It is amazing how fast economic perceptions can change in just over a week. People have been speculating in the stock and oil market like we were really going to have a significant recovery. Apparently they do not believe what people like me have been telling them. There is no recovery! Suddenly the markets are acting like there is going to be a double dip recession. Three trillion dollars has been lost in these markets in less than two weeks.<\/p>\n
I wonder who is losing the money? All I can say is that big time gambling has its risks, some learn their lesson and some do not. You would think that after the last bubbles burst that speculators would have learned something but apparently many did not.<\/p>\n
The situation now is that the wizard behind the curtain is running out of tricks. The past quarters of our economic “expansion” are continually being revised downward. Before the truth comes out that we never had a recovery we will probably officially be back in a recession. When inflation is growing faster than the GNP people are continually getting poorer and are in a personal depression no matter what the government calls it. The share of the eligible population holding a job is now 58 percent, this is the lowest level in almost thirty years. Even those that are still holding a job are being paid less, so any talk about a ongoing economic expansion is nuts.<\/p>\n
By the way, the biggest losers of income by far in the 2007-2009 period according to official IRS records was those people making more than $200,000 a year. So all those rich people making over $200,000 a year were not getting richer.<\/p>\n
Europe is also about to have a reality check, there are many countries in Europe that are in worse shape than us. Much of the world bought into Marxism and now they will reap the consequences. When you expand government so that they can redistribute the wealth and regulate, you destroy incentives to earn. And when government redistributes wealth that they have not even collected yet, they have to borrow and then pay it back someday. Someday has arrived.<\/p>\n
You would think that the world elite would have learned a lesson from the old Soviet Union but apparently they did not. Even “Communist” China quietly gave up communist Marxism for fascism. It now seems that there will be a world depression on the level of the 1930’s. Sure, prices might not fall this time if governments just keep creating more paper but people will still get poorer and for them it is the same as a depression.<\/p>\n
Contrary to what Europeans are being led to believe, Germany cannot bail out all of Europe by just creating trillons of dollars in money and if they do put up their money to save the EU the German people will hold the rest of Europe accountable when they once again have hyper-inflation in Germany. You might think Germans and Europeans would have learned a thing or two from the last century, but apparently they did not.<\/p>\n
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The American government just raised the national debt ceiling. That is no surprise but the cuts they claimed they made could be wiped out before they even make them. If the economy is growing less than what they projected, that means they will also collect less revenue than what they projected, so the deficit will be worse than what they expected. Also, in spite of the cuts the bond raters are not fooled by smoke and mirrors so they will downgrade American Treasury bonds anyway and that means higher interest payments down the road. Those two factors alone will more than offset any cuts that were projected over their ten year debt reduction plan.<\/p>\n
It is very possible that the rise in the budget deficit that was supposed to fund government borrowing until 2013 will not even last that long. Treasury may very likely have to ask for a rise in the national debt ceiling again before Obama’s first term runs out<\/strong> because I do not see them making short term cuts in a recession but I do see them passing more costly stimulus that are not in the projected budget.<\/p>\n I also have a real problem with the way they intend to make the cuts that were associated with allowing the rise in the national debt ceiling. Creating a 12 member Politburo to just make the cuts is unconstitutional. Congress is afraid to make cuts in election years so they just appoint a gang of 12 in the Senate to do their dirty work. All power will be given to them to cut anything they want. How do I call my congressman to stop cuts that I do not want and hold him responsible for the cuts made? Also, if the gang of 12 do not come to agreement in the cuts they want to make there will be major cuts that will fall just on the Department of Defense and Medicare. I think anyone in Congress that voted for this unconstitutional bill should be fired.<\/p>\n Further, this seems to be another deliberate effort to destroy our military. Most of the first cuts are in national defense, and if the gang of 12 do not come to agreement, one-half of the other cuts will be in defense. At the same time, they are forcing the acceptance of homosexuals in the military and intend to destroy the military retirement system. The forced homosexual agenda and the destruction of the military retirement system will destroy the professional military. People will no longer want to make the military a career. Then when the next war comes they will need conscripts. Seems that all dictatorships require conscripts because a professional military would not put up with them. This will be our reality if these Marxists prevail to deconstruct our military.<\/p>\n ——————————————————————————————————————————————————<\/p>\n It looks to me like there is a debate at top levels in Israel. The debate is do they do preemptive strikes now against their enemies or do they try to wait out the hostile Obama administration? It seems some are now thinking that Obama will be defeated and that Iran can be contained until the US gets a new administration. Those thinking that Obama will be replaced seem to be winning the debate in Israel.<\/p>\n That is why the focus is to try to slow down Iran’s nuclear program by computer viruses and selective assassinations of nuclear engineers. It is also why the Prime Minister of Israel is now willing to let Obama think that he will get what he wants. He won’t. However, by the time Obama figures out that Israel was rope-a-doping him, Obama might be out of office.<\/p>\n Of course, Israel might lose their bet about Obama being a one term President. So, if it looks like Obama is making a strong comeback, or if Israel finds out that Iran is already making nukes, then preemptive strikes become imminent.<\/p>\n ——————————————————————————————————————————————————–<\/p>\n The situation in the Arab world looks bleak. It is almost certain that Egypt will be taken over by Islamists after the election. The war in Libya is going nowhere fast and Libya will probably soon become a new bed of terrorism. Thousands are being killed by the butcher of Syria. How much can the people of Syria endure? Will they just give up and allow Assad to continue, or will there be a civil war? If there is a civil war, what will the West do when the outcome of a civil war in Syria is bad and worse?<\/p>\n The Liberals call this an Arab Spring? It seems to me to be more like Arab summers – hot as hell. Even so, the Left wants to create another Arab state run by declared terrorists? It is obvious that those promoting this “democracy” movement are either totally out of touch with reality or think a democracy is mob or Islamic rule. Actually, a democracy is mob rule, and that is why we\u00a0 have a Republic in America (if we can keep it).<\/p>\n What these Arab states prove, is that if you poison young minds to hate, they will grow-up to hate. There will continue to be wars and upheaval in Arab nations because hate is their passion.<\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" It is amazing how fast economic perceptions can change in just over a week. People have been speculating in the stock and oil market like we were really going to have a significant recovery. Apparently they do not believe what people like me have been telling them. There is no recovery! 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