We’re at the bottom of the beginning of the Depression. Dr. A. H. KriegFrankly and honestly the pundits, economists, and politicians that keep reporting that we have economically bottomed out astonish me. Such predictions are akin to calling Marie Antoinette a populist. Just in case you missed it the largest lender to small business, but I regress, the Obamanation cares nothing about small business, CIT went belly up and “Tiny Tim Geithner” is bailing them out with some more of your collected taxes. Timmy will purchase $1.5 trillion of bad debts, the bondholders will lose 30% of their invested loans, and you will provide the rest, all of which will evaporate into Tiny Tim’s magic bailout conundrum. To top that off, not exactly an easy trick, Market Watch reports that the FRS is in that last phase of purchasing $ 1.5 trillion of mortgages related bonds. On top of those $ 3 trillion, oh! and that’s just last week, Nancy has upped that Obamacare ante to $1.4 trillion and that’s just for the first ten years.
One would hope above all hopes that the morons in Disney World on the Potomac and various Obama idolizers would wake up and smell the bankruptcy in progress. But again I regress yet again, if you are aware of the Cloward /Priven strategy and Saul Alinskey’s book Rules for Radicals, then you are already aware that bankruptcy for America is the Obama plan. I wrote about it in my book “The American Dream/Nightmare: Obama’s Plan last spring.
Let’s for the sake of sanity look at projections of our debt for the coming ten years. Well, that’s unless you proscribe to the Mayan end of the world scenario for December 2012 in which case live it up to the hilt after all it will not affect you! Do you suppose that the Obama crowd supports this theorem and that is the cause of their negligent handling of our economy?
Projections of our debt based on Obama budgetary projections would indicate a conservative debt of $9 trillion and a realistic debt of about $14 to $16 trillion for the coming ten years. Since government collected taxes do not come within a nautical mile of even the conservative amount the balance would have to be borrowed. For the sake of argument if the amount were $ 10 trillion it would mean that Washington would need to borrow more money than anytime in our past history. Bear in mind that we have a staggering debt of $270.4 billion stimulus, $478.7 billion stimulus, $700 billion bail out and $748 billion bank bail out all of these funds were borrowed and must be repaid, that’s unless we declare bankruptcy. Further projections by the Obamamats ventures an additional stimulus act of 12.3% of the GDP.
To add to this misery we are to see an Obamacare bill that is projected to encompass $1.4 trillion. To individual taxpayers of the middle class I have worked out what all this means to you. Cap and Trade when enacted will increase your energy (electric utilities) bill by about $3,100.00 per year. Obamacare will drive up the cost of all insurance by about $3,200.00 for an average family. The horrendous increase in deficit spending will drive taxes through the roof. It is not unrealistic to anticipate tax increases by local, state and federal governments to increase your taxes on a sliding scale from $2,500.00 in 2010 to $8,500.00 by 2020. This is particularly due to Obama’s huge increase in the size and employment in government about 75% of all jobs created in the last nine months have been in government with teachers representing the largest increase, payola to the AFT/NEA for their unrelenting universal support of the DNC.
To sustain these diabolical increases in government spending would necessitate a 200%increase in T-bill and T-note sales mostly to China our largest supplier. This will not happen, because unlike the DC crowd the Chinese are not stupid. They will not purchase paper from a government that is monitorizing its currency that will within the next eight months begin to suffer under the strain of inflation and dollar devaluation. As I write, gold is over $1,100 and oil is over $80 per barrel; this will accelerate in the coming months. Tax increase without the foreign sale of bonds would have to be on the over 60% plateau. With the average taxpayer now at the 49.70%level of tax on total income an increase to 90.8% of income is hardly an option. Bear in mind that no government in history that taxed its population by over 50% survived. Addressing the Obama fairytale economic forecasters that anticipate economic growth of from 4% to 8% in the coming three years I can only say get real! State government revenues were down 27.5% in the second quarter of 2009 and federal tax collection is way below Obamaites projected tax income levels. Projected tax increases for 2010 by the Obamamats are $572 billion; additionally they project cutting Medicare by $500 billion and Medicare Advantage by $177 billion. Additionally in gestures to bolster Obama’s popularity, seniors who will not get their COLA increase on SS will all be sent a check for $250, new home buyer will continue getting a $8,000 tax break which has been extended, and homeowners who have lived in a new home for five years will be getting a $6,500 tax credit, unemployment compensation has been extended for 14 weeks more and now is at 9 months.
In the mean time unemployment levels keep rising. Monthly job losses were misstated by 447,000 by BLS. Job losses for September were 263,000 according to the Payroll survey, but 710,000 according to the Household Survey. Statistical unemployment numbers that are repeatedly misrepresented by DC always state U-3 statistic, which is now 9.8% while U-6 statistics claims 17.0% and the accurate Shadow Stats claims 21.4%.
The DNC lost big time in the November elections, NJ a solid Democrat stronghold went Republican and Virginia was not even a contest. As Denis Miller so aptly put it, “Obama’s coat tails are about as useful as those of a naked midget”. These issues are not about the environment or healthcare they are about changing America into a socialist state. This has been the plan of the “Progressives” (socialists) since Teddy Roosevelt.
Look for Nancy and her minions to now pull out all the stops to enact their agenda, they already know that they will lose the 2010 elections big time, so this is their only chance to socialize America.
Dr. Krieg’s latest book is: The American Dream/Nightmare; Obama’s Plan
