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Misguided Spending Will Only Take Us Deeper Into Depression
Posted By admin On January 19, 2009 @ 8:25 am In Featured Stories,Old Infowars Posts Style | Comments Disabled
The International Forecaster
January 19, 2009
|We have the new stimulus plan of some 825 billion, which Nero (Obama) will use to rosin up his bow so he can play his FDR fiddle as visions of Keynesian governmental interference dance in his head, and as Rome (the US) burns to the ground.|
Pushing the already contemptibly corrupt senators to administer the coup de grace to their constituents were President-elect Barack “Spread the Wealth Around” Obama, who fanned the Fannie and Freddie flames during his term as a US Senator, doing all that he could to make sure that loans were given to the unqualified who should never have been given loans under any circumstances, thus ensuring the subprime debacle and the nationalization of the Scylla and Charibdis of the home mortgage industry. Joining him in the bout of Senate arm-twisting was his new lead economic advisor, Larry “Quadrillion Dollar Derivative Death-Star” Summers, who, as President Slick Willy Clinton’s Treasury Secretary, lead the charge for deregulation of the financial industry that killed the safeguards, checks and balances provided by Glass-Steagall and that led to the creation of an unregulated, opaque and highly leveraged market of weapons of mass financial destruction backed by largely naked counter-parties, which were foisted on the unsuspecting worldwide by virtue of the conflicts of interest made possible by the nullification of Glass Steagall, with a large part of this market hidden from the view of bank investors by off-shoring the assets in SIV’s (Structured Investment Vehicles) and the like, keeping them off balance sheet.
Don’t you just feel “warm fuzzies” knowing that Obama and Summers will be in charge of the next half of the TARP bailout, a/k/a the PPPP (Paulson Ponzi Plunder Plan) as they and the new CCCP (Clintonite Cabinet of Con-Artists and Parasites) get ready to take us into stagflation and depression, leading the dead-head US public down the path to financial destruction like some sort of deviant group of pied pipers?
These miscreants will let you know about the details of any impending equity injection and stock purchase by the Treasury to be made using the second half of the TARP funds, which is not helpful since they have carte blanche to do whatever deal they feel like, and could care less about the opinion of the US public. But look at the bright side, at least we can then calculate the degree to which they are screwing us by throwing hundreds of billions down the rat-holes of totally insolvent banks to enrich their cronies while we get hyper-inflated into oblivion. They have also promised to limit executive salaries of bailout recipients. Big whoop. They already got their juicy salaries, bonuses and dividends via the first half of the TARP funds, which they extorted from us under threat of martial law and PPT-orchestrated stock market crashes. Now they will get more cash to hoard. Supposedly they have to prove that they are using the funds to increase lending. Yes, they will lend more to one another via FDIC guaranteed interbank loans and will make token loans to the public so the fane-stream media can trumpet all the wonderful help the peons are getting from the banksters. It’s just the same old, same old. Incidentally, John McCain voted against the release of the second half of TARP funds, probably after he saw it was going to pass anyway, to make some political kudos.
Then, of course, we have the new stimulus plan of some 825 billion, which Nero (Obama) will use to rosin up his bow so he can play his FDR fiddle as visions of Keynesian governmental interference dance in his head, and as Rome (the US) burns to the ground. That’s right, let’s throw gasoline on the fire so that Rome can burn all the hotter and so that the agony of being burned to death can be extended for as long as possible.
Nero can’t raise money for all the bankster bailouts by directly taxing the middle class due to campaign promises. Tax and spend is off the table. So instead, he will spend and inflate, which is really the same thing. Inflation is, quite simply, an insidious tax on the lower and middle classes, spreading the disease of money germs created out of thin air to fund evil government objectives so that the IRS does not have to collect necessary funds directly from taxpayers. But higher prices are even worse than a direct tax, as they tend to spiral out of control. At least with a direct tax you can control how much taxation is levied. With inflation, the degree of “taxation” is often in the hands of corrupt speculators who drive prices up to absurd levels to enhance profits. This will inevitably lead to price controls, which will create even more imbalances in markets for the sale of goods, thus making the stealth tax of inflation even worse in the end by causing wild gyrations in supply and demand and by forcing people into black markets where true prices will have to be paid anyway.
The SSS (Second Stupid Stimulus), contrary to popular belief, contains very little in the way of traditional state infrastructure projects, with a measly 7.5% being put that purpose (with an additional 4% for federal infrastructure), which is bound to disappoint governors and state legislatures throughout the US who have grandiose plans for the SSS money. But at least that will limit what Illuminist contractors and their illegal immigrant workers will scarf from taxpayers. He will create about 4 million jobs based on the most generous estimates, mostly temporary, at a cost of about $200,000 each. This is just more make work projects that will do nothing to heal the economy or to restore our manufacturing sector. It’s mainly an unemployment, welfare and tax-break plan.
Missing from both the TARP (second half) and the SSS are any funds for the auto industry, which could provide some lasting and good-paying jobs, but that would help the middle class too much, so certainly we can have none of that.
If we’re going to splash money around, how about spending $1.6 trillion to put a brand new, American-made hybrid car into the hands of each American family. That’s 80 million cars, spread over 5 years at $16 million per year, at about $20 thousand a piece, to be paid for by our government direct to our auto companies. Not only would that put millions back to work and keep millions more working, it would help to restore and retool our auto industry. The gas savings alone, over time, would provide a greater stimulus to our economy, on a permanent basis, than the temporary tax breaks in the SSS, and many who in the past could not afford to get to work would now be available to work, thus reducing unemployment even further. Eighty million cars getting an average of 45 mpg instead of 25 mpg, would save a family driving an average 15,000 miles per year a total of 267 gallons of fuel each year for the life of the vehicle. At 2 dollars per gallon, that would save each family $532 per year for the life of the vehicle, and you can double that at 4 dollars per gallon. That is $43 billion saved per year at 2 dollars per gallon, and 86 billion at 4 dollars per gallon, or an ROI (return on investment) of 2.7 % at 2 dollars per gallon and 5.4% at 4 dollars per gallon. That sure beats the near zero return on treasury bonds, money markets and bank accounts — ya think!!! In addition, that would reduce our oil consumption by 2.8 million barrels per day, more than the production cuts just announced by OPEC, using a roughly 2:1 ratio of oil used to gasoline produced, and this would help to keep the price of oil down. Then consider the reduction in pollution and greenhouse gases. And we could move on to the next, and far better generation of fuel efficient cars every 5 years, with ever greater benefits as a result.
And if you don’t want the car, you can sell it to someone who does and save the cash or spend it. How’s that for a freaking stimulus!!! After all, it is you, the taxpayer, who, in the end would be paying for the car anyway. This would also be a good way for the rich, who pay a good portion of income taxes, to give back to their country after reaping mega-benefits under the Caligula Administration. Screw all this ridiculous welfare BS. Let’s get back to work and make things again instead of pandering worthless, fraudulent derivative paper to foreign sucker-dupes so we can destroy the world economy to pave the way for a one world Orwellian police state. Big Brother, eat your heart out!
That is how you run and stimulate an economy if you are a government. You help to produce tangible things of real value that continue to return money and savings year after year.
One thing is for sure, all these trillions being bandied about by the Fed and the Treasury like a bunch of drunken sailors on a pirate ship, a most fitting metaphor, are a surefire formula for hyperinflation. This will provide a temporary shot in the arm to our economy that the elitists will use to complete the Big Sting Two. You can already hear the shills talking about how the doomsayers were right so far, but that these problems will soon come to an end via government stimulus, making buffoons out of the gloom-and-doomers. Yes, we will get a weak, smoke-and-mirrors recovery from the creation of money out of nothing by Buck-Busting Ben, the Magnificent, as he pulls Federal Reserve notes out of his hat (and out of his helicopter in a grand finale). Obama will be declared a genius as everyone sings “Hail the Conquering Hero.” The bands will play, the fireworks will fill the sky, and you will hear “Happy Days Are Here Again” being played on liberal public radio stations around the country — AND THEN THE DESTRUCTION WILL COME!!!
The Big Sting Two, for the benefit of newer subscribers, is the process by which the elitist inside traders will dump all their dollar-denominated paper assets, such as stocks, bonds and derivatives, out of public view via unregulated dark pools of liquidity, Project Turquoise and Baikal, and via the unregulated OTC derivatives market, after which they will plow the proceeds into purchasing real tangible assets such as gold, silver, commodities, real estate, vehicles, plant and equipment, infrastructure, etc., also through these unregulated markets as much as possible, to keep the public from figuring out what they are doing until it is too late. Thus, they will leave non-insiders holding the proverbial bag full of paper assets denominated in a worthless fiat currency that was once the world’s reserve currency, better known as the dollar.
The Big Sting One took place during the Great Depression and the inside players and banksters are again working from the same playbook this time. They will make you think there has been a recovery as the stimulus money hits the economy. Banks that were hoarding cash under orders from the Fed will suddenly start lending again, mainly to each other, but with some lending to the public, as a new round of speculation creates a false-flag rally in the stock markets and the real estate markets. All the money they have sterilized until now will come flooding back into the system, along with a lot foreign cash from foreign insiders who are allied with the Illuminati in their final caper to rob the public blind, thus creating more asset bubbles in stocks and real estate, although the bubbles will be muted somewhat by the faltering world economy.
All this lending will be supported by the SSS and all the taxpayer largesse that the banksters have received via various Fed facilities and the TARP, while losses continue to be hidden through “creative accounting” methods. The banksters do not want you, the public, to know that they are really insolvent, so they can continue to both loan and borrow money in furtherance of the final rip-off and transfer of wealth from the middle class to the mega-rich.
They will try to hide their purchases at first so they can buy into real tangible assets as cheaply as possible, but gradually all that cash that is being pumped into such tangible assets will cause a horrendous inflation and gargantuan asset bubbles that will ultimately drive interest rates up, implode the bond market, and set off a thermonuclear explosion in the interest rate swaps, with notional values in the hundreds of trillions of dollars. The world economy will then lock up in a cryogenic state, and there will be a resounding crack-up-boom, followed by the greatest world depression of all time.
Insider millionaires under the Big Sting Two will become billionaires, while non-insider millionaires become beggared, pauperized and vaporized. Non-insider billionaires will be running for cover as well. Gold and silver, along with their related assets, are your only refuge under this scenario. If you can’t beat these miscreants by igniting gold and silver before they complete their fiendish plans, then you will have to join them by buying the same things that they are buying. That will make their plans much harder to implement, and will reduce their profits while saving you from abject poverty, which is what most Americans will face who were too ignorant or complacent to take action after learning about what was happening to the economy and what they could do to protect themselves. Gold and silver are your crucifix and wooden stake against the attacks being waged against you by the Dracula’s and Nosferatu’s now running amok inside the ranks of the Illuminati. Guard yourself with gold and silver, or they will suck you dry!!!
Money, money everywhere: Once the $825 billion stimulus package is in place the 2009 deficit will be close to $2.3 trillion. A legacy from the imbecile we had as president for the past eight years. M2 is up 20% and we see zero interest rates. Financial and monetary expansion is unbelievable. For the past five months M2 and MZ are up 20%.
Over the past eight years there has been absolutely no fiscal discipline coming from either the White House or Congress. Five years and $900 billion off budget spent on the occupations of Iraq and Afghanistan and yearly budget deficits of $650 billion a year, if you include surpluses from Social Security and Medicare. Oblivious to what was happening around them economically and financially, this group of incompetents and crooks were a year late with a woefully inadequate stimulus package.
While this transpired 25 of 50 states were over spending like money would flow forever and in many cases they are still doing so. Politicians and professional employees couldn’t help themselves. The housing bubble would last forever. Today’s chaos was yet to arrive and few had any foresight – they discovered what mental midgets they were when they found due to lack of revenues they were over budget by 10% to 30% and that retirement investments had fallen some 25% to 40%. Few anticipated the revenue shortfall and less anticipated the collapse in world markets. Talk about bogus.
Then we had the corrupt daisy chain. The lenders, rating firms, mortgage originators; appraisers and sales people all abandoning any reasonable underwriting practices in liars’ loans and out and out fraudulent loans on a scale unimaginable just several years earlier. Then banks, investment banks, government and Wall Street panicked and you know the result. Everything seized up and a credit crisis ensued. Now we face a “Greater Depression” as Gerald Clemente puts it and he describes it well.
The result is zero interest rates worldwide. Credit is still very difficult to obtain and we have already entered the second great depression. Money and credit is being created and offered to special interests at the top of the financial chain, but little is offered for more than half the population.
Last year gold was up 8% with only the dollar and treasuries doing better. It has done its job of protecting assets. From here on out gold and silver related assets will be the only safe harbor. You saw the numbers in the last issue, so you should understand the long-term protection it brings.
There is no question the “Greater Depression” has begun just two years after we announced the beginning of the recession that was only foreseen by a few pundits. Yes, it is D-time.
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