Wednesday, January 28, 2009

Failing US Economy Update

Be Prepared: The economic worst is yet to come

Inasmuch as it's a fairly slow local news day we'll wade in on another ongoing topic which is fairly near and dear to our capitalist hearts. We refer to the downwardly-spiraling US economy... which we hereby declare to be totally screwed. Great article today about the collapse of the US economy, and the ultimate repercussions about the upcoming pain we haven't experienced just yet.

Here's the main argument from one of our primary News tipster souces. Oops! That's a typo... we meant news tipster sources:
The last official act of any government is to loot the nation.
That is what is going on here.
The fact is that more money is owed than is actually in existence. That is the very nature of a debt-based monetary system. The Fed creates money out of thin air when you sign a loan agreement. It is a pyramid. The Federal Reserve works only as long as an ever-large pool of new borrowers is being created to allow the creation of new money with which to pay off the old debts. But because the US Government gave tax incentives to corporations to move high-paying jobs to other countries, Americans have stopped borrowing. Now the whole pyramid is collapsing from the imaginary debt.
The fact is that more money is owed by the banks in derivatives than is actually in existence. Like the interest in money created out of think air, this is imaginary debt. It exists only on paper and in the minds of people who believe in the reality of the system. In this way it is not unlike a casino, where even though the casino does not actually give you anything of value, you can wind up owing vast sums of money through long odds and a bad run of the dice.
So now the Wall Street Casino players have run out of luck, and they want the busboys and waitresses to pick up the tab for the losses. And when they get that new stake, they will run back to the tables for another spin, because that is what they did last year with the first bailout. go right back to buying derivatives.
And here we are, with the banks asking for more money from the people and this time they really REALLY will loan it back to us at interest. Honest!
Folks, they CAN'T fix the economy. All they can do is loot the people to make their own golden parachutes and that is what they are doing now, with a lot of nudging and winking amongst themselves (or didn't you wonder why Bernie Madoff was allowed to do what he did for so long and why only now with the public outcry has the SEC started to actually shut down numerous other pyramid schemes which have been bleeding money from our economy into the pockets of the sharpsters.
And the bottom line is that the US Government is going to keep handing free money to the bankers and sticking your descendants with the bill as long as you let them get away with it. I cannot make it any plainer than that.
What does it take for Americans to find the courage the Icelanders have?
Gird up your loins, O YE Mormon people... Utah "Gentiles," too.

We predict that haven't seen the "tip" of our worst national economic crisis ever yet in America.

Surely there will be SOMEBODY willing to comment on this.

4 comments:

Anonymous said...

Here's something to think about:

Over the last two days, companies like Deere & Co, Navistar & Boeing all announcing job cuts. These are good paying manufacturing jobs.

Starbuck's announced today they're closing more stores. Another 6,300 jobs gone. And the number of under-employed, those who want full-time work and can't find it has grown by almost 4,000,000.

Home Depot announced job cuts of about 7,000 just yesterday. Circuit City closed, another 34,000 jobs and empty storefronts. That equates to two major retailers who've abandoned stores in Weber County. (Macy's the dept. store was first).

And, as the Intellectual Redneck said, the Post Office is trying to cut a day of delivery. The number of pieces of mail they handle is down, substantially, from years past, and this may be the first year in several decades where postal revenue goes down from a prior year. The take I walked away from, from the Postmaster, was that they're trying to cut costs and not delivering the mail one day a week might save 3+ billion a year.

In all this, not a lot of people mention that the Baby Boomers are starting to retire either this year or next. They listened, they saved for their retirement and are going to start pulling their money out of their IRA accounts and their 401(k) accounts. but they're going to draw their Social Security and enroll in Medicare. The workers behind them aren't sufficient in numbers to make up for the money that's going to be paid out in these entitlement programs.

Maybe now, those corporate profits, high returns on stocks, and the resulting loss of jobs in this country don't look so good. Those cheap prices we get at Wal-Mart are being paid for in lost jobs to our own country that we now are really starting to understand.

I'm no economist, but if rampant deflation occurs and wages start to fall as a result, how do those who are fortunate to still have jobs continue to pay the debts they have? What if the rest of the world decides they're done financing our debt? We talk about deficits like we just assume people will continue to finance our way of life.

You're right about one thing....We are SOOOOO SCREWED!

Anonymous said...

I got an email today from a friend who said:

"There were 1.4 million people at the Obama swearing in and 14 people missed work to be there."

Draw your own conclusions as to what that meant.

Anonymous said...

I have been so busy calling the Senate and the White House today re the massive giveaway of taxpayer dollars and our kids' future that I am just now getting time to read your remarks.

They are right on. I could not have said it better myself even though I have a few years on you to have observed the machinations of all politicians.

The banking crisis has hit Ogden. Wells Fargo terminated some lines of credit as of a week ago but never bothered to call one longtime customer to tell them they are being deserted financially after their years of patronage of the bank.

Wachovia Bank bought Wells Fargo and then went bankrupt.

So now we have Wells Fargo located in a prime spot in the Junction.

I wonder what they are doing with the money they got from TARP?

Anonymous said...

Google Fiat Money!! History has proven that we will soon be like every other government since the beginning of time that has adopted this type of monetary system. Good luck.

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