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Nearly every single thing this government, this administration, is doing is a 'bailout', a redistribution of wealth. The 'taking' from those fortunate enough to still have a job for the purpose of dumping ever more government money, tax payer money, into the 'economy'. 'They' know that Americans have had it with the 'bailouts'... So 'they' seek to find innovative new ways to endlessly pump newly printed money into the economy without having to 'ask' for the permission of the American public...
'They' achieve this through extended unemployment as never before in our history. 'They' do it through the expanded food stamp program. 'They' unabashedly use tax payer dollars to pay the wages of union employees (ie; police, firemen, teachers). Any and every union organization that can tap into this stream of tax payer ca$h, provided by our government... Provided by a Federal Reserve who has the magical ability to 'print' mountains of brand new ca$h with a few keystrokes on a magical keyboard...
'They' do it through the 'ca$h for clunkers', 'ca$h for caulkers', 'ca$h for first time home buyers' programs. Is it not so obvious to everyone? That our entire economy is currently being 'propped up' through the ability of our kleptocratic government to 'take' from those who still have and 'give' it to those who do not? Propped up by our kleptocratic governments unique ability to print as much money as it requires?
But what of looming foreclosures? Millions more of them... What of an unemployment rate expected to rise through 2010 and possibly into 2011? An unemployment rate that in reality is already north of 17%? How many more toxic assets can the FED afford to buy? Adding to it's books worthless assets as collateral.
In reality *I* think 'they' are attempting to deal with what is already a new great depression, 'secretly'... 'They' don't want the public to know how bad things really are. So 'they' seek to conceal or ignore the facts to avoid a full scale public 'panic', with it's ensuing 'bank runs'... And that is all it would take... all it would take to bring this government and this econmy to their knees... a little old bank run... A little slip in consumer confidence (which may now be an oxymoron)...
And all this to avoid the TRUE bogeyman... 'deflation'.
The mere mention of the word sends chills of fright ripping through all elected officials and major corporations...
Why?
Because we have way too much 'supply' we have way too much 'capacity'. And all this excess supply and capacity, until now, has been supported by ever increasing debt levels, shouldered by the American 'consumer', by the American 'shopper class'.
Those days are now gone, in my opinion. We are already in a 'new economy'. One where ca$h, thrift, frugality rule... Millions of Americans have suddenly tired of the 'game' of unsustainable debt levels at rediculous interest rates.
There has already been a sea change in our economy. Within the 'consumer', within the 'shopper class'.
Nearly everything we buy, from food to aircraft, costs at least 6 times what we can 'make' it for ourselves. Inflation has already destroyed our purchasing power to the point that many Americans had no food or heat for their homes on Christmas day.
What would happen if we were to experience the 'deflation' our economy so desperately needs to heal?
Nothing good for corporations or government, neither small business or workers. It would be an ugly thing to be sure... But a 'thing' that is necessary none-the-less...
It would likely be similar to the depression of the 1930's. And, also as in the 1930's, it would be a thing of great pain but also a 'thing' of great cleansing and renewal...
Deflation is our savior actually... Those who fear its effects are the elites of our society... not us... Deflation would/will flush the excess from our system. Our massive oversupply of banks, insurance companies, hospitals, drug dealers (the 'legal' ones...), auto dealers (new and used), restaurants, retailers in general.. all would be drastically 'trimmed'... bankruptcies for everyone. And, along with them, our government would suffer additional huge losses of tax revenue. It would all collapse. As it should...
This is what our economy needs to survive... The cleansing effects of deflation. Deflation would cause our currency to rise in value. Your money would have more purchasing power, not less. Deflation is the mechanism through which our economy can 'adjust' to new economic realities...
However, it is the 'pain' of deflation that our government, the FED, the Central Banks, the entire financial industry, indeed nearly ALL of our economy, insurance companies, hospitals, drug companies, auto makers, seek desperately to 'avoid'...
For those entities see deflation differently than *I*... 'They' see it as TEOTWAWKI... which it would be... but in a good way... to me... Being rid of our corrupt kleptocratic government and our masters/monsters of greed, corporations...
I'm not quite sure what 'they' think 'they' can accomplish by replacing consumer spending and consumer credit with tax payer dollars directly from the FED and treasury... Especially when the 'money' must be 'printed' from thin air... When the 'money' is not even real... I'm not quite sure who, when and why decided the 'best' answer to a HUGE debt problem was to create MASSIVE additional debt...
These are the things that bother me... For the simple fact that SOMEONE, SOMEWHERE, along the chain of command, is NOT stupid... Maybe very nearly all of our elected 'representatives' are stupid, I can buy that... Our fearless, oh so elegant, president is obviously nothing more than a 'puppet' to be enjoyed by the most liberal of the left. But SOMEWHERE, SOMEONE, knows better... Yet 'they' lie and conceal the truth... Out of fear... Like a child caught in the act...
Who is really running this country right now? And do 'they' have our best interests at heart? Or only the interest of saving themselves?
Could all this really have something to do with Goldman Sachs and the financial elites?
If you have not already done so please read 'Obama's big sellout - Rolling Stone' and you will see... It is a somewhat lengthy article but, IMO, worth every precious second of your time...
It is my observation that the 'coup' has already occurred... The huge battle between government and the financial elites representing corporate America has already taken place. Behind the scenes, behind closed doors, behind the backs of the American people. In secrecy lest the American public become 'upset'... lest there be 'civil unrest' upon the land... The 'deals' have already been made... The American people are the losers...
The financial elites have won the battle. We, the people, must win the war...
'They' know 'we' know...
It is a stalemate now... Each side eying the other with great distrust... and disdain...
*I* wonder... who will blink first?
Have no doubt... America is 'different' now...
I have a very real 'fear' of the things that 'they' might plan to do to contain the collapse of the United States of America. Be ready for a rough and rocky ride in 2010...
Greg
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