It is fair to say, we have never had a recession like this before. Nor the political atmospherics. Democrats and Republicans are as sharply divided as though in a Civil War. According to Lake Research, the biggest shift was among independent voters who supported Democrats by 18 points in both 2006 and 2008, but supported the GOP by 18 points in 2010 for a shift of 36 points.
While it is tempting for the winners to believe that the recent elections were a vote of confidence for Republicans, there was no such signal. The opposite is true: public confidence in both parties is at record lows. Americans did vote to change last Tuesday, without knowing very much about the change that brought them to this point or what changes a new, more conservative Congress and state legislatures will adopt.
We are not going to have to wait long to feel the difference in the United States. In two weeks, unemployment benefits-- already extended to historic duration-- will expire for millions of Americans who cannot find jobs. Two million Americans will lose their unemployment insurance. This winter will be filled with anxiety as homeless crowd shelters, in the street, or sleeping in cars.
Nearly $4 billion was spent by special interests groups-- overwhelmingly favoring the Tea Party and GOP candidates in 2010. It would be a grim irony if even more billions will vanish in 20 second political ads on TV in 2012, with the national economy dragging through a depression.
2 comments:
It's really simpler than most would believe. Can anyone explain why inflation is so low after the Congress pumped 800 billion into the economy? I can. The Federal Reserve sanitized the spending by selling securities they own and extinguishing the funds as only they are allowed to do.
While everyone focuses on fiscal policy as the be-all-end-all of control over the economy, the fact is, the Fed has ultimate control all the time.
If they disagree with a spending decision by the Congress, they merely buy or sell Treasury Securities on the open market; either creating new money to buy, and thereby injecting liquidity into the economy, or selling to extinguish the cash paid by the commercial banks they do business with to reduce liquidity.
It's humorous to me that the Fed felt it necessary to announce they will purchase 600 billion of Treasury securities in attempt to further bolster the staggering economy. They buy and sell securities on the open market every day to maintain the money supply and interest rates within the target ranges they set to maintain "economic stability". I guess 600 billion worth of further "stability" is too big for even the Fed to pull off without someone noticing.
In the end, a fiat money system based on debt is doomed to fail. The money supply must increase exponentially until it becomes untenable. Then, the Fed creates a recession to shrink the money supply back down to the flat part of the curve so the game can begin at a safer point, again.
Most Americans fail to realize the monetary system depends on debt; lots of it. In fact, essentially every dollar in circulation represents a dollar of someone's debt. If there was no debt, there would be no money. Money is created from thin air (at interest of course) when someone is granted a loan by a commercial bank, or when the government is loaned it's operating cash by the Fed (also at interest I might add).
It is also a fact that not one dime of taxpayer money goes to finance government operations. It's all debt service. Every bit of property in this country, including the lifetime of labor you and I are expected to provide, are pledged by the United States Incorporated as collateral on their bankruptcy, which occured in the 1930's. When the Congress needs cash, they print Treasury bonds and sell them to the Fed, commercial banks, or make public offerings to raise cash (at interest of course). Why do they do this when Congress has the Constitutional duty to create debt free money to finance government operation? Who benefits?
Nothing happens on God's earth by accident. If you think the econonomy is not carefully controlled by the banking cartel (through their agents at the Fed), you're living in a fantasy world.
Baron Nathan Rothschilde once said, "Give me control of a nation's money supply and I care not who makes the laws".
The international banking cartel has had control of the money supply of this great country since the passage of the Federal Reserve Act in 1913. Here in 2010, the chickens are coming home to roost. The job is almost finished. In another 50 years or so, the once great United States of America will surrender what little sovereignty she has left to a fairly small group of progressive fascists who will have established a world government where they call the shots, and all dance to their tune, because they will be the only ones with enough money to pay the orchestra.
Magellan's global circumnavigation was a seminal event in human history, revealing a profound truth that had never before been considered. For the first time in history, man realized that the resources available on this rock were finite, and the race began to consolidate.
They'll take their foot off of our collective necks when they damn well feel like it.
And we'll thank them for it!
Nearly $900 Billion was spent on a "stimulus" program without results. IMHO, $4 Billion was worth the price to get the Republics in the House Majority and Darrell Issa to investigate where all this money went.
It is going to be an interesting 2 years. We have some difficult circumstances that will require real maturity.
We cannot continue to have Harvard and Yale professors continue to play government.
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