Thursday, February 19, 2009

One Strike You're Out

In normal times we give people more than one chance to succeed because we used to be a wealthy nation and could tolerate some failures even in our government. But we are in the first year of the Greatest Contraction since 1929-1939. Our new President had one chance to solve America's problems and what he proposed will not work.

Barack Obama decided to borrow trillions of dollars and give that money to the people who destroyed our economy and also to set aside part of that money to reward his voters.

The Stimulus was not intended to create jobs in 2009 even though we lost 1,600,000 jobs in December and January because most of the spending is scheduled to take place from 2010 to 2012. Some critics have said that the Stimulus money will be used to create a political force for the 2010 and 2012 elections, One of the reasons why Senator Gregg declined to accept his nomination to be Commerce Secretary was the proposed transfer of control of the 2010 census from Commerce to the White House. The Senator did not want to participate in political fraud with a fudged census packing the House of Representatives and the electoral college.

The Stimulus Bill has a provision that will help the President raise money from men under criminal investigation. The Stimulus bill that nobody read had an interesting provision that would benefit Mr Obama's past and future donors on Wall Street. It is the RAT (Recovery Accountability and Transparency Board). The RAT Board oversees federal inspector generals who are in charge of overseeing government agencies. The RAT Board can stop any inspector general from embarrassing the President and his friends on Wall Street.

Personally, I think Mr Obama is dreaming if he thinks he is going to even be a candidate in 2012 after the food riots shake this country to its roots. Gerald Celente is predicting a dramatic increase in crime and even a surge in kidnappings. This failure will soon become evident to even the most partisan Democrat. I am reminded of something Malcolm X said the week before his assassination.

“Why is it that you do and do for the Democrats and they don't do for you? Why is that? I will tell you why. Because you are a chump.”

Of course the same can be said of the Republicans. John McCain had a fund raiser hosted by the Rothschilds in March of 2008.

It was evident to those of us who opposed George Bush's invasion of Iraq that the Iraqis had no Weapons of Mass Destruction and had nothing to do with 9-11. It is equally obvious to anyone who reads and understands what he or she reads that the Obama plan will not work and was never intended to solve our real problems which are unemployment, economic contraction and a crashing dollar that will transfer all of our real wealth to the international elites who supported Obama and McCain in 2008.

Consider the following:

Wholesale prices went up 8/10ths of one percent last month. Prices are starting to go back up and will take interest rates up with them.

The latest Treasury auction was a disaster. Interest rates on Treasuries are already beginning to creep up.

China, India, Japan, England and OPEC can no longer buy our Treasuries so interest rates will have to go op, up and away to attract buyers for several trillion dollars. in new US bonds needed to fund the deficit of 1.2 trillion dollars, the 800 billion dollar Stimulus and the continuing Bailout of both Wall Street and home mortgages. A correspondent from Time magazine said this will be the first of a series of Stimulus and Bailout bills. All of the above is to be financed by borrowing at higher and higher interest rates.

70% of all homes on foreclosures have not been listed. There are 5,162 homes in foreclosure in San Jose California listed on Yahoo real estate. So if only 30% are being listed by the banks, then we can safely say that there are more than 15,000 homes in foreclosure in the town where I live.

I talked to two women who are illegal aliens but did not let that stop them from voting for Obama. They said they expect the President of the United States to pay their mortgages. That was before Obama announced his solution to the home mortgage crisis.

So if 9,000,000 homes are to be rescued by 75 billion dollars left over from TARP how much relief will each recipient get? A little over a thousand dollars. And, if another 5 to 6 million people lose their jobs, who will pay for their mortgages? Clearly we are going to have to borrow a lot more money at much higher interest rates to meet Obama's campaign promises.

The current US debt ceiling is 11.3 trillion dollars. In my New Years predictions I said the debt ceiling would go to 15 trillion dollars this year. At the current rate of growth in debt, we could easily expect to have a 20 trillion dollar debt some time in 2010.

Ben Bernanke is a student of the Great Depression. He said the lesson he learned is to overcome the contraction in the money supply which explains why the monetary base is growing at 105% and the broader M3 is growing at 15% a year. Bernanke believes he can use the same methods the Federal Reserve used in 1980 to solve the problem of inflation. At that time the Federal Reserve raised interest rates until home mortgages were 15%.

If Bernanke raised interest rates to 15% in 2010, our 20 trillion dollar debt would soon cost us 3 trillion dollars a year to finance. This can easily be done by simply tripling the income tax collected. from a trillion to three trillion dollars a year. Of course that would leave the average American with only a few dollars a week in after tax income to pay for food, clothing, shelter, insurance, transportation, education and other necessities.

Even a perfunctory examination of the facts will tell us that none of these plans will work nor were they even designed to work. So why do they bother? My conclusion is that the real plan is something entirely different.

The most likely possibility is that Wall Street is planning to eliminate democracy after they have stolen all of our money. The Federal Reserve announced in 2005 that they would no longer publish the M3 total money supply figures. They knew then that they would be printing lots of money to cover up what they had stolen from us.

And Wall Street has been busy eliminating freedom through the Patriot Act, the Military Commissions Act of 2006 and executive orders.

We might not see the future but we can clearly see what Wall Street has planned for us and that it is not good.


To read about the RAT Board please go here:

To watch a video on the Bailout and the Mortgage subsidy please click on this CNBC ERL:

To read Paul Craig Roberts explain why the Bailout and Mortgage won't work please go here:

To read about the increase in wholesale prices please go here:


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