Replies

Yes I do know more than they do, Carling.

Do you?

Or do you simply bow down to their authority?

This bill raises the debt limit.

This empowers Obammie the Commie to borrow more.

They’ll borrow more which means the Fed will print more.

This newly printed money will be pushed out through the discount window to the primary borrowers at a nearly ZIRP (do you know what that stands for, Carling?).

Those primary borrowers (the biggest, fat-cat bankers and financiers like GS and JPM, do you know what they stand for, Carling?) will take that “free” money and use it to invest in the various markets, thus propping them up artificially (because all macro indicators point to the fact that we never left the first DEPRESSION, just masked it over. Do you know why we are in a DEPRESSION and not a RECESSION, Carling? Because app. 12% of our GDP has been artificially created by this print/borrow-and-spend FAILED economics of these SOCIALISTS/COMMUNISTS. If you remove that, we have greater than a 10% drop in GDP, which is a DEPRESSION).

The government wants their bed buddies at GS and JPM to prop up the markets with this new money THROUGH THE 2012 ELECTIONS because they all know that financial Armageddon is coming, and, when it does, THE PUBLIC-SECTOR UNION PENSION PLANS WILL COMPLETELY COLLAPSE, because promises to pay those fat-cat benefits and pensions was based on sky-rocketing equities markets. Do a Google on Rhode Island and public pension (hint: a city in RI is seeking bankruptcy to get out of their obligations to the public-sector unions because they can’t afford them).

Now that Obammie the Commie has another couple of trillion to spend, he MAY be able to float the economy through next year, just as he has done for the past two. He has failed these past two years and the economy has been pushed a little farther toward the end of the cliff.

This may NOT work because of the law of diminishing returns (do you know what that means, Carling?). The 4 trillion they have already spent has done nothing. Even the artificial pump to the equities markets is meaningless because it has been offset by the decline of the dollar, with which there is a nearly perfect inverse ratio over the past ten years.

If it does not coast the economy as they have been deluding themselves and others into believing for the past two years, THEY WILL PANIC AS 2012 gets underway. This will force them to spend faster and faster.

The rate of inflation has been somewhat mild compared to all the spending over the past couple of years. This is true for two reasons: 1. companies have been absorbing the higher costs by reducing their profit margin (not to be nice, but to survive) 2. the velocity of money has remained very low (do you know what this means, Carling?). It means that the money that was printed and “spent” in the markets never hit the streets. Those primary borrowers never loaned that money to businesses and individuals. So that money is sitting in investments making the banks billions (check out JPMs latest earnings report) and PROPPING UP FOREIGN CURRENCIES that are also collapsing because of this same monetary policy.

So, next year, the statists/socialists/communists will panic as the economy tanks even worse. They will spend faster. They will demand that ALL of this money be pushed out to the street. That flood of easy money will cause a very quick euphoria as everyone feels rich again for a few months.

After that, inflation will hit us harder than it has ever hit us before. We (the middle class) will be an entire caste of people that are scrounging for the basics. We will only be able to afford gas to get to and from work. We will purchase only that basic food necessities. We will not be able to travel as we once were.

If they can pull this off and coast us through 2012, Obammie the Commie will win a second term.

And then he will really unleash hell on America. Not like now, where he’s being kind of nice (because he wants to win re-election). He’s going to really, really make us suffer.