The Bottom Line Keeps Falling

Image by bobster1985 via Flickr

I've been fairly silent in the past month, because I was waiting for the last shoe to drop. I thought that politicians would start speaking the language of the average person, but it seems that they are still enveloped in their fantasy world.
They are playing politics as the economy burns to the ground and believe me it is a 20 alarm fire. Congress seems to be caught in the 0's culture of drugs that can allow people to hallucinate that reality depends on perspective. It seems that they are hallucinating that the bottomline keeps falling lower and lower in respect to the how soon they will be solvent again.
Every day people are looking at their retirement and their bank accounts and praying that they are caught in a bad dream. Sorry people, this is not a bad dream it is what happens when a country stops making things and all the money has been sent to asia. You see what the politicians and economists call a global economy is a fantasy that a fool dreamed up. You can not have jobs in a country this size if people are not buying goods made in the country. The bottomline is that buying american was not just a slogan, it was an economic necessity. But, companies in the U.S. were greedy and the American people wereg greedy. The companies sent all the products that were made in america out to be made overseas and the American people blindly invested in those companies. Well, the chickens have come home to roost. Empty factories that could have pumped money into the economy and kept the wheels greased are crumbling and the mask of prosperity has fallen off. People can see that the money they thought was here was never here and now the government has to print it and hand it out, so that this country will have money in it's economy.
What people and economist failed to understand was that the economy of a country is a fish tank. Monet goes around and around in a circle over and over again and it gets more added to it as it is needed, like the water in a fish tank.
So what happens when you start pumping water out of the fish tank. It runs out and the fish die. Well America pumped dollars out of the country and the economy died.
Make no mistake the economy is dead. The question is can it be revived. The answer is no. This economy is dead forever. The days of borrowing insanely are over. The days of spending with impunity have ended. A new economy must rise from the ashes of the old economy. People in the U.S. have to make things again. They need to buy what is made. This country got to be the greatest economic power in the world, because we made it better, smarter,and in large enough quantities so that products were affordable and reasonable. Now things are disposable. Nothing last like it should. People have gone back and bought the ssame things ovr so many times that they are in debt up to their armpits. They depended on raises to stay ahead of their debt and most of them did. But, and this is the big but, the things they bught were inflaated in price. They were spending money to buy things that lost half their value when it left the store. That was the begining of the end people. When you can't sell your things for more than you bought them for, when your house has no one to buy it, because the price is out of everyones purchasing power, it all comes crashing down. The U.S. economy became a giant pyramid scheme and the music stopped playing and millions of people were left without chairs. They had no savings. Their houses were overvalued and there were no buyers. Result: An economic crisis that rivals the great depression.
Of course the banks didn't help, because they handed out money like mints in a hotel and relied on borrowing more until they were repayed. But suddenly, millions of people were not repaying the money. The banks couldn't borrow more than what they could repay and they couldn't repay anything. So, the banks began to fail.We threw money at them to save them, but n one asked if they were in debt so deep that they were lost.
Obama has asked the 1 trillion dollar question. How much do they owe? This is something that Wallstreet doesn't want to know. Commpanies don't want to know either. Really no one wants to know, because if they have too much debt, no amount of money will save them. Think of all the money you won't have if they default. Nothing will be worth a plug nickle, because everyone will be broke. There will be no buying, no selling, nothing. What you have right now is what you'll have 5 or ten years from now. This is the skeleton in the closet and Obama's about to open the door.

The self Stimulation Package

Apparently Obama and the Congress are trying to keep their freinds and relatives working. The stimulus package creates jobs for people who know longer exist. Machines do 90% of the construction work in this country. Their isn't any need for people to do most of the jobs on roads and bridges.
You've been there, right? Driving along and the cones go on for a mile and then there are two guys standing next to a machine watching the operator work. The stimulus package will ad millions of cones to the road not millions of workers. Maybe Illinois makes the cones for the whole country. That would add some jobs.
Once again the government has it's heads up the economists asses. It seems the need an economist to tell them what kind of jobs Americans do. They have no idea that the majority of the country is in the service industry. Perhaps they think that the two beer belly guys watching the machine are off to the local spa after work.
People will not install solar panels or windmills, because the cost more than the make in ten years. Perhaps the plan is to give their relatives grants, so they can afford them.
Cutting taxes for people who are be laid off is another winning strategy. I can see them touring the state, promoting the tax cuts to the people who have now moved into the salvation army, because their jobs, house and money are gone. Of course these people will applaud wildly when they here they get more tax credits if he can find a job.
The reality is that the stimulus package is a mixed bag of Democratic give aways to all the people who they owe for getting elected. This may seem like a Republican point of view, but it is the same with the republicans. They want to give tax breaks to all their supporters who still have jobs.
Want to have a real stimulus package; end the credit card companies omnipotent power and actually give people the opportunity to get out of debt. We have gone back to the days of the company store, where people paid endlessly for the basic necessities.
Guess what people if the whole country stops paying their credit cards the bank and the credit companies will no longer have any affect on you. They simply can't blackmail the whole country into paying their credit cards if there is no one that pays. Fear is their ally. You are afraid of them. Tell them to go suck an egg.
The end of credit card debt will liberate you. You'll have a thousand dollars a month more and you can actually pay your mortgages.
Bottom line is the credit reporting companies have no power that you don't give them.
The stimulus package will be DOA when it reaches us. That ten dollars a month you get, because of the lower tax rate will go a long way right?

Hilary Duff at the New York Stock Exchange.

Blackmailed into The Bailout

Image via WikipediaWhat do you do if your huge banks that hold the keys to the economy and you are about to take a big hit? You use blackmail to force the government to take on your losses, so you can make huge profit's. How do you accomplish this? You simply refuse to lend money to anyone and let it be known that the lending freeze will continue if you don't get bailed out. Is this what the banks did? Have you got some money to wager, because you can bet that's what happened.
In a country where loans fuel the economy, they have more power than the government. Congress promises an investigation, but it's a safe bet that if you elect these people back into office you will get the biggest cover up since Watergate and unlike Watergate it will work. No one is ever going to know what went on in the backrooms of the banks or how they held this country hostage until the government wrote them a check. The Bush legacy of lying to the public has a new mile stone. One that no other administration has ever been able to come close to matching and one that will never be matched again.
We are now committed to printing money faster than the credit offers you used to get. I guarantee you that the government will print money with great abandon and the dollar will fall like a rock. If you had a trip planned to any country outside the United States, you had better forget it, because you will have to hand them a suit case full of money to get a coffee. In the mean time the government will go back to Communist China with their hands out begging to borrow money. China won't need to invade us they will own us.
Expect the Chinese to wait until we owe them, so much that they can dictate policy to the United States, then expect them to take away your freedom. The Bush Administration is selling us out to the Communists right in front of our noses and no one is raising a finger to stop it.
Lead in our kid's toys toxins in our food. What else will the Chinese give us. Perhaps a new Constitution written in Chinese. The FDA has now stated that a known toxin is acceptable in our food, because the Chinese have so much clout in this country. Put a little of this toxin in to every product you eat adds up to a lot. The Chinese are murdering their own children with Melamine and now we find that it could be in a lot of our food. How many products are you eating now with this toxin in it and how much does it amount to in your diet. Better find out before you end up dead.
The Bush legacy is a history of caving in to crooked businessmen, crooked Banks, thousands of dead soldiers, and toxins in imported goods. It will be a depression that last for the next seven years and a blood bath in Afghanistan. On top of that the odds of Al queda and the Taliban taking over Pakistan and getting nuclear weapons is growing daily. Imagine Bin Ladin with nuclear weapons.
Bush has sold America out at every turn and the bailout is the biggest sell out of all. The million dollar question is where was Congress when this was happening and the answer is standing with lobbyists who payed them to turn their backs on the people. You voted them in and they sold your future out and the future of your kids out. They knew the banks were black mailing the United States and they paid them off. I wonder if they were saving our investments or their own. I'll bet you already know.

Bailout or Breaking You

Image by Tony the Misfit via FlickrFor everyone who didn't understand the bailout and are now sitting happily on their couches thinking their 401K's are safe your wrong. Yes there insurance and la dI dA, but here's what really happened today. The Senate has just voted on a bill that tells you to go into more debt, so companies can prosper. On top of that they have assured that we are going to go into a depression for the next seven yeas. The catch is that this depression will be accompanied by an astronomical inflation rate when the, now, 800 billion dollars hits circulation in the money stream. But guess what. That will not happen until after the election.
What does this mean to me?, you ask. Well basically your money isn't worth as much, which means your not going to be able to afford as much. Basically this money is like crack is, when it comes to the economy. For those of you not familiar with crack, it's a stimulant. Now your saying, stimulating the economy is good and I will say it is, but there's a catch. In economics 101 they will teach you that there is a very delicate balance in our economic system. This means when you break it down, not enough, and you don't get a higher standard of living, but too much and it's an overdose and the economy dies. Now your really confused right? I'll break it down for you. Buying and selling makes the economy go, but the amount of money that is available, determines what things cost. If everyone has a lot of money, then the dollar may or may not be good. Borrowed money means that the dollar is worth less, because it has to get paid back and that reduces the amount of money people have to spend. Just like you can't borrow until you can't pay your bills. In the same way,the government can't borrow more than it can pay back or the value of the dollar goes in the toilet, because the only thing backing the dollar is the government's word that it will pay people back. Other countries want what they lent us back plus interest. Well you say, just print it. Well, the problem with printing more money, is that, the easier dollrs are to get the less they are worth. You know this because when there was, supposedly less oil the price went shooting up, but when there was a lot of oil it was 99 cents a gallon. Yeah, I know, you don't remember those days, but ask grandpa. Well right now there is a lot of dollars in the world, so the dollar is cheap. Too cheap. That means when you go to buy something from another country, they want more dollars than they did before to make up for the fact that dollar's aren't worth as much as money in their country. Now this makes sense, right?
Well there were trillions of dollars floating around the world, so the dollar fell and as you know prices went up. What's my point, Right? Those dollars got into the world economy slowly and look at the damage they did. Four dollar a gallon gas. Food prices through the roof. The economy is on crack. Prices are getting higher and higher. This 800 Billion dollars is the kicker. All in the sudden there's all these dollars and the government can't tell other countries that there is enough property, possesions, and goods to back it up. This is when the bank comes to you and says pay up everything now. Countries can do that too. They can say pay us the actual amount you borrowed with interest and guess what we can't. Now, no one wants dollars and they start asking the country to pay them in goods. Well the government doesn't have enough goods, but it starts sending what they have to the people who have dollars. This means that there is less of everything in this country. The price of everything goes through the roof, because here in the states there are shortages of everything.
Now here is the bad part. The money in your 401k won't buy as much, because everything costs double. You thought I forgot that, didn't you? No not at all. You can't afford to pay the bills so you can't retire and there you go your screwed.
Guess what? The cost of things are about to go way way up and the money in your 401k might get you a new car without the gas. But wait, it gets even worse. Your company can't sell anything because of the prices, so they close. Then a lot of companies close and jobs are as scarce as platinum and that's scarce. No one has a job everyone has bills and everyone owes the bank for their credit cards. If you haven't got the idea yet your not employed or employable, but basically there's not enough room in the rescue mission for everyone. Now the great Depression was like that, but this is going to be 100 times worse. My recommendation empty your 401K's and buy someone else's money. or gold or better yet platinum. Don't call your financial adviser, because, guess what, His money is already there. The rich people's money is there. the only ones who don't have there money there are people who believe George Bush and people like you, who didn't understand until it was too late, that they were about to lose everything. Of course you don't believe this and neither did the people who thought that buying a million dollar house would result in doubling their net worth and making them rich. By the way they are not living in those houses any more. The bank's and foreigners who bought the mortgages own them now. Why didn't they double their money? Now I know your either stupid or super rich. Only, so many people can afford to pay the mortgage on a million dollar house and the people who are going bankrupt and losing their houses are the people, who didn't know that there were no more people to buy their house and thought that they could get rich quick. so what's the point of all this.
The point is that the government is desperate for you to borrow money, so your neighbor keep his job and the hell with whether you can pay it back. Your collateral damage. They also want your neighbor to borrow, so you can keep your job. Wait, that doesn't sound correct right? Wrong, that's exactly what they want. Your congressman knows this is a game of musical chairs with all of you and guess what, when they stop the music a whole hell of a lot of people are not going to have a chair, but they will be out of office or working for a foreign government or any place they can find that will assure them of having a chair. Sorry that this was long, but I actually thought that you might want to know it's time to grab a chair and sit in it until the music starts playing again, in about seven years. This mean's buy nothing. If it doesn't keep a roof over your head,feed you, or clothe you, don't buy anything. Put every dime you have in the safest investment you can find. Some of the aforementioned are good. Pay all your bills asap. Yes credit cards too. Too many or too much, two words, go bankrupt or wait and go bankrupt in any case you are going to go bankrupt. Don't get caught holding the bag when they make it impossible to go bankrupt. Guess what I am doing now. Paying off everything. I shopped for xmas and i'm done. I am not going to get caught with the bag or without a chair in this game.

Senate swallows Bush's Financial Fantasy Story

Image via WikipediaApparently, The Senate has swallowed Bush's financial fantasy hook line and sinker. They have scheduled a vote and are about to assassinate the American people's financial security.
The property that Bush and his buddies want to buy has not been maintained and some of it is in terrible shape. Bush would have you believe that someone would take this property off the government's hands at some point. The problem is that the government will have to maintain it or repair it. This will cost a boat load of money and once the government owns it they are committed to it's up keep. If they don't keep it up they will have to sell it at fire sale prices. The government's record on maintaining this type of property is abysmal, so you can bet the fire sale is coming. What does that mean for you and I?
It means the government will take a huge loss and because they are pumping 700 billion dollars of new money into the economy, inflation will sky rocket. How many of you remember the days when interest at banks was between 15 and 25 percent and everything doubled in cost. This what we are in for if this passes. The dollar will become like the penny. You will be stuffing them in cans and exchanging them when the can is full. This is just what the administration wants, because their rich friends will be getting unprecedented interest on their millions. We however will be saving it cans for lunch money. The days of going out to dinner are over people. Congress and the White House just want to hold the crash off until they can get reelected and that's just what this bill does. When the election is over you can bet that we will all be paying for it in cash. Get used to buying with cash too because the days of groceries on your credit card will be over unless you happen to be in the upper 5 percent of the income bracket and they don't need credit. If this isn't clear enough for you bone up on the great depression and then throw in staggering inflation and you might have a clue of what's coming. Basically, financial Armageddon is about to hit and this bill will only make it worse in the long run.
What the government knows is that the economy is based on you borrowing. That is the grease that makes the wheels of the economy turn. If you can't afford to borrow, it all stops and you will not be able to afford to borrow after this election.

Bail out the Banks? What about American's

Let me try to explain the public's reaction to this bailout. Why is the reaction so negative? The fact is that people don't like banks. In fact they hate them.
For decades now banks have done nothing, but charge us the highest interest rates that the market will bear. They have nickled and dimed us to death with fees and late charges and any gimmick they could find to bleed us dry. They have used credit reports to hold us hostage and to justify higher interest rates. People know that the banks have done nothing but steal from us any way they can.
Congress has allowed this behavior and catered to the banks every whim. People are tired of their behavior and Congresses turning of a blind eye to it. Now the banks come to us with their hands out and threaten us again, but this time things are different. We aren't going to bend over backwards for them and we aren't going to vote for anyone who does. The small concessions that the banks are making to get bailed out don't impress us. If they are desperate and it doesn't look like they are, then they need to change these behaviors, because the next shoe to drop is to simplt default on all the debt that americans have aqucired in credit card debt. People don't care any more. They see it as us against them. The banks have enslaved us and we don't care if they fail. It may be self destructive, but people are now making a choice between handing their paychecks to the credit cxard companies and their basic needs. They are choosing their basic needs and they know that they are not in the position they are in because of the banks alone. They are in this position, because Congress, both Democrats and Republicans have sold us out to the banks.
We don't beleive that anything will change after this bailout. They have seen Cogresses lack of commitment to changing this situation, so they aren't buying that things will change. The Congress will get reelected and continue with the same behavior that it has demonstrated over the past few decades and we know it.
If Congress is afraid of losing in this election, they have a damn good reason. People aren't going to accept this deal. Congress talks about main street and protecting them, but there is nothing in this bill that will reign in the banks and change the basic fact that the banks continue to steal from us, with unethical practices. that's the deal breaker and until that changes you can bet that no one will support this bailout.
This is a depression and people know it. It's not unnoticed that Congress won't use that word. They would call it anything, but a depression to escape the political consequences, but those consequences are coming to spite the fact that Congress will not call a spade a spade.
I suggest that you take some time off, rather than vote for this bailout. A nice trip to Europe to visit with dignitaries. Anything to avoid committing political suicide. I only tell you this because I support you and beleive in you, but if you vote for this a lot of people are not going to be happy.

Bush's Financial Iraq

Congress is hell bent on voting to bail out their fellow country club members. Bush continues to use fear to drive the American People to follow him blindly like sheep. Bush must be related to the boy who cried wolf, except there is no wolf within miles. The result of this bailout will be a commitment by the Federal Government to pour billions into Wall Street indefinitely. Just like Iraq, They will be back asking congress for more and more money, with the threat that the whole economy will collapse. We will see trillions of dollars going to Wall Street so that they can continue to live "The Lifestyles of the Rich and Famous while we pick up the tab. The Republican's say that without this deal there will be another Great Depression. The truth is that if it is approved threat depression will come, because the the dollar will be worth nothing after they print trillions of dollars. You'll be papering your walls with dollars and using them as box straw instead of bubble wrap.
In what is one of the most incredible lies ever told by any politician, Bush claimed that the bailout was not designed to save any particular financial institutions, after saying that people's money is safe. If it's safe then why the bailout? There is a lie there somewhere. Think about it.
The politician's have sent out a smoke screen to cover up the real reason for the economic crisis, which is the price of oil. Anyone who beleives that there is another reason for it is on crack. There was no problem until our politician's gave the oil companies a blank check to charge as much as they wanted for oil. When gas hit $4.00 a gallon, American's stopped buying things because they are putting their last dimes into their gas tanks. American's are even charging their gas to facilitate their ability to continue to get to work. In other words they are charging gas to get to work. so they can pay their credit cards and eat. Has Congress given us a bailout for that? Of course not, because they are owened by the oil companies.
The economy is headed for a major crash no matter how much they give Wall Street. This bailout is just a tactic to get past the election's before the economy crashes. Congress is just delaying the inevitable until they can get reelected and Bush is trying to get out of office before the bottom falls out. Why? The reason is obvious. He wants the next president to take the blame for his complete incompetence.
The press is so obsessed with putting Obama into office, that they are allowing our own government to sell us out. On top of that, they are living in a fantasy world where nothing exists except for the election. It seems that in their world everything is fine except that we haven't elected Obama yet.
American's have told Cogress and the president to stck this bailout in a dark location, but they persist in going ahead with it. What is the solution to this problem? Vote them all out. Go directly to the voting booth and vote them out.

Will Congress Bailout Bush's Titanic and What Will Be The Result

The Bush Administration insist that they are getting something for the 700 billion dollars they are using to to bailout Wall street. The truth is they aren't. What they will be buying is bad investments. Buying a Bad investment is like buying a burnt down house that is on rented property. You get the ashes. The bottom line is that Bush is asking Congress to put up money that the government will never see again. The promise of recouping anything out of this mess for the taxpayer is as big a fantasy as "The Weapons Of Mass Destruction.
Wall street will sell the government investments that they know there is no hope of ever paying off. The idea that these are simply short term problems that in the long run will pay off is insane and another con job by The Bush Administration and the worst part of it is, that they are bailing out all their buddies. These people drive Ferrari's and have multimillion dollar homes. You could live on what they could get for their houses for life. If this is such a desperate situation why isn't the government asking them to put up some collateral. It would seem to me that they should put up something for this money and if they are desperate they would.
They are trying to get bailed out for a mess they made. It is like being on a ship and navigating it purposely directly into a mine. The ship will either sink or the people on it will have to save it some how. Bailing out Wall street is like trying to bailout the Titanic. The water is gushing in at such a pace that eventually it will sink, because the hole keeps getting bigger and bigger.
The truth is that only Wall street knows the amount of bad investments they made and no one else has a clue. It could be trillions of dollars in bad investments and congress has not even had the banks in a hearing to ask how much it really is. It seems that these bad loans keep turning up faster than dandelions in your lawn and once you start bailing where do you stop.
At some point all these banks are going to head for the life boats and leave us to sink with the ship. The Bush Administration has done nothing, but spend taxpayer money for 8 years. I'm sure they have no qualms about spending more now that it will be the next president's problem.
Congress is comprised of morons with the IQ of a pencil, so they will bail out Wall street, but the result will be staggering inflation when the investments fail and a tremendous hike in your taxes to pay for it. You can Print this blog and frame it to look back at when the inevitable happens, but by that time these guys will all be gone.