Everyone who voted for Barack Obama voted for the man because he and his party give away free stuff. Democrats push socialism at all costs. They love to take your money and give it to everyone else. The fact that the rest of us taxpaying citizens pay for all the free stuff didn’t seem to bother the majority of voters.
The fact that our country and all its citizens suffer a $16 trillion debt and headed toward $20 trillion didn’t dissuade the majority of voters to vote for Romney who proved his ability to balance budgets and create jobs. The majority voted to add another $4 trillion in debt to the US financial nightmare.
Why? Answer: more people in this country feel entitled to a lot of free stuff. Over 47.7 million Americans love their free food via food stamps. Millions more love their government jobs where they show up to sit all day doing virtually nothing that creates anything.
This lady, with 15 kids, loves to get free stuff. You may multiply her story times 10 to 20 million single mothers sporting endless children paid for by you. She pointed to all her kids in the video by saying, “Somebody needs to pay for them.”
Several million Americans love the fact that they can continue their two years of unemployment benefits so they can take long vacations on your taxpayer dollar backs.
Freebies such as medical care for 20 million illegal aliens attracted more illegal aliens who are about to become instant citizens. They will vote for another “Obama” in the next election because they expect free stuff.
Ronald Reagan himself could not win an election in today’s America.
Blog writer Pruzansky said, “The simplest reason why Romney lost was because it is impossible to compete against free stuff. Every businessman knows this; that is why the “loss leader” or the giveaway is such a powerful marketing tool. Obama’s America is one in which free stuff is given away: the adults among the 47,000,000 on food stamps clearly recognized for whom they should vote, and so they did, by the tens of millions; those who – courtesy of Obama – receive two full years of unemployment benefits (which, of course, both disincentivizes looking for work and also motivates people to work off the books while collecting their windfall) surely know for whom to vote; so too those who anticipate “free” health care, who expect the government to pay their mortgages, who look for the government to give them jobs. The lure of free stuff is irresistible.”
Most folks love to get free stuff. Free food, free gas, free housing, free rides, free living. The old America, based on European work, thrift, personal accountability, personal accountability and paying your bills—lost in the election.
As we import another 100 million third world people into this country within three decades, we will discover why they flee their own failed countries and come here to “get free stuff.”
Four hundred thousand pregnant illegal migrant women come here every year to deliver their “anchor babies” or what could be called “free stuff getters” : to get free food, housing, medical and other stuff.
Over 1.2 million legal immigrants without any skills come here annually: to get free food, housing, medical and stuff.
At some point, our financial systems collapse and no one gets free stuff. At some point, our communities suffer free fall from so many expecting free stuff. At some point, no one will get free stuff. It’s called a failed civilization.
Pity we voted for so much free stuff.
The mainstream media covered the inauguration of Barack Obama with breathless anticipation on Monday, but should we really be celebrating another four years of Obama? The truth is that the first four years of Obama were an absolute train wreck for the U.S. economy. Over the past four years, the percentage of working age Americans with a job has fallen, median household income has declined by more than $4000, poverty in the U.S. has absolutely exploded and our national debt has ballooned to ridiculous proportions. Of course all of the blame for the nightmarish performance of the economy should not go to Obama alone. Certainly much of what we are experiencing today is the direct result of decades of very foolish decisions by Congress and previous presidential administrations. And of course the Federal Reserve has more influence over the economy than anyone else does. But Barack Obama steadfastly refuses to criticize anything that the Federal Reserve has done and he even nominated Ben Bernanke for another term as Fed Chairman despite his horrific track record of failure, so at a minimum Barack Obama must be considered to be complicit in the Fed’s very foolish policies. Despite what the Obama administration tells us, the U.S. economy has been in decline for a very long time, and that decline has accelerated in many ways over the past four years. Just consider the statistics that I have compiled below. The following are 37 statistics which show how four years of Obama have wrecked the U.S. economy…
1. During Obama’s first term, the number of Americans on food stamps increased by an average of about 11,000 per day.
3. According to one calculation, the number of Americans on food stamps now exceeds the combined populations of “Alaska, Arkansas, Connecticut, Delaware, District of Columbia, Hawaii, Idaho, Iowa, Kansas, Maine, Mississippi, Montana, Nebraska, Nevada, New Hampshire, New Mexico, North Dakota, Oklahoma, Oregon, Rhode Island, South Dakota, Utah, Vermont, West Virginia, and Wyoming.”
4. The number of Americans receiving money directly from the federal government each month has grown from 94 million in the year 2000 tomore than 128 million today.
5. According to the U.S. Census Bureau, more than 146 million Americans are either “poor” or “low income” at this point.
6. The unemployment rate in the United States is exactly where it was (7.8 percent) when Barack Obama first entered the White House in January 2009.
8. During the first four years of Obama, the number of Americans “not in the labor force” soared by an astounding 8,332,000. That far exceeds any previous four year total.
9. During Obama’s first term, the number of Americans collecting federal disability insurance rose by more than 18 percent.
10. The Obama years have been absolutely devastating for small businesses in America. According to economist Tim Kane, the following is how the number of startup jobs per 1000 Americans breaks down by presidential administration…
Bush Sr.: 11.3
Bush Jr.: 10.8
11. Median household income in America has fallen for four consecutive years. Overall, it has declined by over $4000 during that time span.
12. The economy is not producing nearly enough jobs for the hordes of young people now entering the workforce. Approximately 53 percentof all U.S. college graduates under the age of 25 were either unemployed or underemployed in 2011.
13. According to a report from the National Employment Law Project, 58 percent of the jobs that have been created since the end of the recession have been low paying jobs.
14. Back in 2007, about 28 percent of all working families were considered to be among “the working poor”. Today, that number is up to 32 percent even though our politicians tell us that the economy is supposedly recovering.
15. According to the Center for Economic and Policy Research, only 24.6 percent of all of the jobs in the United States are “good jobs” at this point.
16. According to the U.S. Census Bureau, the middle class is taking home a smaller share of the overall income pie than has ever been recorded before.
17. According to the Economic Policy Institute, the United States is losinghalf a million jobs to China every single year.
18. The United States has fallen in the global economic competitiveness rankings compiled by the World Economic Forum for four years in a row.
19. According to the World Bank, U.S. GDP accounted for 31.8 percentof all global economic activity in 2001. That number declined steadily over the course of the next decade and was only at 21.6 percent in 2011.
20. The United States actually has plenty of oil and we should not have to import oil from the Middle East. We need to drill for more oil, but Obama has been very hesitant to do that. Under Bill Clinton, the number of drilling permits approved rose by 58 percent. Under George W. Bush, the number of drilling permits approved rose by 116 percent. Under Barack Obama, the number of drilling permits approved actuallydecreased by 36 percent.
21. When Barack Obama took office, the average price of a gallon of gasoline was $1.84. Today, the average price of a gallon of gasoline is$3.26.
22. Under Barack Obama, the United States has lost more than 300,000 education jobs.
24. Families that have a head of household under the age of 30 now have a poverty rate of 37 percent.
25. More than three times as many new homes were sold in the United States in 2005 as were sold in 2012.
26. Electricity bills in the United States have risen faster than the overall rate of inflation for five years in a row.
27. Health insurance costs have risen by 29 percent since Barack Obama became president.
28. Today, 77 percent of all Americans live paycheck to paycheck at least part of the time.
29. It is being projected that Obamacare will add 16 million more Americans to the Medicaid rolls.
30. The total amount of money that the federal government gives directly to the American people has grown by 32 percent since Barack Obama became president.
31. The Obama administration has been spending money on some of the most insane things imaginable. For example, in 2011 the Obama administration spent $592,527 on a study that sought to figure out once and for all why chimpanzees throw poop.
32. U.S. taxpayers spend more than 20 times as much on the Obamas as British taxpayers spend on the royal family.
33. The U.S. government has run a budget deficit of well over a trillion dollars every single year under Barack Obama.
35. During Obama’s first term, the federal government accumulated more debt than it did under the first 42 U.S presidents combined.
36. As I wrote about yesterday, when you break it down the amount of new debt accumulated by the U.S. government during Obama’s first term comes to approximately $50,521 for every single household in the United States. Are you ready to contribute your share?
37. If you started paying off just the new debt that the U.S. has accumulated during the Obama administration at the rate of one dollar per second, it would take more than 184,000 years to pay it off.
But despite all of these numbers, the mainstream media and the left just continue to shower Barack Obama with worship and praise. Newsweek recently heralded Obama’s second term as “The Second Coming“, and at Obama’s pre-inauguration church service Reverand Ronald Braxton openly compared Obama to Moses…
At Metropolitan African Methodist Episcopal Church, Braxton reportedly crafted his speech around Obama’s personal political slogan: “Forward!”
Obama, said Braxton, was just like Moses facing the Red Sea: “forward is the only option … The people couldn’t turn around. The only thing that they could do was to go forward.” Obama, said Braxton, would have to overcome all obstacles – like opposition from Republicans, presumably, or the bounds of the Constitution. Braxton continued, “Mr. President, stand on the rock,” citing to Moses standing on Mount Horeb as his people camped outside the land of Israel.
But it wasn’t enough to compare Obama with the founder of Judaism and the prophet of the Bible. Braxton added that Obama’s opponents were like the Biblical enemies of Moses, and that Obama would have to enter the battle because “sometimes enemies insist on doing it the hard way.”
So what do you think the next four years of Obama will bring?
Source: The Economic Collapse
An obscure report that the Federal Reserve may suspend the monetization of purchasing Treasury Bonds has the smell of disinformation. The perennial efforts to lift economic spirits with the beginning of a New Year often are packed with wishful thinking. Quantitative Easing is being treated as a useful tool for turning on and off the spigot of liquidity infusion. In reality, the results of the massive origination of debt created monies fundamental purpose is to save the commercial banks from insolvency.
The trial balloon report, Federal Reserve could pause QE this year if US economy improves, avoids the risks that come from another expansive round of deficit spending.
“St. Louis Fed President James Bullard, a voting member of the Fed’s monetary policy panel this year, said a drop in the unemployment rate to 7.1 per cent would probably constitute the “substantial improvement” in the labor market that the central bank seeks.
“If the economy performs well in 2013, the Committee will be in a position to think about going on pause” with the asset buys.
Minutes from their December policy meeting showed that “several” top officials expected to slow or stop the so-called quantitative easing program, dubbed QE3, “well before” the end of the year – news that surprised some on Wall Street and prompted a drop in stocks and bonds, and a rise in the dollar.”
The recent spike of equity prices after the sharp increase in taxes on high-end incomes just does not translate into improving the prospects of the beleaguered middle class. Temporary uncertainty relief does not make a healthy stock market alone. When the financiers of employment expansion must face the added costs of Obamacare and a drop in consumer disposable income, it simply does not follow that unemployment levels will drop in the near future.
Yet, segments of the Federal Reserve offers optimism, as the labor market may show “substantial improvement” in the coming months. Could this forecast imply some newfangled governmental make work new spending programs?
Surely, the financial media is pushing the success of the QE’s rescues. One example is the TV commercial where AIG advertises the end of its bailout.
“AIG has just launched a two-week, multimedia campaign seeking to reintroduce itself after its role in sparking the Great Recession,” MediaPost reported yesterday. “The company got an $85 billion bailout as the government took about an 80% stake.”
The ballyhoo over paying back the loans steers clear of the real reason why AIG was “Too Important” to fail; namely, to salvage the incalculable derivative obligations. Rescuing the money center banks has always been the intent of the “Too Big to Fail” taxpayer salvage schemes.
But when will the limit of such gifts be reached? When the banks are satisfied or when the Treasury is emptied and looted, as the cost of extending the usury based financial system. Future generations do not have a chance for economic prosperity as long as the Federal Reserve continues the bond-buying thievery.
In order to confuse the public even more, The Big Banks Expect Quantitative Easing Into Early 2014.
“The New York Fed’s primary dealers, the 21 banks with which it carries out transactions, expect quantitative easing to continue until 1Q 2014. This is according to a Dow Jones Business News report.
The recently released minutes of the December FOMC meeting revealed that several Fed governors were taking a more hawkish stance in regards to the bond-buying program.”
Remember that the Fed is forecasting a slow modest recovery. What will the change in attitude become with a serious double-dip recession?
Do not believe for a New York minute that the Fed is looking to transition out of their gravy train financial backdrop for their bankster holders of the privately owned central bank.
The practical gauge of how long Quantitative Easing remains will be decided by the amount of debt that needs to be refinanced. Rolling over current debt is easy enough of a concept to understand. Should it not be just as comprehensible to recognize that continued increases in the national debt requires even greater appetites to buy government bonds?
Notwithstanding, this normal mechanism of finance, the perverse imagination of the paper printers knows no bounds. The Trillion-Dollar Platinum Coins provides the latest absurdity.
“There’s a legal loophole allowing the Treasury to mint platinum coins in any denomination the secretary chooses . . . Yes, it was intended to allow commemorative collector’s items—but that’s not what the letter of the law says. And by minting a $1 trillion coin, then depositing it at the Fed, the Treasury could acquire enough cash to sidestep the debt ceiling—while doing no economic harm at all.”
In response, Rep. Greg Walden (R-Ore.) has introduced a bill to specifically ban President Barack Obama from minting the coins.
The obvious conclusion when the market refuses to support low interest T Bonds is that something has to give. Either interest rates need to rise significantly or the Fed must continue their Quantitative Easing.
As long as the Obama administration maintains, We Do Not Have a Spending Problem, and stonewalls significant and meaningful reductions in the federal expenditures, the national debt will continue to be a drain on the financial bond markets.
Mr. Bullard’s optimistic projection of lower unemployment might simply be a signal that the methods for compiling the statistics may be in the works. The main street economy sees no benefit from a banking system that shuns loaning money to productive businesses.
Quantitative Easing in any form or machination is a euphemism for crony corporate welfare. The big money center banks are virtually financially immune from lawful accountability or criminal prosecution.
Slapping fines and penalties for violating statues and regulations, results in escaping trial by juries. This basic exclusive protection for the elites that run the counterfeit presses is the proof of true power. Inexhaustible Quantitative Easing is just another means to keep the spending financed with other peoples’ money.
The middle class has quite a gift welcoming them as the calendar flips over to 2013. Their payroll taxes are going to go up, their income taxes are going to go up, and approximately 28 million households are going to be hit with a huge, unexpected AMT tax bill on their 2012 earnings. So happy New Year middle class! You are about to be ripped to shreds. In addition to the tax increases that I just mentioned, approximately two million unemployed Americans will instantly lose their extended unemployment benefits when 2013 begins, and new Obamacare tax hikes which will cost American taxpayers about a trillion dollars over the next decade will start to go into effect. If Congress is not able to come to some sort of a deal, all middle class families in America will be sending thousands more dollars to Uncle Sam next year than they were previously. And considering the fact that the middle class is already steadily shrinkingand that the U.S. economy is already in an advanced state of decline, that is not good news. You would think that both major political parties would want to do something to keep the middle class from being hit with this kind of tax sledgehammer. Unfortunately, at this point it appears that our “leaders” in Washington D.C. are incapable of getting anything done. So get ready for much smaller paychecks and much larger tax bills. What is coming is not going to be pleasant.
So what happened?
Weren’t the tax increases only supposed to be for the wealthy?
Well, that is what the politicians always promise, but it is always the middle class that ends up getting hit the hardest.
In this day and age, the big corporations and the ultra-wealthy are absolute masters at avoiding taxes.
For example, Facebook paid approximately $4.64 million in taxes on their entire foreign profits of $1.344 billion for 2011.
That comes out to a tax rate of about 0.3 percent.
Overall, the global elite have approximately 18 trillion dollars parked in offshore tax havens such as the Cayman Islands.
Keep in mind that U.S. GDP for 2011 was only slightly above 15 trillion dollars.
So the global elite have an amount of money parked in offshore banks that is substantially larger than the total value of all goods and services produced in the United States each year.
According to one estimate, a third of all the wealth in the entire world is stationed in offshore banks. Our politicians are playing checkers and the global elite are playing chess when it comes to taxes. Our current system of taxation is irreversibly broken and should be entirely thrown out and replaced with something else.
And of course under our current system those that are poor don’t pay much in taxes because they are just trying to survive.
So who always ends up getting the painful end of the hammer?
The middle class does, and that really stinks.
Let us hope and pray that our politicians can come together and do something for the middle class. In particular, we should all be screaming and yelling at our politicians about the Alternative Minimum Tax. It was originally designed as a method to “tax the rich”, but unless Congress does something the middle class is about to be ripped to shreds by it. The following is from a recent CNBC article about the AMT…
In a cruel epilogue to 2012, roughly 28 million families would owe the IRS $86 billion more than they anticipated for this year should the country plunge off the cliff, according to the nonpartisan Tax Policy Center.
Those families would face the “Alternative Minimum Tax,” which was introduced in 1969 to supposedly guarantee that wealthy Americans could not elude the taxman. But the AMT not only flopped, it was never indexed to inflation. So with each passing year, it seeps away from high society and into the wallets of Target and Wal-Mart shoppers. That sets up a disaster for April 15.
So how much money are we talking about?
According to that same article, many families are about to be socked by tax bills that will be absolutely huge…
On the whole, 98 percent of those with incomes between $200,000 to $500,000 would pay an additional $11,000 in AMT this year, according to the center’s estimates. About 88 percent of those with incomes of $100,000 to $200,000 would need to fork over another $3100, and even the majority of Americans with earnings between $75,000 and $100,000 would have an AMT liability.
Most of the tax increases that will be coming as a result of the fiscal cliff will be for 2013 earnings, but the AMT tax hike will apply to 2012 earnings. So if you end up falling under the AMT, you better get ready to write a very large check to Uncle Sam in just a couple of months.
And the AMT is only just one of the very painful tax increases that American families will be facing. If no deal is reached in Congress, every single middle class American taxpayer will be dealing with significantly higher taxes.
A recent ABC News report entitled “Fiscal Cliff: By The Numbers” detailed some of the other tax increases that you can expect in 2013…
So why don’t our politicians do something about all of this?
What are they fighting so bitterly about anyway?
Sadly, neither side is actually serious about substantially reducing the size of government deficits or about getting government spending under control.
During a recent interview on CNBC, Ron Paul explained that “they pretend they are fighting up there, but they really aren’t. They are arguing over power, spin, who looks good, who looks bad; all trying to preserve the system where they can spend what they want, take care of their friends and print money when they need it.”
Most in the mainstream media are making it sound like some kind of a “battle royal” is going on in Washington, but as Lou Dobbs recently pointed out, the U.S. national debt is going to end up in just about the same place no matter what happens.
According to Dobbs, if we “do nothing” the U.S. national debt will be approximately 25.8 trillion dollars in 2022.
If “Obama wins”, the U.S. national debt will be approximately 25.4 trillion dollars in 2022.
If “Boehner wins”, the U.S. national debt will be approximately 25.2 trillion dollars in 2022.
You can watch the entire analysis by Lou Dobbs right here…
So they are putting all of us through all of this torture even though nothing will really change in the long run no matter who wins?
What kind of a circus is this?
Meanwhile, the reckless spending continues.
Barack Obama has just issued a new executive order that ends the pay freeze for federal workers that had been in place.
So now all federal employees will be getting a nice hefty pay raise.
For example, Vice President Joe Biden brought in $225,521 this year.
Next year, he will make $231,900.
Not that our politicians really need the money. Most members of Congress are millionaires anyway. But if they can get us to pay for it, they might as well go for it, eh?
There are now close to half a million federal employees that bring homeat least $100,000 a year. Plus, it is important to keep in mind that the benefits that federal employees get are absolutely outstanding, and it is close to impossible to actually fire a federal worker.
Life is good if you are working for Uncle Sam.
Meanwhile, our politicians seem determined to keep draining more blood out of the middle class. Even if a “deal” is reached, we will still be hit by some categories of tax increases. Let’s just hope and pray that we don’t get hit by all of the tax increases that are scheduled to go into effect. That would be a financial disaster for millions of families.
So happy New Year middle class. Your taxes are about to go through the roof and our politicians are too busy fighting with each other to do anything about it.
What else will 2013 bring?
Source: The Economic Collapse
27,000 Starvation Deaths Daily!
In this modern era, we fly jet planes around the planet in a matter of hours. We create Smart Phones that take pictures and post them on our Facebook pages in a matter of seconds. We pay billions of dollars to watch gridiron behemoths race toward the end zone. We buy high-powered cars to hurl our obese bodies to the local grocery store to buy more food to stuff into our mouths.
Meanwhile, our politicians speak with soaring oratory to make the world better for all human beings. At the same time, our leaders create wars all over the world that devour trillions of dollars in bombs, soldiers, rockets, planes and armaments.
But through all our riches, our words, our human nobility in 180 plus countries around the world, we cannot figure out how to stop the starvation deaths of 27,000 children every 24 hours. How did we advance this far as the human race only to watch that many children die needlessly and endlessly around the world? (Source: World Health Organization)
At the end of 2012, let’s encourage our church leaders and government leaders, and people of the world to address the fundamental need to feed the children of the planet instead of preparing for or making wars around the world. While we in the United States mourn the mayhem against the children of Newtown, Connecticut, we need to understand and solve the fact that the world suffers 27,000 “Newtown’s” every single day of the year.
With that in mind, let’s propose solutions to world hunger for 2013. Let’s solve the great scourges of mankind: poverty, illiteracy, ignorance, disease, unemployment, homelessness, inadequate sanitation, low social mobility, and exclusion.
For example, in India, 1,000 children die every day of diarrhea, dysentery and other water borne diseases. (Source: www.populationmedia.org) Yet, India does absolutely nothing to solve that problem while it adds another 11 million net gain to its already bloviated population of 1.2 billion impoverished people. Not to mention its destroyed environment!
27,000 children die each day from needless poverty
Dr. Webster Tarpley, author of man books, said, “The tragic condition of humanity is perhaps most dramatically reflected in the fact that between 22,000 and 27,000 children die each day due to poverty, largely in the form of starvation, malnutrition, and diseases like diarrhea which can be cured for a few pennies. The upper end of this range corresponds to one needless childhood death caused by poverty every three seconds. Total needless childhood deaths from poverty, these data suggest, must be approaching at least 10 million per year – a yearly total which by itself rivals any of the great genocides of world history. Of the 2.2 billion children who live in today’s world, one billion live in poverty. This is the estimate from the most recent United Nations Human Development Report.”
Not only that, but Time Magazine reported that 8.1 million adults die annually from starvation. Total humans dying of starvation: 18 million annually.
While the United States spends trillions of dollars annually on war, 3.1 billion human beings live on less than $2.00 per day. That same 3.1 billion lack a toilet or sanitation facilities of any kind. It’s beyond sickening that we see this kind of condition of humanity in 2012 with all our talents as a species.
“About 2.6 billion people or 40% of the world’s population are struggling to subsist on less than two dollars a day,” said Tarpley. “It is a world in which a total of 3 billion people or 50% of the world total must try to get along on less than $2.50 per day. For all the talk of a growing middle class made possible by globalization, 80% of humanity receives less than $10 per day.”
Almost a billion malnourished worldwide
According to the United Nations Food and Agricultural Organization in Rome, “There are in 2012 some 925 million persons experiencing hunger and malnutrition. Some 578 million of the hungry live in the Asian and Pacific countries, followed by 239 million malnourished in sub-Saharan Africa.”
At the same time, Americans spend $50 million per jet plane and several billions of dollars to build aircraft carriers annually that they don’t need to fight non-existent adversaries.
Ironically, the Catholic Church spends all its money worldwide to stop any form of birth control or family planning. In his brilliant book, Underdevelopment is a State of Mind by Lawrence E. Harrison, he shows where Catholic-dominated countries suffer massive child birth rates, grinding poverty and hopelessness beyond imagination. The Catholic Church dominates in Haiti, Mexico and most of Latin America. Result: accelerating poverty to match accelerating birth rates.
Much the same holds true in Islamic countries like Pakistan, Egypt and Bangladesh. Those ancient religions refuse to embrace birth control or abortion—thus, women die and children starve into that 10 million children death factor annually. Additionally, they suffer horrific misery up to the point of death.
1.1 billion humans lack clean water
“Fully 1.1 billion people in developing countries today lack adequate access to clean water,” said Tarpley. “One third of all children, or 640 million kids, exist without adequate shelter. One fifth of all children, or a total of 400 million, do not have access to safe water. One seventh of all children, or 270 million, are denied access to adequate health services.”
Political instability in Egypt and much of Africa
Africa closes in on 1 billion human beings inhabiting that vast continent. However, demographers state that the current rate of human growth will create 3.1 billion Africans by the end of the century.
In Egypt at 82 million people and headed for 150 million within decades, their form of birth control equals digging another canal off the Nile River to create more shanty tents and human misery. No one takes responsibility for reality.
At some point, Islam, Hinduism, Buddhism, Mormonism, the Catholic Church and all other religions must join minds or hands or whatever it takes—to come to terms with human overpopulation that creates the 18 million starvation deaths annually. They must advocate and endorse birth control and family planning. They must un-stick themselves from the 1st century or 6th century and even B.C. eras in humanity’s march into the 21st century.
Otherwise, all those civilizations will see horrific human die-off, unspeakable misery and continued degradation of our planet home. We cannot get around it with faith, hope or prayers. Mother Nature, aka, God, Allah, the Great Spirit, or whatever you call the Creator will unmercifully respond to our overwhelming numbers. It won’t be pretty.
We can change course by changing our actions for a plausible future for all of humanity.
As of November of 2012, a mind-numbing 47.7 million Americans subsist on taxpayer-funded food stamps. One in seven Americans cannot feed himself or herself with a job or work of any kind. What constitutes the irony to this national tragedy? Answer: our U.S. Congress imports 100,000 legal immigrants into the USA with green cards every 30 days.
No matter how much poverty and unemployment blacks, whites and Hispanic Americans suffer– the leaders of this country continually pound more humans into the mix without pause. At the same time, food banks go belly up with bare shelves. Over 13 million American children live in destitute poverty and cannot secure three square meals per day.
While Congress supports our enormous military spending into the trillions of dollars and two 10 year long wars that devour (ed) money—it fails to create jobs and feed our poorest. It fails the fundamental rights of our own citizens to work and eat.
The gross statistics created by our U.S. Congress: (Source:hubpages.com)
#1 According to one calculation, the number of Americans on food stamps now exceeds the combined populations of “Alaska, Arkansas, Connecticut, Delaware, District of Columbia, Hawaii, Idaho, Iowa, Kansas, Maine, Mississippi, Montana, Nebraska, Nevada, New Hampshire, New Mexico, North Dakota, Oklahoma, Oregon, Rhode Island, South Dakota, Utah, Vermont, West Virginia, and Wyoming.”
#3 Right now, one out of every seven Americans is on food stamps and one out of every four American children is on food stamps.
#4 It is projected that half of all American children will be on food stamps at least once before they turn 18 years of age.
#5 According to new numbers that were just released by the U.S. Census Bureau, the number of Americans living in poverty increased to a new all-time record high of 49.7 million last year.
#6 The number of Americans living in poverty has increased by about 6 million over the past four years.
#7Today, about one out of every four workers in the United States brings home wages that are at or below the federal poverty level.
#8According to the U.S. Census Bureau, the poverty rate for children living in the United States is about 22 percent.
#9 Overall, approximately 57 percent of all children in the United States are living in homes that are either considered to be either “low income” or impoverished.
#10 In the United States today, close to 100 million Americans are considered to be either “poor” or “near poor”.
#11 One university study estimates that child poverty costs the U.S. economy 500 billion dollars each year.
#12 Households that are led by a single mother have a 31.6 percent poverty rate.
#13 In 2010, 42 percent of all single mothers in the United States were on food stamps.
Once you research the numbers, you cannot help but look to your own U.S. Senators and House reps and see failure, duplicity and corruption. No excuses! How could men and women who are supposed to represent American citizens continually leave American citizens in the grips of poverty, joblessness and homelessness?
Some kind of moral, ethical and spiritual wrong grows in the nation’s capitol all the way up to the president. American citizens become its victims.
Do you think there is any chance of it changing and becoming better as that same U.S. Congress adds over 3.1 million immigrants every year on our way to adding 100 million immigrants within the next 38 years?
Will this be the last normal holiday season that Americans ever experience? To many Americans, such a notion would be absolutely inconceivable. After all, in the affluent areas of the country restaurants and malls are absolutely packed. Beautiful holiday decorations are seemingly everywhere this time of the year and children all over the United States are breathlessly awaiting the arrival of Santa Claus. Even though poverty is exploding to unprecedented levels, most families will still have mountains of presents under their Christmas trees. Of course a whole lot of those presents were purchased with credit cards, but people don’t like to talk about that. It kind of spoils the illusion. Sadly, the truth is that our entire economy is a giant illusion. The extreme prosperity that we have been enjoying has been fueled by debt, and any future prosperity that we will experience is completely dependent on our ability to go into even more debt. The total amount of debt in our economy is almost 10 times larger than it was just 30 years ago, but we don’t like to think about that too much. Most Americans are way too busy living the good life to be bothered with “doom and gloom”. Well, get ready to say goodbye to normal. As history has shown us, no financial bubble lasts forever, and time is rapidly running out for us.
You know that the hour is late when even mainstream news sources start publishing articles with titles such as this: “Will 2013 Mark the Beginning of American Decline?”
That article appeared on Bloomberg.com the other day, and it was written by Simon Johnson, a former chief economist at the International Monetary Fund. He is convinced that a day of reckoning is coming for U.S. government finances, and he seems resigned to the fact that we will not be ready when that day arrives…
“Sooner or later, it will be America’s turn to fall out of favor with investors and to see its own interest rates rise. It is hard to know when that day will come, or precisely what pressures the country will face.
Let me only venture one forecast: We will not be ready.”
Other analysts are far more pessimistic. For example, the following is what Gerald Celente said about the “bond bubble” during a recent interview with King World News…
Eric King: “Gerald, I wanted to take a look at this upcoming issue you have coming out. (In here it says,) ‘Bonds Away! The bond bomb is ready to explode … threatening to make the real estate and dot-com bubbles, and even the Great Recession, look like market corrections.’ Can you talk about that?”
Celente: “Yes. This piece is being penned by Dr. Paul Craig Roberts, the former Assistant Treasury Secretary under Ronald Reagan. And he is convinced that the bond bubble is about to burst. This cannot continue to go on the way it is. Everyone knows that the whole game is rigged, and so is this….”
“The whole game is rigged. It’s ready to go down, and Dr. Paul Craig Roberts believes it’s ‘Bonds Away’ in 2013 as the bond bubble explodes and brings about a financial disaster even worse than the Great Depression.”
Eric King: “He’s saying here it’s a road to financial collapse that we are going to head down when this thing bursts.”
Celente: “It is. Because the whole world is being propped up by these phony bonds and it’s going to collapse. It has to happen. Interest rates are going to start going up, and when they do the bond bubble explodes. You cannot keep interest rates at zero for this amount of time and expect anything other than disaster to follow.”
For much more on all this, you can listen to another excellent interview with Gerald Celente right here.
Our politicians just assume that we will be able to borrow trillions upon trillions of dollars far into the future at super low interest rates, but that is a very dangerous assumption.
As I noted the other day, the average rate of interest on U.S. government debt was 2.534 percent at the end of November. If that number just rose to where it was about a decade earlier we would be in a massive amount of trouble.
Back in the year 2000, the average rate of interest on U.S. government debt was 6.638 percent. If we were at that level today, the U.S. government would be paying out more than a trillion dollars a year just in interest on the national debt.
But our politicians just keep borrowing and spending as if we could do this forever.
From the time that George Washington was inaugurated (1789) to the time that George W. Bush was inaugurated (2001), the U.S. government accumulated about 5.7 trillion dollars of debt.
During the first four years of the Obama administration, the U.S. government accumulated about 5.7 trillion dollars of debt.
How can anyone support this kind of insanity?
You can see an excellent video demonstrating the vastness of our national debt right here. In the end, all of this debt will absolutely destroy the U.S. dollar, our economic system and the bright futures that our children and our grandchildren were supposed to have.
As if all of that was not enough to be concerned about, there is also the threat that Wall Street could implode at any time. Most Americans have no idea that Wall Street has been transformed into the largest casino in the history of the world. The “too big to fail” banks are the ringleaders, and the derivatives bubble hangs over our financial system like a “sword of Damocles” that could fall at virtually any moment.
Everything will remain fine as long as the spiral of derivatives that our bankers have constructed remains perfectly balanced. But if something happens and it becomes unbalanced and starts to collapse, the consequences could be unlike anything we have ever seen before.
A recent Zero Hedge article entitled “1000x Systemic Leverage: $600 Trillion In Gross Derivatives ‘Backed’ By $600 Billion In Collateral” detailed how there is barely any collateral backing up the hundreds of trillions of dollars of derivatives that are out there…
But a bigger question is what is the actual collateral backing this gargantuan market which is about 10 times greater than the world’s combined GDP, because as the “derivative” name implies all this exposure is backed on some dedicated, real assets, somewhere. Luckily, the IMF recently released a discussion note titled “Shadow Banking: Economics and Policy” where quietly hidden in one of the appendices it answers precisely this critical question. The bottom line: $600 trillion in gross notional derivatives backed by a tiny $600 billion in real assets: a whopping 0.1% margin requirement! Surely nothing can possibly go wrong with this amount of unprecedented 1000x systemic leverage.
Our entire economy has become a giant pyramid of debt, risk and leverage. At some point there is going to be a giant crash. When that happens, people are going to become very desperate.
When people become very desperate, they often accept “solutions” that they were not willing to consider previously.
We need to learn some lessons from history. This is exactly the kind of thing that happened back in the 1930s.
For example, an elderly woman named Kitty Werthmann is telling audiences what life was like in Austria back in the late 1930s…
“In 1938, Austria was in deep Depression. Nearly one-third of our workforce was unemployed. We had 25 percent inflation and 25 percent bank loan interest rates.”
“Farmers and business people were declaring bankruptcy daily. Young people were going from house to house begging for food. Not that they didn’t want to work; there simply weren’t any jobs.”
The Austrian people were really hurting and they were desperate for answers. When Hitler came to them with “solutions”, they were ready to embrace him with open arms…
“We looked to our neighbor on the north, Germany, where Hitler had been in power since 1933.” she recalls. “We had been told that they didn’t have unemployment or crime, and they had a high standard of living.”
“Nothing was ever said about persecution of any group – Jewish or otherwise. We were led to believe that everyone in Germany was happy. We wanted the same way of life in Austria. We were promised that a vote for Hitler would mean the end of unemployment and help for the family. Hitler also said that businesses would be assisted, and farmers would get their farms back.”"Ninety-eight percent of the population voted to annex Austria to Germany and have Hitler for our ruler.”
“We were overjoyed,” remembers Kitty, “and for three days we danced in the streets and had candlelight parades. The new government opened up big field kitchens and everyone was fed.”
Sadly, America is already starting to go down the same path in many ways. If you doubt this, you can read the rest of her account right here.
Right now, things are still relatively good in America. Yes, there are a whole host of economic numbers that look really bad, but what we are experiencing right now is nothing compared to the horrific economic pain that is coming.
When our economy finally crashes, nobody is going to be able to press a button and restore things to how they were previously. We will be told that we have to “adjust” and consider “new solutions” to our “new challenges”. Someday we will look back on the good life that we were enjoying in 2010, 2011 and 2012 and wish that we could go back to those days.
So enjoy the relative peacefulness and prosperity of these times while you still can. A horrific economic collapse is on the way, and once it strikes none of our lives will ever be the same.
Source: The Economic Collapse
Syrian Students Condemn American Led Sanctions currently inflating Food Prices…
“Who does that obnoxious woman think she is?” demanded a staffer who works in the Russian Embassy media office inside the vast windowless soviet style massive high walled compound which belongs to his country, here in Damascus.
“Viktor” had been invited to our table, for lunch at the “Lady of Damascus” (“sitt a cham”) restaurant in the middle class neighborhood of Shalan, having been spotted by our charming host, a Sheik and MP in Syria’s Parliament. The well-spoken gentleman was furious, after putting down his mobile phone having apparently heard some rather upsetting news. What ignited Viktor were the recent statements of the US State Department spokesperson, Victoria Nuland and her seemingly anti-Russian statements lecturing and insulting Syria’s ally, which Victor considered a bald effort to misinterpret the recent statement of Russia’s Middle East envoy, Mikhail Bodganov. Badganov, on 12/13/12 had stated, in response to a question, “One must look the facts in the face… unfortunately, the victory of the Syrian opposition cannot be ruled out.” Bogdanov also noted that the Syrian government was “losing control of more and more territory.”
Viktor explained that what has galled the Russian and his embassy colleagues here about Nuland, known for her pro-Zionist, anti-Syrian, Russian, Arab and Muslim views, was her arrogant language: “We want to commend the Russian government for finally waking up to the reality and acknowledging that the regime’s days are numbered.”
According to Viktor, “Bodganov said nothing really new. And we will issue a clarification of this very soon.” He continued, “Everyone knows that theoretically the foreign-backed rebels could win. This is not new and is always a possibility during an uprising. But Mrs. Nuland surely knows that the Syrian government has purposely pulled back from some rural areas where there is mainly open space in order to concentrate its forces to protect population centers. This is very basic military strategy and has been employed throughout history. In the English language I think it’s called something like a “strategic retreat or tactical redeployment. It is reprehensible for western and Gulf media to use our Middle East envoys statement as a form of psychological warfare while deceiving the media.” He added, “Of course we have contingency plans for an evacuation of our citizens if necessary. This is quite normal and we and other countries have such plans for Afghanistan, Iraq, Lebanon, the Gulf countries and Palestine, among others. Russia has not lessened its support for Syria and to think otherwise is yet another in the series on many miscalculations from Washington.”
Sure enough, within hours, the Russian Foreign Ministry spokesman, Alexander Lukashevich, a friend of Viktor’s issued a statement: “We would like to remark that he (Bogdanov) has made no statements or special interviews with journalists in the last days. We once again confirm the principled Russian position about the lack of any alternative to a political solution in Syria.”
After venting on Nuland, Victor and others at our table were totally dismissive of the statement of the secretary general of NATO, Anders Fogh Rasmussen, who told reporters in Brussels after a meeting with the Dutch prime minister at NATO headquarters. “I think the regime in Damascus is approaching collapse,” he told reporters after a meeting with the Dutch prime minister at NATO headquarters. “I think now it is only a question of time.”
The Syrian MP explained that Rasmussen has no credibility at all after all the lies he spoke concerning NATO in Libya and how NATO’s more than 9,000 bombing missions “protected the civilian population” whereas in truth, everyone there at the time (including this observer) knew very well that the main threat to Libya’s population, starting in March 2011 and continuing until mid-October was from NATO. From Sorman to Sabna NATO forces rained indiscriminate death on the civilian population of Libya and according to Russian President, due to meet with Obama in February, has condemned the US and NATO for deceiving Russia and the international community regarding its true aims. Viktor told us that his country fears the same deception is afoot in Syria.
Damascenes are tense, sullen, but not panicked following the recent events and what many consider terrorist acts by so-called “rebels.”
According to students I very much enjoy meeting with from Universities and Colleges here, their President, Bashar Assad, still has the support of a majority of the population. Many, as does the Assad government, accept, in principal, the April 2012 Geneva Proposals. That initiative, proposes a transitional government resulting from dialogue leading up the 2014 election which would be open to all candidates. They favor letting the Syrian people choose at the ballot box the next president whoever that may be.
It is evident here in Damascus that the main worry of the population is the manifold effects of the generally viewed illegal and immoral US led sanctions. On a another subject, “Tamara, a university student explained that the target of students and intimidation by rebel backers of students and faculty plus the kidnappings, taking of houses and cars by these same elements are affecting education here although almost all the schools and universities are still functioning.
This observer had the help of a small group of Damascus University students in conducting a survey of the effects of the US led sanctions regime on the civilian population. Virtually every person who expressed a view on this subject told this observer that the only purpose of the American sanctions is regime change by way of trying to force the population to suffer to such an extent that the long lines for bread etc. turn violent and break the bond between the Bashar Assad government and the civilian population. People here commonly refer to the US led sanctions against Iran as also being about regime change and not because Washington believes it can force Iran to abandon its perfectly legal nuclear development program.
The results of a student led survey of grocery stores in Damascus, completed on 12/12/12, shows the following increases in food prices that citizens here must pay against the backdrop of current unemployment figures currently estimated by economists as being between 40-60 percent of the population.
Damascus Student survey: Price rises for food items between May 2011 and December 2012
(Official exchange rate is currently 80 Syrian pounds for one US dollar)
Lamb—500 Syrian pounds to this week’s price of 750 sp, Chicken—200 sp to 450 sp, Milk—per liter….from 40 to 95 sp, Rice—from 40 sp to 100 sp, Eggs—160-300 sp for a carton of 30 medium sized eggs, Cooking oil—30 per liter to 60, Sugar—40 sp per kilo to 85 sp, Bread—20 sp for 10 loaves of flat bread to 55 currently in Damascus but 220 s.p. in Aleppo where, as in Homs, Hama and the east, a massive humanitarian crises in rapidly spreading.
Russia has promised wheat for this basic staple in Syria. But time is of the essence. In many areas of Syria most in need, basic food stuff supplying NGO’s are absent.
Bottled cooking gas– 500 sp now up to 1000 sp, is also becoming more difficult to find in several Damascus neighborhoods.
Heating oil which was 100 sp per liter is now on average 250 sp but becoming quite scarce. Even some of the five star hotels here in Damascus, due to a severe shortage of “mazot” fuel oil, are cutting off the heat and hot water to rooms except for periods between 7 a.m. to 10 a.m. and 8-10 p.m. Russia has reportedly promised a tanker of fuel oil but it will be dangerous to transport it by road to the population centers here because, according to students working as volunteers with the Syrian Arab Republic Red Crescent Society and other humanitarian organizations, rebel forces are increasing stealing or destroying aid convoys and rampaging the countryside.
Students here in Damascus intend to publish a more detailed list of consumer goods every two weeks. Yesterday some picketed the empty American embassy in protest against US led sanctions. “The Syrian people will never forget or forgive the American campaign to starve us into submission”, one sign read.
It appears to this observer that, rather as is the case with Iran, the illegal and immoral US led sanctions, which urgently need to be challenged at The Hague, imposed on the civilian population of Syria is having the opposite effect of what their cynical architects intended. The piling on of sanctions is giving credibility to the Assad government which, while employing measures to curtail prices increases here, so far with modest success, is arguing that the price rises are the result of Syria’s American and Zionist enemies. This view is widely shared among students at Damascus University and the general public.
A dreadful warning arises, when public sector employment pay and benefits outstrips the remuneration earned by the private employment workers. Even the most hardened government proponent, must succumb to the reality that private business generates real wealth that finances government through taxes. The expenditures of government on all levels are linked to the profitability of enterprises and sufficient margin that affords the ability to pay revenue levies. Thus, the proportion of wages between private enterprises and public employees has significant consequences.
Consider the coverage of that bastion of mainstream reporting CBS News when making a comparison in Does the Government Pay More than the Private Sector?
“Bureau of Labor Statistics data shows that federal employees in occupations that exist in both the public and private sectors made an average salary of $67,691 in 2008, USA Today reports. Meanwhile, private sector workers in those occupations made $60,046. Government data also shows federal workers received benefits valued at $40,785, compared with benefits valued at $9,882 for private sector workers.”
Now on the surface this assessment is very plausible. Common sense, after the financial collapse in 2008, with the dramatic rise in private sector unemployment and reduced wages, federal employees are sitting pretty. Before the alarm bell sounds, deliberate over the assessments from friendly government sources.
The Congressional Research Center study on Comparing Compensation for Federal and Private-Sector Workers, has some interesting conclusions.
“Federal workers with less than a bachelor’s degree have on average a wage premium compared to private sector counterparts, while federal workers with post-graduate educational attainment experience a wage penalty relative to private sector counterparts.
As with wage differentials, the CBO study finds a declining benefit premium as educational attainment rises. That is, the benefit premium declines from 72% for federal workers with a high school degree or less to 2% for federal workers with a professional degree or doctorate. The CBO study finds an average benefit differential of 48% for federal workers compared to private sector workers.”
The list of Pay Scales at TSA provides a departure from Federal employees because the TSA does not use the standard GS grading system. The TSA uses an “SV” grading system, which is a system of discrete grades with pay ranges that differ from GS pay ranges. Civil Service work rules and pay scales have long rejected any direct relationship with productive results. However, in the conflicted thinking of Washington speak the President extends federal pay freeze. Note that a reduction in wages and benefits is an unknown thought, even in a collapsing economy.
“The freeze will stay in effect until a spending plan is passed, but the presidential election makes it unlikely that will happen before the start of fiscal 2013 on Oct. 1. As a result, the president is required by the end of August to come up with an “alternative pay plan” to avoid a legal trigger that would automatically raise federal pay in line with private-sector salaries.
In a letter to House and Senate leaders, the president reiterated his support for ending the pay freeze with a 0.5 percent raise, to take effect Jan. 1, 2013, that he proposed early this year.
“Civilian federal employees have already made significant sacrifices as a result of a two-year pay freeze,” Obama wrote. “As our country continues to recover from serious economic conditions affecting the general welfare, however, we must maintain efforts to keep our nation on a sustainable fiscal course. This is an effort that continues to require tough choices and each of us to do our fair share.”
OK, we have all heard enough of that “fair share” mantra. Now the banner carriers of Big Government raise their ugly heads and reveal their real motives in The truth about federal salary numbers.
“The Federal Salary Council, an advisory body of academics and leaders of public employee unions, suggested last month that federal workers are underpaid by an average of 35 percent relative to nonfederal employees. The council’s data come from the “President’s Pay Agent,” the bureaucratic entity that conducts the federal government’s annual pay comparison.
If these figures are to be believed, federal employees are paid only 65 cents for every dollar received by nonfederal employees doing the same work. Put another way, the average federal employee who shifts to a job outside government would increase his salary by 54 percent.”
Weak private sector employment persists. Wages are stagnant or regressive. New jobs are sporadic, at best. Prospects of a prosperous recovery are slim. Government dependency seems like the only growth occupation. No bureaucratic study or public union advocacy changes the facts that the private enterprises are fighting a rear guard effort to subsist.
With the election of President Obama to a second term, the reigns of restraint on public agencies and expenditures are non-existent. Democratic Leader Nancy Pelosi says ‘No Time To Waste’ On National Debt is a factual appraisal of the attitude that drives the disparity between employment in enterprises that have to earn their way to profits and public agencies that are protected from the harsh consequences of a balanced budget. “We look forward to hearing from voices across the private sector as we work together to reach a balanced agreement,” said Pelosi.
The relationship equilibrium between the private and public spheres is out of line. More government spending never generates a genuine economic recovery. Making matters worse, the prospects of a rise in government salaries only exasperates the problem. The need for a true dramatic across the board reduction in federal agency budgets is the proper response. Private businesses understand the need to scale back in a depressed economy in order to survive. In spite of this certainty, the federal government operates as if their ranks are the new and only economy.
In an age of disappearing private pensions and job security, why allow “public servants” to dominate the job market because of odious taxpayer subsidies. The current pay differential between the free market and the federal bureaucrat guarantees a marginal economy at best.
The fiscal cliff is the result of the inability to close the federal budget deficit. The budget deficit cannot be closed because large numbers of US middle class jobs and the GDP and tax base associated with them have been moved offshore, thus reducing federal revenues. The fiscal cliff cannot be closed because of the unfunded liabilities of eleven years of US-initiated wars against a half dozen Muslim countries–wars that have benefitted only the profits of the military/security complex and the territorial ambitions of Israel. The budget deficit cannot be closed, because economic policy is focused only on saving banks that wrongful financial deregulation allowed to speculate, to merge, and to become too big to fail, thus requiring public subsidies that vastly dwarf the totality of US welfare spending.
The hoax is the propaganda that the fiscal cliff can be avoided by reneging on promised Social Security and Medicare benefits that people have paid for with the payroll tax and by cutting back all aspects of the social safety net from food stamps to unemployment benefits to Medicaid, to housing subsidies. The right-wing has been trying to get rid of the social safety net ever since Franklin D. Roosevelt constructed it, out of fear or compassion or both, during the Great Depression.
Washington’s response to the fiscal cliff is austerity: spending cuts and tax increases. The Republicans say they will vote for the Democrats’ tax increases if the Democrats vote for the Republican’s assault on the social safety net. What bipartisan compromise means is a double-barreled dose of austerity.
Ever since John Maynard Keynes, economists have understood that tax increases and spending cuts suppress, not stimulate, economic activity. This is especially the case in an economy such as the American one, which is driven by consumer spending. When spending declines, so does the economy. When the economy declines, the budget deficit rises.
This is especially the case when an economy is weak and already in decline. A declining economy means less sales, less employment, less tax revenues. This works against the effort to close the federal budget deficit with austerity measures. Instead of strengthening the economy, the austerity measures weaken it further. To cut unemployment benefits and food stamps when unemployment is high or rising would be to provoke social and political instability.
Some economists, such as Robert Barro at Harvard University, claim that stimulative measures, the opposite of austerity, don’t work, because consumers anticipate the higher taxes that will be needed to cover the budget deficit and, therefore, reduce their spending and increase their saving in order to be able to pay the anticipated higher taxes.
In other words, the Keynesian effort to stimulate spending causes consumers to reduce their spending. I don’t know of any empirical evidence for this claim.
Regardless, the situation on the ground at the present time is that for the majority of people, incomes are stretched to the limit and beyond. Many cannot pay their bills, their mortgages, their car payments, their student loans. They are drowning in debt, and there is nothing that they can cut back in order to save money with which to pay higher taxes.
Many commentators are complaining that Congress will refuse to face the difficult issues and kick the can down the road, leaving the fiscal cliff looming. This would probably be the best outcome. As the fiscal cliff is a result, not a cause, to focus on the fiscal cliff is to focus on the symptoms rather than the disease.
The US economy has two serious diseases, and neither one is too much welfare spending.
One disease is the offshoring of US middle class jobs, both manufacturing jobs and professional service jobs such as engineering, research, design, and information technology, jobs that formerly were filled by US university graduates, but which today are sent abroad or are filled by foreigners brought in on H-1B work visas at two-thirds of the salary.
The other disease is the deregulation, especially the financial deregulation, that caused the ongoing financial crisis and created banks too big to fail, which has prevented capitalism from working and closing down insolvent corporations.
The Federal Reserve’s policy is focused on saving the banks, not on saving the economy. The Federal Reserve is purchasing not only new Treasury bonds issued to finance the more than one trillion dollar annual federal deficit but also the banks’ underwater financial instruments, taking them off the banks’ books and putting them on the Federal Reserve’s books.
Normally, debt monetization of this amount results in rising inflation, but the money that the Federal Reserve is creating in its attempt to manage the public debt and the banks’ private debt is hung up in the banking system as excess reserves and is not finding its way into the economy. The banks are too busted to lend, and consumers are too indebted to borrow.
However, the debt monetization poses a second threat that is capable of biting the US economy and consumer living standards very hard. Foreign central banks, foreign investors in US stocks and financial instruments, and Americans themselves observing the Federal Reserve’s continuous monetization of US debt cannot avoid concern about the dollar’s value as the supply of ever more dollars continues to pour out of the Federal Reserve.
Already there is evidence of central banks and individuals moving out of dollars into gold and silver bullion and into other currencies of countries that are not hemorrhaging debt and money. According to John Williams of Shadowstats.com, the US dollar as a percentage of global holdings of reserve assets has declined from 36.6% in 2006 to 28.7% in 2012. Gold has increased from 10.5% to 12.8% and other foreign currencies except the euro increased from 38.4% to 44.4%.
Russia, China, Brazil, India, and South Africa intend to conduct trade among themselves in their own currencies without use of the dollar as reserve currency. The EU countries conduct their trade with one another in euros, and although not reported in the US media, Asian countries are discussing a new common currency for trade among themselves.
The world is abandoning the use of the dollar to settle international accounts, and the demand for dollars is falling as the Federal Reserve increases the supply of dollars.
This means that the price of the dollar is threatened.
Concern over the dollar means concern over dollar-denominated financial instruments such as stocks and bonds. The Chinese hold some $2 trillion in US financial instruments. The Japanese hold about $1 trillion in US Treasuries. The Saudis and the oil emirates also hold large quantities of US dollar financial instruments. At some point the move away from the dollar also means a move away from US financial instruments. The dumping of US stocks and bonds would destabilize US financial markets and wipe out the remainder of US wealth.
As I have previously written, the Federal Reserve can create new money with which to purchase the dumped financial instruments, thus maintaining their prices. But the Federal Reserve cannot print gold or foreign currencies with which to buy up the dollars that foreigners are paid for their US stocks and bonds. When the dollars in turn are dumped, the exchange value of the dollar will collapse, and US inflation will explode.
The onset of hyperinflation can be as sudden as the collapse of a currency’s exchange value.
The real crisis facing the US is the impending collapse of the US dollar’s foreign exchange value. The US dollar’s value in relation to silver and gold has already collapsed. In the past ten years, gold’s price in US dollars has increased from $250 per ounce to $1,750 per ounce, an increase of $1,500. Silver’s price has risen from $4 per ounce to $34 per ounce. These price rises are not due to a sudden scarcity of gold and silver, but to a flight from the dollar into the two forms of historical money that cannot be created with the printing press.
The price of oil has risen from $20 a barrel ten years ago to as high as $120 per barrel earlier this year and currently $90 a barrel. This price rise has come about despite a weak world economy and without any supply restrictions other than those caused by the attempted US occupation of Iraq, the Western assault on Libya, and the self-harming Western sanctions on Iran, impacts most likely offset by the Saudis, still Washington’s faithful puppet, a country that pumps out its precious life fluid in order to save the West from its own mistakes. The moronic neoconservatives wish to overthrow the Saudi Arabian government, but what more faithful servant has Washington ever had than the Saudi royal house?
What can be done? For a number of years I have pointed out that the problem is the loss of US employment, consumer income, GDP, and tax base to offshoring. The solution is to reverse the outward flow of jobs and to bring them back to the US. This can be done, as Ralph Gomory has made clear, by taxing corporations according to where they add value to their product. If the value is added abroad, corporations would have a high tax rate. If they add value domestically with US labor, they would face a low tax rate. The difference in tax rates can be calculated to offset the benefit of the lower cost of foreign labor.
As all offshored production that is brought to the US to be marketed to Americans counts as imports, relocating the production in the US would decrease the trade deficit, thus strengthening belief in the dollar. The increase in US consumer incomes would raise tax revenues, thus lowering the budget deficit. It is a win-win solution.
The second part to the solution is to end the expensive unfunded wars that have ruined the federal budget for the past 11 years as well as future budgets due to the cost of veterans’ hospital care and benefits. According to ABC World News, “In the decade since the Sept. 11, 2001 terrorist attacks on the World Trade Center, 2,333,972 American military personnel have been deployed to Iraq, Afghanistan or both, as of Aug. 30, 2011 [more than a year ago].” These 2.3 million veterans have rights to various unfunded benefits including life-long health care. Already, according to ABC, 711,986 have used Veterans Administration health care between fiscal year 2002 and the third-quarter of fiscal year 2011. http://abcnews.go.com/Politics/us-veterans-numbers/story?id=14928136#1
The Republicans are determined to continue the gratuitous wars and to make the 99 percent pay for the neoconservatives’ Wars of Hegemony while protecting the 1 percent from tax increases.
The Democrats are little different.
No one in the White House and no more than one dozen members of the 535 member US Congress represents the American people. This is the reason that despite obvious remedies nothing can be done. America is going to crash big time.
And the rest of the world will be thankful. America along with Israel is the world’s most hated country. Don’t expect any foreign bailouts of the failed “superpower.”
Paul Craig Roberts was Assistant Secretary of the Treasury for Economic Policy and associate editor of the Wall Street Journal. He was columnist for Business Week, Scripps Howard News Service, and Creators Syndicate. He has had many university appointments. His internet columns have attracted a worldwide following. paulcraigroberts.org
Source: Paul Craig Roberts
In a caustic political environment that marks the rich to pay higher taxes because of their inordinate incomes, the outlook for a growing economy diminishes. The argument that well capitalized commercial enterprise owners provide the bulk of the small business jobs is well established. Certainly, not every proprietor is wealthy. On the contrary, many if not most employers struggle to meet their payroll. Even so, the political hysteria to raise the top rates stares directly into the eyes of every wageworker with the prospects of joining the unemployment lines.
What are the actual taxes paid by the small business owners that file under individual tax rates? Robert Frank in CNBC report, The Millionaires Who Pay the Highest Tax Rate, provides some interesting facts.
“According to new data from the IRS, people who make $1 million or more had an average tax rate of 20.4 percent in 2010. Tax filers who earned $30,000 to $50,000 paid an average rate of 4.8 percent, while those who made between $50,000 and $100,000 paid 7.7 percent. Those making under $30,000 had a negative effective rate, meaning they paid no federal income taxes after deductions and credits.
Put another way, millionaires pay a rate that’s more than four times that of the middle class.”
Lost in the debate on taxes is the distinction between the real producing economy and the investment return on capital speculation. The former is the genesis of all affluence, while the later is the manipulative abuse of Main Street prosperity. Wall Street finance is based upon fabricated fees, invented spreads, manufactured values and phantom riches. The notion that income from venture speculation is equated with the sweat equity of actual business endeavors is a root cause of the huge disparity that separates the leisure moneychanger cabal from the merchant class.
Still the Washington Examiner makes the following points in their editorial, If top 5% paid 40% of taxes, what is their ‘fair’ share?
“But income taxes, taken in isolation, do not tell the whole story, because lower-income Americans do pay payroll taxes. But even taking into account all forms of taxation, the top 1 percent still paid 22 percent of federal taxes while earning just 13.4 percent of household income. The top 5 percent paid 40 percent of all federal taxes, despite earning only 26 percent of all income. No matter how you slice the numbers, it’s hard to understand why anyone would think the wealthy aren’t already shouldering a burden commensurate with their blessings.”
What they miss is that not all income is equal. Money often begets more money. However, business income requires hard work to earn a minimum return. The question that is absent from the tax debate is whether the source of the profit, example passive vs. active income, should have much different tax treatment.
The quid essential crony capitalism corporatist, Warren E. Buffett, announces his remedy in the New York Times opinion page, Stop Coddling the Super-Rich. He admonishes Congress to hike rates on the top level of the wealthiest.
“Job one for the 12 is to pare down some future promises that even a rich America can’t fulfill. Big money must be saved here. The 12 should then turn to the issue of revenues. I would leave rates for 99.7 percent of taxpayers unchanged and continue the current 2-percentage-point reduction in the employee contribution to the payroll tax. This cut helps the poor and the middle class, who need every break they can get.
But for those making more than $1 million — there were 236,883 such households in 2009 — I would raise rates immediately on taxable income in excess of $1 million, including, of course, dividends and capital gains. And for those who make $10 million or more — there were 8,274 in 2009 — I would suggest an additional increase in rate.”
The idea that all capital gains are similar has dire consequences. Treating the sale of a family home in the same way as taxing derivative profits or algorithmic trading allows the systematic pillaging of unproductive financial instruments at the cost of Middle America. The Buffett plutocrats of privilege plunder, play the fairness card, while practicing the gaming of the buddy arrangement of State Capitalism.
As long as the small business owner is lumped into the identical tax category that enriches Bernie Madoff disciples, the dynamic and industrious elements of enterprise will suffer.
Since the banking community has shut off the loan faucet to small business, the erroneous argument that capital formation must be protected for a sound banking system, does not wash. As long as the banksters are using their capital to speculate and forego their stated function of providing constructive loans, the industry has lost what little honorable respect a vulture mercenary might claim.
The entrepreneur employing risk capital in the formation of a useful product or service is not focused on evading taxes. Such ventures employ the unemployed and provide the consumer with innovative and useful choices.
The ”Oracle of Omaha“ fails to disclose a significant point that the WSJ clarifies.
“What he doesn’t say is that much of his income was already taxed once as corporate income, which is assessed at a 35% rate (less deductions). The 15% levy on capital gains and dividends to individuals is thus a double tax that takes the overall tax rate on that corporate income closer to 45%.”
Taxing the predatory speculator that buys political favors and deals on inside information is quite different from penalizing the employer that earns a company profit on the efforts of a dedicated staff and prudential risk management.
The way to unlock the capital to expand the economy is to require commercial banks to conduct their function as lenders. Restoring that elusive fairness has never been more obvious then reenacting Glass–Steagall. However, the Wall Street Wizards hide behind the curtain of special tax treatment. Differentiate capital gains taxation much like the separation of investment and commercial banking.
If Americans will trample one another just to save a few dollars on a television, what will they do when society breaks down and the survival of their families is at stake? Once in a while an event comes along that gives us a peek into what life could be like when the thin veneer of civilization that we all take for granted is stripped away. For example, when Hurricane Sandy hit New York and New Jersey there was rampant looting and within days people were digging around in supermarket dumpsters looking for food. Sadly, “Black Friday” also gives us a look at how crazed the American people can be when given the opportunity. This year was no exception. Once again we saw large crowds of frenzied shoppers push, shove, scratch, claw, bite and trample one another just to save a few bucks on cheap foreign-made goods. And of course most retailers seem to be encouraging this type of behavior. Most of them actually want people frothing at the mouth and willing to fight one another to buy their goods. But is this kind of “me first” mentality really something that we want to foster as a society? If people are willing to riot to save money on a cell phone, what would they be willing to do to feed their families? Are the Black Friday riots a very small preview of the civil unrest that is coming when society eventually breaks down?
Once upon a time, Thanksgiving was not really a commercial holiday. It was a time to get together with family and friends, eat turkey and express thanks for the blessings that we have been given.
But in recent years Black Friday has started to become even a bigger event than Thanksgiving itself.
Millions of Americans have become convinced that it is fun to wait in long lines outside retail stores in freezing cold weather in the middle of the night to spend money that they do not have on things that they do not need.
And of course very, very few “Black Friday deals” are actually made in America. So these frenzied shoppers are actually killing American jobs and destroying the U.S. economy as well.
The absurdity of Black Friday was summed up very well recently in a statement that has already been retweeted on Twitter more than 1,000 times…
It has gotten to the point where it is now expected that there will be mini-riots all over the country early on Black Friday morning each year. The following are a few examples of the craziness that we saw this year…
Fortunately, many Americans are starting to get fed up with Black Friday. In fact, one activist named Mark Dice actually went out and heckled Black Friday shoppers this year. I found the following You Tube video to be very funny, and I think most of you will too…
In the end, it is not that big of a deal that people want to fight with one another to save 50 dollars on a cell phone.
But this kind of extreme selfishness and desperation could become a massive problem someday if society breaks down and suddenly millions of extremely selfish and desperate people are scrambling for survival.
With each passing day our economy is getting even weaker, and the next wave of the economic collapse is rapidly approaching. What are people going to do when the next spike in unemployment hits us and nobody can find work?
To get an idea of where things are headed, just look at Europe. In both Greece and Spain the unemployment rate is over 25 percent and civil unrest has become almost a constant problem in both of those countries.
So what kind of riots will we see in the United States when the economy gets much worse than it is now?
Already there are signs of social decay all around us, and most Americans are completely unprepared for what will happen if a major disaster or emergency does strike.
Sadly, the reality is that most Americans live on a month to month basis. Most families do not have any emergency savings to speak of, and one recent poll found that 55 percent of all Americans only have enough food in their homes to survive for three days or less.
To me, that is an absolutely insane number.
We just came through a summer of extreme drought and global food supplies have dropped to a 40 year low. Our world is becoming increasingly unstable, and the global financial system could fall apart at any time. Most of us just assume that there will always be huge amounts of very cheap food available to us, but unfortunately that simply is not a safe assumption. The following is from a recent article in the Guardian…
Evan Fraser, author of Empires of Food and a geography lecturer at Guelph University in Ontario, Canada, says: “For six of the last 11 years the world has consumed more food than it has grown. We do not have any buffer and are running down reserves. Our stocks are very low and if we have a dry winter and a poor rice harvest we could see a major food crisis across the board.”
“Even if things do not boil over this year, by next summer we’ll have used up this buffer and consumers in the poorer parts of the world will once again be exposed to the effects of anything that hurts production.”
When I watch my fellow Americans trample one another to get a deal on a television or a video game, it makes me wonder what they would be willing to do if they went to the store someday and all the food was gone.
Desperate people do desperate things, and someday if there was a major economic breakdown in the United States I think the level of desperation in this country would be extremely frightening.
Source: The Economic Collapse
Corporate America has the largest cash reserves in recent memory. The product of the first Obama administration, the boards and management of the biggest companies, foregone mergers and acquisitions and cleaned up their balance sheets. Fear was the operative sentiment after the 2008 financial meltdown. Business confidence was marginal at best. Lacking consumer confidence was a natural result of a high unemployment and an insecure job environment. The modest improvements in the economy were a direct outcome of increases in government spending, especially an expansion in public employee endeavors.
For the beleaguered middle class, the Bush blame of an inherited awful economy was little relief. That shabby self-justification excuse is officially over with the prospects of a second presidential term.
The Wall Street Journal predicts in What an Obama Win May Mean for Stocks that watching monetary prescriptions of the Fed is crucial.
“Anyone who has been following the markets over the last few years knows how important Fed policy has been to the direction of everything from stocks to bonds, oil, gold and other assets. From record-low interest-rate policies to multiple rounds of quantitative easing, Fed Chairman Ben Bernanke has been about as dovish as it comes enacting policies to jumpstart the economy.”
Equities have benefited amply over the first Barak Obama term. The WSJ continues, “No matter your beliefs, the Dow is up more than 50% since Obama took office during the depths of the financial crisis.” The zero interest rate setting and the sparingly granting of business loans caused stocks to advance from a distressed level.
Now with Obama’s re-election, his ownership of economic circumstances will be hard to escape. The slide in stocks that started as soon as the ballot counting was over, forecasts the lack of confidence that the fiscal cliff will be resolved sufficiently to foster conditions to grow the economy.
Add in the rapid breakdown in international stability and the prospects that the European Union will implode, does not bode well for the engines of wealth creation. Equities gain in value when the products or services of their underlying companies prosper. Without the reasonable expectation that actual economic prosperity is on the rise the basic conditions for an advance in stock pricing is simply wishful thinking.
Yet, under a fundamental standard, the lack of favorable circumstances does not mean that stocks will simple lose value. Volatility in pricing, often with no distinct connection to price performance, is the norm. The perfect storm for speculative betting seems the more probable course for the markets in the coming years.
The backstop of the Federal Reserve that comes to the rescue of too big to fail conglomerates, is the operative criterion used to keep the financial bubble inflating. As the currency is debased and loses purchasing value, the price of stocks must rise just to stay even.
In addition, the negative aspects of tax increases especially on capital gains and dividends are unmistakable. Investing Daily’s Roger S. Conrad recently reported inStick With Dividend Stocks.
“Since Election Day last week, the S&P 500 has lost 4.5 percent of its value. And the Dow Jones Utility Index is off more than 5 percent.
But let’s suppose there really is a fiscal cliff and that the worst case forecasts of a 4 point drop in gross domestic product (GDP) prove on target. Such a shock could also trigger a tightening of credit conditions in the US, making it more difficult to borrow.
In such an environment, two things would really count for companies. One is reliable revenue, a business that will continue to produce cash flow come what may. The other is a lack of near-term debt maturities, so management can step back from a temporarily frozen credit market and wait for bond buyers to come back.”
The point is that stocks may not go up in real value while their relative pricing may mirror the overall lack of confidence in the economy in a persistent down market. However, a company with sound financial reserves and low or no debt will have a chance to survive in a depression.
As credit becomes non-existent, cash will be king in the short term. Notwithstanding this message from previous panics, the complexity of debasing the currency adds a new dimension to familiar lessons. Hyperinflation of price stability results in a slowdown of the real economy. Adding further government spending with monetized debt from the central bank cannot infuse productive commerce into an economy where consumer cash is fickle or nonexistent.
Stocks can only be a sensible investment when domestic mercantilism is oriented towards fostering prosperity of the national economy. Foreign trade will plunge as the worldwide financial upheaval exports its turmoil around the globe.
Solid companies that actually produce necessary items or endeavors have the best chance to retain some semblance of treasure. Nevertheless, the definitive risk for owning equities lies in the danger that the federal government will recall the counterfeit Federal Reserve Dollar, in a desperate attempt to forestall debt repudiation.
Only algorithmic trading with super computers will squeeze out fractions of price movement and generate returns on capital, because the equity exchanges are now structured to penalize or purge the individual investor from having any chance of profiting.
Market risk is nothing compared to the political hazard of collectivist policies slated for imposition in a second Obama term. In order to generate tangible wealth, the private sector must navigate around all the pitfalls that excessive taxation and destructive regulations impose on voluntary commercial transactions. Equities cannot reward stockholders under a command and controlled – centralized and imposed government. The expectations of an uncurbed Obama dogmatic executive order administration guarantees that stocks will suffer under all the restrictions of any socialistic economy.
When the conditions are unknown, uncertainty runs havoc with equity markets. Conversely, when the socialism of Obamaism is widely verbalized for all to digest, the gamble of stock ownership equates to your level of confidence in the future of the country and the economy. Good luck.
The rapid approach of the Thelma & Louise bipartisan plunge into the financial abyss is upon us. It is simply unbelievable, that the prospects of rational tax salvation by the end of the year, measured by every statement coming out of the Washington political cabal, will materialize. Extending the current tax rates from automatic rescission on January 1, 2013, as a stopgap method for an enactment of a lasting political rapprochement, is the best that might occur. The net effect will be a perspicacious downturn in economic activity, a new round of layoffs, rising permanent unemployment and a plunge in consumer confidence. Wall Street will make hay by shorting the market while placing blame on the uncompromising hacks that refuse to cut a deal.
As for the message from the latest election, let no one forget. With all haste during four more years, the implementation of expansive socialism from an Obama administration is inevitable.
The backbone from the establishment loyal opposition is well known for their spineless tendencies. The righteous outrage from the Tea Party representatives, silenced during much of the last campaign, is slated for confinement to a corner room in the basement. The careerist political class, in all their sordid glory, readies their next heist and tax increases.
Curtailing entitlements is unthinkable to the Obama collectivists. Cutting back on government baseline budgets only pass through the distorted image of a fun house mirror. The discipline of automatic sequestration reductions is too much for big government, so look for the final bargain to cost the taxpayer dearly.
Remember the current administration is quite content to operate their criminal syndicate without passage of a budget. By what stretch of the imagination would anyone accept that there will be changes to this equation? Obama wins by default and the business community gets to pay the tab.
The prescription of Speaker John Boehner relies upon a medicine that will kill you softly. The House of Representatives is so fearful of a federal government shutdown that capitulation to the hardball of the Obama’s central government regime will be the end result. Good faith negotiations under these circumstances are like begging for crumbs from a banquet feast of Henry VIII.
Going back to the government shut down, when Newt Gingrich was speaker, illustrates the dilemma. President Clinton skated from responsibility and blame for shutting down portions of the federal government. The unreliability of the House to keep the gravy train rolling was the condemnation heard by the mass media.
Gingrich offered a different assessment under the Government Shutdowns section of his Get the Facts site.
“While the shutdown produced some short-term pain, it set the stage for a budget deal in 1996 that led to the largest drop in federal discretionary spending since 1969. The discipline imposed by this 1996 budget let to a balanced-budget deal in 1997, the first of four consecutive balanced budgets – an achievement Congress and the White House had not achieved since the 1920s. Overall spending grew at an average of 2.9 percent a year while Newt was Speaker, the slowest rate in decades, and Americans created 11 million new jobs…”
The triangulation strategy of Bill Clinton allowed for absorbing budgetary reforms, while still keeping his appeal to his political base. Barack Obama has no such need for misapprehension. Taxmageddon is another opportunity to take advantage of another manufactured crisis. The facts constitute that a second Obama term is a recipe for total economic warfare against productive businesses.
Add the destructive increases of taxation from Obamacare and the consequences of a full-blown recession in 2013 are unmistakable. Surely, the RINO’s within Congress want cover to share the pain while pointing the finger at the newly elected second term administration and Democrats in Congress.
Holding hands while jumping off the cliff makes good politics for the entrenched‘pols’ of both parties that are destroying the economy.
Ron Paul sums up nicely, Election shows U.S. ‘far gone’.
Paul “said in the wake of this week’s elections that the country has already veered over the fiscal cliff and he sees no chance of righting ship in a country where too many people are dependent on government.
People do not want anything cut,” he said. “They want all the bailouts to come. They want the Fed to keep printing the money. And they don’t believe that we’ve gone off the cliff or are close to going off the cliff. They think we can patch it over, that we can somehow come up with some magic solution. But you can’t have a budgetary solution if you don’t change what the role of government should be. As long as you think we have to police the world and run this welfare state, all we are going to argue about is who will get the loot.”
Taxmageddon is just a mere illusion for the voters who re-elected Obama. The sugar daddy will get those bigoted fiscal conservatives to keep the checks in the mail. Somehow, the precarious financial status of the postal service escapes those 47%ers.
When the double-dip recession begins, the nonexistent mortgage loans will trash the “so called” housing market recovery even harder. Soon the economic destruction of many middle class neighborhoods will take on the appearance of the Rockaway backyard after a visit from Sandy, the hurricane.
Yet, the advantages of embracing taxmageddon as a grand occasion for soaking the rich will be the excuse to increase revenue enhancements on what is left of Middle America. Yes, the public voted for cooperative government. That often heard “fair shared” demand to pay higher taxes is exactly what is in store for an already broke country.
Big government wins and independent financial wealth loses. Remember according to Obama, you never earned your money to begin with. Driving off the cliff together will bond citizens to the same fate as those famous female desperadoes, T & L. Maybe this is fitting, since the feminine vote got Obama re-elected. All hail the pimp-in-chief, four more years in hell.
Writer Sam Francis said, “You cannot separate a culture and its attendant civilization from the genetic endowments of its founding people, nor can you expect to transfer it to another people, i.e. [immigrants.]”
Today in America (as well as other Western societies), African-Americans, Mexican-Americans, Muslim-Americans and European-Americans share an uneasy if not cautious tolerance for each other across the land. The news reports didn’t talk about the American vote. They discussed the Hispanic vote, the black vote, the white vote and with the addition of another 20 to 30 million Muslims in a few decades—the Islamic vote.
As the American people allow themselves to be transformed into another kind of culture, i.e., a multicultural society, neither democrats who pander to the new cultural paradigm or the republicans who are trying to extend the old successful one—understand the destructive forces facing future generations of an “incompatible mixed bag” of a confusing and forthcoming American non-culture.
This phenomenon also occurs in Canada, United Kingdom, Australia and most of mainland Europe
About half the American electorate feels freaked out by Obama’s re-election. They pray for the next four years to go as fast as possible so they can replace Obama with a republican.
But they fail to understand the direction of America. Within the next four years, somewhere between 12 and 20 million illegal alien migrants will gain full citizenship by Obama’s executive orders or Congress’ lay-down. Another 8 to 10 million immigrants will be imported through legal immigration—in the next four years. Millions of them will tap into Social Security, food stamps and assisted housing. Millions of them will be able to chain-migrate their families into America. Millions will legally displace Americans from their jobs.
Millions of them will become voters and millions of them will elect another person just like Obama. In the land of milk and honey, the minority voter will become the new power in the White House—until, of course, the Fractured States of America collapse via socialism.
Multiculturalism is unworkable and illogical in any society
“A multicultural society is a physical and sociological impossibility,” said Satoshi Kanazawa, professor at the University of Washington. “It is rare that one learns anything important from the pseudo-science of sociology, but one thing it does teach us is that there is no such thing as “multicultural society.”
“When I taught “Introduction to Sociology” at the University of Washington, I had back-to-back lectures during the first week on culture and society. I explained to my students that culture and society were two sides of a coin; one cannot exist without the other. Culture needs society (and its inhabitants) to sustain its existence and initiate its change, and society needs culture to hold it together and survive. Just as there is no such thing as a coin with only one side, there is no such thing as culture without society or society without culture. It is physically impossible to construct a coin with only heads without tails or a coin with only tails without heads. It is equally impossible to have a culture without society or a society without culture.”
While Kanazawa introduces the logical failure of the multicultural model, Francis illustrates that immigrants from incompatible cultures cannot change their own paradigms, cultures and languages to mesh with the host country. It’s an anthropological impossibility. It’s like asking a tiger to lose its stripes to fit in with a pride of lions.
“Nobody disputes these truisms about culture and society from the social sciences, yet the same people also claim that we now live in a “multicultural society,” said Kanazawa. “If you think about it for a moment, you’d realize that the notion of “multicultural society” is a logical and physical impossibility. It is similar to a coin with only one head but several tails. It is physically impossible to construct such a coin.
“That culture needs society to sustain its existence means that multiple cultures require multiple societies. That society needs culture to hold it together means that multiple societies require multiple cultures. There must be exactly the same number of cultures as there are societies, just as there must be exactly the same number of societies as there are cultures. In any bag of coins, regardless of how many coins there are, there are exactly as many heads as there are tails, and vice versa. One culture, one society. “Multicultural society” is a physical (and sociological) impossibility.”
In virtually all Western countries attempting multiculturalism today, immigrants rely on welfare, subsidies and food stamps to exist because they lack the tools to contribute to those societies. Most arrive without the intellectual horsepower to evolve quickly from third world systems to first world complexities.
Great Britain’s Winston Churchill said, “Socialism is a philosophy of failure, the creed of ignorance, and the gospel of envy, its inherent virtue is the equal sharing of misery.”
As it stands today, 47 million people in America feed themselves off the backs of American workers. Millions more accept unemployment checks. The United States sinks like the Titanic from $16 trillion in debt on its way to $20 trillion within four years—under Obama. Barack Obama has become the “great emancipator” of those who avoid or lack skills to work on a daily basis.
The ones that won’t work or can’t work or suffer illiteracy and can’t hold a job, ride this U.S. Titanic down into the depths.
The result of mass amnesties and mass immigration can be summed up in these two short videos:
In a five minute astoundingly simple yet brilliant video, “Immigration, Poverty, and Gum Balls”, Roy Beck, director of www.numbersusa.ORG, graphically illustrates the impact of endless immigration. Take five minutes to see for yourself:
“Immigration by the numbers—off the chart” by Roy Beck
This 10 minute demonstration shows Americans the results of unending mass immigration on the quality of life and sustainability for future generations: in a few words “Mind boggling!” www.NumbersUSA.org
But they fail to understand the direction of America. Within the next four years, somewhere between 12 and 20 million illegal alien migrants will gain full citizenship by Obama’s executive orders or Congress’ lay-down. Millions of them will tap into Social Security, food stamps and assisted housing. Millions of them will be able to chain migrate their families into America. Millions will legally take jobs from Americans.
Millions of them will become voters and millions of them will elect another person just like Obama. In the land of milk and honey, the minority voter will become the new power in the White House—until, of course, the Fractured States of America collapse via socialism.
Great Britain’s Winston Churchill said, “Socialism is a philosophy of failure, the creed of ignorance, and the gospel of envy, its inherent virtue is the equal sharing of misery.”
As it stands today, 47 million people in America feed themselves off the backs of American workers. Millions more accept unemployment checks. The United States sinks like the Titanic from $16 trillion in debt on its way to $20 trillion within four years.
The ones that won’t work or can’t work or suffer illiteracy and can’t hold a job, will ride this U.S. Titanic down into the depths.
Intractable poverty and cultural poverty create the perfect storm for America
I interviewed Canadian population expert Tim Murray. He said much the same occurs in Canada as to poverty, immigration and cultural fracturing.
“More distressing than the Presidential results were the lessons that both Republican and Democratic pundits drew from it,” said Murray. “The common thread that ran through most commentaries was that the demographic foundation of the Republican Party was no longer broad enough to capture a majority of votes. “The numbers just aren’t there anymore, and never will be” was a common refrain.
“The remedy offered by friend and foe alike was for Republicans to “modernize” their party. Translation–they must jettison some their traditional baggage and appeal to those voters who might be prepared to accept the party’s core economic message. Lower taxes, limited government, fiscal prudence and encouragement to small business.
“The problem is, however, some of the policy positions thought expendable to some conservative voters are regarded as vital to others.
“Imagine the Republican coalition as a zeppelin that is losing altitude in the mid-Atlantic. It has become apparent to the crew that the air ship will not make it to shore unless some baggage is tossed out. Not much. A mere 5% would probably do. Some luggage is labeled “right-to-life”, some “opposition to gay marriage”, some “no corporate tax hikes”, some “no amnesty”. Obviously something has to go. But what?
“I think it was most telling that the favored scapegoat for the party’s demise was its failure to relate to “Hispanic” voters, which is code language for the failure to surrender to illegal immigration and to open the doors even wider. After all, we’re told, Hispanics are a “growing demographic” soon to form 25% of the population, and the GOP cannot afford to concede 73% of Hispanic voters to the Democrats and expect to win elections. Most commentators made a particular point of saying that the Republican Party should be the natural home of Hispanics, for Hispanics tend to be quite conservative people. They are hard working, believe in traditional family values and are anxious to “get ahead”.
“If only the Republicans would ditch these old fashioned ideas about a nation having the right to control its borders, or that cheaters should never prosper, or that illegals should not be able to vote or drive a car or hold a job or make a claim on health care and educational services—Hispanics would run to them with open arms. If Republicans pushed for the kind of immigration reform the open borders lobby wants, and made Marco Rubio their next Presidential nominee, victory in 2016 should be in the bag. Or so goes the reasoning.
“Canadian conservatives have joined this chorus with some unsolicited advice of their own. What Republicans need to do is what Canada’s Conservative Party did. They need to “outreach” to ethnic communities. Encourage them to join, to nominate, and to run. They need to include them as an integral part of a new conservative multi-ethnic, multicultural coalition.
“The Republicans don’t have to open the floodgates. They don’t have to accelerate the displacement of more American-born workers and the suppression of their wages. They don’t have to cave in to bilingualism and threaten the cohesion of the nation. They don’t have to add to the net fiscal burden that unskilled, poorly educated migrants impose on American taxpayers. They don’t have to lead America further along the road to ecological and economic ruin by contributing to the addition of another 100 million people to the country’s population by mid-century.
“All they have to do is accept the fact that the culture war should not be fought in Congress. All they have to do is not use the law to prevent women from choosing abortion and homosexuals from choosing marriage. That’s it.
“Does that mean that conservatives should not attempt to persuade people that abortion and same sex marriage is wrong? No. It only means that they should wage their arguments outside the offices of government, if only for pragmatic reasons. As Prohibition should have taught us, moral conduct cannot be legislated if there is not a broad and strong societal support for it. Laws against theft work because theft is universally regarded as wrong across all religious, cultural and racial lines. Laws against marijuana use are unworkable because they do not enjoy such universal support. I think recreational use of cannabis is ill-advised and dangerous for a great many people. But I don’t think it is a matter for the law.
“There is no moral consensus in favor of restricting abortion rights. But there is, however, substantial support for an end to illegal immigration, and a reduction of legal immigration. Even among Hispanics. Or do we forget that 46% of Hispanics voted for Arizona’s Proposition 200, and that a majority of Hispanics polled in Colorado favored an immigration law modeled on Arizona’s? And it should be remembered, after all, that Caesar Chavez stood on the Mexican border to protest the traffic of illegal immigrants from Mexico.
“How ironic is it that the very people who tell us not to engage in ethnic stereotyping are so quick to tell us what “Hispanics” want, as if they are a monolithic entity that can be moved around a political chessboard by one or two concessions.
“Republicans don’t need to modernize. They just need to take their own belief in limited government more seriously. Guard borders, not morals.”