Several signs point to further bad times ahead:
1. Rising market indicators such as the Producer Price Index (PPI), Consumer Price Index (CPI), commodities that have little to no true demand (oil, grains, gold, etc.) other than emotional buying, and the sudden increase in building multi-family housing (meaning somebody expects a lot more renters than buyers).
2. The sudden trillion being shifted from one Uncle Sam pocket to another via the Fed buying treasury bonds/notes. This will serve to both lower the loan interest rates AND further lower the value of already-depreciated dollars in existence.
3. The Fed is trying to get us out of a deflationary cycle by creating a "new" bubble in inflation--this will lead to hyper-inflation, because that amount is what it's going to take to end this deflationary cycle.
4. We will be (and are being) coaxed back into our old, harmful ways of borrowing and spending, because that's what's been running our economy, instead of production and saving.
5. Since we no longer make anything of export value (but we DO export companies using the tax code), using the WWII method of getting us out of the recession isn't going to work. No production and saving, no exports and trade, no faith and hope in our economic and financial security, and it's just a waiting game to see when socialism marches in and takes over.
6. Since we no longer can produce our way out of trouble, the solution is to either change the tax code to make it more favorable to offshore businesses so they'll come back home, resurrecting production in this country, or we need to change our currency, risking the effects it would have on other currencies tied to it.
7. If production gets shifted elsewhere on a permanent basis, the government will pretty much have to prop itself up with the one thing we can and still produce for export: bonds and notes. In other words, it too will have to become a cash-and-carry institution in order to make some kind of profit from the sale of that paper. Government spending will have to decrease to below the level of it's income--which we all know will never happen. Instead, we will be importing our very own cheap labor source through the SPP (Robert Pastor's baby). But without changes in the tax code and environmental laws, it will be for naught--what will this cheap labor PRODUCE for us besides savings on labor costs?
8. Wall Street has become our main source of revenue in this country, and Obama's administration and political party are treating it like a common criminal because he and they don't understand how to maneuver in a capitalist society other than through borderline-criminal behavior.
9. When the administration has enacted laws and restrictions that will literally stifle any kind of production (except what IT deems we need and it can profit from, hence the whole global warming farce and alternative energy production inventions) to a halt, then it will step in to "rescue" us with social safety net programs--funded by the Chinese and other paper-buyers, as well as tip-top tax rates.
10. All this is being engineered from within the Treasury, Fed, Congress, and the White House itself. You can out-engineer them by being responsible for your own production (through recession-proofing your job), sales (by helping the boss find new markets for your product or creating your own new markets), income (don't be afraid to jump ship or go it alone), spending (by paying closer attention to it and spending less), and security (what you do with your savings).
In short, nothing much will change except maybe our currency, a few laws, a cultural blending of us, Canada, and Mexico, the way we are expected to live, and the re-direction of our attention to invented crises and their supposed production "solutions." THAT'S what's waiting for us on the other side if we don't rise up and start taking back our power and becoming responsible again.
Friday, March 20, 2009
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