Diary

Economic Storm Clouds Gather as USA Goes Socialist

For the last year, all political attention has been focussed on the health care debate. In the end, the bills that were ramrodded through Congress and signed by the president will not reduce government spending by a dime.

In fact, Congressman Paul Ryan’s analysis, CATO analysis, heck… anybody with a brain’s analysis will show you that the true cost of the bills could be as high as $2.5 trillion.

Moreover, the on-budget costs of the legislation probably account for only 40 percent of the total costs. The other 60 percent come from the private-sector mandates. But Democrats have systematically suppressed any estimates of those hidden taxes, probably because such an estimate would reveal the full cost of the legislation to be closer to $2.5 trillion over the next 10 years.

And, did I mention? We don’t have the money!

Gosh, this weekend, Pravda published “American capitalism gone with a whimper“.  The writer laments America’s fall.

It must be said, that like the breaking of a great dam, the American decent into Marxism is happening with breath taking speed, against the back drop of a passive, hapless sheeple, excuse me dear reader, I meant people.

Sort of insulting to be called a sheeple, but the true hurts!  And then Pravda targets the complicity of the financial institutions.

The final collapse has come with the election of Barack Obama. His speed in the past three months has been truly impressive. His spending and money printing has been a record setting, not just in America’s short history but in the world. If this keeps up for more then another year, and there is no sign that it will not, America at best will resemble the Wiemar Republic and at worst Zimbabwe.

These past two weeks have been the most breath taking of all. First came the announcement of a planned redesign of the American Byzantine tax system, by the very thieves who used it to bankroll their thefts, loses and swindles of hundreds of billions of dollars. These make our Russian oligarchs look little more then ordinary street thugs, in comparison.

Yikes!  Our banks are ripping us off? Then this article in Bloomberg this weekend:  “JPMorgan, Lehman, UBS named in Bid Rigging“.

JPMorgan Chase & Co., Lehman Brothers Holdings Inc. and UBS AG were among more than a dozen Wall Street firms involved in a conspiracy to pay below-market interest rates to U.S. state and local governments on investments, according to documents filed in a U.S. Justice Department criminal antitrust case.

The bump in the economy is a false trap.  The government spending is a head fake, and smart money is getting out of bonds, equities and hard assets.  Governments who have to balance their budgets (state and local) are going broke and moving to severe austerity programs.  Unions are on the other side: they are organized and militant.

This is not looking good.  Expect, as Moody’s pointed out, that the eventual cure, will cause social unrest.

Cross posted from LibertyYes Blog