The statement of the President shows how he accepts no blame for anything and shifts it to the effect that somehow the crisis is the offspring of the fact that the rich made more money. How this has anything to do with failed government spending or the fact that if you eliminate ALL government spending except interest and entitlements, you cannot balance the budget. His solution will be to raise taxes by 50%. However, by the time we reach 2020, that same solution will be needed again and we will have completely destroyed the economy for there will be no private wealth left for anyone to argue over. The President’s statement makes it very clear:
“We now face a make-or-break moment for the middle class and those trying to reach it. After decades of eroding middle-class security as those at the very top saw their incomes rise as never before and after a historic recession that plunged our economy into a crisis from which we are still fighting to recover, it is time to construct an economy that is built to last.”This demonstrates that there is ABSOLUTELY no solution to the Sovereign Debt Crisis. They just plan on continued borrowing and project the National Debt will reach $26 trillion by the end of the next 10 year period. There is no accountability. There is no plan other than to blame anyone with money as the reason the politicians have failed. This statement makes it crystal clear that there is no acceptance of responsibility and the only thing intended is to raise taxes and secretly reduce entitlements, but there is no practical solution that is long-term nor is there any realization that there has to be a debt default on those very entitlements just as we see in Greece whose bonds are now with the lowest rating and presumed to be junk. The amount of wealth destruction on the horizon is off the charts. We are looking at massive STAGFLATION, rising costs (including taxes) and declining (an end to?) economic growth.
Both Presidential Candidates rant and rave about social issues from abortion to gay rights while failing to mention that all rights will be gone by following this course of brain-dead actions. The elections are nothing more than a marketing battle between Coke and Pepsi. Slightly different flavor, but the same color, and effectively the same thing.
In China, the number one T-Shirt being sold portrays Obama as Mao claiming he is the Savior of America. Unfortunately, no politician in this race is even willing to look at what the hell is going on. You wouldn’t hire any of these people to even balance your own checking account. They are totally oblivious to everything and assume it will always be as it is – they will borrow forever, diminish the real value of everything as they retain power so they can live high on the hog at everyone else’s expense. The citizens in Western society deserve what they get. They will not open their eyes to a manipulated press that supports government nonsense, the banks, and special interests.
The President’s Budget even shows TARP continuing indefinitely. Once a program is passed, there is never any end. The lobbying efforts to keep agencies in place is unbelievable. They should have merged the SEC & CFTC long ago. Because they refused to do so, they forced fund managements offshore, giving birth to the Hedge Fund Industry. Even when they created the mortgaged backed CDOs, there were 7 agencies that had to approve. When no one was doing their job, another was added another on top of everything else. The Federal Reserve was born in 1913 to effectively manage the regional capital flows with each of the 12 branches maintaining its own interest rates and “stimulating” the economy was direct, for it was to ONLY by buying corporate paper. Then WWI came, the politicians insisted the Fed had to support their debt by ending the buying of corporate paper. With socialism, Roosevelt usurped the independence of the 12 branches making it one rate for all defeating the purpose of its design. WWII came and they directed the Fed to support US government bonds at par ending that in 1951. Then 1998 came & the Fed bailed out a hedge fund to save the banks. With 2007, they emerged with this "Too Big To Fail" power where they have now taken control of corporations, not only banks. They are politically driven, just as QE3 has shown to the world, and it is no longer even a central bank; but some rogue entity empowered to do whatever it damn well pleases without any accountability and of course it is an unelected nondemocratic institution as is most everything else that runs the government. We vote only for Pepsi or Coke and have no say over anything else whatsoever. So hang on to your socks/wallets. We will by no means make it to 2022!!!!
The United States is attacking its own citizens and capital. Where will capital go to next? When Europe did it, mankind fled to America. Where are we to go now? We are facing a truly catastrophic collapse of our entire economic system in the years ahead. You will be given the guide posts. You will have to tick them off as we pass each one by. Our politicians are like the idiot who is pushed off the tallest building in the world. As he passes the 4th floor, he remarks: " Well so far – So good!" This is our future they have screwed with just for personal gain to get re-elected by the art of bribery: "Vote for me & I will give you this."
Source: Armstrong Economics