Thursday, June 9, 2011

Another Crash Coming

The financial situation continues to worsen in America. We are watching the decline of America and it is happening much faster than anyone expected:

The Coming Crash

This article is almost too depressing and too "real" to read.

How much time do Obama and Goolsbee think they have to do their job right for the American people? In every other recession since the Great Depression, the overall trajectory of the economy has been dramatically better after two years. But not this time. Since the Great Depression, recessions have lasted an average of 10 months, with the longest previously being 16 months. Yet, in May, 41 months after the recession began, unemployment rose yet again, to 9.1%. America has now suffered the longest period with unemployment that high since the Great Depression.

The centerpiece of Obamanomics was the old-fashioned Keynesianism that was a proven failure and left for dead 30 years ago. That was reflected most of all in Obama's February 2009 trillion dollar stimulus package. That didn't work because borrowing a trillion dollars out of the economy to spend a trillion dollars back into the economy does not add anything to the economy on net.

Those calling for still more of the same Keynesian snake oil are just self-identifying themselves as hopelessly deluded fools who must not be taken seriously ever again

Worse than not working, Obama's trillion dollar stimulus already drove us to the brink of bankruptcy. Going for still more now as advocated by the mentally blinded would be walking off the cliff with our eyes closed.

The most ominous aspect of this, is the fact that we are headed down the same road as Greece.

The result would be precisely the national bankruptcy of Greece, where we cannot raise in the world credit markets the further debt to finance what will be well over half of our budgeted federal spending. We are already borrowing and adding to the debt to finance 43% of our federal spending today.

That is bad enough for a puny, insignificant nation like Greece, where riots increasingly leave the government dysfunctional, with the EU likely to take over the country effectively. But what is the effect when that happens to the world's supposed superpower?

But with the deficit already at $1.6 trillion or so this year, America cannot handle another recession, let alone effectively another depression that will cause the deficit to soar well beyond any possibly manageable levels. World financial markets cannot bear that load, and will not even try.

This is all amazingly close to the predictions which have been made for years. Not only based upon financial analysis but reviews of the agenda at the Bilderberg meetings.

And we see this ominous conclusion, which is worth highlighting:

From the comprehensive tax rate increases, to the soaring energy costs, to the costly regulatory burdens, to the monetary policy mindlessness, all of this adds up to one whopping double-dip downturn in 2013. The extended unemployment exploding into double digits will be effectively another depression. Once it starts feeding on itself, there is no telling just how far it will go.

So what would the consequences be of such a depression in this modern day era?

We can look towards Greece:

The Vanishing Sovereignty of Greece

Greece is the birthplace of democracy. As a result of the financial crisis, it might become the first European Union country to, in effect, give up democracy as the debt crisis morphs into a political crisis.

Why is this?

We all know that Greece has already become a client state of the so-called Troika – the EU, the International Monetary Fund and the European Central Bank. The first two supplied €110-billion ($157-billion) in bailout loans to Athens a year ago and are preparing a second bailout package, worth perhaps €60-billion, as Greece teeters on the brink of bankruptcy. For its part, the ECB loaded up on Greek bonds and supplied liquidity to Greek banks.

In other words, Greece’s economic sovereignty has already vanished.

Unless Greece does what the Troika wants it to do to get its financial house in order, it will collapse and become Cuba by the Aegean

Ever-expanding power has always been the dream of the technocrats in Brussels

It gets worse:

...apparently the new dream of the ECB. Jean-Claude Trichet, president of the ECB, said as much earlier this month, when he accepted the Charlemagne Prize for European unity at a ceremony in Aachen, Germany.

If a common currency and a common central bank (the ECB) already exist, why not a central finance ministry?

But he didn’t stop there. He suggested that euro zone “authorities” might be given the right “to veto some national economic policy decisions” in countries, like Greece, that prove incapable of living within their means.

And here comes the "knock-out blow" to national sovereignty:

Then came the most ominous paragraph in his speech: “We can see before our eyes that membership in the EU, and even more so of EMU [European monetary union] introduces a new understanding of the way sovereignty is exerted. Interdependence means that countries de facto do not have complete internal authority.

That sounds almost like a declaration of war against the sovereignty of sovereign states.

By definition, each member of the euro zone agreed to give up some degree of economic sovereignty – namely control over its currency and interest rates – the moment it joined the euro zone. But it pretty much stopped there. National budgets remained national matters that were concocted by elected ministers.

The bailouts of Greece, Ireland and Portugal obviously changed the rules of the sovereignty game. If taxpayers in wealthy EU countries were shipping bailout loot to clapped-out economies, they gained the right to impose conditions, notably spending reductions required to crunch budget deficits.

The bottom line:

The British have always been wary of creeping intrusion by the gnomes of Brussels, which is one of the main reasons why Britain is a member of the EU but not the euro zone. Maybe the Brits weren’t being paranoid after all. The EU power grab seems set to intensify. Sovereignty is vanishing, and democracy might go with it. Countries that are lining up to join the euro zone might consider that membership demands might soon entail relinquishing political as well as economic control within their borders.

A loss of national sovereignty. Exactly what the globalists have been precipitating. And their "grand prize", the United States is headed down the EXACT same path as Greece.

Come quickly Lord.

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