Posted on 07/23/2010 8:31:40 PM PDT by Yosemitest
Does Obama-nomics have us headed for another round of deflationary recession, or worse… a depression? There is growing evidence such a catastrophe may be just around the corner.
The Royal Bank of Scotland, among other elite, financial observers, is warning its clients that the global economic recovery is stalling out, both in the US and in Europe, and they must be prepared for a massive flooding of the money supply by the Federal Reserve in what may be a vain effort to fight off a world-wide deflationary recession.
The RBS warning is based on research from a variety of sources that indicates that international trade is dropping precipitously, and that the US and the rest of the developed world are headed for a major economic contraction.
RBS Credit Chief Andrew Roberts is telling investors to think the unthinkable!
We cannot stress enough how strongly we believe that a cliff-edge may be around the corner, for the global banking system (particularly in Europe) and for the global economy.
And the contraction will only be worsened by the tax hikes scheduled to take effect at the end of this year as the Bush tax cuts expire as demanded by Democrats. Tax hikes, particularly taxes on capital, are the very last thing an economy tumbling back into recession needs.
Meanwhile, Professor Tim Congdon of International Monetary Research believes that deflation has already taken hold and will only increase as the economy falters, then slips back into a prolonged recession.
The stock of money, M3, began falling last summer, and the pace of the decline is increasing. It fell from $14.2 trillion to $13.9 trillion in the three months to April, amounting to an annual rate of contraction of 9.6%. At the same time, assets of insitutional money market funds fell at a 37% rate, the sharpest drop ever recorded.
Its frightening. The plunge in M3 has no precedent since the Great Depression. The dominant reason for this is that regulators across the world are pressing banks to raise capital asset ratios and to shrink their risk assets. This is why the US is not recovering properly..
Mr Congdon said the Obama regulatory policy risks repeating the strategic errors of Japan, which pushed debt to dangerously high levels with one fiscal boost after another during its Lost Decade, instead of resorting to full-blown “Friedmanite” monetary stimulus.
Fiscal policy does not work. The US has just tried the biggest fiscal experiment in history and it has failed. What matters is the quantity of money and in extremis that can be increased easily by quantititave easing. If the Fed doesnt act, a double-dip recession is a virtual certainty.
Wall Street veteran and financial writer Bruce Krasting is also on the lookout for a massive deflationary recession.
Every day the deflation story gets stronger. Almost all of the numbers in the US are pointing in that direction
I was anticipating a slowdown in the 4th Q. It is now looking more likely that we will fall of a cliff starting July 1st. Extended benefits will be ending. Most states start a new fiscal year and they are all dead dead dead on revenue. Any benefit we got from the census will be in reverse gear. By August 1st approximately 1mm temporary workers will again be out of a job. Housing is falling off a cliff.
Reasons for concern for our fragile economic future are turning up elsewhere as well. From Bloomberg:
The percentage of corporate bonds considered in distress is at the highest in six months, a sign that debt investors expect the economy to slow and defaults to rise.
The number of speculative-grade companies worldwide with yields at least 10 percentage points more than government bonds climbed to 399 this month, or 16.7 percent of the total, the highest share since December, according to Bank of America Merrill Lynch index data
The 2010 default rate in the U.S. may jump as high as 6 percent by year-end from 1.3 percent currently, according to analysts at Goldman Sachs Group Inc
Elsewhere in credit markets, the extra yield investors demand to own corporate bonds rather than government debt is poised to widen the most this quarter since 1998, prices of leveraged loans are set to fall, emerging market debt spreads are headed for their first quarterly increase since the final three months of 2008 and asset-backed debt sales are slowing
Says Tad Rivelle, head of fixed-income investment at Los Angeles-based TCW Group Inc.,
In the current environment, what seems to be uppermost in investors consciousness is, are we headed for a double dip?
One thing is certain. Joe Biden was telling the truth when he acknowledged last Friday that the Obama administrations stimulus policy hasnt been the success we were told it would be. And if there is another deflationary recession, or worse, Bidens admission means that this time there will be no more blaming Bush. Obama owns it.
For those interested, Fed Chariman Ben Bernanke profetic “Helicopter” speech is here.
A rhetorical question, yes? Not a serious question?
What is needed after we clean house in Congress in November is a serious analysis of the US Money supply. I think we need to move away from debt backed money that the private banks and private central banks have used to keep most of us under their thumbs, and toward an accountable government (this is key) issued currency as described here:
http://economicedge.blogspot.com/2010/02/face-of-freedoms-vision.html
“Yep, FASCISTS Barack Hussein Obama II and the DemocratsNational Socialists acted STUPIDLY! “
It is my opinion that this is exactly what they want.
They want to take over America and make it a neo- Marxist state.
What faster way then to destroy the economy?
Sure don’t appreciate seeing his face pop up.
That way, not only will we have a real stable US dollar, we also put an end to the practice of offshoring jobs and liquid assets because we no longer need to send away jobs, savings and capital investments as a means to lower the income tax burden since we have no more income taxes!
The US government has a technology, called a printing press, that allows it to produce as many dollars as it wishes at essentially no cost. Bernanke began putting it into action after the credit system seized up in 2008, purchasing $1.75 trillion of Treasuries, mortgage securities, and agency bonds to shore up the US credit system.
When a government is faced with a debt it cannot pay, it has four choices: borrow, steal, print or default. Our government has been doing the first two for years, and is easing into the third. They will not default, even if we end up with inflation like Germany had before WWII. Obama will raise taxes and print money. The money the government steals via taxes is less disposable income in the economy. More job losses. Money that gets poured down the rat hole of socialist spending. Tax increases are a disincentive to new job creation. It's the looming tax increases that have employers holding off hiring.
The Stimulis money could have been used as a tax credit for Americans and business owners to pay down debt. Instead the administration saw fit to throw cinder blocks to drowning Americans. Hence our economy is in the toilet by design, courtesy of this Socialist President and his cohorts in Congress and the anti-Americans in his Regime.
A profitable business owner takes risks to hire people and start new ventures or the other way to fire everyone and retire if the circumstances are too frustrating to want to produce. The Administration and Congress want to confiscate more of the business wealth and redistribute it, embracing social engineering to steer it 'fairly' into the waiting pockets of appreciative voters. Batten down the hatches! Taxes a plenty next year.
When the economy realizes some growth again, those waiting to get rehired as managers and engineers start to find they have to work two jobs as cashiers and janitors.
These liberals are going to friggin' sing and dance along, all the way, as they dance off a cliff.
Never forget ...
Our conversation is with Yuri Alexandrovic Bezmenov. Mr. Bezmenov was born in 1939 in a suburb of Moscow. He was the son of a high ranking Soviet Army officer. He was educated in the elite schools inside the Soviet Union; and became an expert in Indian culture and Indian languages.
He had an outstanding career with Novosti, which was, and still is I should say, the press arm or press agency of the Soviet Union; it turns out this is also a front, for the KGB.
He escaped to the West in 1970 after becoming totally disgusted with the Soviet system; and he did this at great risk to his life. He certainly is one of the worlds outstanding experts on the subject of Soviet propaganda; and disinformation and active measures.
Well, you spoke before about "ideological subversion" and that's a phrase that I'm afraid some Americans don't understand. When the Soviets use the phrase "ideological subversion" what do they mean by it?
1. Ideological subversion is the process which is [a] legitimate, old word, and open. You can see it with your own eyes. All American mass media has to do is to "unplug bananas" from their ears, open up their eyes, and they can see it. There is no mystery.It has nothing to do with espionage. I know that espionage intelligence gathering looks more romantic. It sells more deodorants through the advertising. That's probably why your Hollywood producers are so crazy about James Bond types of films. But in reality the main emphasis of the KGB is NOT in the area of intelligence at all.According to my opinion, and the opinions of many defectors of my caliber, only about 15% of time, money, and manpower is spent on espionage as such. The other 85% is a slow process which we call either ideological subversion, active measures, or psychological warfare. What it basically means is: to change the perception of reality of every American that despite of the abundance of information no one is able to come to sensible conclusions in the interest of defending themselves, their families, their community, and their country.It's a great brainwashing process which goes very slow and is divided into four basic stages.The first stage being "demoralization". It takes from 15 to 20 years to demoralize a nation. Why that many years? Because this is the minimum number of years required to educate one generation of students in the country of your enemy exposed to the ideology of [their] enemy. In other words, Marxism-Leninism ideology is being pumped into the soft heads of at least 3 generation of American students without being challenged or counterbalanced by the basic values of Americanism; American patriotism.Most of the activity of the department [KGB] was to compile huge amount / volume of information, on individuals who were instrumental in creating public opinion. Publisher, editors, journalists, uh actors, educationalists, professors of political science. Members of parliament, representatives of business circles.Most of these people were divided roughly into two groups: those who would tow the Soviet foreign policy, they would be promoted to positions of power through media and public manipulation; [and] those who refuse the Soviet influence in their own country would be character assassinated OR executed physically, come Revolution.Same way as in a small town of Hua in South Vietnam; several thousands of Vietnamese were executed in one night when the city was captured by [the] Viet Cong for only two days; and American CIA could never figure out - how could [the communists] possibly know each Individual, where he lives, where to get him; and [in order that they] would be arrested in one night basically in four hours before dawn, put on a van, driven out of the city limits and shot.The answer is very simple. Long before communists occupy the city, there was extensive network of informers; local Vietnamese citizens who knew absolutely everything about people who are instrumental in public opinion - including Barbers and Taxi Drivers. Everyone who was sympathetic to United States was executed. Same thing was done under the guidance of the Soviet Embassy in Hanoi, and same thing I was doing in New Delhi. To my horror, I discovered that in the files were people who were doomed to execution. There were names of pro-Soviet Journalists, with whom I was personally friendly.
Pro Soviet?
Yes, absolutely. They were idealistically minded leftist communists who had made several visits to the USSR; and yet the KGB decided, that come Revolution, or drastic changes in political structure of India - they will have to go.
Why is that?
Because they know too much. Simply, because, you see the useful idiots; the leftists who are idealistically believing in the beauty of Soviet or Communist or Socialist or whatever system; when they get disillusioned, they become the worst enemies. That's why my KGB instructors specifically made the point, "never bother with leftists, forget about these political prostitutes - aim higher" this was my instruction. Try to get into, uh, large circulation, established conservative media. Reach filthy rich movie makers, intellectuals in so-called academic circles. Cynical, ego-centric people who can look into your eyes with angelic expression and tell you a lie. This are the most recruitable people; people who lack moral principals - who are either too greedy or too, uh, suffer from self-importance, uh, they feel that they matter a lot. Uh, these are the people who KGB wanted very much to recruit.
But to eliminate the others; to execute the others, don't they serve some purpose - wouldn't they be the one's to rely on?
No they serve purpose only [up] to the stage of destabilization of a nation. For example, your leftists in [the] United States; all these professors and all these beautiful civil rights defenders. They are instrumental in the process of the subversion; only to destabilize a nation. When the job is completed, they are not needed anymore. They know too much. Some of them, when they get disillusioned - when they see that Marxist-Leninist come to power. Obviously they get offended; they think that THEY will come to power. That will never happen, of course; they will be lined up against the wall and shot. But they may turn into the most bitter enemies of Marxist-Leninists when they come to power; and that's what happened in Nicaragua. You remember most of these former Marxist-Leninists were either put to prison or one of them split and now he's working against the SandinistasIt happened in Grenada when Maurice Bishop, he was already a Marxist - he was executed by the new Marxists who was more Marxist than this Marxist.Same happened in Afghanistan, when, uh, first there was Taraki he was killed by Amin, then Amin was killed by Karmal with the help of KGB.Same happened in Bangladesh where Mujibur Rahman, very pro-soviet leftist; was assassinated by his own Marxist-Leninist military comrades.It's the same pattern everywhere. The moment they serve their purpose, all the useful idiots are either executed entirely; all the idealistically minded Marxists. Or exiled, or put in prisons like in Cuba many former Marxists are in Cuba, and in prison.So basically America is Stuck, with demoralization; and unless, even if you start right now this minute; you start educating new generation of Americans - it will still take you 15 to 20 years to turn the tide of uh, ideological perception of reality; uh back to normalcy and patriotism.The result? The result you can see -- most of the people who graduated in the 60's, dropouts or half-baked intellectuals, are now occupying the positions of power in the government, civil service, business, mass media, and educational systems. You are stuck with them. You can't get rid of to them. They are contaminated. They are programmed to think and react to certain stimuli in a certain pattern [alluding to Pavlov]. You can not change their mind even if you expose them to authentic information. Even if you prove that white is white and black is black, you still can not change the basic perception and the logic of behavior. In other words [for] these people the process of demoralization is complete and irreversible. To rid society of these people you need another 15 or 20 years to educate a new generation of patriotically minded and common sense people who would be acting in favor and in the interests of United States society.
And yet these people who have been programmed and as you say [are] in place and who are favorable to an opening with the Soviet concept - these are the very people who would be marked for extermination in this country?
Most of them, yes. Simply because the psychological shock when they will see in [the] future what the beautiful society of EQUALITY and social justice means in practice, obviously they will revolt. They will be very unhappy [and] frustrated people, and Marxist Leninist regime does not tolerate these people. Obviously they will join the [ranks] of dissenters; dissidents.
Unlike the present [1984] United States there will be no place for dissent in future [2008, "Hate Speech" Colorado SB200] Marxist-Leninist America.
[Now] you can get popular like Daniel Ellsberg and filthy rich like Jane Fonda for being a dissident [and] for criticizing your Pentagon. In [the] future these people will simply be [he makes a squishy noise] squashed like cockroaches for criticizing the government. Nobody is going to pay them nothing for their beautiful [and] noble ideas of EQUALITY. This they don't understand and it will be the greatest shock for them, of course.
The demoralization process in the United States is basically completed already for the last 25 years. Actually, it's over fulfilled because demoralization now reaches such areas where not even Comrade Andropov and all his experts would even dream of such tremendous success. Most of it is done by Americans to Americans thanks to lack of moral standards. As I mentioned before, exposure to true information does not matter anymore. A person who was demoralized is unable to assess true information. The facts tell nothing to him, even if I shower him with information, with authentic proof, with documents and pictures. Even if I take him by force to the Soviet Union and show him the concentration camps...he will refuse to believe it.... until he is going to receive a kick in his fat bottom.When the military boot crashes - then he will understand. But not before that. That's the tragedy of the situation of demoralization.
2. The next stage is destabilization....this time, subverter does not care about your ideas and the patterns of your consumption. Whether you eat junk food and get fat and flabby doesn't matter any more.
It only takes 2 to 5 years to destabilize a nation. This time what matters is essentials; economy, foreign relations, [and] defense systems. And you can see it quite clearly that in some... sensitive areas such as defense and [the] economy, the influence of Marxist-Leninist ideas in the United States is absolutely fantastic. I could never believe it 14 years ago when I landed in this part of the world that the process will go that fast.
3. The next stage of course is crisis, which may take only up to 6 weeks to bring a country to the verge of crisis. You can see it in Central America now; and after crisis, with the violent change of power structure and economy, you have the period of so called "normalization" [which] it may last indefinitely. Normalization is a cynical expression, borrower from Soviet Propaganda. When the Soviet tanks moved into Czechoslovakia in 1968, comrade Brezhnev said "Now the situation in brotherly Czechoslovakia is normalized". This is what will happen in [the] United States if you allow all the shmucks to bring the country to crisis.
To promise people all kinds of goodies, and the paradise on Earth. Uh to destabilize your economy to eliminate the principal of free market competition; and to put a big brother government in Washington D.C.; with benevolent dictators like [1984] Walter Mondale [2008 Obama] who will promise lots of things - Never mind whether the promises are fulfilled or not. He [the dictator] will go to Moscow to kiss the bottoms of a new generation of Soviet Assassins. Never mind [nothing to see here, move along], he will create false illusions that the situation is under control.Situation is NOT under control. Situation is disgustingly out of control.
Most of the American politicians, media, and educational system train another generation of people who think they are living at the peacetime. False. United States is in a state of war; undeclared, total war against the basic principles and foundations of this system. And the initiator of this war is not Comrade Andropov of course - it's the system. However, ridiculous it may sound, [it is] the world Communist system, or the world Communist conspiracy. Whether I scare some people or not, I don't give a hoot. If you're not scared by now, nothing can scare you. You don't have to be paranoid about it. What actually happens now; that unlike myself, you have literally several years to live on unless United States wake up. The time bomb is ticking. With every second the disaster is coming closer. Unlike myself, you will have nowhere to defect to, unless you want to live in Antarctica with penguins.This is it, this is the last country with freedom and possibility.
Okay, so what do we do? What is your recommendation to the American people?
Well, the immediate thing that comes to mind is, of course, there must be a very strong national effort to educate people in the spirit of REAL patriotism, number one. Number two, to explain [to] them the real danger of socialist, communist, welfare state, Big Brother government. If people fail to grasp the impending danger; nothing ever will help the United States. You may kiss goodbye your freedoms, including [sending] homosexuals to prison inmate. All this freedom will vanish in 5 seconds - including your precious lives.
The moment at least part of [the] United States population is convinced that the danger is real, they have to FORCE their government, and I'm not talking about sending letters, signing petitions, and all this beautiful, noble activity, I'm talking about FORCING [the] United States government to stop aiding Communism....
http://www.dailymotion.com/video/k6KUDv1wzraWhwlBt1
Don't you see it?
Wasn't it Thomas Jefferson who wrote
And then again when he wrote
That was a good post.
Remember, however, “you will fall like over ripe fruit into our hands.”
Was first said by Lenin.
Maybe Kruschev repeated it.
It is so appropriate for America today.
Dumb and rotten fruits.
I've been in South Korea for 5 tours.
They have a consumption tax, and it's a nightmare.
I'm against the so-called "Fair Tax".
I'm for a FLAT Tax where everyone is taxed at the same rate, with no exceptions, and no loop holes.
I would support confiscating EVERYTHING that every member of Congress and the Senate, who voted "Yes" for this financial disaster, has.
I wouldn't give them a retirement,
because what they can earn in the prisons where they would live in for the rest of their lives, with no chance of parole,
would go to pay down the national debt.
Their wives and children would go on welfare, and could tell their husbands/fathers just how tough it is.
I’m afraid we’re already at the guillotine stage, but sadly, no one is building the needed equipment to terminate the scum running things now.
Outstanding sign or bumper sticker.
bttt
The Democrats’ Tax Tsunami coupled with massive Democrat borrowing and spending will lead to the Obama Depression although it will be considered racist to call it that.
Check out this
2009-01 | 7.73 | ![]() ![]() |
Obama |
2009-02 | 8.44 | ![]() ![]() |
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2009-03 | 8.22 | ![]() ![]() |
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2009-04 | 8.16 | ![]() ![]() |
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2009-05 | 8.12 | ![]() ![]() |
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2009-06 | 8.07 | ![]() ![]() |
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2009-07 | 7.30 | ![]() ![]() |
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2009-08 | 8.22 | ![]() ![]() |
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2009-09 | 8.51 | ![]() ![]() |
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2009-10 | 9.92 | ![]() ![]() |
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2009-11 | 11.84 | ![]() ![]() |
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2009-12 | 12.72 | ![]() ![]() |
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2010-01 | 12.33 | ![]() ![]() |
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2010-02 | 11.84 | ![]() ![]() |
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2010-03 | 12.01 | ![]() ![]() |
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2010-04 | 12.14 | ![]() ![]() |
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2010-05 | 11.72 | ![]() ![]() |
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2010-06 | 10.55 | ![]() ![]() |
I’ll have to read more about Yuri Bezmenov.
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