Economy 101, 2012
Dr. a. H. Krieg
I have been warning anyone who will listen that our worldwide economic system based on the Fabian-Keynesian economic system would collapse in 2013-14. Most have ignored my warnings much to their own peril. The situation has in the last two months deteriorated considerably and thus I am again warning you to guard your assets, because they are now in greatest peril.
I will make this short and to the point. The outcome of this election has little bearing on the situation because the inherent congressional and executive financial overreach places such dramatic financial pressure on the economy that it cannot survive the oncoming debacle. By February of 2013 America will have to provide an additional trillion dollars to meet the already established Obama expenditures. No running candidate if elected can do anything to prevent that.
In effort to bolster an Obama victory in 2012 Bernanke has instituted QE3 with a massive $40 billion per month of money not even backed by debt. The entire $40 billion is issued as “not backed paper.” $40 billion per month works out when interest is added to $ 504 billion or ½ trillion per year. Keynesian economics 101!
The on the books national debt is now over $16 trillion+ while Americas GDP is about $ 14 trillion. We barely collect enough in taxes to pay the interest to the Jewish bankers who own the debt. Keynesian economics 102!
Obama’s administration has projected a $ 20 trillion debt by 2016, which underestimates the progression in light of recent Fed. actions, the debt will if this continues go to $27 trillion by 2016. Keynesian economics 103!
One of our major trading partners is China their economy is in dire difficulty. The Shanghai market closed below 2,000 for the first time since 2000. Chinas Shanghai Composite Index is at the lowest point in the last three years.
Japan, which has been in depression for well over a decade has seen the bank of Japan this week issue its eight round of quantetive easing by increasing their Japan bond purchases (same as here Keynesian-Fabian money out of air) by 10 trillion yen, adding to the already issued 70 trillion yen they hold. What makes these governments and banksters believe that they can overcome market forces is unknown; it has never worked in the past and will not do so now. Keynesian economics 104!
The PIGS in Europe are all in serious trouble but they are no longer alone.
Of the four the worst is Greece where street riots are now more popular than TV, and about half the population works for the government, all industry has departed elsewhere, tourism, which was their largest economic endeavor is over, people retire at age 52, while north Europeans work to age 70 jut so that they can keep the Greek economy going. The Germans will not put up with this any longer and things will come to a head in 2013. Keynesian economics 105!
Italy, whose unemployment level has risen 37% this year, has been assessed 30 billion euros by the ECB to help Spain with a loan to tide the Spanish economy over. Someone must do something about the riots in Spain! Italy has a national debt of 1 trillion euros to the ECB; Spain has an ECB debt of 1.7 trillion euros to the ECB. The ECB charged Italy a 6% interest rate on their part of the loan to Spain, and is charging Spain 3% interest on the loan. Keynesian economics 106! PS 6% 0n 30 billion is 1.8 billon and 3% is about one billion, so Spain gets to pocket about one billion euros of Italy’s wealth, Italy by the way is as broke as Spain, if like me you don’t understand that, you will have to take Keynesian economics by a Fabian instructor at the Webb house in the British midlands. Meanwhile riots in Spain have shut down parliament, Madrid is in turmoil, and national strikes are the order of the day. The yield on Spanish bonds has just risen to over 6% in a European economy that loans funds to banks at less than 1%. Unemployment, which is over 50% in Greece, is now at 27% in Spain and for those under 30 at 52%.
It is now commonplace for European police to use stun grenades, tear gas, and shock troops in effort to keep the peace. The welfare states of Europe have to eat the crap that they have sold the public for the last twenty years. They have robed Paul to pay Peter and now Peter is broke or moved out and the wagon is empty.
The new socialist government in France will not cut spending and has instead done the Obama thing, “Class warfare.” The French government has stated that they will be increasing taxes on the wealthy to 75% of income. The great sucking sound as the producers and employers depart to Belgium, Switzerland, Germany, and Austria and elsewhere can be heard from Bordeaux to Paris. France’s unemployment level is at an all time high rising every one of the last 16 months.
Things at home are just as bad, since 2008 America has lost a net of over 340,000 jobs this while the employable labor force has grown about 110,000 every month for a total of 5 million more workers. Thus the real unemployment number is 30 million. White unemployment is at 24.7% Black at 32% Blacks under 30 at 50%; Females have lost 540,000 jobs in the last three and ½ years Hispanic numbers about mirror those of Blacks. The August durable goods orders fell by 13.2% the greatest decline since 2009. America’s GDP grew at an anemic 1.3%, .04% below expectations, which is not sufficient to provide employment to the new job seekers, never mind the 23 million unemployed. The dollar has already been degraded once and will be degraded again before the election. The U.S. postal service that saw its income placed into the General fund, just as the legislative crooks did with the Social Security Trust fund, the Highway trust fund and the patent office trust fund, will be issuing its second default of about $5.7 billion shortly. GM, Government Motors that is has a stock value fall from $33 into the $20. Obama’s GM gamble has proven a disaster for America, with the construction of 11 assembly plants and 4 drive train plants, and 2,400 GM dealerships in China, we will see that GM will become a net importer of cars by 2020, the unions, the people and the stockholders of GM have all been screwed by Obama and the progressives. As a consensus of most business CEO’s have stated that they plan to reduce payrolls in the coming eight months, and will not be hiring anyone. The ever-sick housing market still has a backlog of over 1.5 million foreclosures that have been held back from processing by the administration; if Obama loses expect an avalanche of foreclosures hitting the economy. If Obama wins another bailout. 47 million Americans are on food stamps, 25 million are unemployed, and more millions are on welfare, we have 24 million illegal immigrants and 5 million immigrant green card holders, our borders remain open, considering the national unemployment situation that open border policy is not just counterproductive its stupid.
The Stock markers and capital markets are artificially propped up by the “Plunge Protection Team” a branch to the Fed. They now employ over 1,000 brokers working out of the 12 Federal Reserve Bank branches, so as to obfuscate their existence. They use inflated dollars backed by nothing to buy stocks bonds and commodities in order to prop up prices. All of these actions by government and the banking monopoly will force dollar inflation from it present 15% to 20% by next February and to 30% by mid summer 2013. This will mean massive hyperinflation and the rising of all prices for all goods over the coming four years.
Remember that the national debt cannot be repaid if the dollar is at its present value; only through the inflation (reduction in dollar value) will it be possible to repay the national debt. The outcome of this is the total destruction of pensions, 401K’s and IRA’s as well as any savings denominated in dollars, stocks, or bonds. This is the real war on the middle class!
All of you by this time are well aware that I am an American Third Position parity board member; I have no dog in this issue. I will make a prediction; regardless of who is elected, America will be bankrupt by 2015. I make this prediction because our party has the only running candidate who has been honest about the economy, foreign and domestic affairs, and what has to be done to overcome our imminent collapse. That is exactly why he has been kept out of the news. Neither of the Republocrat party candidates have addressed these issues, the media has not perused questions relating to it, nor is the public for the most part aware of it. Merlin Miller our candidate for president has written a book entitled Our Vision for America ISBN 978-1-937553-05-0 available everywhere, you owe it to yourself to read it. $10.00 is a cheap price to learn what it will take to fix this nation.