Things have certainly changed in the last year or two. Somehow, the part of the economy that is
felt in the pocketbooks of average Citizens has gone from super-heated and
ever-expanding, to ice-cold and losing ground--at about the same incredible
I’m not ignoring the toll all this is taking on most Americans, but I find
that interesting, don’t you?
Acting in your ‘best interest, of course, Congress, the
Senate and the latest Messiah decided to ‘borrow’ $1 Trillion dollars that
hasn’t even been earned yet. Now
there’s a trick. Even better than that,
YOU get to be obligated (along with your children and theirs) to ‘pay it back’
to somebody that never loaned it to ‘us’ in the first place. It’ll be $400,000.00 to 700,000.00, E-A-C-H
before the interest accumulates. Whew!
What’s going to be very interesting is how the next
generation handles being told that ‘we’ Baby-Boomers are going to take 70-80%
of everything they even think of earning over the course of their entire
working lives to pay for our retirement.
And that’s before the Congress they hire gets to spend a cent on them,
and their ‘needs’.
will have to be ‘more’ Trillions ‘borrowed’ to keep up, and in the
not-too-distant future the govern-monkeys will have promised away all of the
future labor of the next 50 generations of Americans. Then what?
Well, I’m glad you asked, because we are seeing a tiny
bit of ‘then what?’ in real time. One
would hope the next generations of laborers would have the good sense to just
refuse to pay saying, “It’s Not MY Debt!”
It won’t take the whippersnappers long to figure out that there’s more
spend-able profit in not working.
They’ll find out that government can’t give everybody everything without
anybody paying for anything.
That’s why all 92 attempts (‘Amerika’ is #93) to create
Socialist societies have collapsed under their own weight. For the next generation(s) to be held
responsible for anyone else’ debt (‘ours’ included) is in polite company
referred to as, slavery. I guess that’s
one of those things that’s ‘illegal’ and immoral…unless government does it.
But I digress.
Back to the Trillion Federal Reserve Notes that Congress voted to
‘borrow’ even over clear opposition, from (Their supposed, ‘Boss’) the People
themselves. How could it possibly be
used to stop the free-fall in the ‘worth’ of the Federal Reserve Note? Hummm.
Let’s look a little closer so that even the people who
have been abused by the government’s welfare school system might have pause for
Here’s the premise: people were encouraged by the banks to use
credit lines to ‘operate’ in everyday life, so the banks could rake in profits
at usurious interest rates and fees. “Get
the stuff you want NOW, in exchange for your own personal promise of labor to
pay for it, later” was the screaming message in all their advertisements.
Personal homes, we were told had ‘increased’ in value to
such an extent that a fictional character called, “equity” could be tapped as
collateral to keep up with the Jones’ (no offense to the Jones’ of the world).
Then the economy hit the wall. People
had used up all their credit, there was no more to be had, and uh oh, there
wasn’t enough ‘real’ money to make all the monthly payments.
In what seemed to be a concerted effort, property
appraisers all over the country decided houses were suddenly worth 3, 4 or even
5 times as much as Common Sense would dictate.
They stretched it as far as they could—then it went bust.
In reality, (given a constant dollar value)
there’s not even a cent of value to a property unless you have a willing buyer
and willing seller and are sitting at the closing table with a deal.
Buyers tend to be a little scarce during a Depression so,
now we’re in what will no doubt prove to be the most devastating Depression in
world history, with no possible chance of even ‘bottoming out’ until the final
quarter of 2011. Homes can not even
possibly hope to begin ‘gaining’ in saleable values (given a constant currency
value) for 2-3 years after that, assuming the currently growing inventory of
empty homes can be absorbed in part by then.
It’s gonna be a while.
So what are our brilliant political representatives
forwarding as their plan to ‘fix’ it?
Well, they figure the banks and monster corporations are suffering
because ‘irresponsible’ Citizens stopped making their credit payments, so
Congress, et al figured they’d make YOU make up the profits ‘lost’ by the banks
and monster corporations. They decided
to print up a Trillion (That really is a very big number) Federal Reserve Note
Dollars and give it to the banks and monster corporations so they could stay in
Aren’t you glad they will still be around to bleed all
that they can from the people they conned from the start of this? I guess in some worlds that might be
considered, ‘stimulating’, but not in mine.
Since the American People are on the hook for this first
Trillion (and ALL subsequent ones), and have to pay it “back”, shouldn’t the
government have just paid off everybody’s credit balances? To me, that’s just Common Sense, but not to
the Republican/Democrats our dumbed-down populace keep electing over and over
People stupidly fall for the
notion that ‘we’ need to elect ‘them’ to correct the very problems and
inequities they created. See what
happens when government forbids creative, critical or rational thought in their
“free” schools? Real education is cheap
when compared to the cost of delusional ignorance.
As an aside, I just have to butt in to urge you to ask
yourself, or anyone else: To “whom” do
you ‘pay back’ this Trillion Federal Reserve Note Dollars they just printed
up—that NEVER existed before, and had NO previous owner?
Regardless of the immorality, the net effect is that YOU
will pay for the Trillion ‘fake’ dollars just printed up. It’ll all be given to the credit companies
and banks--and you STILL get to pay off your individual debts to those same companies! How’s that for a sweet deal?
The lack of a run on tar, feathers, pitchforks or torches
under these circumstances can only mean one of two things: Either votes are not actually counted
honestly in our elections, or what used to be “America, land of the FREE, home
of the brave” should be re-named, “La-La-ica, land of the STUPID, home of the
Any rational person has to conclude that the new
Messiah’s plan to use the Trillion Federal Reserve Note Dollars to simply delay
the inevitable—only delays the inevitable.
There is no incentive for anyone one to stay in a home that could only
fetch $50,000.00 on the open market, but has a half-million dollar
mortgage. That would be economic
suicide, when you realize if you wanted to ‘sell’ your house, even if you got
top dollar ($50,000.00), you’d still have to pay $450,000.00 to complete
The simple fact is that until mortgage balances are less
than the sale value of the homes, nothing is going to change. The new
‘Messiah’, and his advisors know this, so, why does their bailout plan simply
‘delay’ the inevitable crash for a specific period of 5 years? A cynic might suggest it’s a thinly veiled
set up for the fear mongers to take another bite of the apple…after the next
But seriously, if the real objective is to “stimulate”
the ‘economy’ to where we have a healthy frequency of exchanges and
transactions at all levels and in all sectors, why would the new ‘Messiah’ and
his Republican/Democrat cohorts propose a plan that will very soon shut down
the entire economy and usher in a far more severe Depression than in the
1930s? I dunno either.
What if there was a better, smarter, simpler, easier,
zero ‘cost’ way to halt the damage, and “really” begin healing our wounds. If there were such a thing existing beyond
either the intelligence or the ethics of the representatives YOU keep
re/electing, would it be ‘okay’ if implementing it recognized your, your
friends, your kinfolk, and everyone else’, absolute, individual right, to be
left absolutely alone? Would that be
Only the “La-La’s” could think our formerly-robust
economy will bounce back in a ‘couple days’, or that we can rob from
‘ourselves’ and think we are ‘adding’ the ‘loot’ to our own coffers. The truth is we will never be able to get
“back” to anything, not ‘back to the way it was’ and not ‘back to where we
The path that lies before us is
a new one and that’s why the new Messiah’s, “same as before” actions can’t do
anything but enrich his friends. I just
wish we could at least have someone with principles and intelligence sitting on
the throne instead.
This moment in time will be remembered, much as ‘Wile E.
Coyote’ remembers what it was like, looking down and seeing that he had
literally run out of ground above a deep canyon. The only difference between the two is that ‘we’ actually can
decide to stop the Depression from getting any worse—in the shortest possible
timeframe, at any point we choose.
The great misconception is in the populace repeating the
idea that if ‘this’ is all that’s happened after we’ve lost the bulk of the
wealth of this nation, it’s not so bad.
What these people don’t realize is that is will take several months
before the real effect of what has already happened hits them. There’s a lag time before the economic shovel
hits them square in the face. In the
words of the late, great BTO, “You ain’t seen nuthin’ yet”.
Cleaning up the economic damage that’s already been/being
done is going to be significant in scope and require significant time to
recover. The only question is: How much
further do you want to fall?
has to be noted that prior to the introduction of the Federal Reserve in 1913,
there was no income tax, and there was never a depression, or even a recession
because the United States Dollars were “as good as gold”— each and every one of
them was backed with a dollar’s worth of the stuff and kept safely in a place
called Fort Knox.
the Federal Reserve Notes began replacing the United States Dollars 96 years
ago, the American People have sheepishly ‘overlooked’ at least 12 (yes, 12)
Recession/Depressions. Each and every
time, the loss is/was ‘absorbed’ by the working people of this country. They had to take a loss on the money they
had already earned whether they were saving it under the mattress, or in a bank
account that paid less interest than there was inflation.
Even though a loaf of bread cost $1.00 when
you earned what’s in your savings jar, after each recession/depression, it cost
$2.00. How would you explain that as
good or sound economics? Who do you
suppose profited the “extra dollar” that’s now out in circulation? You might want to look that up.
was only a matter of time, before controlling the currency was perceived as
only a ‘part’ of the duty of the Fed.
It just sort of ‘evolved’ from the confusion of how the ‘new money
worked’ that these wise men would also ‘control’ the nation’s economy. Today’s economic circumstance is the result.
folly of acquiescing to the banking cartel’s insistence that ‘they’ could
artificially manipulate the ‘free market’ is now a little more than
apparent. The truth is, no matter what
they do, or how much they want to control it, the free market ALWAYS settles
itself. Like the seasons of the year,
you’re not going to change the natural order of things to suit you, so why do
people try? Because they are stupid,
and because these people have some inner drive to ‘control’ other people to any
degree they can.
the objectives are, 1) to stimulate economic exchange, 2) stop the declining dollar
value and 3) stop the declining values in private home, there’re only two ways
to stem the tide of economic disaster that is upon us.
first is drastic, it’s bold, it’s simple and it requires tolerating
government’s dictating what businesses must do…just this once. Nudge, nudge. Wink, wink. Here it is:
a) Eliminate all personal taxes on the earnings of all individuals. This immediately pumps ‘money’ into every
economic sector and stimulates economic activity in areas government couldn’t
hope to reach through central planning.
Besides, theft is still theft, even by government, so stopping the theft
is a freebie.
corporate taxes to a flat 4% of gross receipts without deductions of any
kind. This would give the small
businessperson some sense of security and save substantially on regulatory
that all bank or corporate-owned mortgages be immediately re-written at
their current principle balances, termed as ‘new’ 30-year agreements at
interest, and that all be ‘assumable’.
You might think a 70% write-down is a lot, but I hope to assure you
your home has already lost 70% of it’s value from its peak. You just
haven’t felt the ripple yet. The question is only whether you want it
One of the big benefits
of taking such bold steps is public confidence. Knowing that ‘we’ determined where the ‘bottom’ would be would
give us all an immediate sense that we can now start to re-build our
Knowing that homes were
finally realistically valued will allow the vacant homes inventory to be
absorbed at the fastest possible rate.
Sure the banks will be a little mad, but not really
because their stocks will stabilize instantly.
All they have to do is stop stealing from people and ‘earn’ their money
the old fashioned way, if they want to stay in business.
It won’t be easy, and it won’t be quick, but it is
course, the honest thing to do is: nothing (not counting eliminating personal
income taxes). Let the cards fall where
they may. One thing we know for
absolute certain is that the free market ALWAYS settles itself, always, and it
will again, this time, no matter what.
So what are YOU going to do about it?