Feeds:
Posts
Comments

Archive for the ‘political’ 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 »

Employment situation report for June, 2011

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

 As an addition to an article I posted July 7th  (Why Government spending doesn’t create jobs explained) I need to add the July 8th employment report as it further proves this July 7tharticle to be the fact and not myth as liberals would call it. You cannot get economic growth or job creation when deficit spending is sucking the country’s banking system dry by borrowing every available dollar from the banks. ($130 billion a month) The latest jobs report and last month’s proves this to be true.

 

Once again the so-called experts are surprised. If they really are experts why are they wrong most of the time?

 

The Department of Labor’s statistics came in below even the most conservative estimates and lower than May’s fairly dismal numbers. The U.S. economy added just 18,000 jobs in June, way below market expectations of at least 125,000. The weakness was particularly surprising after a buoyant report from the ADP private payrolls firm earlier this week. (ADP report is wrong more than there right)

 

There was even more disappointment with the news that the May increase was more than halved to 25,000 from 54,000 and the rise in the unemployment rate to 9.2% from 9.1%. This is the 3rd increase in a row to the unemployment rate.

 

 Even more important is the body of the report shows the total number of jobs lost in the economy for June 2011 was -445,000 not the 18,000 jobs created in the headline number that is always way off from the true total number of jobs in the economy and that’s the important number if you are looking for a job or if you seek the truth.

 

See table A-page 4 line 4 total employed same line far right column -445,000

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

 

This is the true unemployment situation the headline number was bad enough but loosening -445,000 in the total number of jobs is a catastrophic loss of jobs.

 

Comparing this to prior month of June 2010 the total number of jobs added in one year

 June 2010 = 139,092,000

June 2011 = 139,334,000

 In this one year period the country has only added 242,000 jobs in 1 year period and including self-employed changes made in January of 2011

 

This total number of jobs in prior reports since January 1 2011 is also a diluted number because department of labor and statistics started adding self-employed to that jobs number in January of 2011 see January report release Feb. 3, 2011 top of page 4

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

 Revisions: The change in total non-farm payroll employment for April was revised from +232,000 to +217,000, and the change for May was revised from +54,000 to +25,000.

 

The claim the liberal fringe news media is making of B.O or the democrats creating 2 million jobs since the economic recovery act in 2009 cannot be found anywhere in these reports. It doesn’t add up in the headline numbers or in the body of any of these monthly employment reports over the last 2 years. It’s obvious to me there just making the 2 million new jobs up for political reasons and they know the general public doesn’t have a clue of how to check these numbers or read these reports and most people are just not interested until they lose their job.

 

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

March 2009 140,887,000  (the economic recovery bill was passed)

March 2010 = 138,905,000  this shows a loss of 1,982,000 jobs 12 months later.

June 2011 = 139,334,000 July 8th 2011 employment report release for June 2011

Lost 1,553,000 total jobs since the economic recovery bill. (See all URLs at bottom)

From the time the economic recovery bill was passed in 2009 at the very beginning of BO as POTUS we have lost 1,553,000 jobs. The most important point is the reason for this lack of economic growth to create private sector jobs is there has not been one single thing done from January 2009 and up to July 8 2011 that would actually help the private sector economy create jobs. There’s been nothing more than a lot of talking about job creation with no actions that would result in any real job creation from BO or the liberal Democratic Party.

What the BO administration and the democratic party has done is pass heavy regulation on all industries in America to control business the exact same way as the socialist nazis under Hitler and the socialist fascists under Mussolini planed to control their economies under socialism.

Go read some history on how these dictators Hitler and Mussolini planed to control their model of capitalism under socialism and that’s exactly what the BO and the democrats have done and are doing here in America for the past 4 ½ years since January 2007 when the democrats took control of the house and the senate by majority.

Democrats don’t believe in democracy they believe in dictatorship, it is and was their style of governance the whole time they were in charge by a supper majority. The democrats idea of democracy is you get to elect your dictator. Their actions prove this to be the fact not political rhetoric, just fact by observation.

Don’t forget that when the democrats controlled the house and the senate they did in fact ignore the majority of the people and ran the country exactly like a dictatorship. They still do as they still control the senate and the presidency. Republicans now controlling only the house can stop them from doing further damage but cannot undo the damage already done.

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 for June, 2011

 Lost 1,553,000 total jobs since the economic recovery bill in 2009

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

Notice that is doesn’t matter what employment report you pull up and examine they almost all show a loss in the total number of jobs in the economy for the last 27 months. The truth is we never came out of the recession. What the public is being told is all political driven and there is very little truth in anything the news media reports as all of them just parrot the news from other media.

I like fox news but for some time now I have noticed there not much different from other media and most of what they talk about is of little importance and its all for a distraction from what is important. It’s really saying something when you can get 10 times better news from twitter then you can from Fox news. Now that Glenn Beck is gone fox is becoming useless to me. Fox is more like a drama program rather than a news station.

 

 

Read Full Post »

It’s good that we finally got Osama Bin Laden and the left is boasting the 2012 election is over as Joy Behar and Barbara Walters bloviate game over, call off the election. How do they figure the 2012 election is over when nothing that really matters in the 2012 election has changed? 

We still have $4.00 gallon gas and rising every few days, we still have $1.5 Trillion deficits to deal with that no democrat wants to cut anything including B.O. We still have entitlement programs breaking all deficit spending records and growing. We have a dollar that devaluing daily and it appears to have fallen of the Clift because of the huge deficits year after year. We still have very high unemployment. The Federal Reserve is still printing and digitizing currency by the trillions of dollars.

 So what’s changed other than Osama Bin Laden is dead, not one thing. The liberal and progressive mind is equivalent to that of a child, Joy Behar and Barbara Walters prove that with there ridicules statements and they have an extremely short memory span. Perhaps they think the rest of us are as stupid as they are. I can add to this list of what hasn’t changed, but the point is we still have every single problem in this country we had 24 hours ago and all of it caused by the liberal, progressive democrats policies and 4 years of  their control of the house and the senate.

 For those on both sides left or right who think that the 2012 elections may be in jeopardy of being lost to B.O. because of Osama Bin Laden’s death I say no way no how and here is why. It’s not just about the economy although that’s the main reason he will lose in the 2012 elections, it’s also about the policies he used were in fact a continuation of George Bush’s policies not his own. B. O. promised to close club Gitmo and he didn’t, he continued George Bush’s policies. They found information that lead to Osama Bin Laden’s death again from interrogations of club Gitmo prisoners. The successful kill of Osama Bin Laden is due to George Bush policies not Barack Hussein Obama. Smart people will figure this out and they have 19 months to ponder who and what really bought Osama Bin Laden to his end.

 These facts will come out in the next 19 months to those who will even remember 1 week from now. B.O. and the democrats are worried about his polling numbers as they are at all time Lowes since his crowning as king. If this had happened a month or two before the elections it might have an impact but not this far from the elections.

 One thing that will matter more than anything else and that is a projected $5.00 to $6.00 a gallon gasoline they are forecasting way before the 2012 elections.  We do have a weak dollar now and it will be a much more severely devalued currency in 2012 and all this due huge Trillion dollar deficit spending from the policies of B. O. and the Democrat party. See the link for and explanation for what $5.00 to $6.00 a gallon gasoline will do to the economy.

WHEN-WILL $6.00 GAS OR HIGHER PRICES TRANSLATE TO ECONOMIC DOOMS DAY? http://tiny.cc/ibp98

 

Read Full Post »

 Democrats won control of Congress in the November 2006 elections. Democrats took majority control in January of 2007 and they exploded federal government spending by $1 trillion in just two years or the 2008 and 2009 budget years. This was all done before the bank collapse of September 18, 2008 read on and I will show the proof. Using the federal records from the Department of labor and statistics, the U.S. Treasury department and the Congressional budget office I will prove by federal documents that the democrats intentionally collapsed the system.
 
This is not circumstantial evidence, it is factual and it is exactly what happened to the country’s economy and why the whole world’s bank’s collapsed and this is what I aim to prove. The economy was intentionally collapse by the Democratic Party for political gain to make George Bush look bad so they could get a democratic president in the 2008 elections and it worked and thus we now have B. O. as president. If this is so and it is what took place the entire democratic party is guilty of seditious treason. See the law as it is written at the bottom of the page.
 

There are only 2 possibilities 

After looking at the federal off budget and on budget spending records from January 2007 to September 2008 as soon as the democrats took majority control of congress they exploded the deficit spending and created the problems we now have in 2011. There are only 2 possibilities one is they don’t have any understanding of economics at all and they are so stupid they don’t belong in control of changing a liter box for the cat as they are much to incompetent for that duty.

 The other is they do know exactly what they’re doing and there intentionally trying to destroy the country by destroying it economically in the same way Osama bin laden was trying to destroy the country and if that’s the case and it is what happened there guilty of seditious treason.

This is a year to year record of deficit spending and as you can see the republicans were bringing spending under control when the democrats won the election in November 2006 and took control by majority in January of 2007. The 2007 budget was voted on in early 2006 by the Republican Party who then controlled Congress by a thin margin. Notice the deficit was only $161 Billion and the media was screaming bloody murder about that. Now you hardly hear a peep about it unless there blaming the republicans for the current deficit and the deficit is going to be 1.6 trillion for 2011. This is 10 times what it was under republican majority.

Table one: Federal Government spending yearly 2001 to 2013

yearly Oct.1,  Sept. 30 controlling majority votes Deficits billion dollars Gov. Total Spending Total accumulative Deficit Federal tax Collected.
2001 REP -128.2 1,863.2 5,807.5 1,991
2002 REP 157.8 2,011.2 6,228.2 1,853
2003 REP 377.6 2,160.1 6,783.2 1,782
2004 REP 412.7 2,293.0 7,379.1 1,880
2005 REP 318.3 2,472.2 7,932.7 2,153
2006 REP 248.2 2,655.4 8,507.0 2,406
2007 REP 160.9 2,728.9 9,007.7 2,568
2008 DEM 458.6* 2,982.6 9,986.1 2,523
2009 DEM 1,412.7* 3,517.7 11,875.9 2,104
2010 DEM 1,555.6* 3,720.7 13,528.8 2,165
2011 DEM 1,645.1* 3,818.8 15,476.2 2,567
2012 REP/DEM 1,215.2 3,728.7   16,654.3 2,926 Est.
2013 REP/DEM   767.5 3,915.4 17,750.5 3,188 Est.
2014 UNKNOWN        
2015 UNKNOWN        

 http://www.usgovernmentspending.com/federal_deficit_chart.html

Once the Democrats got controlled Congress it was all downhill from there. Pay special attention to the 2010 total accumulated deficit up to  fiscal year 2011 which ends September 30, 2011. There is a $1.948 trillion expansion of the total deficit for fiscal 2011 this has to do with approximately $300 billion off budget deficit spending. By my calculations and estimates I believe the 2011 budget deficit will come very close to $2. trillion by September 30 of 2011 and here is why. I have been watching off budget deficits since the 1980s and they have always been larger than the year before. Since this number always seems to grow we can expect it to continue to grow or at least be the same. Also with gas prices going sky-high I believe tax collections for 2011 and 2012 will be very disappointing and they will get a lot less than they are calculating. Their calculations are counting $360 billion in additional taxes collected and GDP growth is only expected to be $600 billion and the tax revenue is figured at 55% and the top tax bracket is only 35% and they only collect taxes on net profits not on gross dollars. They need to rethink their 2011 and 2012 tax revenue estimates.

The first six years George W. Bush was president and the Republican Party controlled the House and the Senate and in this six-year period the on budget deficit spending only totaled $1.5 trillion. In 2009, 2010 and 2011 each of those years each exceeds $1.5 trillion or total of $4.5 trillion in just three years while the Democrats control the House of Representatives, the Senate and the presidency.

The January 2007 budget is the one created by the republican controlled congress, passed by April 15 th of 2006 and the budget deficit for the whole fiscal year of 2007 was only $163 Billion or an average of $13 billion a month. We are now running budget deficit at 10 times that amount at $1.6 trillion a year for 2011 and this is only the on budget amount it does not include off budget spending. This on budget deficit alone amounts to $133 billion a month or 10 times what it was once the democrats got control of congress on January 4th of 2007. The off budget deficit adds another $334 Billion for 2011 and that brings the total to $1.9 trillion and that’s $158 Billion every month in new debt.

 Don’t get exited or upset about off budget deficits this started in the early 1970s. Off budget deficits are not reported with regular deficits spending but doing a little math and taking the on budget numbers and deducting it from the total public debt will give us the off budget deficit for each year. Since I can’t find a public record of the off budget monthly deficits. I will have to use a monthly average to show or prove how the democrats intentionally exploded spending both on budget and off budget deficits and this also came from all borrowed money that’s why it is part of the total national debt. For the total current national debt as it changes every second see the national debt clock. By the way we are one week away from reaching the debt ceiling of $14.3 trillion on or about the end of April 2011.

 http://www.usdebtclock.org/

This is the monthly deficit spending from the time the democrats took control of congress in January 2007. Take note that they started with a republican budget that extended to september 30th 2007.  Also note job creation stayed positive untill government deficits started to dry up the banking system in early 2008.

Table two: Federal Government deficits monthly 2007 to 2008

Date Fed. Deficit   $ Billions Off budget $ Billions   Total   deficits billions Job creation lost jobs Housing sales Yearly
01/2007 Surplus   40 -28.15   +111,000 937,000
02/2007 Deficit – 123 -28.15    +97,000 848,000,
03/2007 Deficit    -95 -28.15   +180,000 858,000
04/2007 Surplus  178 -28.15    +88,000 981,000
05/2007 Deficit    -68 -28.15   +157,000 915,000
06/2007 Surplus 27 -28.15   +132,000 834,000
07/2007 Deficit -36 -28.15    +93,000 870,000
08/2007 Deficit -115 -28.15    +89,000 795,000
09/2007 Surplus 113 -28.15 500.7 +110,000 770,000
10/2007* Deficit -56 -43.33   +166,000 728,000
11/2007* Deficit -98 -43.33    +94,000 647,000
12/2007* Surplus 48 -43.33    +18,000 604,000
01/2008* Surplus 18 -43.33     -14,000 588,000
02/2008* deficit -176 -43.33     -132,000* 590,000
03/2008* Deficit -48 -43.33     -397,000* 526,000

This table is continued below to show all of 2008 and into 2009.

The * in the date column is when the very first democrat budget started in full effect and supposed to be voted on and passed just 4 months after they took control of congress or by April 15, 2007 for fiscal 2008 budget from October 1, 2007 to September 31, 2008. This is the budget that collapsed the whole worlds banking system. In the 2008 budget we spent on and off budget a total of $978 billion and borrowing that much money took every available dollar in the world banking system out of the system and the result was a collapsed banking system.

 The unemployment rate was 4.5% when the democrats took control of congress in January of 2007. I made this chart to show how the democrat’s deficit spending dried up the money supply in the worlds banking system not just the United States and the Democrats caused and crashed the worlds banking system and the real-estate markets, it was not Wall Street and the banks but they did make a very good wiping boy for the democratic party and they still do. The people and the Politicians always blame the rich people and this comes from a human flaw called jealousy or lust. The democrats use this human flaw to gain the favor of the people or the common man and their constituents and this always works. Isn’t that what you want to believe?

 The actions of the Democratic Party created the poor jobs market that has existed way before the banks collapsed and has continued now for over 3 years from December 2007 to 2011. The democrats spend and tax policies have put us right where we are. If deficit spending or Government spending did in fact create jobs, we should or would be adding hundreds of thousands of jobs every month but we are not. If deficit spending or Government spending stimulated the economy it would be booming right now as we are borrowing and spending $1.5 trillion a year average and getting zero results other than an artificially bloated GDP number. The democrats and the liberals think we should do more rather than less and that’s insane. 

The federal government recorded a total budget deficit of $455 billion in fiscal year 2008, $293 billion more than the deficit incurred in 2007. The federal deficit rose as a share of the nation’s gross domestic product (GDP) from 1.2 percent in 2007 to 3.2 percent in 2008. Also notice that most of this deficit took place in the months just before the banks collapsed, From May to September of 2008. The federal government borrowed $413 billion of on budget deficit spending in just 5 months. This never happened before as the debt had never even come close to this amount in a 5 month period, all just before the banks collapsed in September of 2008. Up to that time the record deficit spending for an entire year was $412 billion in 2005 when the economy was strong and still growing at a rapid pace. We were creating the department of homeland security and fighting 2 wars in 2 different countries at the time so it was not just wasteful spending on turtle tunnels like we have now. 

Under the last republican budget of 2007 the deficit was $163 Billion and that was 1.2% of GDP and under the current 2011 budget year done by the democrats its more than 11% of GDP at the latest estimate of $1.6 trillion in deficit spending in a $15.2 trillion economy. This has been the general condition of federal government deficit spending for the last 3 years October 2008 to 2011, with federal deficits running above 10% of GDP every year since the democrats got control of the budget in April 2007. This mess was not created by the republican controlled congress it was all done under a democrat controlled congress. The federal budget originates in the House of Representatives, not in the white house. Presidents have very little control over the actual budget process. It was not George Bush’s fault as the news media continues to report and so does B.O.

Pay careful attention to the following months after the surplus from April 15th 2008 which is tax collection month, that’s the only reason there’s a surplus for April. The period from 05/2008 to 09/2008 if you add up the money borrowed from the world banking system in that 5 month period prior to the bank collapse, use both on budget and off budget deficits and its $683 billion and that’s $136.6 billion average each month. Don’t you find it odd that it’s almost exactly the same amount of monthly deficits we have now in 2011 or almost 4 years later? So is this by accident or is it on purpose?

 My conclusion is this started way before September 18th 2008. It started as soon as the first federal budget that the democrats voted into law on April 15, 2007 for the fiscal year starting October 1, 2007 to September 30th 2008 and it didn’t take long to collapse the world banking system with the democrats in control of the budget process. The budget passed by a democrat controlled House of Representatives and the senate was by design intentionally meant to destroy the economy for political reasons so they could blame it on George Bush and that’s exactly what happened and that’s exactly how we got B.O. This was their plan, this is what happened, this is what they did, this was all done by the Democratic Party that did control congress; this is seditious treason by its legal definition or are they above the law?

 Housing sales peaked in 2005 at 2.1 million units average per year, look ware we are now in February 2011 at 250.000 housing units per year, that’s an all time record low and an 800% drop in home building sector from its peak and they keep talking it up like its improving.

 End of fiscal year 2008 was 09/30/2008 the first democrat full year budget and ended the month the whole world’s banks collapsed.

 The number of unemployed is always in the millions as people are always losing jobs, getting fired, companies going out of business and so on, but there are usually jobs to be found to replace the old ones except when economic conditions turn negative for whatever the reasons. In this jobs creation column I show the progression of how jobs turned negative as the government spending went up jobs disappear as the banks had no money to lend for business expansion or home mortgage loans and this is because the deficit spending of the democratic controlled house and senate dried up the banks of all available money in the system. These numbers are taken from the yearend report with the revisions to the headline number which were much lower than the actual number of jobs being lost. The * in the unemployment column are from year-end revisions and this is to show the true state of unemployment as the banks were dried up, as the headline numbers are very inaccurate when they are first released. 

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

Table three: Federal deficits monthly 2008 to 2009

Date Fed. Deficit   $ Billions Off budget $ Billions Total   deficits billions  Job creation New Housing sales yearly
04/2008* Surplus 160 -43.33 +117   +145,000* 526,000
05/2008* Deficit -166 -43.33 -209   -861,000* 512,000
06/2008* Deficit -33 -43.33 -76   -126,000* 530,000
07/2008* Deficit -102 -43.33 -145   -248,000* 515,000
08/2008* Deficit -112 -43.33 -165  -640,000* 460,000
09/2008* Deficit  -45 -43.33 -88/-978  -403,000* 464,000
10/2008* Deficit -155 -39.6 -194  -320,000* 433,000
11/2008* Deficit -171 -39.6 -210  -533,000* 407,000
12/2008* Deficit  -83 -39.6 -122  -524,000* 331,000
01/2009* Deficit -63 -39.6 -102  -598,000* 309,000
02/2009* Deficit -193 -39.6 -232  -651,000 337,000
03/2009* Deficit -191 -39.6 -230  -663,000 356,000
04/2009* Deficit – 21 -39.6 -60  -539,000 352,000
05/2009* deficit 189 -39.6  -228  -345,000   342,000
02/2011* Much worse  2011 est.  $1.6 trillion   -N/A  270,000

 A combination of the deficit spending forcing the Federal Reserve to raise interest rates and an ever-growing need to barrow more and more in the world financial markets forced the collapse of the real estate market and thus the worlds banking system. In the last column I jump ahead to February 2011 to show that it’s just as bad and even worse as the Federal Reserve barrows, prints or digitized money to cover the $188 billion in March of 2011 an all time record high. The most current yearly estimate of the 2011 on budget deficit is $1.6 trillion and an additional off budget deficit of $330 Billion this gives us a total of $1.93 trillion for 2011. The overall situation has gotten a whole lot worse and no one is reporting this. Don’t any of these people reporting the news own a calculator?

 Only 33% of the current deficit is from a lack of taxes being collected from a drop in economic activity as 66% of the current on budget deficit was created by dramatically increasing the spending of the federal government ran by the democrats’ or about $1.1 trillion of the $1.6 trillion for 2011. They did almost all this new spending from the budgets of April 15 of 2007 for fiscal 2008 and exploded spending even higher by April 15 of 2008 for the budget year of 2009. This of course was way before the banks collapsed. This was obviously done on purpose, how could it be by accident? This was an intentionally created train wreck by sabotage for political purposes!

 The current job situation numbers can no longer be counted as accurate, in January of 2011 the department of labor started counting self-employed as being employees or employed. There’s no way to accurately determine the true state of unemployment after that January 2011 change to include self-employed as being employed. This new way of calculating the number of jobs being created will greatly exaggerate the true job situation until they run out of self-employed to add to the total number of employed and that should come in July or august of 2011. This is why the low monthly numbers of 30,000 jobs created all of a sudden jumps to 180,000 and 210,000 and no one is reporting this anomaly either. This was in the body of the employment report dated February 4, 2011 and here it is for download.

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

 Looking back at some history over the 12 month period from October of 2007 to September of 2008 the number of unemployed persons had increased by 2.2 million people and the unemployment rate has risen by 1.4 percentage points. It was up to the democrats who controlled congress to correct this problem but nothing was done. They had 21 months in power before the banking system collapsed to fix whatever was causing the economic problems but they were too busy blaming everyone else and especially George Bush for what was intentionally created by the democrat’s deficit spending and thereby drying up all the available money in the worlds banking system.

 They did this for absolute power and political gain and it worked. So the democrats could continue to destroy the value of the dollar with their continued deficit spending, push up the price of crude oil and thus gasoline and there by destroy the country economically to get them to save us from them, (but they will blame the republicans) and we will get a dictatorship style government under a socialist style system and a new constitution of their making. They may as well do so since they pay no attention to the one we have.

 This is the part of the law that makes them Guilty. The full text of seditious treason law is below; it describes what the liberal, progressive democrats have done and continue to do.  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.  

From 2007 and up to the end of 2011, the democrats will have added deficit spending of $6.47 trillion. They should get a badge of some kind or several badges. One badge should be for spending more on budget deficits in one year then the republicans did in six years. Another badge should be for increasing the total federal debt by 71% in the last 4 years. They should get another one for the record time as it took 93 years to get to $9 trillion in total deficits and it only took the democrats 4 years to get it to $15.5 trillion. At that rate it will double in 2 more years and that brings us to $18 trillion or by 2013. How many ways can I say the currency is screwed and so are the people and in the next 20 months, not years: your dollars will be next to worthless.

 All the numbers come from: Department of labor and statistics: The U.S. Treasury department: Congressional budget office

 http://www.bls.gov/

 http://www.treasury.gov/Pages/default.aspx

http://www.cbo.gov/

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.

From Section 6 – 1:  of the U.S. Constitution

 They shall in all Cases, except Treason, Felony and Breach of the Peace, be privileged from Arrest during their Attendance at the Session of their respective Houses.

We the people should arrest all the democrats immediately for the crime of seditious treason as constitutional law allows for it

I do not seek to over through the government only to expose the Democratic Party for the high crime of seditious treason.

A summary: These records show that once the Democrats took control of Congress they intentionally drove deficits up and dried up the world banking system of all available money to finance their crazy out-of-control spending. I include the 2007 spending budget done by the Republican Party to show how quickly federal spending went from an average of $13 billion month to an average of $34 billion month as soon as the Democrats took control of Congress. Off budget deficits were even higher than on budget deficit spending. A large portion of the off budget deficit spending in the 2007 budget year was emergency spending bills enacted by the democrats and voted against by the minority republicans. Most of the off budget spending in the 2007 budget year was done by the democrat party with emergency spending bills on pork barrel projects and unnecessary actions to social spending. So the huge on and off budget deficit of $500 billion in 2007 was the faut of the democrats not the republicans.

What do you think about the charge of seditious treason are they guilty? Please leave a comment.

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 »

I have been reading a large number of liberal and progressive blogs to see what these People are saying and they have a real bad habit of using a lot of really foul language. They use shocking four letter words that show their lack of vocabulary skills and also a lack of intelligence. They don’t seem to be able to get their idea across without the use of foul language. Most of their anger is directed at Sara Palin. Strangely enough a lot of their vile language is directed at each other as well. This shows the type of people they really are. They don’t even get along with each other. Then these same people keep repeating how stupid or dumb Sarah Palin is while putting their lack of intelligence and vocabulary skills on full display for all to see. Figure the logic in that! That would be a futile endeavor, when trying to use logic were liberals or progressives are concerned. There isn’t any.

Instead of talking about the Issues, Jobs, social security is bankrupt and how to fix it or the banks and the broken economy. They apparently have no idea of how to fix anything because there are no posts about solving problems. They just blame it all on the conservative and use a lot of foul four letter words and hate speeches. Liberals and progressives are so preoccupied with how much they hate Glen Beck, Sarah Palin, Rush Limbaugh and Sean Hannity they can’t see straight. That’s normal for liberals and progressives.

2012 What's really going to happen in 2012

Read Full Post »

Older Posts »