An Argentina-like Economic Crisis

The United States' economic decline precariously resembles Argentina's economic collapse, which started in 1998 and landed Argentina in a depression by the end of 2000. What began in Argentina as a recession mushroomed into a full-fledged depression due to bad economic and monetary policy. The Obama administration and its congressional Democrat lackeys are on the precipice of following Argentina's disastrous economic and monetary policy decisions.

Arguably, the United States economy has been in a two-year-long recession, and while some may posit that the country has started an economic recovery, others suspect the country will plummet into a deeper recession, or perhaps a depression. In the past two years, the United States government instituted economic and/or monetary policies detrimental to American's short- and long-term economic prosperity.

•$700-billion TARP bill. •$787-billion economic stimulus bill the president deemed necessary to keep unemployment under 8%. •$410-billion Omnibus bill with 9,000 pork-barrel projects. •$1.3-trillion deficit in fiscal year 2009. •$1.4-trillion deficit estimated for fiscal year 2010. •$1 trillion or more for a health care bill that the majority of Americans didn't want. •Auto industry bailout with complete disregard to the bankruptcy laws, which turned the U.S. government into an equity owner and granted an ownership stake to the United Auto Workers union. •$500-billion bailout of Fannie Mae and Freddie Mac. •$145-billion bailout of Greece. •Billions spent by the Federal Reserve to purchase toxic assets. •$10.6-trillion dollar public debt the day Obama took the oath of office. In nineteen months, the public debt stands at $13.3-trillion (a 25% increase).

In early 2000, Argentinean President Fernando de la Rúa's government evaluated options to end the recession. According to a 2003 report issued by the Joint Economic Committee of the United States Congress, the de la Rúa government evaluated several options and settled on raising tax rates as the solution:

"The De la Rúa government was worried about the federal budget deficit, which was 2.5 percent of GDP in 1999. The government thought reducing the budget deficit would instill confidence in government finances, reducing interest rates and thereby spurring the economy, which was showing signs of recovery in late 1999. Among the options for reducing the deficit, cutting spending was politically difficult; the government doubted that cutting tax rates would spur enough growth in the short term to offset lost revenues; it did not wish to abandon the convertibility system and simply print money[.]"

That left only one option: raising tax rates. President de la Rúa secured approval for three big tax increases, effective January 2000, April 2001, and August 2001.

Argentina's economy continued to shrink throughout 2000. In April 2001, the Argentinean government proposed cutting spending by 4.5 billion pesos over a two-year period. Public outrage ensued, and special interest groups protested. Furthermore, government monetary policies manipulated current valuations, causing fear and instability, and debt policies such as refinancing debt at higher interest rates exacerbated a deteriorating economy. In late 2001, a newly elected government took control, and the Joint Economic Report summarized their actions:

"In a series of blunders that made matters even worse, from December 2001 to early 2002, succeeding governments undermined property rights by freezing bank deposits; defaulting on the government's foreign debt in a thoughtless manner; ending the Argentine peso's longstanding link to the dollar; forcibly converting dollar deposits and loans into Argentine pesos at unfavorable rates; and voiding contracts"

Coincidentally, the United States is in a two-year-long recession, and Obama and congressional Democrats intend on letting the Bush tax cuts expire at the end of the year. The outstanding public debt stands at $13.3 trillion. Any opposing viewpoints from Republicans or conservatives on cutting spending or addressing entitlement programs are met with media outrage, accusations of racism, and accusations that Republicans and conservatives are coldhearted people incapable of compassion or benevolence.

The Obama government's actions ominously mirror the actions and the timing of the Argentinean government in early 2000, when the first of three tax increases was instituted. Higher unemployment, more debt, falling wages, and eventually inflation ensued. Moreover, the Obama administration and the mainstream media deceive the American people regarding the impact of the Bush tax cuts. Obama and the MSM repeatedly espouse that only tax rates for those rich Americans in the top income tax bracket will increase.

Unfortunately, the truth is that all tax brackets are impacted, and even the Obama lemmings will recognize they've been duped when their payroll tax deductions increase in 2011 and their take-home pay decreases. Perhaps then the lemmings will seriously consider what "hope and change" means and that elections do indeed have consequences. A summary of the Bush tax cuts expiring at the end of 2010:

•10% bracket reverts to 15% •25% bracket reverts to 28% •28% bracket reverts to 31% •33% bracket reverts to 36% •35% bracket reverts to 39.6% •Marriage penalty is reinstituted •Child tax credit cut from $1,000 to $500 per child •Dependent care and adoption care credits cut •Estate (death) tax returns at a rate of 55% on estates over $1 million •15% capital gains tax reverts to 20% •15% dividends tax reverts to 39.6% Many economists recognize, though they many not publicly admit it, that inflation is the only feasible alternative. The government is limited to three possible revenue sources: taxing, borrowing, and inflating. Any sensible person realizes the country cannot tax its way out of a $13-trillion debt or sustain existing entitlement programs, much less government-run health care. The government borrows money by selling government-backed securities to investors. Eventually, investors will either stop purchasing government securities or demand substantially higher interest rates due to the increased risk. The only feasible alternative is to monetize the debt -- in other words, inflate it. Monty Pelerin's recent American Thinker article captured the essence of the problem:

"The political class's survival is at stake. Eventually, anything that extends their rule will be tried. It is not concern for you or the economy that is driving policy, but the preservation of power of an increasingly wounded power elite. Their survival is now driving policy. Unfortunately, what benefits them is generally harmful for the economy."

Obama and congressional Democrats have chartered a course leading America down an Argentinean economic path. November may be the last reasonable chance to change course

This from one of the super rich worth listening to

It is amazing is that CNBC actually aired this!

And CNBC is one of the White House’s favorite propaganda machines!

It was not even 2 hours after Steve Wynn’s interview that he received an invitation from the tenant at 1600 Pennsylvania Avenue, Washington, DC wanting him to explain in person why he said what he said! Below is a short interview with Steve Wynn. Some of you know of him. He’s a multi-billionaire, hotelier and real estate investor in Las Vegas and Asia. He’s been a guest from time to time on all the network financial news programs.

If you listen to his recent CNBC interview, short & to the point, you will be better informed than your neighbor about the state of the union..

I would suggest sharing this with everyone so they know what to expect once they’re faced with the results.

http://www.infowars.com/steve-wynn-takes-on-washington/

I am not a financial person and make no claim to expertise in the area. I do however have a lifetime of trying to get by and raise a family, etc. I know that if I ran my family finances the way governments at every level or being run I would be bankrupt in short order. It's like I'm in debt up to my eyeballs, paying most of what I make to handle the debt I already have and in great financial trouble. Then, I borrow a year's plus worth of income and because things appear to get better I make no changes in finances to address the reason I'm was in trouble to start with.

At some point there will no longer be money to borrow and they won't be able to print it fast enough to keep up with the inflation brought on by the printing of money with nothing to back it.

Sadly, public education has so dumbed-down two or three generations of Americans now that all of this is lost on the average Joe trying to make it in today's world.

This can't end well. It's like one of those slow motion nightmares where you know what's happening and how it will turn out but you powerless to stop it.

At some point there will no longer be money to borrow and they won't be able to print it fast enough to keep up with the inflation brought on by the printing of money with nothing to back it.

Sadly, public education has so dumbed-down two or three generations of Americans now that all of this is lost on the average Joe trying to make it in today's world.

This can't end well. It's like one of those slow motion nightmares where you know what's happening and how it will turn out, but you are unable to stop it.

The NWO used Argentina for practice.

Now we are in the midst of the real thing.

The destruction of the American Middle class and the slow but sure implementation of a one world government.

“The political class's survival is at stake. Eventually, anything that extends their rule will be tried. It is not concern for you or the economy that is driving policy, but the preservation of power of an increasingly wounded power elite. Their survival is now driving policy. Unfortunately, what benefits them is generally harmful for the economy.”

We have a winner!!

Sometime between World War I and World War II a standing, politically based, rule class settled into Washington DC. Al Gore Jr became the poster child of that class - raised in a hotel in D.C. and taking over his father's seat in the Senate. There are other examples.

Politicians must be changed as regularly as babies have their diapers changed. Service to the Republic must not ever again become a full time job.

Otherwise we WILL become worse than Argentina since there will be no one who might rescue us.

“Sadly, public education has so dumbed-down two or three generations of Americans now that all of this is lost on the average Joe trying to make it in today’s world.”
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I went to public school but when I started in 1950 it was a different world. We started studying history as soon as our reading skills would allow. Young people now know nothing of history, they say, “That can’t happen here”, not knowing that it has already happened here or in a dozen other places in the past. The first step needed is to make most Americans aware of our own ignorance.

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