Saturday, December 26, 2009

Weekend Edition The Easily Predictable January Crisis

Max Keiser has said the next economic crisis will occur soon after Goldman Sachs pays out its employee bonuses in January. Consider the following:

1) My regular readers know that I have found the dancing around the rise in the debt limit issue to be most revealing. It was first announced as 1.8 trillion dollar which was raised to 1.9 trillion but was changed to 290 billion which is barely enough to run the federal government until January 2010.

At that point the administration and the Congress can threaten to shut down the government if we do not approve an increase in the deficit that is larger than last year's 1.885 trillion dollars. The 2009 budget deficit was 1.417 trillion. If you include off budget items like the Bailouts, you arrive at the more accurate 1.885 figure which is in excess of 150 billion dollars a month.

2) I also have reported that the federal government has been fudging unemployment figures by two means. One is to report a narrow definition of unemployment that does not include the 9.8 million Americans forced to work part time who want and need full time work. The narrow definition of unemployment is called U-3 and the broader definition is U-6. The narrow definition of unemployment is reported as 10% and the broader definition is reported as 17%,

In January the federal government will be eliminating the birth death model which is one of the government's favorite fudge factors they use to make the unemployment rates appear to be better than they are. The birth death model refers to the cycle of the creation and destruction of small businesses. The government assumes that there are lots of new small businesses out there hiring lots of people. In this job market we all know that this is a lie. This means the elimination of the birth death model in January will dramatically make our unemployment situation appear to be the crisis it really is. Consider this:

Video: Depression Stories: Former Truck Driver (Interview) These men are in Florida and say their official unemployment rate is 13% but the real rate is 20% or more.

As Rahm Emanuel said, never let a crisis go to waste. When the January unemployment rates are released with all the retail store layoffs and the fudge factors are taken out, the new unemployment rates could reach 19% and be used to stampede the public into passing a Second Stimulus bill to cure what ails us not that the original 787 billion dollar Stimulus cured anything at all.

Our problem is that Wall Street shipped 5,000,000 jobs overseas through NAFTA and outsourcing. We also added 28,000,000 to our population mostly through immigration in the past ten years while losing 7,000,000 jobs since 2007. We have started to adjust to the shutting down of our production lines by laying off workers in supply industries and in retail. We have millions more layoffs ahead of us. Next year we could be laying off millions of federal, state and local government workers.

These threatened state budget crises will be added onto the unemployment problem. Please note that the administration and the Congress want to pass Amnesty for Illegal Aliens which will make our current unemployment crisis far worse than it presently is. Granting citizenship to 22,000,0000 or more illegal aliens will allow them to bring their children, parents, spouses and other relatives in to this country.

Due to population increases we are supposed to be creating 150,000 jobs a month to keep our unemployment rate at its present level. I recently explained this to a rather nice looking black woman who had an eight year-old daughter. The woman was employed but I pointed out that we had to create 150,000 jobs a month for the next 120 months plus rev up our economic activity enough to lift 9.8 million men and women from part time to full time work before we could even start to make a dent in our unemployment rate sufficient to have enough jobs available for her daughter when she graduates from high school ten years from now.

3) The 23.7 trillion dollar in Bailouts we have paid out to date did nothing to solve our crisis but has funded tens of billions of dollars in bonuses to the people who created this crisis when they invented mortgage backed securities and credit default swaps and repealed the Glass Steagall Act.

In January the banksters can easily bring forward a trillion dollars in bad mortgages. Please consider this: All Hail The Grand Poobah; Blank Checks For Fannie and Freddie Current law allowed the government to spend another 300 billion dollars on bad mortgages but apparently they think that is not enough so they are going for unlimited Bailouts for mortgage loans that the banks knew were bad when they took the applications.

The bankers and their overly paid employees in Washington will likely try to scare us into a second round of Bailouts in addition to the second Stimulus plus some money for the states to grease the skids for this planned emergency spending in January.

As I said earlier this year, when the Stimulus, Spending and additional war funding bills were passed, we will not be able to sell all those bonds. I was right. We have not been selling bonds to foreigners. What we have done is to make the Federal Reserve create more than a trillion dollars to buy our bonds.

When we borrow yuan from China and yen from Japan, we get to buy things from them with their money but when we create money to buy bonds all we get is higher prices and rapidly growing federal debts plus a looming rapid increase in our annual 700 billion dollar interest payments that will, as designed, reduce us to debt peonage.

That is our crisis. It was created by the banks in order to reduce us to slavery. I would like to suggest that instead of another Bailout we take over the Federal Reserve bank and fire everyone in Washington with any ties to Goldman Sachs, the Bilderberg Society, the Council on Foreign Relations and the American Israel Public Affairs Committee.

'The US military is exhausted' the 101st Airborne Division, which will be deployed to Afghanistan in early 2010, faces its fifth combat tour since 2002. Many of these troops are still suffering the mental and physical fallout from previous deployments ... a third of returning troops reporting mental problems and 18.5 per cent of all returning service members battling either PTSD or depression ... an 80 per cent increase in desertions since the invasion of Iraq in 2003 ... Over 150 GIs have publicly refused service and spoken out against the wars, all risking prison and some serving long sentences

America Under Barack Obama An Interview with Nat Hentoff "I try to avoid hyperbole, but I think Obama is possibly the most dangerous and destructive president we have ever had." JW: Obama is not reversing the Bush policies as he promised. But even in light of this, many on the Left are very, very quiet about Obama. Why is that?

NH: I am an atheist, although I very much admire and have been influenced by many traditionally religious people. I say this because the Left has taken what passes for their principles as an absolute religion. They don't think anymore. They just react.

Cutter Charges at Work in the North Tower of the World Trade Center

Russia: No proof of military N-plans in Iran

War crime case against Tony Blair now rock-solid

UN threatens sanctions on Israel Richard Falk, the UN Special Rapporteur for the Occupied Palestinian Territories, has urged the Western powers to insist that Israel immediately end its blockade of the Gaza Strip, threatening to enforce economic sanctions

Israel Recalls all of its Ambassadors Worldwide Please be aware that the big Zionist push is on its way.

Video: BBC now admits al qaeda never existed

Video: TRILATERAL COMMISSION MEMBERSHIP Please pay close attention to their business affiliations.

Hezbollah Secretary-General Nasrallah: Americans first victims of US brutal policies "US authorities are anti-human,"

The True Intent of Health "Reform" The tax increases come now, Medicare cuts come after the next election but in point of fact the spending will come never. The purpose of this compulsory contract, coupled with the arbitrary price ratios and controls, is to require many people to buy artificially high-priced policies ... the true purpose of this so-called "reform" - a single-payer system.

Video: Max Keiser pokes fun at MSNBC's Ratigan grovelling to health care lobby & Congress

Death Panels...To The Death regarding the section in the bill describing the Independent Medicare Advisory Board (now called the Independent Payment Advisory Board), which is a panel of bureaucrats charged with cutting health care costs on the backs of patients - also known as rationing...

In other words, Democrats are protecting this rationing "death panel" from future change with a procedural hurdle...

Jewry’s Creation Of ‘White Guilt’ -Interview With Kevin MacDonald PhD To be more specific, the various themes of modern anti-Semitism all boil down to the Jewish role as a hostile elite whose attitudes and behavior are both self-serving and detrimental to the interests of the indigenous peoples with whom they reside.

Video: Dr. Graeme MacQueen on "9/11 Truth: the Challenge to the Peace Movement"

WHAT WOULD JESUS DO ABOUT OBAMA? Reject the Christmas Style of a War Criminal President Who Said “Jesus Is My Lord“ Apparently, President Obama as so many U.S. presidents before him, has no fear of God as he holds the teaching of Jesus impractical

Break up the CIA, says fmr. Reagan intel staffer JFK had the same idea.

Salvation Army major shot dead in front of his 3 children Around 4 p.m., two black men dressed in black approached Philip Wise, 40, of Maumelle outside the community center at 1505 W. 18th St., Pulaski County Coroner Garland Camper said. Wise’ children — ages 4, 6, and 8 — were walking with him when the men came up to them, police said. His wife, Cindy, also a major in the Salvation Army, was inside the center at the time and called 911.

It's Howdy Doody Terror Time!!! Originally this Nigerian man was said to have been caught with firecrackers. Now I read he had 80 grams of explosives which works out to 2 and 2/3rds of an ounce.

80 Grams of PETN is roughly the equivalent of ten blasting caps, or 4 Hollywood type blood pack squibs. Yes, if 80 grams of PETN were sewn into the crotch of our "terrorist's" underwear and detonated, it would blow his balls off, but with the shock wave absorbed by his legs, not much more than that.

In recent cases FBI informants arrested a man so poor that when given a camera and told to rake pictures of a building he pawned the camera for $53 and bought food for his family.

Omega-3s help stave off age-related vision loss

Egypt’s President Mubarak blows his chance to behave decently time is running out for Egyptian President Husni Mubarak to prove that he is not an Israeli stooge and allow the Viva Palestina international humanitarian aid convoy to reach the besieged Gaza Strip in time for the first anniversary of Israel’s mass slaughter of Gazans.

”The convoy’s request for easy passage was Mubarak's big chance to show that he was not, after all, the cruel and unprincipled Zionist stooge that civilized people across the world had already consigned to the dustbin of history. It is not too late to make amends. But if he doesn’t act quickly he’ll blow it for everyone, including himself.”

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