We are, and have been, sitting in the eye of an economic hurricane for about two months now. We have been sitting in a state of false calm at the 8000 level on the Dow since the October Crash of Global Markets. We are about to depart the eye of the storm.
Although the wise and honest among us clearly saw this disastrous economic hurricane building strength in the heart of the American political economy for well over twenty years, our political, social, and economic leaders have done nothing but feed the corruption that has spawned and fed this storm. This impending economic catastrophe has grown to such terrible size and power due to our politician’s corruption and the voracious corporate greed they feed.
Our "leaders" have fed this storm by draining our middle-class of its wealth and political power, doing everything in their power to accelerate and supercharge the irresponsible corporate concentration of our nation’s wealth, political power, and profits that have kept the corporate politicians of both parties in power. Although the majority of what we are about to experience is economic in nature, make no mistake about it: political corruption is the birth mother of this storm.
The wealth stolen from our middle-class started this storm when it was used to fund the complete corporate takeover of our democratic institutions, the complete privatization of our national resources, and funded the breakdown of ownership laws that allowed the corporate capture of our once free press.
In October this great financial storm, this economic Katrina that has been growing for decades in the heart of America, first hit the markets with full force. The housing, credit, and financial markets were crushed as they moved through the first storm wall, bankrupting banks around the world and dropping the Dow down from the 14,000 level to the 8000 level in the most precipitous fall in values ever seen in World Economic History.
The American Middle-Class was devastated. Personal savings, retirements, and equity-based investments which were unwisely put into the markets have lost nearly half their value. These losses were primarily financial, based on the depth of fraud and criminal irresponsibility in the heart of our political, banking, and credit system. But this was merely the beginning, not the end, as so many pundits and market watchers have been telling us. The next stage will see the storm moving from financial markets to the general economy, and then back into the markets with devastating force. This stage is beginning right now.
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Now we have to depart the eye of this financial Katrina, and our economy is about to go through the other half of the storm as the economy feels the full force of being ripped-off by our corporations and their political minions. Not only have the housing and automotive markets already prepared the way for a general economic collapse by completely collapsing themselves, but the irresponsible credit-fueled shopping spree of the middle and lower classes have come to an abrupt halt.
You must understand by now that this financial crisis has already spread to the general economy and is the process of bringing consumption to a virtual halt, where it will stay at an unbelievably low level for at least the next seven years. Our middle-class was robbed of their wealth over the last 35 years, and now their credit and equity has shrunk to much less than zero, and they are incapable of maintaining the level of purchase required to maintain the Dow at even the 8000 level. Mark my words: the Dow will ultimately drop to the level that reflects the consumption our middle and lower class citizens can support on their actual earnings.
Our average middle-class folk have been drained of their share of our nation’s wealth and political power for decades. What masked this rip-off was that their consumption was pumped up by the false bubble-equity in their houses, the bloated stock prices in their 401Ks, and the flood of easy credit at their disposal.
As every foreigner who our corporations and politicians snuck into our country lowered our wages, destroyed our social infrastructure, and stole our rights, so too was every product we once produced here (for decent wages) sent to be manufactured by slave labor in China. This made corporate profits grow even as our middle-class, our economy, and our infrastructure (not to mention our democracy) was drained and destroyed.
Corporate America, their politicians, and their foreign minions have drained The American Middle-Class of their share of our nation’s wealth and political power during the massive irresponsible expansion which has taken place during the last 35 years. This process has so altered our economic and political situation that our country has used this massive growth to transform itself from a democratic republic into a corporate fascist state right before our eyes.
The American middle-class responded to these dramatic changes by going on a massive debt-fueled shopping spree at Wal-Mart, and sealed their own fate. The American middle and lower classes, which were being drained of their earning and political power, responded putting both parents to work while raising kids, and drowning themselves in debt to maintain the lifestyle that one wage-earner provided twenty years ago. They shopped at Wall-Mart while hiring Mexicans to mow their lawns and clean their toilets, and now they can afford neither. Justice is a funny thing, isn’t it?
The Bottom Line here is that neither the American Middle-Class nor the illegals possesses the money, credit, subservience, or equity sufficient to stop this grand corporate growth-bubble scam that has been perpetuated by our corporate politicians and their corporate masters from imploding.
Understand that the "consumer" (citizen?) cannot shop us out of this crisis, nor can pumping in another couple of million illegals this year to slave for the corporations and pump-up consumption "grow" us out of this crisis. Those scams have both failed at great expense to the general welfare of the average American. But our corporate bastards made themselves as rich as Nazis.
Both processes, the endless massive growth of "consumer" consumption, and massive illegal growth have run their natural courses. Both processes have been completely drained of all their profitability, drained our land of all of its natural resources, polluted our air and water, devastated our social infrastructure, changed the frk’n weather, and this big scam has now economically blown up in our faces.
We are now left with a massive population unable to pay its previous debts, fund its present operating expenses, nor see the bottom of this hole we have dug ourselves into. Gee, that’s a big surprise. The costs of our irresponsible growth policies have come due, and nobody’s ready or able to pay the debt, but pay we will.
The American Middle-Class has been steadily losing their already diminished share of our nation’s wealth and political influence for over a decade, but until just recently the Middle-Class has maintained their outrageous consumption through credit-based purchases backed by the confidence they had in the artificially bloated prices of their housing and stock holdings.
The first stage of this economic Katrina wiped out their housing and stock equity, leaving the tattered remnants of the American middle-class saddled with a massive debt load, houses worth less than their purchase prices, and stock values that will not fund the education of their children or support them in old age. The second stage, which we are just now entering, will take their jobs and the remainder of their wealth.
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After the popping of the housing bubble ravaged the housing market, brought down the related credit, banking, and equities markets this economic storm was not nearly finished. Now it has moved out of the financial/market sectors into the broader economy. Our corporate politicians responded predictably: They ignored the economy and gave 8 TRILLION to exactly the same financial/markets people who stole our money and ruined our economy in the first place: their Wall Street Bribers.
These 8 TRILLIONS did absolutely nothing to support housing prices or stabilize the real economy, which if this bailout was spent properly would have limited the fall of mortgage security values and actually stimulated the credit markets by funding buyers, rather than lenders. This virtual printing of money and the effective lowering of interest rates to zero will ignite strong inflation without stimulating the economy. Just give it a little time. I’d say that within six months inflation will be well on its way to double-digit levels.
We will see that when the US starts putting this much debt onto the global debt markets, the level of interest required to fund a debt of this size will be astronomical. We’ll see if China spends it’s money keeping it’s people from revolting, or buying US Treasuries. It appears that these final acts of thievery by our politicians for their corporate masters, as Rome Burns around them, are going to be paid for during a long and severe bout of inflation during the height of our economic collapse.
As the financial markets are forced to reckon with these radically deteriorating economic conditions, which they themselves created through their financial and political corruptions, we will finally see the final capitulation that will mark the psychological bottom of this market. We are going to see the market move to the 6000 level within the next month or two, and we are going to see this happen through a drastic decline or two, during which the majority of market players will throw in the towel, fold up shop, and go home. When this baby hits the bottom, the sound of this crash will reverberate around the world.
The next major moves by the financial markets will be strongly downward, and will no longer just be reflecting the fall of the housing and credit markets, but will be a powerful expression of the precipitous drop in citizen spending and a clear indication that the real economy is grinding to a screeching halt. During this stage of our crash the US will have to fund greater and greater amounts of the 8 TRILLIONS+ they have given away to their Wall Street bribers, as well as funding our substantial private debt, which will stoke the flames of inflation upward as the market crashes down, while economic activity comes to a near standstill.
To put it sharply, all of the corporations who based their operations and profits on cheap credit are as finished as are the middle-class that based its consumption on cheap credit. The party is so over. Far too many corporations based their profits on nothing more than cheap money and illegal, if not slave labor. This irresponsible model of growth has collapsed.
This "business model" of borrowing $1,000,000 dollars, hiring state-subsidized illegals to work illegally and cheaply, ultimately making three dollars profit for every $100,000 borrowed, (30 dollars total profit on somebody else’s million) while forcing our citizens to subsidize the education and medicine for their illegal work force is now over.
These abuses are not ending because they are illegal, immoral, treacherous, and bad for our country, but only because the cheap money has dried up and the bills for the last 35 years of draining our infrastructure to subsidize this irresponsible growth are demanding immediate payment. The days of getting a $1,000,000 loan and paying back the loan at $1,000,010 are dead in the water, no matter how much money the government prints and gives to its Wall Street Bribers. This means that Tens of Millions are heading towards unemployment this Christmas.
The result is easy to foresee: Millions of illegals, consumers of our empire, and citizens are going to lose their jobs as our country comes to the very harsh realization that the economic bubbles in our country are not just limited to the Black Heart of Wall Street, nor are they confined to the housing and the credit markets. Our country’s whole model of growth is popping before our eyes.
Our various layers of economic, financial, demographic and consumption bubbles are signs of a much deeper bubble, composed of something other than wealth and power. It is an ethical lapse, a moral bubble of complete stinking corruption that has established itself in the heart of the American Spirit.
Our ethical bubble expresses itself through our national concept of ourselves as forever growing in power and wealth, the center of "a better way of life" that demands illegal wars and crimes against humanity to support itself stinks of hubris and has eaten away at the foundations of our democratic institutions and spawned real policies as dependent on endless violence and compulsion as it demands an endless growth in population, consumption, and profits to support itself. This behavior assures us that our time at the top will be limited by the lifespan of our economic bubble. All of these material and ethical expressions of our greed are short-term bubbles, doomed to pop and bring resounding pain to our country and the world.
This grand bubble of endless material growth is not just going to pop, it is about to blow up in our faces. Our concept of ourselves has grown past the writ of our Constitution, past the limits of common sense, and past all ethical restrains on greed that would have moderated a good people. Now it’s time to pay the piper.
Understand this well: The sound of the bubble popping in the housing, credit, and equities markets will be considered as nothing when the bubble of irresponsible growth that has fueled our whole economy for the past few decades pops. The sound of this bubble popping will change the way you think about your country and the crimes it has committed against itself and other nations.
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Here’s where we are: The financial bubble has popped. The economic ramifications of the financial bubble popping have spread to the broader economy, collapsed business activity and consumption, and is about to crash back into the Stock Markets, triggering the next great fall to the 6000 level.
Unemployment will hit an honest 20% within six months, and inflation will begin spiking as the international value of the dollar responds to zero interest and the trillions in government bailout debt are going to be put onto the international debt markets. The economic reverberations of this broad economic collapse will shortly boomerang back into the financial markets, supercharged by the inflationary pressures our corrupt politicians created by giving 8 TRILLION of our dollars to the corrupt corporate thieves on Wall Street. You know who these Wall Street guys are, they are the same guys who brought on this crisis in the first place.
Now the economy coming to a screeching halt will have to be priced into the already damaged financial markets, and this is when the financial and economic aspects of this crisis will come together and be compounded. Ka-Boom! We will be lucky if the markets stop dropping at the 6000 level.
Be prepared. The second stage of our Financial Hurricane is about to blow through the heart of the economy itself. I expect serious social troubles within a year, followed by serious calls to restore our democracy within the next two years. If we are lucky, this disaster will not just tear our economy apart, but it will tear apart the delusions and lies that our corporate politicians have used to justify their criminal government and brought on this downfall.
As our nation departs the eye of the storm, where we are now resting, the popping of our economic bubble is about to knock Wall Street from its knees onto its back, while our whole nation is about to go through the equivalent of a major heart attack.
If we respond wisely, this will be the time for us to identify and put aside not just the traitors who have destroyed our democracy and our economy, but to end the tools and processes that have been used by our corporate bribers to neutralize our democracy and keep these traitors in positions of public responsibility.
Unfortunately our people were not wise enough, not sensitive enough, nor moral enough to prevent the corrupt from destroying our democracy, looting our nation of its natural and material wealth, and attacking free people around the world.
Because of our failure to live up to our own values we are facing the greatest crisis in our country’s history, encompassing not just the economy, the environment, and our empire, but a crisis of identity.
We are going to have the opportunity to see if our people have the ethics, if not the wisdom and will necessary to restore our democratic republic, and reverse the disaster that political corruption has brought onto our country.
The true test is upon us. Are our people able to identify the corrupt and the corruptions that brought us to this crisis, and eliminate them? In any case, the fight’s on. It is NOW PAST the time for all good Americans to come to the Defense of their country: Foreign and Domestic Enemies have joined together and have destroyed our democratic republic.