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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.

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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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Mr. Romney the charge needs to be made that the massive deficit spending of the democrats in 2008 collapsed the banking system and the evidence is in the Federal Reserve’s yearly and monthly budget records. This is what the Europeans mean when they blame America for collapsing the banking system in 2008 and the media never explains how or what Europeans mean by the accusation we collapsed or caused the world banking system to fail.

 

Barack Obama was a part of this massive deficit as a congressman in 2007 and 2008 as he is president now and has been for 3 years and 9 months. Why didn’t he fix it when he had total control by a supper majority in congress 2009 to 2010? He has no intention of fixing anything only destroying everything.

 

Here is what these federal budget documents show for 2008. $454.8 billion on deficit spending for Fiscal Year 2008 on budget deficits and an off budget deficit of $ 581.8 billion this gives us the total of $1.035 trillion for the democrats 2008 deficit.

 

First democrat budget 2008 Gross Public Debt $ 9,986.1 trillion

http://www.usgovernmentdebt.us/year_spending_2008USbn_13bs1n#usgs302

 

Last republican budget 2007 Gross Public Debt $ 8,950.8 trillion

http://www.usgovernmentdebt.us/year_spending_2007USbn_13bs1n#usgs302

 

The total democrat’s first year on and off budget 2008 deficit $1.035 trillion

 

The importance of why this matters is the dates because 70% of the $1.035 trillion in deficits happened just 5 months before the bank collapse not after.

 

Again this was done before the bank collapse not after and I believe it caused the world’s banks collapse of 2008 and not a result of it as the lame stream liberal news media and the democrat party has lied to the American people. If I wanted to destroy the American economy I would have done exactly what the democrats did do in their first budget as soon as they got control of congress in January of 2007.

 

Evidence and government reports are below as evidence to what I just said.

 

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 on budget

 

Democrat’s first budget deficit including on and off budget total was $1.035 trillion.

 

This $1.035 trillion deficit did not include the bank bailout of $ 700 billion signed into law on October 3, 2008. this was after the close of the fiscal budget year ending on September 30, 2008 and would be in addition to the $1.035 trillion deficit. I have and am still hearing from the liberal and some conservative media that the bailout was the reason for the huge deficits but this was a special spending bill separate from the regular budget and was never all spent only about half was used and most has been paid back or will be. This is part of the political game of blame the banks for what the politicians did to give them cover and blame George W. Bush.

 

The average monthly off budget deficit of $ 581.8 billion combined with on budget deficits is what collapsed the banking system and $48.4 billion average in off budget deficits from May 2008 to September 2008 each month accumulative combined with the $454.8 billion on budget deficit spending is what dried up all available money in the banking system worldwide. Most of this deficit spending for fiscal 2008 or 70% happened in this five month period just before the 2008 bank collapse. This is not a theory it is from the records of monthly spending of Federal Reserve and CBO documents and hiding in plain sight.

 

Prior to the collapse the federal deficits were financed by banks and or governments of foreign countries. We didn’t start just printing money until after the banks collapsed in September 2008. The average on and off federal budget deficit in those 5 months before the bank collapse in 2008 was $140 billion a month and here we are it is September 2012 and the monthly on and off deficits have consistently averaged around $120 – $130 billion every month since May of 2008. All this happened after the Democrats got control of congress January 2007. None of this was done by the republicans and all of it was done by the liberal, progressive, socialist, democrats.

 

I would also like to remind readers of this – the entire prior year 2007 republican deficit was $161 billion for 1 year or $13.4 billion a month and all of a sudden it’s $161 billion every 40 days. This acted as a shock to the worlds banking systems and caused the world-wide banking system to collapse. If it was just our mortgage problems why did the whole worlds banking system fail? American private banks like Lehman Brothers failure by them self’s cannot dry up the world’s money supply but the Federal Reserve can and they did to finance the deficits from the democrats out of control spending. If it was just 1 bank that failed that wouldn’t cause the world-wide banking system to collapse either. It would take a world bank to collapse the system and that’s what the Federal Reserve is a world bank.

 

Here is the 5 monthly on budget deficits just before the 2008 bank collapse. This is just on budget deficits and not the off budgets that’s additional to these 5 months.

 

May 2008 Deficit -166 billion

June 2008 Deficit -33 billion

July 2008 Deficit -102 billion

August 2008 Deficit -112 billion

September 2008 Deficit -45 billion (the month of the world-wide bank collapse)

 

The total federal deficit for the period from May of 2008 to September 2008 was $ 458 billion. This is more than the entire on budget federal deficit for all of 2008 of $ 452 billion which means that up to that point we were on budget deficit nearly balanced and except for off budget spending we were up to that point of April 2008 and then an avalanche of all time record amounts of on budget and off budget combined federal deficit spending never before seen in history dried up all liquidity in the world banking system and left it broken to this day.

 

This is the on budget deficit for the 5 months prior to the 2008 bank collapse or $ 458 billion in just 5 months. Adding the average off budget deficits of $48.4 billion each month for those five months totals another $242 billion and the on and off budget the total is $ $700 billion. The close of the 2008 budget was September 30, 2008 and the bailout of TARP $700 billion was after the close of the 2008 budget year. Don’t let the media or anyone lie to you that the deficit was caused by the crash of the banking system as the banking system collapse was the direct result of the $1.035 trillion deficit spending of the democratic majority control of the senate and the House of Representatives. The democrats didn’t inherit this mess they caused it and the calendar and government records proves they caused it.

 

This is also the exact dollar amount of the 2008 bank bailout of TARP $700 billion and now we know the truth of how they came up with that number. Take notice this $1.035 trillion dollar 2008 budget deficit does not include the bank bailout of $700 billion that was special legislation and separate from the regular federal budgets in 2008 and in 2009. TARP was never part of the regular budget deficits it was special legislation and the banks have paid almost all of it back as of 2010. The reason the banks don’t complain is there in bed with the politicians and are happy to collapse the system and steal everyone’s money.

 

The Federal Reserve had to put back into the worlds banking system the money they took out of the world banking system prior to the bank collapse and that was caused from massive federal deficits of the liberal progressive democrats from May of 2008 to September 2008 and this budget was voted on according to constitutional law by April 2007 and this was 19 months before the collapse of the system. This was calculated and not an accident how can anyone spend $1 trillion by accident?

 

TARP dates and explanation of the bailouts.

http://useconomy.about.com/od/criticalssues/a/govt_bailout.htm

 

The total democrat’s first year on and off budget deficit ending September 2008 the very same month the world banking system collapsed was $1.035 trillion. I repeat this happened before and not after the bank collapse of September 2008 and then the democrats blamed republicans and the banks for what the Democratic Party intentionally did by April 2007. If I wanted to destroy America this is how I would do it.

 

http://www.youtube.com/watch?feature=player_embedded&v=CZ-4gnNz0vc

 

For those who blame Bush I say this, there has not been a federal budget produced by a president since President Eisenhower that was paid any attention by congress. As anyone who would say its Bushes fault I recommend you go back to school study some history and read the constitution as it clearly states the federal budget originates in the House of Representatives not the president’s office. The president does produce a recommended guideline for what he would like in the budget but it’s always ignored by congress. To suggest otherwise is just false information and you would be lying about the facts. Congress spends the money not the president. Read the constitution that’s what it says.

 

Take special note of the facts and the dates of this 2008 budget that was passed by April 15, 2007 or 1 year and 6 months prior to the collapse of the worlds banking system. Also the democrats did this just 4 months after taking majority control of both houses of congress in January of 2007. The normal deadline for congress to pass a budget is April 15th of each year and the budget year starts October 1 and ends September 30th if it was not intentional then what the hell was it!

 

Why hasn’t anyone in the Republican Party after 4 additional years of these intentional trillion dollars a year deficits pointed out that the Democratic Party is and has been intentionally trying to destroy America’s economy through the process of the federal budgets and deficit spending and also again using the private banking system to do it? This is being done so they can blame banks and Wall Street to give cover to the politicians.

 

The charge that all republicans running for congress and for the president’s office should make is this.

 

The democrats are trying to destroy the country economically from within the government with the massive trillion-dollar federal deficit spending year after year.

 

You have a clear choice do you want to destroy America from within or do you want America to prosper?

 

Also if the democrats are successful in their destruction of the current economic and political system the government all of its socialism goes with it the same day the existing system collapses. So the 47% on the dole will lose all government support if the system collapses. Not a scare tactic just a fact. Also the other 53% not on the dole will lose everything they have as well if the system collapses. It doesn’t matter where you put your money the collapse of the system will make you penniless if you can’t get your money out of the banks.

 

If Romney’s 47% statement wasn’t correct then why does Obama consistently pole at a 47% average? Common sense and statistics proves what Romney said was true. But the media twisted it into something he didn’t say and this is what they always do from 35 years of observation of the lame stream media. The whole Democratic Party is based on lies and if you look at their constituents is it any wonder why?

 

What the Democratic Party is doing is seditious treason by the legal description and or definition, but that part may or may not be included and left up to the person who makes that charge of treason. As the liberal progressives may try to dismiss the evidence above as a conspiracy theory and do what they do and turn the truth or facts into a fiction with the use of the word conspiracy to discredit facts.

 

The idea is to make a really big stink about all this intentional destruction of the wealth of America and let the American people decide what to do with the truth.

 

Force the liberals and the media to demand apologies and then tell all concerned I will not apologize for exposing democrats for what they have done and telling the truth about their treasonous plans to destroy America from within. (A further intentional insult) This is what Allen West does and god blesses Alan West for telling the truth. He is the bravest man I have ever come into contact with and he knows what’s going on in America and he has identified the enemy from within, the Democratic Party and the progressive communist caucus.

 

Alan West calls progressive caucus a bunch of communists. He has had the same education that I have about political economic systems and you won’t learn this in college you have to seek the truth on your own.

 

http://www.youtube.com/watch?v=dXi4l4q6Aho

 

Go have a look for yourself at the communist party USA website and compare that to the democrat’s website and then have a look at the progressive caucus and then the unions and anyone else in the Democratic Party they all look like or have the same stance as the communist party USA website. Well of course they do they are all communist just like Alan west tells us they are and McCarthy was right too.

 

http://www.cpusa.org/

 

Grab the democrats by the nose and kick them in the ass. (Romney Did) If you want to piss off a liberal tell them the truth. If you want to piss of a conservative tell them a lie. This tells it all about the liberal and progressive character.

 

Always attack and force the liberals to defend. Every answer or any rebuttal should be in the form of additional attacks using the truth which always turns liberal or progressives into raving maniacs and never defend or apologize always attack. In war and politics defending a position is an admission of defeat and weakness’. (General George Patton tactics)

 

We also have to grab the American people by the nose and lead them to the truth.

 

This is what happens when the democrats are in charge. This is the monthly employment report that shows charts of what happened to the unemployment rate as soon as the deficit spending of the new 2007 democrat majority got control and started to deficit spend like the crazy people they are.

 

http://www.bls.gov/news.release/archives/empsit_01092009.pdf

 

See the charts on page 1 just under the headline. This is before the banks collapsed not after. This shows how the employment went from 4.5% while the republicans controlled congress in 2006 and how it rapidly changes after January 2007 when democrats took majority control of congress and unemployment skyrocketed up to 6.5% prior to the bank collapse not after and eventually went over 10% unemployment.

 

http://www.bls.gov/news.release/archives/empsit_01092009.pdf

 

The more congress spent the worse the job situation got. See the charts just under the headline number. This also proves that government spending and deficit spending does the opposite of what liberal progressive democrats tell you. The more the democrat’s deficits spent the worse unemployment and the economy got.

 

The stimulus of $800 billion in 2009 did very little for permanent job creation and thus destroying the myth of government creating jobs by borrowing and spending money they don’t have. The government has borrowed or printed $7.4 trillion in just the last 5 years and the economy still stinks. As the government barrows the money it’s not in the banks anymore for the private sector to buy houses or for business to barrow for expansion and job creation.

 

I will do another page very soon showing all the specifics and naming the major players and legislation that caused the 2008 bank catastrophe and all of it comes from the Democratic Party’s legislation.

 

If you wish to contact me please leave a message. I will see it before it is posted.

 

If you are a liberal, progressive democrat don’t waste your time or mine trying to post here. I have been in the political economy for 46 years, not reading about it but living in it as a business owner and employer and your B. S. is just that to me and your lies don’t belong here.

James Garrett

 

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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 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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The proof of the headline can be found in the January 2011 report. See direct link below, read it at top of page 4 of the report.

 Changes to Household Survey Data

Effective with this release, two additional data series—”Self-employed workers, unincorporated” and “Self-employed workers, incorporated”—have been added to table A-9  (This is copy and pasted directly from the report)

 

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

 

They are counting self-employed as employees now. This does show up in the body of the reports month over month you can see it if you look at total employed the number are way off from the headline numbers. Look back at October to January reports Summary table A. Household data, seasonally adjusted and you will see big differences in the headlines and the body of the reports.

 

How can the economy be creating 600,000 jobs over the last 3 months and first quarter growth comes out (lower than the inflation rate) at 1.8% GDP growth? GDP is not inflation adjusted. The government is fixing the numbers and lying to the public.

 

Core Inflation rate projected for 2011 is 2.1 % if you take out food and gasoline. So we have to stop eating and buying gas so we can get to work and make money to buy food and eat and only than would inflation be 2.1%. Add in food and gasoline and Inflation is running about 5% on yearly base. So again how is the economy creating 600,000 jobs in the last 3 months? The numbers are fixed as they blend in the self-employed into their respective employed categories. This is not a conspiracy theory read top of page 4 of the  linked report it tells us that’s what there going to do. Almost no one ever reads the body content of these reports.

 

Commonsense proves that the economy can’t be creating any jobs. In the fourth quarter of 2010 the economy was growing at a rate of 2.7%. The first quarter the economy is said to be growing at 1.8% these numbers point to a slowing economy not a growing economy. The last time the economy added 200,000 jobs a month consecutively and three months in a row was in 2004 to 2006 the average yearly growth rate was between 5% and 6% and the unemployment rate was around 5%. Some quarters in the last economic expansion from 2002 to and up to 2007 the economy is growing at a rate of 7.9%. And even then we were only getting 200,000 and 300,000 jobs a month. There’s something really wrong here and I hope I have properly explained why we are getting these huge so-called job creation gains.

 

So once again using common sense and since none of the other reported numbers are adding up to what they are telling the public what else could be going on? So the only thing it could be is their adding or blending in the 1 million self-employed people who otherwise under the old rules would not be counted. This is exactly what is in the January report from the department of labor and statistics. They said they were going to do it and they did it, but what they are doing is deceiving the public for political purposes to make things look better than they really are for Barack Hussein Obama.

 

Here is more proof , Just five months ago in December of 2010 Barack Obama made a speech bragging about the 150,000 jobs created in November and he said we’ve created 1 million jobs now but that’s not good enough we need to do more. So how did we go from 1 million jobs to 2 million jobs they are currently boasting about in just five months and even the bogus headline numbers don’t add up to the current 2 million number the liberal media and B.O. are currently boasting about. And once again where do we get that additional 1 million from? This number comes from People who are already self-employed who are now counted as newly created jobs and employees for the benefit of political gain for Barack Obama. Just another great big lie to add to the long list of big lies told since Barack Obama became president. Lies told by him and lies told by liberal fringe lame stream news media.

 

So what’s the big deal and what makes it so important? If you make decisions based on bad information you’re going to make big mistakes. The perfect example of this making bad mistakes based upon disinformation is the very fact that we’ve got Barack Obama as president in 2009. Based on bad information the democrats took control of the house and the senate in 2007 and again in the 2008 elections the lame stream liberal news media ran a campaign of disinformation to the public about Barack Obama. We had bad information and we made a bad decision. We the American people gave the democrats a supper majority in the house and the senate in 2009. Now we are ware we are on account of the bad information being  given to the public all coming from liberal fringe lame stream news media disinformation campaigns.

 

The results of making a decision based on bad information is we now have a president who hates America, he is proven to be the most socialist president the United States has ever had. He is on the record as saying he wants to push an energy prices up sky-high. We can see the evidence of that in the price of gasoline and he says we can’t do anything about it. He has stated many times in his two books that he doesn’t like white people, so we have a racist as president. He is also a Moslem as he states this in his own books he would side with them if the political winds changed and he has. On top of everything else he is a compulsive liar but this is just typical of the liberal progressive Democratic Party.

 

The bigger problem is when the rest of the world finds out how we are fixing our economic numbers there will be a price to pay in confidence lost in our currency. The only thing that gives a paper or Fiat currency any value is confidence. Once the confidence in that currency is lost it declines in value rapidly against other currencies and this is what is coming very quickly in the next 4 to 5 months once the rest of the world figures out what we’re doing. The bogus 1 million people being added will run out in two more months May and June of 2011. The report for June comes out the first Friday in July. This is the last report that will have positive numbers and all following reports we will see the true state of the economy and the job market. This will show up quickly in the price of gasoline since we import 72% of our crude oil.

 

For all of 2010 the inflation rate of 1.6% was nearly the same as 2.7% GDP growth. Since the GDP growth number is not inflation adjusted to find it too true state of the economy you have to take away the inflation rate and that means the economy grew at 1.1% for the whole year 2010.

 

The point is with these very low growth rates and the huge number of jobs being added now and looking at prior six months before these huge numbers appeared out of nowhere there was almost no job growth at all. Even with a higher GDP number of 2.7% in 2010 than we have now at 1.8% in the first quarter of 2011 and somehow were now adding 200,000 jobs a month. This just doesn’t add up!

 

 It won’t take very long for our trading partners and the people who hold or purchase our treasury bonds to figure out where cooking the books. Once they lose confidence in our economic data they will lose confidence in our debt bonds that we are trying to sell into world markets at the rate of $130 billion a month. Take a look at these charts below and you will see something just doesn’t add up and if you can see it, the rest of the world will too and their goes the confidence and the value of the dollar. These charts show that the economy has made a downward turn and inflation has gone up making matters even worse and for some strange reason the economy has created 200,000 jobs each month three months in a row and now you know why. This all just does not add up unless they are cooking the books and now you know how they are doing it.

 

 

U.S. Inflation Raises 2.7% in March Published: 4/15/2011 12:36:15 PM    By: TradingEconomics.com, US Bureau of Labor Statistics

 

  These charts show inflation is now higher the growth rate of the economy and that in real terms means the inflation adjusted number shows the economy is shrinking not growing. We are just spending a lot more on gas and food and that gives the false appearance the economy is growing but it’s not. To see the True state of the economy: go here http://tiny.cc/658bx

 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

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