Federal government of the United States

Free Markets Don’t End Like This

“My long view for the US is high inflation which will not show up in the government’s fraudulent statistics, along with a declining standard of living, increasing decay and ultimately leading to chaos, societal and government collapse in the US within a decade or two, maybe sooner.” Craig Harris

The following article will seem extreme to some. The above quote especially will shock many. My view is that this quote is a reasonable estimate of where we are heading. No one can predict the future with precise accuracy. Even if a prediction is correct, estimating the timing is even tougher.

Many, including myself, will argue that the future is not deterministic. Actions and policies can change and alter outcomes. Clearly, that is true. Yet, it is likely that the tipping point for changing policies necessary to avoid Harris’ prediction was past years ago. In that sense, his forecast may be deterministic, i.e., independent of any actions that are subsequently taken.

Future actions can certainly influence the timing, but I believe Harris has covered that possibility with his “within a decade or two, maybe sooner.” My personal guess would be within a decade.

BANKRUPT FASCIST OLIGARCHY WITH A MILITARY MACHINE

Dec 27, 2009
Craig Harris
For a contact email address go to Craig’s website:
http://earthblognews.blogspot.com/

“I would buy every three months some gold and not worry so much about the price because the weight stays the same.” -Marc Faber

“Fantastic article that captures the true nature of what has happened in the last year and what is likely to happen in the coming years. Have you benefited in any way from the actions taken by the government and Federal Reserve in the last year? Are 0% interest rates helping you? How much stimulus money have you received? Did you get bailed out? Did you get a bonus this year?” James Quinn

An Introspective Look at the Future of America

Craig Harris
earthblognews
Dec 27, 2009

As we close out 2009 and look forward into 2010 and beyond, this has been a year of near financial catastrophe and monumental change, none of which benefited America or ordinary Americans. Late in 2008 and throughout 2009, events have happened in the US which would have been labeled unfathomable just a few short years ago, and yet already these monumental changes are expected to be filed into the memory hole and Americans are expected to believe nothing has changed.

As we exit the year, we are told the US is a laissez-faire free market economy and yet the US government is now the largest owner of housing in the US as well as the owner of last resort for some of the largest and completely insolvent US corporations. The Federal Reserve, a privately and anonymously owned and controlled corporation chartered with issuing the nations currency, were given the green light by themselves to transfer to themselves and their shareholders the people’s wealth in the form of their future labor. The FED balance sheet has ballooned to become a junk bond warehouse as they overtly and covertly buy their own debt, immune from any sort of oversight, regulation or auditing and operating above the law. Along with that, increasingly coercive brute force measures are now routinely necessary to manage and manipulate so called “free market” asset prices which are cheerled by so called “financial news media” whose board members and management are all the same people who transferred the people’s wealth to themselves. The corporate media party line idea of a “free market US economy” now seems like a distant memory and it all feels like systemic fraud, corruption, malfeasance and organized crime at the very highest levels.

Read More »Free Markets Don’t End Like This

U.S. Government’s Road to Perdition

Washington Capitol, DC
Image by Francisco Diez via Flickr

James Quinn has posted another very informative piece.

It is especially useful for those who don’t comprehend the degrees of financial chicanery and deceit to which our politicians have resorted . The article will also enable you to understand the mathematical impossibility of the Federal Government honoring its social promises and debt obligations. There will be major defaults!

Understanding the criminal irresponsibility of our politicians might also provide you with your own Howard Beale moment:

[youtube]http://www.youtube.com/watch?v=QMBZDwf9dok&feature=related[/youtube]

The article is highly recommended. While I would propose a somewhat different solution to altering the situation (not tar, feathers and rope, although they are deserved), Quinn’s proposal would be a vast improvement over what we currently have. READ THE ENTIRE ARTICLE

Christmas is a time when kids tell Santa what they want and adults pay for it. Deficits are when adults tell the government what they want – and their kids pay for it.

Richard Lamm

Decade after decade, Americans have voted for intellectually and morally bankrupt dullards that promise them more goodies under the tree. Every day is Christmas in Washington DC. Long-term means the next election cycle to these traitors of the Republic. I have written ad nauseum about the impending financial cataclysm that awaits our nation. I have spent countless hours documenting the unsustainable path of our politicians’ financial decisions and lack of courage in addressing the forthcoming tragedy that grows closer by the day. Our political system is so corrupt and dysfunctional that there is absolutely no chance that our path will be altered at the voting booth. Government programs are fashioned, but never finished. The IRS tax code consists of 3.4 million words covering 7,500 pages of payoffs to business lobbyists. Simplicity is a virtue. The politicians who are bought and sold by corporate interests prefer complexity and obscuring the truth. Everyone knows that the government cannot fulfill the fiscal promises they have already made. Instead of dealing with this reality using intelligence, courage and conviction, the weak kneed politicians that slither the halls of Congress have chosen to add a brand new bloated entitlement program guaranteed to detonate in our faces. This is the existing reality. There is nothing I can do that will change this reality. Instead, I will propose a new model.

Road to Perdition Scenario

‘Government help’ to business is just as disastrous as government persecution… the only way a government can be of service to national prosperity is by keeping its hands off.
Ayn Rand

Politicians do not care about budgets, inflation, or the value of the U.S. dollar. They care about power, personal enrichment and being re-elected. In fiscal 2000, the US government had $1.545 trillion of receipts and $1.458 trillion of expenses, resulting in a surplus of $87 billion that year. A mindless government bureaucrat doesn’t conclude that the surge in receipts was due to the internet bubble resulting in billions of one time capital gains revenues. They should have expected reduced revenues in future years. Nine years later government receipts were $1.51 trillion, while expenditures had reached $3.5 trillion. Total government outlays never go down. Obama’s FY10 budget projects $1.649 trillion of receipts and $3.042 trillion of expenditures, resulting in a deficit of $1.393 trillion. Deficits in the range of $1 trillion per year are projected for the next 10 years. Instead of addressing this budget gap that will absolutely lead to economic disintegration, politicians add new entitlements, expand our interventionist foreign wars, and dole out pork to their corporate backers.

Year On-Budget
Receipts Outlays Surplus or Deficit(−)
2000 $1,544,873 $1,458,451 $86,422
2001 $1,483,907 $1,516,352 -$32,445
2002 $1,338,074 $1,655,491 -$317,417
2003 $1,258,690 $1,797,108 -$538,418
2004 $1,345,534 $1,913,495 -$567,961
2005 $1,576,383 $2,069,994 -$493,611
2006 $1,798,872 $2,233,366 -$434,494
2007 $1,933,150 $2,275,303 -$342,153
2008 $1,866,280 $2,508,130 -$641,850
2009 estimate $1,501,784 $3,479,621 -$1,977,837
2010 estimate $1,649,422 $3,041,947 -$1,392,525

In the early 1980s, before the three decade long debt induced frat party, the National Debt was between $900 billion and $1.6 trillion. Today, the National Debt is $12.3 trillion, up 1,250% in three decades. Read More »U.S. Government’s Road to Perdition

Economic Summit Insult to the Intelligence of Citizens or Revelation of Obama’s IQ

obama-economic-planobama-hat-magicAny Econ 101 student would flunk the course if he showed the aptitude of this Administration regarding basic economics. It is likely most Americans have never taken an economics course, yet would be able to discern why recent economic policies, either proposed or already implemented, destroy jobs. Simple common sense or a modicum of “street smarts” is all that is required.

The President’s jobs summit to address the soaring unemployment issue was embarrassing. Apparently Obama is unable to pass Econ 101 and needed outside advice. Why we have Tim Geithner and Larry Summers and a host of other “experts” that could not educate the man is beyond comprehension. Is he so unbelievably ignorant? Perhaps it is his incredible arrogance that leads him to believe his silver-tongued teleprompter will enable him to “talk-over” his failed policies. Regardless, this “summit” was either an insult to the intelligence of the American public or a revelation of Obama’s intelligence.

The other possible hypothesis is that the President is so ideologically opposed to markets that he believes that all direction must come from Washington, more specifically him. If so, his knowledge of history is as bad as his knowledge of economics. This hypothesis takes us beyond the possibility of ignorance into the realm of stupidity.

The accompanying chart from Heritage indicates the gap between the Administration’s plan versus actual on the jobs front. It is not encouraging.

obamanomicschart1The Heritage article that follows came via email and should be required reading for every politician in Washington. Even if they are incapable or unwilling to understand, they should remember the Hippocratic oath: “Do no harm.” The article concludes with a similar caution: “If the President is truly concerned about jobs, both he and the Congress should abandon their reckless policies and instead consider alternatives like Cantor’s. Unfortunately, as Foster points out, ‘the best we can hope from government is that it keeps to a minimum the jobs it prevents and the income and wealth it destroys.'”

December 4, 2009 | By Amanda Reinecker

Taxes kill jobs. They don’t create them.

Yesterday, the White House hosted a “Forum on Jobs and Economic Growth” to address the soaring unemployment rate and to discuss new ways and policies to promote job growth. This is not the first time President Obama has attempted to address the nation’s job crisis, and there are real doubts whether he’ll be more successful this time around.

When President Obama took office in January, the unemployment rate was 7.6 percent. He quickly called for action and in March he signed into law a $787 billion “stimulus” package that would allegedly create 3.3 million net jobs and “save” millions more.

“Since then,” Heritage’s Conn Carroll writes, “3.4 million more net jobs have been lost, pushing the unemployment rate above 10 percent.”

Read More »Economic Summit Insult to the Intelligence of Citizens or Revelation of Obama’s IQ