Standing on the precipice, can we avoid utter failure and collapse? Most will say that
we are being over dramatic and panic prone. The facts however, are undeniable
and are there for all to see if they dare to look. America as we have known it, is
on the verge of collapse. The system is broken and cannot be fixed by stimulus,
more debt or 'jawboning' about green shoots or other misrepresentations about v shaped or w shaped recoveries.
Will the syndicate of politicians, economists and bankers change? Not unless they are willing to surrender the death grip on the means of production including the fiat money schemes they foster. Do you feel the noose around your neck tightening?
As unemployment and, frustration and utter hopelessness continue to increase and accelerate we can expect martial law/imprisonment solutions to keep the riots and revolution fever under control. Is this a solution or just a continuation of the regulation and repression by those in charge.
America is at the mercy of foreign nations to loan us money so we can keep the deficit charade going. The $13 trillion bailout money is not enough and is not reaching the people just the favored banks and mega-insurance companies. At least 1,000 of our banks are insolvent and the FDIC is broke.
First residential, and now the commercial real estate failures and related bankruptcies
are here. Banks are being swamped by undisclosed non-performing loans.
Insurance companies and pension funds are in trouble and are hiding losses.
What are analysts and economists discussing? Whether we are into inflation or deflation. What incredible ignorance and stupidity. Most don't know what those terms mean let alone the effect. Just ask the head of a family who has lost his/her job whether it's inflation or deflation, then duck, because semantics won't put food on the table or make a mortgage payment.
But the housing crisis is solved right? Wrong, soon more than 50% of the homes in U.S will be worth less than their mortgage balances. This year the AltA mortgages start to reset, with payments set to double or even triple. The average American household is one or two paychecks away from insolvency.
The schemes of the Keynsian syndicates defeated savings by low interest rates (a paltry 1 to 2 % interest on savings) , then making risky investments like the stock market, junk bonds and the like attractive. The U.S. savings rate has been negative for more than a decade and real wages have been flat or declining with ever persistent inflation of the price of goods and services. Debt and desolation are the result of these policies.
Unemployment stated by the government is 10.5%, when it is in fact closer to 22%.
We've been losing an average of 550,000 jobs per month. Do the math. How many jobs have to be created each month just to employ the new college grads, who are up to their ears in debt, but among the uncounted unemployed.
Most of the job losses have occurred in the small business area. Small businesses contribute 50% of the GDP and over 90 % of new jobs. Yet Tarp and other stimulus
don't reach this sector, except for cash for junk car programs and tax rebates for new home buyers. Consumers are tapped out and unable to take on more debt even if they wished to.
In simple terms we are spending more than we take in and have been for many years. American government, corporations, and citizens are up to their ears in debt and over-extended. The national Debt is now 11.89 trillion dollars and counting, but the crooks are doing the counting, because of off budget items, un-funded social security , medicare and pension funding. Not only are future payments not funded, past "trust funds" exist only as IOU's on the Treasury Department's books, the paid in monies have been continually stolen by congress to finance their current expenditures . In addition the current account deficit is over 1 trillion dollars and increasing.
Here-to-fore (since 1945 Bretton Woods Agreement) America has enjoyed reserve currency status and the dollar could be inflated without penalty since it was the standard for world trade and wealth. But no more. More and more nations are shying from the dollar, and even with the world's central banks creating money at an incredible rate, the dollar is falling.. The G7 has turned into the G20 reflecting the strength of the emerging nations rebelling against the US/UK control.
The repudiation and decent of the dollar is now gradual but the trend is set and as our financial condition worsens the decent can become abrupt and sudden. Can you spell crash?
We have been depending on foreign nations to loan us money to help fund our current needs, but they are drawing back and refusing to lend as before. The difference has been made up by Federal Reserve created funds. That is to say we are loaning ourselves money by using money created out of 'thin air'. Nations such as China are telling us to get our financial house in order, but the Administration is ignoring their warnings.
WARNING: BIG TROUBLE AHEAD
Can we stand back from the abyss? Possibly, the minions of the Powers That Be are afraid of their own shadow. The thing they do not want to give up with the hubris and bribes is their elected office, with the hubris and bribes. They are afraid of the voters and continue to deceive us. They can be defeated by a unified defiance at the voting booth. Throw the rascals out. Abolish the Federal Reserve. Stop the useless and money sopping wars. Remove the self-serving Wall Street bankers from the government positions. Take back our country!
Without the peaceful revolution described above, our forecast is for not only financial failure but systemic failure for the nation. La La Land is over, it's only a question of whether the demise continues to be gradual or accelerates to a crash. Goodbye to the USA we have known.
With Love and Kindness,
THE HATMAN
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