The Collapse of the World Economy Continues Onward. The Left will Get Your Money One Way or Another

Abstract: We have allowed cheap credit world wide to expand debt beyond belief or our ability to pay it off. There is no recourse available but for the rabid left to seize the wealth of other citizens using any stratagem or political action they can devise. This will cause depression, famine and probably war but they have no other remedy. The left and their victims cannot compete in our capitalist world because of crime, sloth and their outlook and are reacting as expected by trying to suppress business and institute confiscatory taxes and nationalize businesses world wide. The world economies are sinking in debt and we cannot recover with either future robust growth or massive taxes or both.  Confiscation of the remaining wealth is mandatory for the left so expect that your property, 401(k)s and bonds will be taking a haircut soon. This place will be like the USSR soon. Healthcare is the place they will begin to extract wealth from us.

Debt is the problem—massive debt

There is a major problem[1] with the world economies at this moment and little future opportunities to correct major problems with the astronomical debt levels according to the respected economic analyst Ambrose Evans-Prichard of the Telegraph, London. Subprime mortgages are becoming even more toxic as time passes with even the AAA mortgages of 2007 falling to 28 cents on the dollar and AA at only 4 cents.[2] Equity lost by homeowners is capital lost almost forever with now nearly 8% of all FHA loans in default and Fannie Mae and Freddie Mac having an unknown pile of hollow mortgages probably in the region of 3-5 trillion dollars.[3] Home foreclosures continue to burn down wealth and savings here and abroad.[4] Each trillion dollars in debt is $16,000 to the mere 60 million who pay federal taxes.

The ‘fix’ so far is for colossal intervention in banking (acceptable and necessary to a point) and in manufacturing (a big mistake) for all major nations as they to attempt to restore the local economies to some financial order and maintain jobs. The mentality seems to be to tax the affluent when growth is strong and times are good and then to tax and print money to take care of debt for the low classes.  That is what the phony TARP program was supposed to do.  TARP funds went to the banks to prevent a collapse of our financial system instead. The chief difficulty with this plan, ostensibly to avoid a depression, which actually automatically corrects market imbalances and may be preferable to what we are seeing, is the money   is wildly printed and then highly taxed. This is some effort to ‘fix’ the problem that may just ignite another bubble in the future.  We have a debt-driven deflationary spiral just ending and we are addressing this problem with more debt? They are treating a debt-driven deflationary spiral[5] with more debt and that solution is novel in itself.  The current debt levels cannot be sustained and printing money is not an option to economic recovery—it would be even worse than a depression if hyperinflation launches off.

Here is an analysis by one of the most respected experts in international finance, Mr. William White:

“Highly-respected former chief economist at the Bank for International Settlements, also warned that government actions to help the economy in the short run may be sowing the seeds for future crises.”

“William White, the highly-respected former chief economist at the Bank for International Settlements, also warned that government actions to help the economy in the short run may be sowing the seeds for future crises.” [Emphasis is mine in all quotes.]

“Are we going into a W [-shaped recession]? Almost certainly. Are we going into an L? I would not be in the slightest bit surprised,” he said, referring to the risks of a so-called double-dip recession or a protracted stagnation like Japan suffered in the 1990s.”

“Worldwide, central banks have pumped thousands of billions of dollars of new money into the financial system over the past two years in an effort to prevent a depression. Meanwhile, governments have gone to similar extremes, taking on vast sums of debt to prop up industries from banking to car making.”[6]--Economist warns of double-dip recession By Robert Cookson and Sundeep Tucker in Hong Kong Published: September 14 2009 15:01 | Last updated: September 14 2009 15:01

I have published extensively on this problem[7][8][9][10][11] for years[12] and cannot see an escape mechanism for the massive debt we have attained from low interest rates and phony credit programs like ‘affordable housing’ and the unworkable and dangerous laws like CRA [the phony Community Reinvestment Act][13][14] and the socialist emphasis on of Greenlining^[15] that provided many illegal aliens with the unearned gift to have subprime mortgages for their votes. We are now broke. The quest for taxable wealth in now on.

My general theory on this is that the frenetic leftist quest for wealth is based on the very sound historical and economic principles that many cultures and their political organizations cannot compete in this world in education and business and investing and must tax others for their existence. They are losers and cannot participate. There are numerous examples of this such as much of Europe, all of Africa, most of South American and the most glaring case is California.[16][17][18][19]  Here, the spending is out of control and the quest for more taxes and the repeal of the famous Prop 13 is a cause célèbre for the left. The obvious conclusion from their spending is frantic wealth transfers to their constituents from others and they care not what happens if the system crashes in a depression. They will not be worse off. They can always find ways to ‘tax’ the ‘rich’ and bring ‘justice’ to society. The general political philosophy is California is perverted and warped morally, ethically, financially and socially. [20] They now feverishly plot to grow dope and tax it at 30% to pay for their egalitarianism and other follies. There is no solution to this mentality as they will not moderate spending no matter what. Here, in satire is what I think they believe [see ref].[21] They insist on nationalizing healthcare and forcing Americans to participate under the dire threat of penalty. I happen to think that they will push for a 100% inheritance tax, following their beloved Communist Manifesto[22], and then withhold healthcare [read rationing and early death of the old] and then seize the wealth of the older Americans. That is where the wealth lies [old white folks] and they can only print so much money until inflation destroys our currency and all that is left is the tangible assets that can be taxed using a Death T ax.[23]

To add to the inefficiency of government meddling, red tape and phony taxes to support crime and impress illegal aliens we add the additional burden of EcoNazism[24] whereby we are supposedly in mortal danger of dying from either boiling oceans or some green house effect caused carbon dioxide.  People like the criminal Al Gore [the New Lysenko^[25]] or The Idiot English Princeling of Wails[26] have conjured up a tax scheme that will become the largest world-wide tax ever in the universe.  All this is based on lies as even the so-called ‘studies’ by some ‘scientists’ who predicted the earth’s temperature would continue to rise and now it falls.[27] The political parasites who direct this process have no shame or self respect as they were flat wrong and cannot admit the truth. This is just a crude attempt to scare people and grunt and grab their wealth by taxation. This is not science—it is a blend of sleaze and politics.

Details of the Debt:

You can peruse this chart below and see if any of this data presented are unreasonable. If only half of this is true then we are clearly busted and the hysterical quest for our money and wealth by the left will begin soon. They have no problems with crime, sloth, sodomy and assorted perversions but they do have major problems white people having wealth that they cannot grab.

Prepare for the worst…..

rycK

Comments to: ryckki@gmail.com