You are dreaming. The liberals didnt do it. It was the NWO elite rich. 60 million immigrants in 60 years. exporting jobs ,importing slave laborers, federal reserve system,unregulated banking.

It can not be fixed. The US will turn into a third world country. In the 50's one man could support a family and house, now it takes 2 or 3 jobs to do the same.





The Humpty Dumpty Economy
by Peter Schiff, Euro Pacific Capital | November 14, 2008
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Before the current economic crisis became apparent to all, the most popular fable used to describe America’s uncanny economic resiliency was the story of Goldilocks. It was argued that our economy was skipping down a sunny path of moderate growth, low inflation and rising asset prices. However, a much better parable for our economy over the last decade would have been the story of Humpty Dumpty: a bloated, fragile shell perched on the top of a dangerously high stone wall. This week, all the government’s horses and all of its men scrambled to put Humpty Dumpty back together again. Here is a look at some of this week’s highlights:

The Mother of all Moral Hazards

No doubt prodded by the administration, Fannie Mae and Freddie Mac announced a new attempt to stop the fall in home prices and foreclosures through a loan modification program that would cap mortgage payments so that a homeowner’s total housing expenses would not exceed 38% of household income for home owners who are 90 days delinquent.

In a classic case of unintended consequences, the plan will encourage a massive new round of delinquencies and household income reduction as homeowners will jump through hoops to qualify for the program and maximize their benefit. Those who could conceivably economize to meet their existing obligations will now have a strong reason to forego such sacrifices. Those who are not 90 days past due will intentionally become so. In many cases, dual income families may decide to eliminate one job altogether as reduced mortgage payments combined with lower child care and other work related expenses will likely exceed the after-tax value of the lost paycheck.

Unfortunately, the last thing our economy needs is falling household incomes and even more bad debt. But that is precisely what this plan will give us.

To Bail or Not to Bail

With the Big Three auto makers now in a plainly visible death spiral, the automotive bailout debate is kicking into overdrive. The disagreement hinges on whether a bailout is necessary to support an important industry or whether the unprofitable dinosaurs of the past should be allowed to fail as America focuses on an information-age, service sector, and alternative energy future.

As usual, both sides have it wrong. The government should let the Big Three fail not because we no longer need an auto industry, but because we desperately do. What we do not need is the bloated, inefficient auto industry that we have today. By allowing the Big Three to fail, their capacity will be turned over to new owners who will be able to acquire the means of production at fire sale prices and hire workers at globally competitive wages. The result will be a more efficient auto industry making cars that people around the world actually want to buy at prices they can afford. Such auto makers could conceivably be profitable and could become the cornerstone of a manufacturing renaissance in the United States. In contrast, Ford, Chrysler and Genetically-Modified are never ending money pits that threaten to swallow a good deal of our economy.

We Shopped and Dropped

This week, the bankruptcy filing by Circuit City and a profit warning from Best Buy, served as proof positive that America’s national shopping spree is over. As I have long said, the business model of importing cheap goods for Americans to buy with credit cards was unsustainable. We were told to “Shop till we dropped,” and we did.

Americans two primary sources of spending money, home equity extractions and unlimited credit card availability, have been shut down. With only dwindling paychecks to rely on, Americans are justifiably economizing. As a result, many more retailers will file for bankruptcy over the next few years, and those that remain solvent will only do so by drastically cutting their capacity.

In a desperate move to arrest this necessary process, Treasury Secretary Paulson announced his intention to use part of the $700 billion TARP (Troubled Asset Recovery Program) funds to re-liquefy consumer lending.

Paulson observed that “illiquidity is raising the cost and reducing the availability of car loans, student loans, and credit cards”, “creating a heavy burden on the American people” and reducing jobs. While all of this is true, this is precisely what needs to happen. Americans need to reduce their spending on all of these things, and market forces are in the process of bringing that change about. By encouraging even more borrowing, Paulson’s plan will aggravate the crisis.

Along those lines, our nation’s various bank regulators issued a joint press release this week that “encouraged” banks to make more loans and to reduce their lending standards if need be. Since lax lending standards are one of the primary reasons that those banks “needed” to be bailed out in the first place, it is lunacy to now encourage them throw good money after bad. More risky lending (and currently nearly all lending is risky) interferes with the market’s attempts to rebalance our economy along the lines that Paulson himself admits is necessary, and sows the seeds for even bigger bailouts in the future when this new crop of loans go bad.

Bait and switch

Reminiscent of his Bazooka maneuver, quick draw Paulson reversed course quickly with his decision to not use any TARP funds to buy the assets that the plan was specifically funded to procure. Instead, he will simply dole out the loot to his buddies on Wall Street and use it for whatever seemingly worthy initiative strikes his fancy.

Although Congress loves to grandstand about oversight, it has thus far shown no courage to interfere, or even question, the change in strategy. Paulson claims that he is simply rolling with the punches. The truth however, is that the original plan was flawed from inception, as I clearly pointed out in a string of commentaries following his proposal. How could the Treasury Department, with all its funding and PhD’s, not make similar predictions? Paulson is either a liar or completely incompetent. My guess is he is both.

It is mindboggling to consider that all of these developments took place in just one week. As the remnants of America’s shattered economy continue to ooze out over the pavement, look for even more bizarre, draconian, unworkable, and downright dangerous policies to emerge from Washington.

The Conservative ideals that you have were hijacked by the Rush Limbaughs of today. Look at who really controls politics and the media - Rush Limberger is the same as Fox news and Bill O'Reilly and Anne Coulter - propagandist pessimistic emotional based crap. Rush is conservative republicanism generating the false fight against the enemy "Liberals". Without liberalism Rush would have no radio show. So there is a conflict of interest between his daily spew and your mind.

Get your news from independent sources off the net, and foreign sources.

Liberalism didn't get us this problem. Greed did.

It's not rocket science. Politicians have been pandering to special interest and big business for a while. Banks loaned out money they didn't have, companies mismanaged their assets, and corruption turned the other cheek. People have been living on borrowed money for years. Actually I shouldn't even say that, because most credit doesn't even exist. It is a fictional concept that is treated like money, but it is not backed by anything of value. Hell, even our money isn't backed by anything of value (whatever happened to gold standard) anymore. Money is worth however much government says it is, which is why they think they can throw it around.

The truth is that both our money and our economy aren't worth jack, and they haven't been worth jack for a long time. They are both based on consumerism. Now that people can no longer afford to buy things they could never afford to begin with, people think we are in a crisis. The real crisis is that people thought they could shop till they drop while avoiding the "drop" part of it.

There is no way anyone can know all of the sides. And the stupid thing about Conspiracy theories is that someone picks a point, then picks out a whole bunch of crap off the internet to support it. The facts might be true, but are taken way out of context. Reminds me of bible thumping. I have yet to see one theory that is entirely objective... normally the people are ranting and raving about something or other.

Anyway even if its all true... so what. What are you gonna do about it? What can you do about it? And what difference will it make?

Is anyone here absolutely debt free... I know I am. I was taught at a very young age that when you spend more than you earn there are gonna be problems. I used to tell my mom just to go to the machine and get some more money... and thats when she taught me about bills, work, and whatnot.

And even if america is fully in debt... big deal. And its not gonna turn into a 3rd world nation, and no one is gonna be slaves. The infrastructure is already here, and its not going away anytime soon.

Part of the problem started when the banks gave large loans to people who were not able to pay them back. Everyone all of a sudden was able to afford a 400 thousand house. And guess what... the value of a regular 150 thousand dollar house went up to 400 hundred thousand. Not because it was worth any more, but because every person could now afford to pay a half million and everyone was willing to put themselves in life long debt to pay it off (what a great investment). But guess what, many of those people who couldnt pay their debts... and didnt. And as we all know one million dollars becomes 10 million through the loan game. And it works perfectly fine, as long as all people pay their debts... but when enough people buck the system its gonna crash, and that is what happened. This is why banks used to set a high bar for lending money. Infact the system can build a nation very quickly because it allows for more capital to flow. For some reason though, certain banks got greedy. And now those institutions have failed, and are now gonna be wiped out... and their CEOs will be labeled as stupid. Perfect IMO.

I dont even wanna get started on derivatives...

Here is the real deal. Everything tangible already exists... there is no denying it. Factories, roads, refineries, cities, populations, and all that already exists. The only stuff standing in the way is the non-tangible... IE ownership, debt, investments, and prices of stuff. So whats going to happen is alot of people will lose alot of their investments... and alot of people in debt will lose their homes. And alot of people are going to have their debts forgiven. Everyone is going to have to take on some of the debt burden and dig the country out. In response the government will go back to the old banking rules which worked, aswell the government will keep the banks on a tighter leash for their arrogance.

As for arrogance... this is something that is no longer tolerated in todays world. Tobacco, Oil, Banking, and Major industry are often very arrogant. It is reminiscent of the English Empire. And these institutions whose back bone is arrogance, now get burned. Only institutions that act with integrity get ahead. It is happening with tobacco, it is happening with the banks, it is happening with oil, it is happening with the medical industry, it is happening everywhere. And only the industries that act with integrity will see past the next 20 years. And there is no way to stop it.

The world is not coming to an end... it might look like it, but in alot of ways a birth looks like a death. The world is getting better, and alot of change for the better is going to happen in the next 20 years.