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Economic Realism Today

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I really don’t care what government statisticians, economists and pundits opinion on the present economy is, because like a heard of cows all they do is mimic each other. All the information they purport is about as useless as the gray Lady’s Paul Klugman. Let me tell you exactly what our national political and economic situation is, and why almost all of the reported national information is wrong. A clique of progressive Democrats owns about 89% of the media. Additionally, the core of the Washington leadership comprising congress the executive and the judicial, along with about 10,000 aids, control all established power in Washington. These people will not report actual economic information because if they did they would be exposing their élites horrific mismanagement of the economy. If they did that then their progressive candidate Hillary Clinton would not stand a chance in hell of being elected to anything. The mood for Obama’s impeachment would be huge, and the entire progressive movement would have to change their attitude relating to economic management. Being dogmatic socialists they will not even consider any such reposition. We are therefore fixed in national misinformation mode.

Let us first understand that in fixed dollar value of 1965, median American workers income has not dipped or improved, it has continuously declined. In fact based on realistic economic statistic (1) and the buying power of the dollar, average weekly earnings today are about half of those 50 years ago. (2) To explain in 1950 the average American made car cost $3,210. A loaf of bread was $0.12 cents, a frozen chicken pie was $0.19cents and a gallon of gas was $ 0.20 cents meanwhile personal income averaged at $ 5,000. You know what things cost today and also that the packaging volume has declined continuously while the prices have at the same time has risen. Taxes in any real terms due to the progressive (increasing percentage based in income) rates have skyrocketed. Based on a $ 5,000 income no tax would be due, the average income today is $50,756 Income tax is $ 8,111.48 actually reducing income to $ 42,644.52, but then we have sales taxes, property taxed, state income taxes, trash pickup, water, sewerage, fees and licenses, which when all added together are 49% of income, therefore actual average take-home income is $21,322. Not wanting to beat a dead horse the example would be a car, $33,560.00, or 30% above annual income in 1950 a car was 30% below annual income.

We must now add to this diabolical government produced horror the individual cost on Obamacare a tax that has risen since its inception in 2000 to 2015 by 25% to 45%, and will go up by 35% to 55% in 2017. This is a minimum increase of 75% in six years. Let’s just look at progressive taxation since 2010, Tobacco +156%, Obamacare +75%, Obamacare employer’s +about $ 4,000 per employee, Capital gains, and dividends +35% to 43.3%, Obamacare Excise tax +40%, Payroll taxes +2.9 to 3.8%, then there are no less than 12 new taxes all benefiting Obamacare. And let’s be honest and frank, healthcare has been diminished, doctors are harder to get, many hospitals are rejection Obamacare coverage. The large insurance carriers are all losing money and many are opting out, and millions of younger Americans prefer paying the tax penalty than Obamacare coverage, because it is simply too expensive. Obamacare is in process of destroying our entire healthcare system, which was the best in the world.

Recent studies indicate that the weakness of consumer spending to be greater than the inflation index of median income. In other words because the FRS has lowered prime rate to near zero, middle class savings are non-existent, based on the fact that inflation rates are, by any measures are at least 7% above interest rates. Most middle class families are now living had to mouth, with massive credit card debt, and zero savings. The system is so severely skewed that bank fees and charges eliminate earned interest on a bank account. (3) Average American income has fallen by $3,800.00 from 2004 to 2014. This is no big problem for the wealthy but is devastating for the middle class.

America is not in a recession we are in a second great depression. 47 million Americans are on food stamps, if it were not for that program, we would like in the late 20’s and early 30’s have soup lines on the streets. We have 109,631,000 households (35.4% of total households) on some federally funded benefits. (4) We have 94 million Americans that want jobs and the politicians at the bidding of the Chamber of Commerce and the Business Round Table, increase the number of refugees, legal and illegal immigrants, and special visas to over 5 million every single year. Our total unemployment now stands at 27.3%. (5) This continues to lower average American income and fosters the replacement of Americans with lower paid foreigners. (5) The insanity of these immigration and border policies that Hillary Clinton wants to expand from 10,000 to 67,000 is simply mindboggling.

Further examination of our economic barometer indicates that average household outlays from ’96 to 2015 grew by 26%, while income over the same timespan fell by 14%. In other words by BLS statistical information we had an annual reversal of growth exceeding bank prime rates by well over 200%. Factually this is based on BLS statistics, which I do not consider to be correct. I think that the average annual inflation rate to be about 7.5%. You know you can’t trust Washington when they eliminate Social Security and government payroll COLA’s to zero for two years running. I am not aware of anyone stupid enough to believe that there has been no inflation in the last two years.

The most affected by this are retirees, the poor, and those on Social Security, they see costs of necessities like housing, food, taxes, fuel, transportation and healthcare rising in cost and outstripping their incomes, forcing them into debt after having consumed any remaining savings. Just so you understand exactly what progressives, i.e. Obama and Hillary have done and are planning to do; in 2008 the average bottom third of the economic scale family had about $1,200 income left after basic expenditures. Today that same family has a $2,100 deficit at the end of the year. The two most aggressively growing costs have been healthcare with Obamacare, and federal state as well as local taxes. Both primarily impacted by government policies.

This is the prime indicator of why consumer spending is low and continues to fall, why hundreds of retail outlets are closing doors, why shopping malls are losing money and tenants. On the manufacturing side things are much worse. Heavy industries like Caterpillar ® have seen their order backlogs dissipate, future orders down by well over 14%, and the shutting down of many operating production plants. With the destruction of jobs due to Obamacare, (7) totally hapless government economic planning (8) the highest corporate tax rate in the world, and an income tax system longer than the old and new testaments combined, and for which you need a lawyer and CPA to comprehend, it’s not a wonder, is Disneyland on the Potomac business as usual. The general national variance between income and expenditures now stands at about 35%. We are individually as well as governmentally digging ourselves into a hole that our children and grandchildren will be working their way out of.

Of course there is a simple solution. Disband the FRS just as the Icelanders did. Jail all the banksters who have been relentlessly ripping us off ever since 1913. Simply eliminate the debt; which in fact does not exist, because the banksters have been issuing unbacked currency for the last 40 years, which is why they relentlessly block any audit. Journal entries in the 12-branch FRS banks do not money make, they are just journal entries that mean absolutely nothing. If any private corporation, partnership, LLC or proprietorship made such entries their CEO and CFO along with the entire board of directors would go to the big house courtesy of the Justice Department and the IRS. But I jest; I fully understand that in our Banana Republic large crimes like those of the banksters and Hillary Clinton walk, it’s only us common folk that are ever prosecuted.

 

(1&2) CPI-W

(3) ZIRP policy—zero interest rate policy

(4) BLS reported

(5) ShadowStats ®

(6) Disneyworld Orlando

(7) Estimated economic impact on the loss of employment would indicate that about 22% of it is due to Obamacare.  

(8) Like the department of Energy funding of green project that produced bankruptcies of over $ 6 billion

 

A new book by Dr. Krieg explains all. Turning Tide, coming in August 2016

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