Our Economy Will Crash



James Carville, ardent Democratic strategist, spoke to IMUS on his radio show recently, and said: “But the country, if that is what we are doing, this is gruesome on people. This unemployment rate for this long is humanitarian crisis of the first magnitude. This financial crisis, people have studied this by the way, they know that the things take this long to work their way through. The aftermath of these things — kind of an academic book that is dry entitled ‘This Time is Different.’ What it concluded is it is not different this time. They studied it, the aftermath of the financial crisis. What we are going through is imminently predictable. But this is a terrible thing that has happened to people’s lives. I think the president at one level understands that, you know. But he is limited in what he can do. So we’ll just have to see. But it’s going to be hard. If 54,000 jobs is the new norm – this is going to be very, very tough. Some people say it just might be one more thing. We don’t know.”

Are we moving in the direction of improving the situation or are we moving in the exact wrong direction?

Bailout Everyone: – We are either bailing out socialist governments or we are doubling our donations to countries where the people really really don’t like us – and we are doing it while we are broke.

This is from CNBC: – President Barack Obama on Tuesday urged European countries and bondholders to prevent a “disastrous” default by Greece and pledged U.S. support to help tackle the debt crisis. He hinted strongly to Germany’s Chancellor, Andrea Merkel, that he expected her to help bail out Greece (Editorial comment – he all but bopped her on the head with it. Never mind that Greece will not make the necessary cuts to their bloated entitlement programs or government salaries and benefits. In Greece, everyone works for the government – Greece cannot recover with that type of government)

A proposal for a second Greek bailout package worth 80 billion to 100 billion euros over three years was taking shape, euro zone sources said. Read the rest here: CNBC

Destroy energy production in the name of the environment: – Remember when Candidate Obama said that under his administration energy costs will necessarily skyrocket? It doesn’t matter that cap & trade was not approved by Congress because the President is doing it anyway under the auspices of his agency, the EPA.

Two new EPA pollution regulations will slam the coal industry so hard that hundreds of thousands of jobs will be lost, and electric rates will skyrocket 11 percent to over 23 percent, according to a new study based on government data.

Overall, the rules aimed at making the air cleaner could cost the coal-fired power plant industry $180 billion, warns a trade group. The extremists who support these draconian measures feel it is worth the loss of all these jobs and the ruination of lives. The EPA, however, tells Whispers that the hit the industry will suffer is worth the health benefits. “EPA has taken a number of sensible steps to protect public health, while also working with industry and other stakeholders to ensure that these important Clean Air Act standards—such as the first ever national Mercury and Air Toxics Standards for coal-fired power plants—are reasonable, common-sense, and achievable,” said spokesman Brendan Gilfillan.Read here: Coal regs will cost hundreds of thousands of jobs

Wall St. & Washington, Hand-in-Hand: – Then there is Wall St. which appears better than it is because of our deflated dollar. To make things worse, Bernanke, through QE 1 & 2 has printed funny money and bought stock with it, further phony-ing up the stock market. All this amounts to a tax on every American, no matter what people want to believe – a devaluing of our dollar is equivalent to a tax. Read here: 10-40% tax on every citizen

Let’s have high unemployment as a way of life: – Socialist countries are used to high unemployment – it’s a way of life – and there is no such thing as a second job to make ends meet.

The McKinsey Report sees many years of high unemployment. “…The U.S. would need to create 21 million jobs by then for 5 percent unemployment to be reached. A more likely mid-range scenario sees 17 million jobs being created and 7 percent unemployment by 2020, McKinsey finds.

A key finding in the McKinsey study is that working-class jobs have come under increased pressure from automation such as retail self-checkout, while among college graduates there is a large mismatch between fields of study and needed skills. Too many students are specializing in business or social science instead of technical subjects.

On regulation, McKinsey states that “uncertainty over the direction of regulation … has made some companies hesitant to invest.” It suggests enterprise zones where business would be less subject to regulatory delays. It also focuses on the patent office’s three-year application delay.Read here: McKinsey, danger of unsustained unemployment

The regulations that threaten our private enterprise threaten the heart of our capitalistic economy. Please remember that the alternative to capitalism is totalitarianism. I could never understand why anyone would want the government to tell them what is good for them, take their money, and then decide how it will be doled out. Like that’s not a good foundation for corruption? It’s bizarro world. Read here: Regulations, regulations, regulations

Let’s not forget the entitlement & redistribution mentality: – My cousin married an Irish man and moved to Ireland with him. They don’t work because the government takes care of them. She loves socialism, but complains bitterly that, since they are part of the EU, people from other countries (such as Poland) fly to Ireland on a Friday, pretend they have a dozen children, fill out their paperwork for social services, and then fly back to their home country with Ireland’s money – Ireland has better welfare deals than Poland so what else would they expect? The “entitled from other countries,” therefore, are draining Ireland’s economy whose own “entitled” want to be the only ones draining Ireland’s economy. Is it any wonder they are in need of funding from Germany and France (and us)?

Entitlements are increasing at four times the rate of the GDP in the U.S.A. Entitlements are a redistribution of wealth from the workers to the non-workers and it currently is not about helping the needy. The entitlements are producing a good-for-nothing societal calamity. Read here: Look at these charts & weep

The cost of entitlements on society goes way beyond financial into the actual destruction of the social & familial strengths that are the backbone of this country. Here is an interesting read: A balanced society

Housing is double bubbling: – Housing sales (the initial cause of our economic decline was the housing bubble), continue to fall.

“…Hovnanian Enterprises Inc. (HOV), the largest homebuilder in New Jersey, said its second-quarter loss more than doubled as a lack of demand for new houses caused revenue to tumble 20 percent…The net loss for the three months ended April 30 widened to $72.7 million, or 69 cents a share, from $28.6 million, or 36 cents, a year earlier, the Red Bank-based company said in a statement yesterday. The average estimate of nine analysts in a Bloomberg survey was for a loss of 55 cents a share…”Read here: Bloomberg news

As Moodys considers lowering our bond ratings, the Chinese say they consider the U.S. as already defaulting. Read here: U.S. already defaulting – The Blaze

There is so much more to talk about – like how we can’t afford to pay for all the illegals who come here in droves when we can’t pay for our citizens or how about the additional wars we are tacking onto our burden – but that is for another article.

We are running trillion-and-a-half dollar deficits each year with a breached debt ceiling, and our leaders are still talking about printing more fake money, cutting nothing. Being free and having a great economy is not a permanent gift bestowed on us at birth, requiring nothing in return. And, yes, economic disaster can happen here. Even the Chinese communists are preaching to us about our faulty economics.