Feeds:
Posts
Comments

Archive for the ‘Obama’ Category

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/

Read Full Post »

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.

Read Full Post »

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.

 

Read Full Post »

The liberal media is at it again and no one ever bothers to check their story or their math. The so-called economists or economic advisors should be ashamed of their mistake because it so big. It’s hard to believe anyone could be considered an economist or an advisor and miss the number so badly.

 

I am going to show you the math to prove Obama’s so-called $60 Billion jobs bill will not create 1.9 million jobs it will only create 589,000 jobs. So the so-called economists missed the numbers by 1,311,000 jobs. In my industry that’s an inexcusable mistake. It’s obvious to me there lying for Obama and the liberal progressive Democratic Party. (Surprised?)

 

First I want to show you how they came up with the number 1.9 million from the $60 Billion spent on infrastructure and that is roads, bridges, renovations of schools or construction jobs. We take the $60 billion and divide it by the 1.9 million and it comes out to be $31,578.95 per job. That number is about right based on a $12.00 per hour and adding the cost on labor like workman’s compensation, unemployment insurance, employer’s contribution of social security and liability insurance on labor. My number based on $12.00 hour base wage came to be $31,200.00 a year. So there number is close on that point, but there 1.9 million jobs is figuring 100% of the $60 billion is all labor and that’s just plain wrong!

 

Here is the thing” I did construction bidding for more than 30 years and there’s a lot more to estimate a job then just labor and that’s the way their number works out there’s no money for materials and overhead cost or shameless, obscene  profits.

 

The very most basics of construction bidding practices are materials, overhead and labor cost, not just labor and let’s not forget those shameful obscene profits.

 

It seems they forgot about the cost of materials and what about the cost of overhead like trucks, office expenses and all the unseen expenses of running a construction business. The point is the so-called economists either don’t have a clue of what it’s like to run a business and they don’t know what they’re talking about or they just lied. Which of the two do you think it is? I think they don’t have a clue and they lied. This has been the pattern of the Democratic Party for the last 100 years and that’s never going to change it’s who they are.

 

The whole Democratic Party is based on lies they depend on their voter’s ignorance to get reelected.

 

Now I am going to show you why the so-called jobs bill will only create 589,000 jobs, not 1.9 million jobs

 

We start with $60 Billion and use the 31% labor average which is the standard for labor cost in the construction industry and just happens to be the national average for the whole economy based on numbers from the department of labor and statistics.

 

I derive my 31% labor by using the average wage, average number weekly hours multiplied by the yearly total yearly wage and divided into GDP to get the percentage of labor and that’s 31%.

 

To find the appropriate amount of labor in the $60 billion jobs bill we multiply it times the 31% labor average and it comes out the amount of labor is 18,600,000,000 then we divide that by their yearly wage $31,578 and that’s 589,007 jobs. That’s a very big difference from 1.9 million jobs and it’s a mistake of 1,310,993 jobs. Whoever made that large of a mistake should be fired.

 

The rest of the $60 billion less labor would be spent for materials, overhead and there must be a profit. This is exactly what they did in the first so-called stimulus bill passed in January of 2009 they said would create millions of jobs that never materialize and the dollar amount was about the same $60 billion for construction and infrastructure out of the $867 billion stimulus bill. This is just more of the same Bull shit.

 

I do realize this is just a political move to blame the republicans for Obama’s bad economy and the lack of jobs by not passing the jobs bill. But that will only work on the dummies that would vote for Obama anyway in 2012. One of the biggest reasons Obama won in 2008 was the very low turnout of the 55 million registered republicans, many never showed up to vote and that’s part of why McCain lost and Obama won.

 

Obama’s jobs bill is not the answer, the liberal, progressive democrats federal government spending is the problem.

 

If they use the excuse that some jobs will be created from incomes from this so-called jobs bill it will not be what they expect. Most business are not hiring because they don’t have the volume of business to hire new employees and some of their employees are part-time. If business does get better and extra manpower is needed that will be supplied by existing part-time employees until business gets really good and this jobs bill isn’t going to do it. There estimates on this will be way off as well as their other goofy estimates.

 

Also the same goes for the construction companies that would bid this work. They also have part-time employees because they don’t have enough work for a 40 hour work week now. Anyone who would get these government contracts would just use their part-time people and only add a few extra people. My whole family is in construction we do home improvement, renovation work and this is the case not a theory or a guess, it is the situation across the country.  

Another problem is the construction industry is or was 85% illegal aliens prior to the collapse of the construction industry. This makes it very difficult to recognize any large numbers of jobs for Americans. Most of the money and jobs in this bill will go to illegal aliens and 1/3 their money will be sent to South America. We have never hired one illegal alien and I guess that makes me a racist.

 

The only way to fix the economy is to rely on the part that still provides 120 million jobs and that’s the private sector corporations and small business.

 

The jobs Obama’s bill is supposed to create are like all the other jobs he has created they are temporary they will go away when the money runs out.

 

Government jobs are going away, the states governments are cutting their budgets they have run out of money and total number of government jobs are going away. There broke!

 

Government is the problem not the answer. The deficit spending from the federal government is sucking all the available money out of the banking system and a lot more from the worlds banking system. They are barrowing about $4 billion a day, about $126 billion a month and $1.5 trillion each year. As long as this continues there will be no recovery and there’s no end in sight.

 

The federal deficit is why our economy and Europe’s economy isn’t growing and adjusted for inflation they are shrinking and it’s all because the governments here and over there are sucking the banks dry. Governments are borrowing all the available money in the banking system and there is very little left for the private sector companies or the people to barrow and grow the economies. Then the politicians blame it on the banks to divert the blame from them.

 

The small cuts in the budget deficit the supper committee is trying to make of $120 billion a year are a drop in the bucket compared to the huge $1.5 trillion in deficit spending and will make very little difference.

 

Any increase in taxes to the rich just makes less money available in the private sector economy for the creation of jobs from an expansion in the private sector economy. This is the dumbest thing I ever heard next to the last dumbest thing and that was also one of the democrats and Obama’s brainstorms, the $867 Billion stimulus that didn’t stimulate anything except to increase the deficit by $867 Billion.

 

Here is the democrats and Obama’s newest plan: we take $70 billion in new taxes from the incomes of the small business and transfer that tax money to the federal government, than the government spends $60 billion to create jobs. How does that add to the economy or the GDP? It’s like taking buckets of water out of a lake and carrying it to the other side and dumping back into the same lake expecting the water level to rise? Or like standing in the bucket and trying to lift yourself up, it’s never going to happen.

 

These are the idiots someone put in charge of the country. Liberal progressive Democrats’ have proven they all have very poor math skills and serious sociological problems. You will lose a greater number of jobs in the private sector economy then the government created jobs will produce.

 

They also claimed these jobs will happen in 12 months but that will never happen. It will take at least 1 year to get started and another 18 months after that to complete most of the projects. That’s because of all the layers of bureaucracy on the federal level and then in the states. It’s impossible for them to do it in one year. Remember how shovel ready wasn’t really shovel ready?

 

The so-called economists and economic advisors are almost always wrong. When the economic reports come out why are they always surprised? If they were any good they wouldn’t be so wrong, so much. I wished I could get paid to be wrong all the time. Maybe I should run for president?

 

 

 

 

Read Full Post »

 

1. The War on Poverty

 In their compassion for the poor, liberals earmarked $50 billion in 1964 to provide medical care, housing, cash transfers, and food subsidies to ease the plight of the disadvantaged.

 

Defiantly a failed liberal Idea

 

Hatched by social engineers who cooked up President Lyndon Johnsons great society the war on poverty spawned welfare mentality that has trapped the poor in a web of dependency, spent 16 trillion without making a dent in the poverty rate and its now higher than it’s ever been and will burn through another 10.3 trillion over the next 10 years.

 

 

 

2. The U.S. Department of Education

 

President Obama proposed a new education reform package called “Race to the Top,” which includes increased federal funding to states whose public schools improve student performance.

 

The U.S. Department of education has spent trillions of tax dollars growing a bloated top down bureaucracy but the American education still lags behind other countries. Now president Obama wants to bribe states with billions more if they give in to additional federal interference in their schools. If states show that there serious about reform says president Obama well show them the Money. I wonder-reform to what means? It sounds like more of that hope and change bull shit to me. We never got the memo on specifically what that was and look what we did get more liberal progressive failed socialism.

 

Defiantly a failed liberal Idea

 

If these ideas are so good why do liberals have to bribe people to use them?

 

 

3. The U.S. Department of Energy

 

Created in the 1970s as one of President Jimmy Carter’s bright ideas, the U.S. Department of Energy (DOE) has seen its mission evolve from basic research and development to spending billions to commercialize technologies that aren’t yet viable—and might never be.

 

Despite funding numerous projects that never get off the ground, the U.S. Department of Energy has seen its budget grow by more than $11 billion in the last 10 years—a 76% increase!  Because our nation is looking for spending to cut, the DOE might be the place to start.  Instead of focusing on opening new sources of energy, the DOE pushes politically correct pet projects that are expensed to the American people.

 

 

Some of these ideas . . . like mood rings and polyester pants . . . are better left in the 1970s.

 

 

4. The Community Reinvestment Act

 

 

Liberals created the Community Reinvestment Act (CRA) to encourage private lenders to meet the needs of borrowers in low- and moderate-income neighborhoods.

 

The CRA spawned sub-prime mortgage lending, which boomed starting in the mid-1990s under President Bill Clinton. When the bubble burst, millions of sub-prime borrowers—the low-income people the CRA was created to help—found themselves owing more than their homes were worth. This set off the foreclosure cascade, tipped the economy into a prolonged recession we are still in, and plunged many families into poverty after they lost the homes they couldn’t afford but that Washington induced them to buy.

 

Defiantly a failed liberal Idea Ignoring the law of unintended consequences: It just doesn’t work.

 

 

5. ‘Comprehensive’ Immigration Reform

 

Senate liberals’ latest immigration proposal offers multiple “paths to citizenship” for foreign nationals who are in America illegally.

 

They’re touting their Comprehensive Immigration Reform Act of 2011 as the complete and real solution to America’s immigration problems. Hoping Americans will ignore history, though, liberals’ current manipulation is as catastrophically irresponsible as the amnesty law Congress adopted in 1986, which more than quadrupled the population of people here illegally.

 

Doing the same thing and expecting a different result: That’s not going to get us anywhere.

 

 

Have you had enough of failed liberal and progressive ideas?

 

If $16 trillion hasn’t made a dent in the poverty rate, isn’t it kind of ridiculous to think another $10.3 trillion will solve the problem?

 

And if President Obama’s $800 billion stimulus didn’t create jobs, isn’t it ridiculous to think another $450 billion “so-called jobs plan” will do the trick?

 

Of course it is.

 

President Obama and his liberal cohorts in Congress, however, don’t see a problem with recycling failed liberal ideas from the past and spending the country into oblivion to enact them.

 

Liberal ideas are a lot of things: dangerous, wasteful, unconstitutional, and all part of a socialist agenda of wealth redistribution.

But it’s time to call a spade a spade: MOST LIBERAL IDEAS HAVE FAILED.

 

Liberals love to call themselves compassionate. So why do their ideas so often end up with catastrophic results on the people they’re intended to help?

 

Who is it that makes the claim that liberals and progressives are smarter then conservatives? Other stupid liberals and progressives!

 

They call themselves progressive. Truth is, though, their ideas are recycled schemes that continue to blow trillions of dollars on bloated, failed programs that take the country backward.

 

They talk about personal liberty like they invented it. But everything they do butts into every corner of your personal life and takes away personal liberty.

 

In short, many liberal ideas are recycled failures that backfire and can’t get simple concepts straight.

 

We need to send a loud-and-clear message to Congress STOP THE FAILED LIBERAL IDEAS that are bankrupting America, undermining the Constitution, and weakening the nation and lead to its destruction. Vote conservative in 2012

 

Read Full Post »

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

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

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

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

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

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

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

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

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

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

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

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

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

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

http://tiny.cc/ns56s

2012 What's really going to happen in 2012

Read Full Post »