all the things the illegal’s invaders do. They have beaten the prices down in the construction industry to the point it’s hardly worth being in it. I am American Irish and my family came from Ireland with the first settlers in the early 1700s and my family has been here since before America became a country and I do what politicians say Americans won’t do. They are so full of shit! I demand an apology!

Healthcare

Obama’s, the liberal democrats and Mitt Romney’s Healthcare

Obama’s Healthcare bill passed in 2010 has already cost the American people about $500 billion in higher premiums paid to insurance companies over the last 2 years. While the democrats promised this would bring the cost of insurance premiums down the opposite has happened and prices have skyrocketed. (Seditious Treason)

Let see how much this hurts the American people by doing a little math and looking for the logic in passing a mandate to force people to buy healthcare insurance.

The healthcare bill advocates and Nancy Pelosi makes the false claim it’s going to insure 36 million people but that’s not true. Here is what it really does! It forces 30 million of the 36 million uninsured people to purchase health care insurance or pay a fine. The 30 million forced into the system and the 180 million already insured will pay for the 6 million that can’t afford healthcare insurance. So you are going to force a total of 210 million people to pay for the insurance of just 6 million people. There is no logical explanation for this lunacy! If liberals want this kind of socialism make them pay for 100% of it, we know who they are.

This is nothing more than a power grab to get complete control of the American economy. (What’s left of it?) The democrats have passed so much legislation to regulate all sectors of the economy with this healthcare bill added governments now have it all. The Federal government already controls $3.8 trillion of the economy. This healthcare legislation gives them control of an additional $2.1 trillion more. The states have control of $1.8 trillion and when you combine all those numbers together the governments now have control of $7.7 trillion of the economy in a $15 trillion economy and these adds up to they now control more than half of all the money and people wonder why there aren’t any jobs. What they don’t directly control they control by heavy regulation and that’s what fascists do to control their economies. That didn’t work either ask Mussolini oh that right he’s dead they hung him.

Where is there any logic in all of this? If your one of those people who thinks it’s a good idea to force 210 million people to pay for some one else’s healthcare you probably don’t pay for your healthcare or you don’t have any and you want some free stuff or you may think money grows on trees or just falls out of the sky. Maybe it comes from Obama’s stash of cash or perhaps the money comes from leprechaun’s in fairy like Irish folklore.

I also want to remind you this has already cost the American people $500 billion in the last 2 years and before any of the 6 million who are to be covered by this mandate will benefit from it. This will cost another $500 billion or a total of $1 trillion price tag in higher insurance premiums before anyone gets a dime of benefits in 2014. This doesn’t include any government deficits that are now being estimated to add at least another $1 trillion in deficit spending over 10 years once benefits are being paid out. This is both insanity and Seditious Treason.

Crap and tax

H.R. 2454: American Clean Energy and Security Act of 2009

This is the so-called Waxman-Markey cap-and-trade bill that got passed in the House of Representatives but never passed the senate. Even know democrats had a supper majority in both the house and the senate they didn’t need one republican vote and still couldn’t get this piece of crap through.

Some of the basic costs of this bill that would hurt the American people were as follows: it would raise gasoline prices 77 cents a gallon and diesel 88 cents a gallon by a direct tax adding to existing taxes. It was said that electric bills would go up 90% (How is that good for America?)

We have seen what $4.00 gallon gasoline does to the economy. Why would any sane person want to intentionally increase the cost of gasoline by 77 cents? My point is dual they are insane people and they are working directly against what’s good for the working class Americans the backbone of what makes this country work. Who are the people who already pay for all the wealth redistribution we already have? The American private sector worker and tax payer!

Liberal, progressive Democrats are trying to destroy us from within. (Seditious Treason)

In each of the above mention items pay a special intention to this. None of what the democrats have done or tried to do over the last 4 years is good for the majority of the American people. The very small percentages of people who have or would benefit from the programs are small and the cost in trillions of dollars is unbelievably huge, inexcusable and unforgivable.

The democrats plan was and is to pass costly legislation one thing building upon the other with huge price tags until all of them combined would waste and cost so much money the economy can no longer sustain itself and collapse. They have tried to do this with government spending and with heavy regulations on small business to slowdown the economy. This is what all of the above adds up to in dollars when you do the math it eventually becomes an impossible equation for the country to survive and the economy implodes. (Seditious Treason)

I will say it again here if I wanted to devise a plan to destroy America from within and without firing a shot and with no military. I would do exactly what the democrats have been doing and continue to do. That is the definition of seditious treason. Why hasn’t anyone of note on the republican side made this charge publicly or in a court of law?

Here is more peice of common sense evidence that the charge of seditious treason fits the actions of the liberal progressive Democratic Party. It has been said by me and many other economists in order to fix the country we have to undo all the democrats did in there 4 years of controlling the House of Representatives, Senate and the presidency. Logic dictates if this is the case and it is that if everything they did has to be undone to fix the economy then it really was all bad for the people, the economy and the country. (Seditious Treason)

Did Liberal progressive democrats do all this on purpose or are they just that stupid? This is a question I am not sure about I would ask your help as many heads are better than one.

To say the democrats did this on purpose implies intelligence on their part and I have a reluctance to give them credit for any intelligence. But then there is the other possibility and that’s they are intelligent enough to devise a plan to destroy the country, but don’t have the wisdom to see the consequences of their actions and no idea how to create or fix what they destroyed.

 

This is the exact law describing seditious treason.

Whoever knowingly or willfully advocates, abets, advises, or teaches the duty, necessity, desirability, or propriety of overthrowing or destroying the government of the United States or the government of any State, Territory, District or Possession thereof, or the government of any political subdivision therein, by force or violence, or by the assassination of any officer of any such government;

or Whoever, with intent to cause the overthrow or destruction of any such government, prints, publishes, edits, issues, circulates, sells, distributes, or publicly displays any written or printed matter advocating, advising, or teaching the duty, necessity, desirability, or propriety of overthrowing

or destroying any government in the United States by force or violence, or attempts to do so; or Whoever organizes or helps or attempts to organize any society, group, or assembly of persons who teach, advocate, or encourage the overthrow or destruction of any such government by force or violence;

or becomes or is a member of, or affiliates with, any such society, group, or assembly of persons, knowing the purposes thereof – Shall be fined under this title or imprisoned not more than twenty years, or both, and shall be ineligible for employment by the United States or any department or agency thereof, for the five years next following his conviction. If two or more persons conspire to commit any offense named in this section, each shall be fined under this title or imprisoned not more than twenty years, or both, and shall be ineligible for employment by the United States or any department or agency thereof, for the five years next following his conviction.

As used in this section, the terms “organizes” and “organize”, with respect to any society, group, or assembly of persons, include the recruiting of new members, the forming of new units, and the regrouping or expansion of existing clubs, classes, and other units of such society, group, or assembly of persons.

–18 U.S.C. § 2385: US Code – Section 2385: Advocating overthrow of Government

http://codes.lp.findlaw.com/uscode/18/I/115/2385

EFFECTIVE DATE OF 1956 AMENDMENT

Amendments by act July 24, 1956, as applicable only with respect to offenses committed on and after July 24, 1956, see section 3 of act July 24, 1956, set out as a note under section 2384 of this title.

 

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For the real state of the American economy there are only 3 items to look at GDP, Inflation and Unemployment. Looking at these 3 major reports within the government documents you can find out why there is no recovery and no jobs. (And why there never will be a recovery)

GDP – minus Inflation = Unemployment and jobs or no jobs

The GDP headline numbers are not inflation adjusted numbers. Once you match up the GDP and the inflation you quickly find out why there isn’t any job creation.

The latest report on GDP growth was 2.5% for the third quarter of 2011. The latest report on CPI inflation was 3.9%. This adds up to the inflation adjusted growth of GDP is negative 1.4% – not positive. The Producer Price Index rose 0.8 percent in September and that in one month x 12 = 9.6% base on a whole year.

This is also using the seasonally adjusted headline inflation number and not the unadjusted true inflation number. That last unadjusted inflation number up to September 2011 is 10.5% and it’s on page 3 of the inflation report (see URL below) put out by the department of labor and statistics which shows a graph where it says unadjusted inflation rate. If we consider that number 10.5% and deduct it from the growth rate of 2.5% the economy is shrinking or negative – 8.1%

BLS report dated release Tuesday, October 18, 2011 See Chart 4 on page four 12-month percent changes in the Producer Price Index for intermediate goods, not seasonally adjusted: September 2010 – September 2011

http://www.bls.gov/news.release/pdf/ppi.pdf

Something you may find very interesting in this chart may be that inflation has doubled in the last 6 months and has been as high as 11.6% and this number is more in line with what the American people have experienced as no one believes the inflation rate is only 2% to 3% for the whole year.

This is what happens when governments flood the system with trillions of dollars in unearned paper money or digitized money and its called inflation

Here is why there are no jobs.

Barack Obama and the Liberal progressive Democratic Party make claims that 2.5 million jobs have been created since BO took office. That is just not true and there is no evidence of any job creation in the monthly reports since BO took office and the $867 Billion stimulus bill has been passed. Debbie Wassermann Schultz says 3.6 million jobs created (Which Is It?) But there’s no proof of their statements in the employment reports either. The fact is we had 142 million jobs in February 2009 and we just got back to 140 million jobs in the last report and only because of a change made in who and what they count as a job and I will explain why there has been zero job creation in the last 12 months.

In January of 2011 the department of labor and statistics started counting self-employed incorporated and unincorporated as employed. This immediately made the total number of jobs on page 4 line 4 of the January monthly report release date February 3, 2011 in the total number of jobs column jumped by 700,000 jobs from the December 2010 to the January 2011 report and this did not show up in the January headline numbers but it did show up in the headline numbers in February, March, April and May 2011 headline numbers.

In Those 4 employment reports did total nearly 700,000 just like the page 4 numbers jumped in January 2011 report. Now you know why those 4 months looked like we were coming out of recession and then the following 4 months June – September 2011 looked like crap. They are fixing the headline numbers to make things look better than they are by counting self-employed people as employees.

This report shows the change made by department of labor and statistics started adding self-employed to that jobs number in January of 2011 see January report release Feb. 3, 2011 top of page 4 

http://www.bls.gov/news.release/archives/empsit_02042011.pdf

 The economy only grew at .4 % in the first quarter and only 1.3% in the second quarter and there telling the American people 700,000 jobs were created in the very same period! At the same time the inflation rate is several times higher than the growth rate.

In the last 4 months the total number of jobs added comes to 100,000 jobs for an average of 25,000 jobs a month. Our economy needs to be adding at least 250,000 jobs a month. If you can believe the bogus government numbers or if the economy is creating any jobs at all we are at 1/10th of what we need. Since they are now counting self-employed as employed anyone starting an eBay business and really is an unemployed person is counted as employed and only 1 in 1000 of these people ever make any profits.

(The last employment report claimed 105,000 jobs but that included 45,000 Verizon workers that came off strike so the real jobs number is 60,000 for September not the 105,000 headline number)

Another way to look at the employment situation for the period of the past 4 months and how bad it really is we needed 1 million jobs and we only got 100,000 jobs and that means we are 900,000 jobs short of the target in just the last 4 months. Any way we look at the numbers there real bad.

We have been in a jobs recession for the last 47 months. Just the number of people entering the work force at 125,000 a month is 5,875,000 million jobs needed. Every month that goes by we are falling further behind and the numbers get bigger.

This is the liberal progressive democrat’s economy as they had control of congress since January 2007 and 21 months before the banks collapsed in September of 2008.

The real unemployment problem and the true unemployment rate are done by using information in the monthly reports. I didn’t make this up it’s all in the monthly employment reports no one seems to be able to read any further then the headline statement.

There are 14 million unemployed with a 9.2% unemployment rate.

Adding 8 million that have given up looking for work and are no longer counted there are 22 million unemployed not counted because the government says they have given up looking. Just adding this brings the unemployment rate to 16%

This 8 million did not really give up looking they have just run out there 99 weeks of unemployment. We have been in a jobs recession for 47 months now or 188 weeks. If you have been paying attention since the very beginning of this self created mess we lost 8 million jobs from the outset prior to and just after the bank collapse in 2008. Do you see the numbers matching up, they are identical. Almost 4 years have passed and you can only receive unemployment for 99 weeks and that’s 1 year 10 months and 3 weeks.

Adding another 9 million part time employed to that 22 million there are 31 million total unemployed and partially employed and that’s a 23% unemployment rate almost the same as the height of the 1930s great depression said to be 25%.

This is all found in the monthly reports and no one in the media right or left seems to notice the total of the three categories of unemployed, the unemployed that have given up and the partially employed and I will repeat that total is 31 million people.

The reason for no jobs comes from the top part of this article and the economy is shrinking. The reason it’s not being reported is, it’s all politics. How bad would it look for BO and the liberal, progressive democrat party if every time they talked about jobs and reporting the real number of unemployed being 31 million people or a 23% unemployment rate. That would be real bad for BO and that dumb ass believes his own bull shit.

Using the GDP and subtracting or adjusting for inflation no matter which number we use 3.9% or the unadjusted inflation rate of 10.5% inflation in the currency explains why the economy isn’t creating any jobs. These truths must be told and the public needs to prepare, this house of cards could fall down at any moment.

As retail numbers and other economic reports come out at small increases of 2/10 % to 4/10 % if you just match them up with the monthly inflation numbers you will see they match almost perfectly and often lower than the inflation rates. We are not buying more products we are just paying a lot more for the same thing. That’s what inflation is! a loss of buying power in the paper currency.

The reason the economy grew at a faster rate in the third quarter at 2.5% is all the inflation in the dollar which is also accelerating but at a much faster pace. Look at that chart again at the unadjusted inflation of rate 10.5%. Just happens to be increasing with the so-called growth rate of the economy. For the proof Just click on the links they should open in a new page PDF File and look at table A-1 page 4 lines 4 were it says total number of jobs

THE EMPLOYMENT SITUATION – SEPTEMBER 2011

http://www.bls.gov/news.release/pdf/empsit.pdf

(The economic recovery bill was January 2009)

September 2011- 140,025,000 jobs

Its 33 months since BO took office and the $867 Billion stimulus plan passed January 2009 and there are 2,074,000 less total jobs in the economy now according to department of labor and statistics. We already had a second jobs stimulus of $50 Billion that didn’t work either and now BO wants to try a failed policy for a third time! That’s insanity! The bottom line is this policy has been tried dozens of times since the creation of the Federal Reserve and in Europe and it never worked one time.

If we look back to the month the stimulus bill was passed the situation is a whole lot worse.

Total number jobs January 2009 = 142,099,000 the month stimulus bill was passed

http://www.bls.gov/news.release/archives/empsit_02062009.pdf

Total number jobs last report September 2011 = 140,025,000 jobs

Total number jobs lost since BO took office 2,074,000 that’s 2 million jobs lost since the stimulus there have been no job gains. There counting backwards on purpose using the negative as a positive to deceive the American people but that only works on democrats now. The explanation of how BLS get their crazy head line number is in the reports and it’s all plus or minus of all kinds of moving targets.

 For the proof Just click on the links you should open in a new page a PDF File from the department of labor and satistics and look at table A-1 page 4 lines 4 were it says total number of jobs

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How stupid is Nancy Pelosi? She recently made a statement or implied that the government should just hire the 14 million unemployed. This article will prove she’s a complete idiot.

Nancy Pelosi and her ilk also like to use that word Investment. liberal, progressives democrats like Nancy Pelosi want to use and call government spending and its all deficits an investment in the future. This should also explain that what liberal, progressive’s democrats are actually doing by their actions is destroying any possibility of a future for the country.

There is a so-called cliché that government only steals wealth government cannot create wealth. It’s not a cliché or a bumper sticker slogan, it just a simple fact of economics and I will attempt to explain all these facts here also.

Most working tax payers already know this is true. They see the proof as 25% to 35% of their gross pay check is taken away by all the governments’ taxes. They see it every week in withholding taxes and the money disappears from their pockets and into the seemingly bottomless pit of governments taxing and spending.

Government’s state and federal don’t create jobs without first getting the money from you the tax payer, with their many taxes on everything you buy weathers its services or products.

Government workers pay taxes but again that money came from your pockets first and from the taxes you pay, their wages are paid. All money comes from somewhere and goes somewhere, even if you stuff your mattress with cash the money is somewhere.

In reality the money a federal or state worker gets in his paycheck and the taxes he pays to the government first came from taxes paid by you.

This means you the tax payer not only pay your taxes you also pay the government workers salary plus you are also paying his taxes.

All of a federal or state worker wages is paid first by the private sector jobs taxes and corporate taxes.

If this offends a government worker it doesn’t change these simple facts. This is to prove the point that government cannot create a job without first taking the money from the private sector in some way. State governments can raise taxes or barrow money and the federal government can raise taxes, barrow and print money but it all comes from somewhere.

All money in the economic system at a given time comes from somewhere and it goes somewhere. There is only so much money in the economic system at a given time. The only way the public can create money out of thin air like the government seems to, is for you to be borrow on a credit card or get a loan at the bank and that’s a liability not an asset. Money you borrowed must be paid back. The money you can barrow is limited by your income (if you have any) and it comes from people who have saved money in savings accounts. The money a bank can loan out is limited by the deposits of money into the bank or money the banks barrow from other banks.

As the government adds jobs or social programs (Liberals call social programs Investments?) it expands the amount of money it needs to pay the new employees. This requires the government to raise taxes or barrow the money from the sale of debt bonds. This borrowing is called deficit spending and it is the shortfall of tax receipts.  Deficit spending is the difference between the amounts of money the government collect in taxes and the amount of money governments spend. In round numbers the current situation is the Federal government collects about $2.2 trillion in federal taxes and is budgeted to spend $3.8 trillion for 2011 or a deficit of $1.6 trillion, this is all in round numbers.

http://www.usgovernmentdebt.us/numbers#usgs302

When governments sell these debt bonds to finance their governments deficits either state or federal they go to the private banking system or to foreign governments that wish to invest their money in bonds for the interest income that is paid on these debt bonds. Once again the money comes from somewhere it doesn’t fall out of the sky or magically appear. (At least not under normal economic conditions)

When this money is borrowed by governments the money is no longer there for the private sector to barrow. This is why the private sector economy cannot grow. The government is putting QE 2 money into the banks and borrowing the money right back to finance the deficit thus it’s really just printing money to cover deficit spending. But this no help for the private sector economy as the QE 2 money is put into banks its sucked right back out by the deficits being financed.

This borrowed money is however expending the money supply in the system as they pay for all the government’s monthly obligations and the more money borrowed and put into the system the higher prices can be bid upwards because there is more money in the system. Higher prices are the outcome of excessive borrowed money allowing and forcing what we should know as inflation.

The more unearned or borrowed money put into the economic system the higher prices will go. Currently a lot of borrowed government money is being directed at the food stamp program (44 million people on food stamps) and thus food prices are rising rapidly. There are other factors contributing to higher food prices and this is just one of them.

Under normal economic conditions in a growing economy the general public would be borrowing the money to buy houses, automobiles and other personal assets to increase their standard of living. This money is no longer available in the quantities needed for economic growth because the government has been sucking the banks dry since May of 2008 with an average deficit and barrow of $130 billion a month and a lot more with off budget deficits added that are not reported to the general public. The off budget deficit money is still borrowed and shows up in the total yearly deficit numbers. The combined on and off budget deficit is an average of $158 Billion each month over the last 3 years.

This is why it’s impossible for the private sector economy to create jobs. You hear about record profits and money hording coming from the liberal fringe news media and on the business cable channels. But you are really being misinformed for political reasons. There are about 15,000 large publicly traded stock held companies on the major American stock exchanges. These companies may be doing well but what about the other more closely held 1,100,000 smaller businesses that are not traded on those major exchanges?

You never hear a peep about how the smaller businesses are doing and you won’t because the media is controlled by the liberal, progressive democrat party.

You will not get a clear picture of the true condition of the economy from any of these liberal fringe news media outlets, there just trying to sell stocks anyway. They are like any other salesmen they have a motive to lie to you and they don’t make any money unless people are buying and selling stocks. There always looking for the silver lining where there is none to be had. They don’t dare look inside the reports to see what’s really going on in the economy. They also wouldn’t tell you if they did look inside the reports. It would mean a severe cut to their paychecks if they told you the truth.

As the size of government grows and its need for money increases the harder it is for the private sector to expand because it has to compete for the existing amounts of money in the economic system. Once government needs for money gets large enough (like the current conditions) the private sector is cut off from that part of the money supply and can no longer grow because the money to grow the economy has been taken away and diverted to government spending programs.

If the government expenses get to high and take too much from the system the private sector economy shrinks and jobs are lost. This is where we are now and why in 3 years the economy hasn’t moved at all.

Currently there are approximately 5 million federal employees this does not include the military. There are about 14 million state employees, is it any wonder why we have so many problems in our country with state and federal deficits? 

There is a government worker for every six private sector jobs.

Then we have over 50 million people on social security receiving checks and there all either on Medicare or Medicare as well. This means for every 2.7 workers they are supporting and paying for one person on social security and paying for their healthcare. (I could go on but I won’t.) This is the main reason the deficits are as big as they are and we are borrowing 41% of every dollar the government spends in all categories.

There are over 500,000 elected government officials in county, state, cities and the federal governments. Is there any wonder why the problems are so big in our country and nothing makes any sense? Governments have become so big they are uncontrollable and it’s been out of control for a very long time. It gets worse by the day as we barrow $4 Billion every day just to cover the federal short falls in tax receipts. If you count off budget deficits it over $5 Billion a day.

So how do we fix it?

Some people say we should allow the taxes on business to go back to the higher tax rates when Bill Clinton was president, now let’s take a look at that. That sounds good to the average citizen who doesn’t understand how the economy works. Not understanding how the economy works doesn’t change the outcome of how the economy does work. You can’t wish things away or into existence in the real world but maybe in fantasy land you could. It’s like the truth no matter how hard you try to spin the truth, cover it up or lie about it, the truth is still there.

But it goes back to this: if you take the money from big business it also includes small businesses. The money is transferred from the pockets of employers into the hands of government. The fact is the small businesses and the large ones will lay people off to make up the difference not because there greedy as the media and the politicians will tell you; it’s for the survival of the business and they no longer have the money in their hands it’s been transferred to the government.

This higher tax rate for business is only $70 billion in tax revenue and isn’t even enough to be noticed in a $1.6 trillion deficit for 2011, the deficit would still be $1.53 trillion. The cost in jobs will be no less than 1 million lost and we still haven’t put a dent in the deficit, so this will not help it will only hurt the people who will lose their jobs.

If they did raise taxes there would absolutely be massive layoffs all over the country causing even bigger shortfalls in state budgets from those lost jobs. Forcing states to layoff even more state government workers. For every action there is a reaction and everything we do at this point has an extremely negative outcome. To date from December 2007 when the economy started losing jobs and up to July 2011 or for 3 ½ years not one thing has been done to help the private sector create jobs. What are they waiting for a collapse? The democrats are still in charge and have been since January of 2007. This is from 4 years and 6 months of democrat’s poor economic policies.

Then we have a lot of liberals and progressive democrats say raise taxes on everybody. It’s the same thing and 4 times worse when a lot more money disappears into the black hole of government deficit spending. If we did what liberals want to do and raise everybody’s taxes it would mean $230 billion in higher taxes on working people the real engine of what’s left of the economy and these even higher taxes on you and on businesses combined totals $300 billion that disappears from the private sector and we still have a $1.3 trillion deficit. So even if you get all these tax hikes either one or both it will not do anything for job creation and either one will most certainly make matters much worse. But the liberal, progressive democrats like it. Where is the logic in that?

Raising taxes on small business would force about 1 million jobs to be lost in the short-term and a lot more in the longer term. But raising taxes on the people combined with small business would absolutely lose about 4 to 5 million jobs adding to the already 14 million unemployed. Where is the logic in that unless they want to collapse the system?

The government can’t create any jobs with this new tax revenue. Currently there going to barrow the money to cover a $1.6 trillion deficit and the spending stays the same in either case. With the $300 billion from the tax increases which has the purpose of reducing that amount of borrowing to $1.3 trillion and this still doesn’t fix the massive debt problem, it’s still there. The $300 billion disappears from the private sectors pockets and the economy will react negatively by the $300 billion gone missing. The private sector will shrink by $300 Billion and that’s a negative – 2% of total Gross domestic product that just disappears.

A simple way of to explain this for an example is, take five $20 bills or $100 put it in your right pants pocket, than take one $20 bill and put it in your left pocket you still only have $100 in your pants and no matter how much you shift into the left pocket you still only have $100. This is why no matter what governments do state or federal, unless they can cut real spending and not shift money from your pocket to the pockets of government nothing will change and as a country we will continue this economic decline.

The real truth and the proof can be found in the monthly employment reports. The president and the liberal fringe state-run news media is lying about the 2 million jobs created. (Are you surprised?)The monthly employment situation reports show an entirely different job situation. The body of the unemployment reports shows that we have a net loss of 1.1 million jobs. There have been no net total job gains in the last 26 months since the economic recovery act in 2009 or since the bank collapse of September 2008 we are still in decline.

Employment situation report march 2009. See page 2 line 2 of the monthly data total number of jobs

140,887,000

http://www.bls.gov/news.release/archives/empsit_04032009.pdf

Employment situation report march 2010, one year later. See page 4 line 4 monthly data total number of jobs.

138,905,000 This shows a loss of 1,982,000 jobs, no gains as the media reports.

http://www.bls.gov/news.release/archives/empsit_04022010.pdf

Employment situation report may 2011 release date Friday, June 3, 2011 this is the latest report. See page 4 line 4 monthly data total number of jobs

139,779,000

http://www.bls.gov/news.release/pdf/empsit.pdf

This shows a net loss of 1,108,000 jobs from 26 months ago and no gains as the media reports to see why we have gained some jobs from 15 months ago see the reason in the next paragraph it is also a book-keeping trick.

I would like to show you more book-keeping tricks by the Federal government. Take a look at the January 2011 report. Here you will find the reason for the last 4 months of positive job numbers. It was in January 2011 department of labor and statistics started adding self-employed and counting them as employed like they were employees. This dilutes the true jobs picture and does not change the fact that even after doing this we are still negative 1.1 million jobs. The real number of lost jobs if they had not made that change is more likely 1.8 to 2 million lost jobs, not jobs gained.

See the top of page 4 of this January report Changes to Household Survey Data.

http://www.bls.gov/news.release/archives/empsit_02042011.pdf

This should prove to anyone with a smidgen of common sense that no matter how much money government taxes, barrows, prints and spends and even if government did hire 500,000 government workers over the last 3 years it takes away the total number of jobs in the economy as the money is shifted from your pocket to the governments pockets. The money is taken from higher taxes or it comes from borrowing from the banks and then it’s no longer available to you or the private sector economy.

As the government documents show right up to the last report we are negative 1.1 million jobs. This is after we have added $5.4 trillion in borrowed deficit spending over the last 3 ½ years and not one real private sector job has been created to date. We are still losing jobs in the total number of employed and by now you should understand why. I am not using book-keeping tricks, the news media and the government is.

Are we still losing jobs? It will be interesting to see the next report that’s released Friday July 8, 2011. We had a very weak report last month of a very weak 54,000 jobs added (self-employed) in May. You will find the truth of the number in the same way as the reports above. On Friday July 8, 2011 see the first table line 4 total number of employed and compare it to the last report and you will find the truth in the numbers.

This also proves Nancy Pelosi is an idiot she has no understanding of how a capitalist or a socialist economic system works. If you added 1 million employees to the federal government’s payrolls where does the money come from? It’s either taken in higher taxes or it is borrowed and adds to the deficit and that deficit has to be financed by the banking system which takes away the money for business to barrow and expand, thus creating private sector jobs becomes impossible. Nancy Pelosi is an idiot.

Nancy Pelosi mentality of idiocy is what Republican speaker Boehner has to deal with in the senate and with the most Marxist president in the history of the United States. Speaker Boehner has to compromise on fixing the country or the economy and any plan of positive action once compromised will no longer be what America needs or wants.

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I have heard a lot of people scorn Republicans if they do raise the debt ceiling. There are many people who don’t understand what would happen if Republicans don’t. I’m going to try to explain it and show you what will happen if we do not raise the debt ceiling.

Pie chart of federal budget

 

Some may ask what is the federal deficit. It is the shortfall between the taxes collected and the spending of the federal government. You can see in the pie chart of the federal budget the left pie is the taxes collected and on the right is the much larger pie which is the size of the United States federal budget .

Currently we borrow 41% of all the money the federal government spends on government expenditures. There are seven major categories and federal government expenses. The four largest are part of our social systems and military spending has about half of its expense goes to pay for retirements and VA benefits. All this combined makes up 78% of the federal budget.

Here we take and break down what would happen in dollars if we cut all government expenditures across the board to match up with revenues collected from all taxpayers employees of companies, taxes that businesses and corporations pay. We pay a total of about $2.2 trillion in taxes and currently we are spending about $3.7 trillion a year. This is more than the pie chart shows but I will use the pie chart number to show the severity of our situations. The federal budget deficit for the year 2011 is estimated to be $1.55 trillion for the current budget year-end september 31 2011. This does not including the off budget deficit will talk about that later.

First let’s look at the big social programs. 20% of government spending is Social Security. If we cut back 41% of all programs this is what you or grandma’s checks are going to look like or if you are on social security. If you currently get $1600 a month then your retirement check would be cut back to $944 a month. If you currently get $900 a month it would be cut back to $531 a month.

If you think grandmas having a hard time now what you think it will be like with a loss of that much income every month?

Then there’s Medicaid and Medicare this is 22% of all the money the federal government is spending on health care. To cut this program of $800 billion by 41% you would have to reduce the spending level down to $472 billion. This would absolutely mean grandma and grandpa would die If anything serious went wrong with their health. More or less the level of quantity and quality would be reduced down to 41% of the current care for the elderly and a lot of them would just die.

This is what will happen if they don’t raise the debt ceiling.

Then we have the unemployment insurance welfare and food stamps and other entitlement programs this makes up 16% of federal spending budget. If you’re getting unemployment at $300 a week currently, a 41% cut would bring you to $177 week.

If you’re getting $400 a month in food stamps this would be reduced to $236 a month.

If your welfare checks are $400 a month it will be reduced to $236 a month.

Are you getting the picture yet? About 40% of our population is either partially or totally dependent upon government through their many different social programs.

Then there’s the defense spending.

The military spends about $350 billion on retirements and healthcare from military service. We spend about $700 billion a year total on defense and about half of it is taking care of the veteran’s health-care and retirement paychecks. If you were to cut 41% of the defense budget this would only leave you with $413 billion a year for defense. As you can see almost all this is taken up by the veteran’s health-care and retirement paychecks. There would be almost nothing left for the existing standing military of 2.3 million soldiers.

This would mean we have to cut and downsize dramatically from current level of 2.3 million men in the military and this includes the Air Force, Army, Marines and the Navy combined down to just couple hundred thousand because we would have to figure out a way to take the current 350 billion a year to sustain this army of 2.3 million and then do it with $63 billion instead of $350 billion. This would mean cutting existing military down to about 1/6 of its normal size. Distributing the money using straight-line math this would also mean that the 2.3 million soldiers would have to be reduced to 383,000 and then spread out into four different branches of our military services.

This would mean mothballing almost the entire naval fleet. I have read that it takes six men to provide logistics for one soldier to keep one soldier in the battlefield. This would mean taking the current military down to one or two divisions in the Marines and Army. This would leave just a handful of ships left out of a fleet of over 300 war ships we are currently supporting. More or less the bottom line is we would have a much smaller military or about half the size of that of Israel. Down to the size of a country with only 6 million people and we have 308 million people. What this means is we would not be able to defend ourselves at all. We would have to close down and withdraw troops from every base in the world and I mean every last one of them. We would also have to close down most of the bases in United States to meet this kind of reduction in military spending. Plus it would add another 2 million to the unemployment directly from all soldiers being taken out of military and many millions more jobs being lost from the bases being closed all over the country.

The other alternative would be to cut out all military retirements and all the health-care benefits leaving 20 million veterans with nothing. This all may sound ridiculous but it is a situation we are in. This is what will happen if we do not raise the debt ceiling and this is what I’m trying to get across to the people who think that we should just stop spending and put on the brakes and just cut everything by 41% so we can meet our budget. This is what it really means when you do the math.

I agree with staying within our means but I also realize the results of that action would be devastating to both people and the economy as a whole. This is what I’m trying to point out here. Not raising the debt ceiling would be economic doomsday.

If you take military retirements and reduce them by 41% and assuming a person getting a $2000 a month retirement check would be reduced to $1180 a month. If the person was getting $1000 a month retirement check would be reduced to $590 a month.

Even doing this you would have to cut the size of the military down to less than half of the size that it is. You would still have to withdraw all troops from all the bases around the world and you would still have to close down most of the bases in United States just to get the federal deficit spending down to a level the federal government could afford. We would still wind up with extremely small military compared the one we have now. The bottom line is we would still not be able to defend ourselves.

Healthcare in the military or VA benefits is in addition to the health care from the different social programs we have in United States. I have not been able to find any totals but since we spent $724 billion a year on Medicare and Medicaid and if you add the VA benefits for health care it probably would be coming very close to $1 trillion each year just for health care benefits adding all the different programs for healthcare. With Obama’s health care passed in 2010 this will just be increased more so in years going forward as the new healthcare Law and its regulations kicks in.

There would be many millions of jobs lost from dramatic cuts like this in the military there are many subcontractors that supply the military that would just go out of business and disappear. There are many military contractors that build weapon systems, fighter jets, planes and ships that would just completely close down and no longer exist.

Then there’s non defense discretionary spending and its $431 billion or 12% of total government expenditures. Reducing this by 41% leaves only $254 billion for non defense discretionary spending.

For the deficit reduction spending hawks they may say yeah let’s do it. But what are we talking about in job losses? We are talking about 14 million jobs that will be lost at minimum. When using a 31% labor rule and all this money would just disappear out of the economy. This includes the initial 9.3 million jobs lost from the actual dollar amounts that go missing and another for 4.7 million jobs lost from the incomes of 9.3 million jobs lost. This would bring the total number of unemployed in the United States and around 29 million people. This would also mean an unemployment rate in the range of 19% to 20% and is currently only 9.1%. This is from a much smaller work force and a much larger number of un-employed.

Not raising the debt ceiling would be way worse than the Great Depression of the 1930s. We have a much different situation in 2011 than we did in 1930. In the 1930s 90% of the population was self-sufficient. They were self-employed or farmers and only about 10% of population worked and lived in cities. Now in 2011 we have over 50% of population that live in cities. 98% of the population relies on a job either in manufacturing on the service sector. Only 2% of population is self-sufficient self-employed or farmers.

Another way to look at this problem and measured it is with gross domestic product. This is all the money spent and the economy in a 12 month period and this would go from its current estimated level of $15.2 billion and be reduced to a $13.7 billion spending level. This would move the country back to where it was in the 1990s as far as the number of jobs it could support and you would have to inflation adjust the dollar amount. This would also increases the deficit as always jobs lost  decrease the taxes collected and this would increase the unemployment insurance cost as that would increase from all the many millions of job loses.

These are all straight line numbers and are not taking into consideration all the other problems that exist in the economy. We already have a very weak banking system the government is bailing out the banks at a rate of 300,000 mortgage defaults a month for total of 3.6 million home mortgages per year. If congress did not raise the debt ceiling this would almost certainly cause a collapse of the entire banking system worse than in 2008 and there would be physical runs on the banks with everyone being scared they would want their paper money out of the banks and in just a few days they would just close the doors on all the banks.

This is what we face if the Congress does not raise the debt limit. it’s a lot more serious and complicated than I just want the government to stop spending money. It’s not all about you and what you want, it’s about the actual economic impact in the real world of the results of our actions or a lack of action.

The federal government with 41% cuts would be all but shut down. There would be massive riots and disruption in business activities if you cut social programs by 41%. This would create even more disruptions in the economy and create massive fear. This is what will happen if they don’t raise the national debt limit. This comes about after August 2, 2011 or just eight weeks if they don’t raise the debt ceiling.

For those that think we can just stop spending like turning off a light switch I wanted to show you how it would affect different sectors of the economy and the people who are the receivers of these different federal programs. You may say you don’t care just stop the spending anyway and you might get your wish. The bottom line is they have to raise the debt ceiling or the economy will collapse almost instantly. The very idea that we’re not going to raise the debt ceiling would almost certainly cause panic and a complete crash of the stock markets and in commodities markets and this would spread all around the world overnight and affect every economy including China ,Japan and all of Europe and the end game is very ugly.

What we really in fact do have is an economy that is being supported artificially by social spending. If we take away that $1.5 trillion in government spending will see the true condition when the economy collapses from these massive cuts. On the other hand this massive deficit spending cannot be sustained. We are in a box we cannot get out of. If we had 5 or 10 years to fix it we might be able to get out of this mess but we do not. We were put in this self-created box by the Democratic Party who took control of the Senate and House of Representatives on January of 2007 four years and five months ago.

Here’s a comparison of the total federal dollars spent in the 2007 budget. It was $2.7 trillion from the last Republican budget and in the 2009 budget done by the democrats just two years later it was $3.7 trillion and this was the responsibility of the Democratic Party. The 2008 budget was passed or supposed to be passed by april 15th 2007 and that’s the first budget the democrats passed and no one reports that even before the banks collapsed the democrats spent $980 Billion in there 2008 budget ending in september of 2008, this all started way before the banks collapsed.

This bloating of the federal budget was all done by the Democratic Party before the September 2008 bank collapse not after.

While being told for the last four years it’s entirely the Republicans fault is absolutely false. The truth of the matter is it was all done by the Democrats and the proof can be found hiding in plain sight in the normal monthly government reports put out by the Federal Reserve, the Congressional Budget Office, or the Department of Labor statistics. Look at the tables made from these government records, scroll down the page to see three different tables tracking government spending. The third table is the one that shows why the banks collapsed.

 http://tiny.cc/0j9ej

I just wanted you to know who did this and what happens if we don’t increase the deficit ceiling. One way or another we are so screwed. Just review the pie chart at the top its a picture worth a thousand words. We are in a position where we have to keep spending and borrowing and the alternatives is to just stop borrowing and spending and collapse our system. The democrats are the boggy man.

I have proof we were put in this position intentionally by the Democratic Party. You can see the pain that will be felt when more than 40% of population, 123 million people who are partially or totally dependent upon these different social programs created by the Democratic Party and what happens when they are greatly reduced or just go away entirely in a total economic collapse.

There is not enough time to grow the economy and fix this problem. The politicians and talking heads keep repeating how we’re going to go broke and I don’t think they really understand what broke means as we are already broke. Borrowing, printing or digitizing $1.5 trillion a year to pay the bills looks like we’re broke to me.

Go take a look at the website with tables I created all from government records showing that Democrats as soon as they got control of Congress put us in this position. I believe their intention was to make absolutely sure the Republicans would never take control of all branches of government again. Their plan was by making so many people dependent upon the government that it would ensure their absolute power over the people forever. It may work for the democrats if you look at the polls and I know they are fixed but B.O. shouldnt even be close and he’s still ahead in all on them

In the democrat’s arrogance and lust for power they will destroy the greatest nation in the history of mankind. There is always a price to pay; I wonder what their payment will be? I know but I can’t put it here. Go have a look at the proof that this debt problem was intentionally done as soon as the Democrats took power in January 2007. I made these tables from the government records to show the public and you won’t find them anywhere else on the Internet. The only way to verify them is to go to the records of the congressional budget office, the Federal Reserve and Department of Labor statistics. But it is hiding in plain sight.

 http://tiny.cc/0j9ej

GLENN BECK WARNS OF CATASTROPHIC EVENT & NEEDING TO STOCKPILE FOOD

http://www.youtube.com/watch?v=XzsJoVyidhU&feature=youtu.be

 

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I would like to clear up the lies coming from the liberal fringe news media. This is information no one else seems to have. I have heard no one report this so I am going to tell you the truth.

Democrats took control of congress in January 2007

Democrat’s first budget was from October 1, 2007 to September 30th 2008

Democrats first on budget deficit was $452 Billion

Democrat’s first budget including on and off budget was $978 billion

In the five months just prior to the bank collapse in 2008 the democrat’s deficit spending on and off budget totaled $683 Billion. I repeat in the period of five months May to September of 2008 just before the bank collapse of 2008.

This $683 billion in deficit spending is what broke the banking system not the greed of Wall Street that you have been misled to believe.

The banks collapsed on September 18, 2008 specifically from the Federal Reserve borrowing a record $136 billion a month in the five months prior to the collapse. This is almost 10 times more than they normally borrowed in the 2007 Republican budget. This took all the money out of the world banking system that was already stressed from a high interest rates imposed by the Federal Reserve which initially caused problems in the real estate market.

The troubled asset relief program otherwise known as TARP was almost exactly the same amount at $700 billion. This was meant to replace money back into the banks which had been dried out by that very entity the Federal Reserve. This was borrowed to finance the Democrats out-of-control deficit spending.

Hollywood made a movie so you would believe it was the greed of the banks and not the politicians fault.

It’s now 2011 and we are still working off of a democratically controlled congresses federal budget and the monthly average deficit is the same as it was five months prior to the bank collapse about $130 billion a month.

In the last three years and seven months of Democrats budgets we have spent more than $5.4 trillion up to May 2011. This is an average of $128 billion a month and it continues.

The Democrats and the liberal fringe news media also want to blame it on the Republicans but liberal Democrats were in control for 21 months before the bank collapsed in September 2008. This is all 100% the fault of the Democratic Party not the Republicans. The last republican budget deficit was $161 billion for the whole year of 2007. The republican 2007 budget was passed by April 15, 2006 while they were still in control of congress.

Presidents can’t spend a dime of tax payer’s money. Read the constitution the budget must originate in the House of Representatives.

Americans believed the liberal fringe news media that kept repeating the lie of the economy was really bad with 5% unemployment and a $161 billion yearly deficit. The American people voted in the 2006 election to give the democrats control of congress, they believed the lies of the liberal fringe news media and the Democratic Party. The lies and the deceit continue.

This should also prove to anyone with any common sense that government spending does not create jobs. We have spent $5.4 trillion in the last 44 months since democrat took majority control January 2007 and the economy is still where it was five years ago if you adjust for inflation. All the growth in the economy is artificially supported by massive deficit spending.

This massive amount of federal government spending of $5.4 trillion only proves that government’s deficit spending destroys jobs and it also destroys wealth as it creates high inflation, high food prices, and high gasoline prices.

By the end of the Democrats September 30, 2011 federal budget year the total federal debt will be $6.4 trillion from four years of their control of Congress all done by the Democratic Party. This is a 71% increase in the total national Debt in just 4 years, if this is not intentional then it must be by accident. How could it be by accident? 

All the above information comes from the government records of the Federal Reserve, Department of Labor statistics and the Congressional budget office.

 All this information is hiding in plain sight for everyone to see, you just have to open your eyes and look for it. 

James Garrett

 Are the liberal progressive Democrats and Barack Hussein Obama guilty of seditious treason? http://tiny.cc/0j9ej

 Please leave a comment I want to know your thoughts.

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