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Economic Armageddon


                                                       February 2013


What the outcome of our national economic policy will be.

Dr. A. H. Krieg            for: The American Freedom Party Board of Directors

I am not an economist but a revisionist historian, revisionist history is a factual science of proven past events, economics on the other hand is a soft predictive science based on the opinions of its authors. When you read the economic predictions of someone like Paul Krugman of the Grey Lady, you are exposed to the personal opinion of Mr. Krugman and nothing else. The personal opinion of economists has historically been proven to produce correct predictions in less than a quarter of instances. There are in fact entire organizations like “The Club of Rome” based in Schaffhausen, Switzerland that have been making predictions for many decades and been wrong every single time. Historically this is not a new event; Malthusians are the forerunners of the “Greens” who likewise have not produced a single factually correct prediction in their entire history. A great example of economics gone awry is Keynesian fiat monetary policy, the product of the Fabian socialist economist and homosexual Lord Keynes (UK) the instigator of our 21st century world economic malaise. When economics is coupled with a worldwide socialist, Keynesian monitory policies, and environmentalist movements, it produces circumstances, which have historically proven deleterious effects on the economies exposed thereto.

All of this is very much about history, for we are instructed by it, that those who refuse to study it, or learn from history, are doomed to repeat the mistakes that they should have learned to recognize, had they studied it. The comment by Obama in his inaugural “Peace in our Time” is the statement made by British Prime Minister Neville Chamberlain after his meeting with Hitler, a rather telling comment by an American president. Senator Lamar Alexander in the inauguration made reference to “Roots” a fictional book like “Uncle Toms Cabin” of fiction. The progressive left seems to live in a world of make-believe. 

In order to understand where we are headed you must first become cognizant of where we have been, how we got there, and what has driven us to the brink of economic collapse.

The three major socio-political movements impacting today’s world economic situation are; the world Fabian movement, the Socialist/Communist movement, and the environmental movement that began with the Malthusians. All three of them are based on false concepts, misinformation, and 18th century perceptions, which have little relevance in the 21st century. When in fact all three are brought to fruition they wreak havoc with the impeded economies. The reason for the popularity of these movements is based in several differing issues. All of them are based in late 18th century political economic and social movements of elitist, trust babies, whose parents provided the funds for free time allowing them to dream up their theories. Socialism has an allure based in sloth. Lazy and unproductive people love the idea of getting something for nothing in return. That is what socialism is, taking from producers and giving to loafers through the power of government. It is further important to understand that at the end of WWII a large existing Anglo-American movement spearheaded in America by the CFR (Council on Foreign Relations) and the British RIIA (Royal Institute on International Affairs), poorly impacted economic policies on both sides of the Atlantic. Due to inadequate worldwide education brought on by nationalized and federalized education departments and the removal of parental and local control of education. Most citizens today, remain uneducated in these issues and are thus easily led by politicians working on behalf of the socialist elites.

The Fabian movement that is the product of Lord John Maynard Keynes and whose most prominent American supporters are Paul Krugman, Timothy Franz Geithner, Jack Lew, and Robert Reich, all of whom support an economic and monitory policy based of centralized economic control of society through the manipulation of interest rates to control economic growth and function. They believe in fiat money unbacked by hard assets and thereby the unrelenting expansion of money supply, an act that always causes inflation. The historic fallacy of Keynesian economics becomes apparent when we look at socialist nations that have in every instance proven as economic failures, primarily based on the fact that the Fabians are all socialists and that socialism has always failed. The most prominent fact is that socialism as well as communism are both based on a misunderstanding of human nature, while Keynesian economics is based on the misconception that governments are omnipotent and able to control market values and prices, this is a serious s misconception. Human nature is to thrive and expand, to grow and live, to build and reap and to profit by it. Socialism and communism is based on the misconception that those who work hard and are productive owe it to those who are lazy and stupid to elevate them to equal economic status by surrendering their gains. This leads to an insect sort of society in which all are equal, all are lazy, all are non productive. In the 70 years of the Soviet empire they, outside the AK-47 produced nothing new, could not make a decent car, had shortages of everything, and a society that offered party members (9% of population) everything and all others virtually nothing.

When socialists found out that their fallacy would not sell in free societies they hitched their wagon to the environmental movement. In Germany per example Die Gruenen, (The Greens) Buendnis 90 (Affiliation 90, the communist green movement) SPD (Sozialistische Partei Deuchland (Socialist Party Germany) Die Bunten (The Gays) all joined together to form the ruling coalition replacing Christian Democrats. This Queer/socialist/communist /environmentalist coalition brought a booming German economy to a slow down that continues through today.

Today we have a worldwide coalition of the political left, progressives is their chosen name to divert attention from the fact that they are socialists. Additionally they affiliated with the greens, further obstructing their real intended purpose, which is to bring about an international socialist cabal, socialist control of all private and government property, all under party control.

Now you have an understanding of the historic background. So we can examine the motive and intended consequences of the socialist plan. By the way, the president’s inaugural address of the 21th of January made it more than clear that he is a socialist and that he plans to make America a socialist state. He has already succeeded in nationalizing healthcare, about 14% of the American economy, while the government and the Auto Workers Union own GM, and don’t you kid yourself, by 2016 most private insurance carriers will be bankrupt, that after all is the purpose of Obamacare. He announced that he would do the same for the gun industry 4% of the economy as well as energy 23% of the economy. If America continues in this way half of our economy will be government run by 2016. What we are being set up for is a government by, for, and with government without input by the people. This will terminate in a historic world-changing event that will end the American experiment. It will plunge millions of Americans into poverty, and government subsistence in order for the socialist to create more vote fodder dependency.

Depending on who reports it, America has a between $ 156 and $222 trillion deficit. Since our national total economy is about $14.5 trillion any number over 14.5 is not refundable. The government reported $ 16.4 trillion deficit is what is on the books the rest is what remains unreported, including emergency funds for hurricanes in Louisiana, Arkansas, Florida, New Jersey, and New England. Unfortunately this is only a small portion of our problem, when we add $1 trillion for non-performing student loans that Obama federalized, the municipal bond market which nationally are bankrupting in trillion dollar ranges, private credit card debt also in arrears and in trillions, mortgages that are under water in the thousands, any way you turn it, our present debt load is greater than our ability to repay it. In 1997 we bailed out Long Term Capital Management with $3.6 billion in bond loses, which is but a minute amount compared with today. In fact our problem in 2013 relates to the fact that our debt is 47 ½ times greater than the 2008 bailout.

Most people think that markets collapse in a sudden occurrence; this is due to the fact that the media is a complicit collaborator of the progressive movement and has been for decades, they do not factually report issues relating to the economy, government, or most matters, they pander to a progressive political ideology and look at and report all matters through rose colored glasses. The dot-com bubble of 1996 is an excellent example; it resulted in losses of $2.3 trillion, as is the housing bubble, which was even larger. Both were easily discernable by any outside of banking observer. Even Allan Greenspan warned about it.

Government attempts of controlling economies by interest rate manipulation is not new from 1990 to 1994 interest rates were reduced by the FRS by 63.6%. That’s when the NASDAQ went berserk gaining 840% in one year; it was the low interest rates that precipitated it, and caused the bubble collapse of 94. The concept that any government has the ability to control the cost of goods is ludicrous. The private sector is controlled by demand and supply any attempt to control supply will fail. The Soviet’s tried to control markets by controlling supply for 70 years and failed for 70 years. Demand is based on necessity, which is impacted by far too many matters for any individual or group to predict it. Thus markets are self-regulating and do not tolerate interference from economists or bureaucrats. This has in fact been proven throughout the entire 20th century where attempts at market control by governments included, Soviets, Weimar-Germany, France, Mussolini-Italy, Nixon & Carter America, Franco-Spain, Salazar-Portugal, Peron-Argentina, and now Zimbabwe all failed miserably.

The axiom is that extreme market losses result in extreme action by government. The fact that the losers are invariably the fault of government and the private FRS is never ever mentioned. So, coming soon will be the collapse carried out by another government/FRS created bubble. This will be the great bond bubble consisting of bundled mortgage bonds, government bonds, and municipal bonds. If you are in possession of any bonds be they municipal or sub-prime mortgages T-bills or T-notes or savings bonds get rid of them. Short or long term they are a bad investment. Likewise federal government paper; consider interest rates as the barometer. Today we have interest rates on or about 1% and prime below 1% there is no room for the FED to lower the rates any more, they have no place to go except to inflate the currency. We have a over $ 16 trillion national debt on the books and economy of $14.5 trillion, consider now repayment of this debt that has been projected to grow to over $ 25 trillion by 2016. At below 1% rate the cost of interest on the national debt in 2012 was $220 billion. Suppose that the interest rate went up to a normal 4%; debt service would rise to $880 billon per year, an impossible amount. The only solution is to print more money inflating the dollar value. This began in October 2012 with the issuance of $ 90 billion per month of dollars backed by absolutely nothing; additionally they printed another 200 billion in December. Based on a logical projection that works out to $1.28 trillion above the projected and promised budget which is already $1.4 trillion over income (tax collection) So we can realistically project a total budget deficit of just under $ 3 trillion for 2013.

In his progressive advertisement inauguration speech, the worst in my memory, Obama did not even seriously address the issue of the national debt. He relentlessly pandered to the progressive wing of the Democrat party. Instead of unifying the nation he further fractured it. He continues to rant that he will not accept any reduction in spending, adjustments to Social Security, Medicare, and Medicaid, or any common sense approach to our economic problems. I do not think it to be realistic to consider us as able to continue this financial charade through 2014. During the 2004-05-bubble collapse the average mortgage bond holding firms lost about 74% of their value, this time around it will be closer to 86%. Florida for example has over 100,000 foreclosure actions pending in the courts. Nevada and California are not far behind, and California is in worse financial shape than Greece. Millionaires are fleeing CA in droves. Today banks still hold one trillion dollars of worthless mortgage debt from 2006.

For banks the lender of last resort in America is the FRS i.e. the Treasury. When the Jewish banksters, Bear Sterns, Lehman Bros., Fannie May and Freddie Mac, Washington Mutual, Wachovia and Merrill Lynch all began to fail the FRS came to the rescue, but because they have no assets, (reserves) and are not government (federal) but a corporation (not a System) they forced mergers (no longer an option) dropped the interest rates (no longer an option) and supplied the banksters with taxpayers loans of $900 billion plus (no longer an option) interest bringing the amount to $ 1.3 trillion causing inflation of about 14% from 2006 to 2011.

Obama’s budget projects a deficit of $20 trillion by 2016. This is wrong because it omits everything that is not directly in the 3 budget proposals that were all voted down in the Senate by 100 to zilch. If we realistically total the projections for 2016 we produce a conservative deficit of $27.6 trillion. My real guess would be $ 32 trillion by 2016.

As of Jan 2016 the federal government spends 160% of income (collected taxes). This means that we spend 60% more than we take in every single month. Clearly it is impossible to sustain this level of spending, and it is likewise unmanageable to carry the debt or to repay it. In October 2008 Obama created the great stimulus costing American taxpayers $1.8 trillion, it did nothing to the economy because it was used to pay off labor unions, banksters AIG, and Democrat friends of the president. Huge over $100,000 kickbacks to the presidents reelection campaign are part of history. Unemployment stayed level at just over 24% (1) and today remains at the same level. So, the value of your savings, 401-K, IRA, and investments are falling like a rock that is unless you have gold, silver, palladium, and platinum. The values you are provided by all agencies are based on dollar value, which due to inflation is falling like a rock in a punch bowl. Basing your assumption of value on the dollar is foolish to say the least.

According to Obama’s speech he intends after his success in the healthcare issue to turn his attention to the energy sector, which will be an unprecedented catastrophe. The U. S. Department of energy under the direction of Dr. Chu wasted over $ 6 billion on failing and failed “Green Energy” projects. We are advised that in his second term Obama intends to increase that to $ 10 billion. Kickbacks from the recipients were so good it must be repeated! The 12 bankrupt energy companies of 2012 appear of no consequence, and neither do statistical information from the University of Bilbao Spain demonstrating massive losses in employment dramatically rising energy costs, and a national unemployment level of over 25% all due to Green energy. Waste by the Departments of Energy, Education, Housing and Urban Development, Justice (Fast and Furious) State (Benghazi), HHS, DHS, DOI, DOL, DOT, and VA are all beyond anything seen in American history. This is the most un-transparent administration of American history, and the first time that the Lamestream media is totally complicit.

In summation: The American Freedom Party has no axe to grind, we are on the people’s side. Unlike the Republocrats who have given us this horrible government we are determined to bring about meaningful change by electing Freedom party members to national political office. America has spent itself into one after another bubble economy, whereby the Banksters, Brokers, Politicians and Traders took the nation and us to the drycleaners, profiting by it at our expense. As Mark Twain put it, “There is no inherent criminal class in America, save Congress!”



(1)  Independent outside government analysis.


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