THE PLAN - EXPOSED?

Daily, the list of “important people” who believe it is now politically acceptable to “tell it like it is”, gets larger. Peter Orzag, who recently resigned as Obama’s director of the Office of Management and Budget, is quoted as saying “we'll likely need another economic crisis in order to rid ourselves of this unbearable political polarization” (he believes the current socioeconomic policies, including the money pump from Bernanke are suicidal), and Erskine Bowles, the co-chair of the president’s Debt and Deficit Commission, and Bill Clinton’s chief of staff during Clinton’s budget surplus years, said this yesterday: "Without tough choices, we're on the most predictable path toward an economic crisis that I can imagine."

These guys are a little more than your average political hack, and their opinions matter in important policy making circles. They are also, Democrats.

The balloon that was sent up yesterday to test the waters regarding the recommendations the “co-chairs” of the Debt and Deficit Commission would like to submit to the president, was a lot more than just a leak. It was expected to cause a major flap, and it has. Their recommendations would gore almost everybody’s ox, and it would appear to take an incredible amount of testosterone and change of ideology for the president to indorse it. However, we should wait a bit before coming to conclusions regarding how the president and other progressives, such as George Soros, will use this “manufacture a crises” opportunity. Yes, we already have a crises in the making if nothing is done, however, this “cut off the leg to stop the gangrene” approach may accelerate the process without careful preparation of the citizenry, rational controls, and orchestrated by people with good intent.

Without the right leadership, no radical approach to solving the problem can have a positive result; positive that is, to you and me. The “wrong” leadership will cause either accidental, or intentional, chaos. The progressive leaders at the grass roots level have been preparing their armies of workers (the unions, the poor, the out of work, and the “disenfranchised”) for just this opportunity. They are itching to take them to the streets in violent demonstrations, and have more than enough soldiers to make our streets look as bad as anything we see on the news in Greece. There would be a loud cry for government protection from these demonstrators, the destruction they create, the rise in crime to small business and individuals, and for relief from the abject fear this would cause. The global response to the sight of the country once thought to be the only remaining hope for the preservation of freedom and democracy coming apart at the seams, would accelerate the devastation of our currency, greatly reduce our ability to influence world affairs, and make us even more vulnerable to attack from virtually every corner of the ideological and power hungry world. Our president needs a major shift in public perception of his competence and ability to run our country without destroying it. He needs an economic event that he can use to gain the support he needs to remain in power and to implement his progressive agenda. An event like the one we had at the end of 2008 would not be enough. Violence in the streets, raging inflation, fear of personal loss and personal harm – would do it.

In my opinion, a radical plan such as the one being tested is necessary for the restoration of a healthy economy. However, in order to pull it off without devastating consequences would require leadership far different than we have experienced since Ronald Regan. In my opinion, there is no hope for such leadership coming from the White House under the current administration, therefore, I pray the “leaked solutions” are shelved until a better day. Whether my prayer is answered will depend on whether the progressives in power decide this is what they have been waiting for to put the final nail in the coffin for the Capitalist/Free Enterprise system, or not. If they get behind this plan, conservatives will embrace it with vigor, and it will be implemented. How could conservatives not support a radical plan such as this, without having to try to educate the whole population on the fact that the president of the United States is a progressive revolutionary, who would use a necessary remedy for the cure for cancer to kill the whole body, either through incompetence, or intention?

So, I suggest we have an important signal to watch for; if the leaders within the progressive movement endorse this plan, (or allow it to become law after fighting vigorously against it, citing Republican partisanship as the reason, even though they still control all new legislation) we can assume the plan will create the devastating environment I described. If that occurs we will need to take a more aggressive approach to self protection. We have received credible warning, backed by credible information that is available to anyone willing to look for it. If you are still having a hard time believing that our personal freedoms and economic way of life are being attacked by very powerful people within our own country, then you really need to consider becoming a student of history, start paying attention to the world around us, and hopefully, wake up. Restricting your educational resources to the mainstream news media will not get you there.

The country will get through this, whatever it turns out to be. However, the quality of life remaining after “getting through it” will be dependent upon individual determination to become informed, and willingness to take action when needed.
Bill Fowler

We are Moving Forward - Toward What?

IS THE ECONOMY ACTING THE WAY IT SHOULD AT THIS STAGE OF THE NON-RECOVERY?

      Yes, it is – although the confusing ebb and flow of daily market activity and headline news would lead many to use the term “schizophrenia” to describe it!

      Have we experienced a “recovery”?  So far we have seen the normal beginnings of a recovery that, in previous cycles, would have advanced to the next stage by now.  Manufacturing is showing signs of improvement due to distribution channels filling the pipeline with orders in expectation of a continuation of growth in sales, which declined in May.  Consumers have fueled the expectation of growth by increasing their buying at levels similar to early stages of prior recoveries.  The increased buying is a sad "head fake" as the consumer is running out of enthusiasm, cash, and credit -- all at the same time.  A small amount of savings and freed-up credit were built up over the past 18 months that has now largly disappeared.    The positive feelings generated by an almost manic campaign designed to convince the public that efforts to stimulate the economy are working, are also disappearing, as more and more Americans are seeking information from channels carrying the truth about all issues.  As they learn more, they spend less, a rapidly accelerating process that will continue to be reflected in the decline in sales of retailers nationwide.

      Most of the consumers who have a job (about 80% of the eligible work force) had been lead to believe the worst was behind us so it was safe to go back to buying as usual.  That sentiment is rapidly changing back to fear born of uncertainty. 

      The worker out of a job has seen his unemployment benefits extended time and time again and is even more convinced now that there is no need to take a job that does not pay substantially more than his unemployment benefits (including food stamps, Aid to Dependent Children, CHIP, etc.).  Taking a pay check for not working is an easy habit to get into.  When reality forces congress to cease extending unemployment compensation limits, the shock of the sudden loss of income may create a large group of very angry citizens, with paid organizers ready to whip them into an effective street mob in virtually every city in our nation.

      The majority of the jobs created to date have been government jobs; jobs that produce nothing, are created to largely restrict and control those who produce, and which must be paid for by those who do produce.  Although, the money from producers for such payrole increases ran out long ago, leaving borrowing or the printing press as the source of money, with a false premise that producers will someday be able to create enough excess from their production to pay for all of this.  For example: Hundreds of thousands of census workers are being paid by money that must be borrowed or printed, in an amount that is ten times the cost of taking the census ten years ago, and that can never be paid back.  Why can't it be paid back?  Because that debt just gets added to amounts that are already too large to pay back (see the debt clock).  They will take the count, absorb over twelve billion dollars, and all be back on the street in the fall -- most to join the unemployed.

      Our economy runs on the backs of small businesses, and, they are not being created at a rate that is keeping up with the number that are failing.  Retail sales had a negative growth rate in May, housing purchases have fallen off dramatically since the end of the home buyer's tax credit, and employment growth outside of government is virtually non-existent.  Liquidity (funds available for immediate use) has been declining rapidly, which in every previous cycle is a leading indicator of a coming recession.

      In my last article, “The Impact of Government Policy On the Economy and Investments” written in September 2009, I laid out the case for there being no logical reason to expect anything other than economic collapse, and a massive devaluation of the US dollar. The fact that Europe is in even worse condition and is facing the same dilemma will just make our situation worse, and emerging countries with fragile economies will collapse as well.  China will continue to emerge as the economic super-power having increasing power over our government policy as they blunt our power to resist their will as a major creditor.  How will it feel, to have our old enemy China's "boot on our neck"?

      I believe we cannot avoid suffering severe consequences created by the current massive debt, future unfunded liabilities (both domestic and foreign through treaties), and from the continuing negative impact of socioeconomic policies already the law of the land, along with additional destructive policy that will be passed before it can be stopped by a change in those in power.  Even a total reversal of governing ideology and policy making would not prevent our having to face extremely difficult  living conditions.     

      Those who see the disaster coming, and are willing to take action, have the ability to not only survive it, but to also prosper from it.  Is the confusion and noise paralyzing you into inaction?    We only have everything to lose, and nothing to gain by ignoring the obvious!

Bill Fowler