The Elitists will Guide Us through the Financial and Economic Whirlpool. Sure.

Abstract: Those who presume to ‘lead’ us in government, banking and society have no clue what they are doing and cannot find a path forward. The facts conveniently [but unfortunately] demonstrate this theorem. We have to manage our own accounts because we can neither trust nor believe in what the several thousand ‘governments,’ mostly failures, have told us since 1900. We see places like California crashing in a blizzard of drugs, sodomy and debt with dreams of higher and higher taxes derived from the sale of marijuana and carbon cap taxes and all this is being celebrated in Washington as ‘progressive.’ We learn daily of new taxes and rules and regulations that are designed to attack business and redistribute our wealth. These high taxes and massive spending will swamp our economy and we may not recover for decades. The left looks upon this disaster as an ‘opportunity of crisis’ and will grab anything they can get from those who have some wealth left. It is time to retrench and avoid as much of this as we can. The left will bury our society if they can.

Any time the plans of some government (or, in this case, a cluster of peoples controlled by various incompetents with reams of paper to prove their authority) escapades runs sour there is a little dance they all must do in public. Firstly, they need to identify the guilty, noisily expound on philosophies of ignorance, corporate greed and societal treachery then, secondly, propose the ‘solutions to the problem and raise taxes. Our Fed Chairman, Ben Bernanke has now given us about 1000 years worth of ‘fixings’ and rules and regulations that can prevent this mess from happening again. Sure. Isn’t it strange that we seem to do this monthly? What have these people learned in the last year? We still stare at massive debt.

From a previous blog: Little Timmy Geithner mumbles[1] about: "… a process of providing a market for the real estate-related assets that are at the center of this crisis. Our objective is to use private capital and private asset managers to help provide a market mechanism for valuing the assets.”[2][3]-- Except from Geithner [Emphasis is mine in all quotes.]

Who will buy this crap? The assets are dead if mortgages cannot be foreclosed upon.  What is the scam here? To sell tax liabilities to the public?

To translate:

Bennie told us that there were ‘imbalances’ in trade in the world and that led to some states saving and others spending. This is a profound statement, but one that is obvious to all and we need not seek an expert to tell us that this present financial maelstrom is driven by debt.  There are always imbalances. Not only are there imbalances in accounts but they have identified ‘toxic debt’ as the culprit but cannot seem to identify which passel of worms might be the worst or the least deadly in this paper swamp. To demonstrate how sadly our financial markets are working Citi Bank has now promised some kind of ‘profit’ after being bailed out a mere three times with billions of our tax dollars.[4] This is like General Motors telling us that they will sell some cars next month. Analysts think this is a cheap parlor trick.[5] So do I.

Although we have identified the problems as ‘imbalances’ and related to savings and debt we cannot find a way to modulate these imbalances or, it seems, manage banks. The Fed is fast to the festival with hundreds of thousands of new rules and regulations and, of course, taxes that resemble patching up a rusting 1930s airplane with duct tape and glue and pronouncing it airworthy again. The drug cartels who are ruing Mexico and the Somali pirates have keener business acumen than some of the CEOs of our big banks and certainly know how to handle money better than the Fed.

Our worthless government is spending much more than we can afford[6] and has staked its psychotic numerology[7] on a 2010 growth level of +3.2% according to the White House. It seems that others see us in a steep deflationary decline with some of our trading partners, like the UK, contracting at 1.8% in February alone.[8] The growth rate of the US is open to wild speculation and is mostly driven by politics.[9] We are losing 600,000 jobs a month and we will have growth after a few more months of this? Growth depends, 2/3 or more on consumer spending and the future job bank depends on investment and small businesses. Where are these metrics now? Are we growing government and smashing small businesses? Yes. At this rate we will have depression levels of unemployment by August.

Rubber numbers with political uplifts and honking kazoos:

“The White House projects 3.2 percent economic growth in 2010, compared with 1.5 percent from the CBO and 2.1 percent from the Blue Chip. 

The White House also projects the economy will shrink by 1.2 percent in 2009, compared with 2.2 percent from the CBO and 1.9 percent from the Blue Chip.[10]-- White House Budget Plan Leaves Little Room for Error, Economists Warn. President Obama may have a tough time keeping to his tandem goals of cutting the deficit and sheltering middle-class families from tax increases, critics say.

I predict a 5% decrease in growth in 2010.

This, despite the fact that the stimulus has not worked, the government is expanding, which leads to gross inefficiency and more taxes that kill off business, and the debt has become unmanageable. Notice that the WH numbers are all rosier than the others. Bias? We are drowning in debt and the Democrat solution, of course, is more debt. [11]  The Fed has been printing money and will continue to do so to fight ‘debt?’ Where is the inflation prediction when we print 2 trillion dollars of fresh money and scatter it about? Oh! NO inflation? Sure.

Our trading partner, the Brits, seem to have had a slight uplift in their sorry markets lately even though they had very very bad economic news on the day the Citi Celebration took place:

“Still more remarkable was the fact that share prices climbed in spite of a barrage of yet more dismal economic news.”[12]-- We're not yet at the moment of maximum pessimism in this economic crisis – Telegraph, London. [Emphasis is mine in all quotes.]

The facts are a bit more brutal:

[1] There is no way to modulate the imbalances among 190 countries in the world because some will rise and most will fail. The EU, a cluster of weak socialist sisters is crumbling as several of their 27 members face bankruptcy. The euro will collapse.  A world wide drop in real estate prices means lost wealth everywhere. There is no way to recover that loss until prices go back up.

[2] There is some strange notion that government can fix social problems with tax monies and that if markets gyrate, such as real estate, that government can level the playing field by wealth transfers.  Wealth lost in real estate gyrations, across the world, can be restored with tax policies. Sure. In good times we tax the successful and give phony mortgage loans to the poor for ‘affordable housing’ and in bad times we tax the successful and pay off the bad mortgages and they get to keep their houses? That is a plan?

[3] There is the persistent feverish nostrum that we can achieve ‘equality’ in the world on in certain spots thereon by government interaction limited to taxing the ‘rich’ and spreading it around. This has never worked before [Africa, E. Europe, most of South America, most of Asia, etc.] The UN now wants 0.7% of the world’s GDP to pay off their friends with  money and gifts like that sorry little criminal Kofi Annan and his rancid brat did with the oil money from Iraq.

Those with solid track records of predicting our economic path forward [and downward] such as Ambrose Evans-Prichard and Nouriel Roubini are ignored. Indeed, an inspection of the California Cataclysm is instructive in that this ‘progressive’ state is terminal in terms of finances and economies. Who can predict a positive future for the Marijuana State? They have a 40% deficit [this time—50% next year] and want to raise taxes to make up for this?

Roubini:

“"We are in the 15th month of a recession," said Nouriel Roubini, a professor at New York University's Stern School of Business, told CNBC in a live interview." Growth is going to be close to zero and unemployment rate well above 10 percent into next year."[13]-- US Recession Could Last Up to 36 Months. -- Roubini

Evans-Prichard:

“The US is losing 500,000 jobs a month. Brazil lost 650,000 in December. Beijing says 10m Chinese have lost their jobs since the crunch began. Japan's exports fell 35pc last month, year-on-year. The central bank is printing money furiously, buying bonds to prevent a relapse into deflation.

US-China currency war eclipses Davos [the phony European economic summit at  ski resort--ed] , and threatens the world. So yes, it is like early 1931. Citigroup and Bank of America have more or less disintegrated. JP Morgan's health is failing fast. General Motors and Chrysler survive only on life-support from the US taxpayer.”[14]--Bad news: we're back to 1931. Good news: it's not 1933 yet. Barack Obama inherits an economy already contracting at an annual rate of 6pc, much like the mid-Depression year of 1931 (-6.4pc), writes Ambrose Evans-Pritchard

And to all this we are to hike taxes to ‘save the planet[15]’ from Carbon Dioxide, the Destroyer. Hopefully Sweden and England will collapse from the EcoNazi taxes and give us some warning.  There is no such thing as  this phony Global Warming …Climate Change[16] or Climate Change as these are political—not scientific-adventures. They can’t even get their computer models to agree on the direction that the yearly temperature variations will seek. Up is the same as down?! California has already collapsed, but the euphoria of drug addiction, sloth, sodomy and now the exciting advent of getting fat taxes off from the sale of legalized marijuana has intoxicated the politicians there. Mexico is collapsing in a drug civil war with the dopers winning and soon California will enjoy the prosperity of drug use at a mighty scale. Why don’t we smoke more dope until the economy improves?

Bernake sums up with this:

“"Unlike in the Asian crisis, investors have not fled U.S. markets. They have, however, fled from many private credit markets," Bernanke said in a footnote to his prepared remarks. In the current episode, investors seeking a safe haven from market turmoil have rushed into U.S. government bonds, giving a big lift to the dollar.”

Idiot. The flight to T-bills and notes is frantic and, of course, includes the US equities markets. The AAA AAA US Treasury bond is the last stand on this planet. Gold is second. Of course, we are not buying English Bonds or Irish obligations or buying stock in German cars or Chinese toy manufacturers. Do all of us have to be stupid like liberals? The dollars is the last stable paper currency standing and this is a matter only of default. What should we be hoarding? Sterling? Pesos? Euros??

US and foreign investors have fled U.S. markets. Where does Bernanke think the proceeds from the sale of equities went? And, then there is the interest in gold. Can we wonder what that signals??

O’Bozo and his cretinic familiar Little Timmy Geithner just held a press conference an hour ago where we are told that we need a world cooperative effort in the G20 and other members and we need cooperation. Translated, that means more of our tax money will flow like syrup to the barbarians in parts of Europe, anywhere in Africa, Sweden and parts of South America and Mexico. What else would an ideological racist[17] want to do with our wealth? Make the US economy successful?

Let us tax ourselves into prosperity!

rycK

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