As the US economic GDP growth figures continue to be marked downward to 2.5 percent estimate for the 2010 fiscal year, this is not a rate that can sustain or promote a job recovery.  To promote job growth requires tax incentives not tax hikes.  Given the failed $860 billion in combined government stimulus spending with a debt price tag to be paid through taxation and continued fiscal deflation the economy cannot recover.  Americans must be given the tools to get back to work.  Capitalism is the water that sustains green shoots of economic activity and government controls its flow and direction.  Governments redistribution of wealth and agenda for selective capitol growth and increase in taxation will mark the end of American prosperity as we have known it, and as current economic indicators are trending.

The coup de gras to any economic recovery is taxe increases.  The Bush tax cuts will expire at the end of the year and the Obamacare Health taxes will start both resulting in lowering GDP, stopping business development and further deflation and greater unemployment since taxes are a disincentive for job creation.

The Bush Tax Cuts came in 2001 and 2003 and will expire at the end of 2010.  All taxpayers will see a sharp rise in their 2011 tax bills unless Congress acts to maintain the cuts and President Obama signs the bill.  There is an excellent chance that President Obama will not approve maintaining the existing tax cuts considering his continued expansion of existing and creation of new government programs.  This economic philosophy will destroy any economic recovery and extend unemployment and reduce economic activity by the American consumer who is responsible for 70% of domestic spending.

OBAMAS TAX PLAN TO MODIFY BUSH TAX CUTS

Obamas Plan To Cut Taxes
President Obamas plan, if passed this year, would extend the 2001 and 2003 tax relief for taxpayers
making less than $250,000 a year and hike taxes on small businesses and families earning more than $250,000.

OBAMAS PLAN TO RAISE TAXES

Tax Cuts That Create Jobs
The 2001 and 2003 tax cuts that help small businesses create jobs include lower top marginal income tax rates and lower tax rates on capital gains and dividends. Each of these growth promoting policies will expire.

Extended Tax Cuts for Some
Policies that the President wants kept include the 10% tax bracket for low levels of income, the doubling of the Child Tax Credit from $500 to $1,000, marriage penalty reductions, and the 25% and 28% marginal income tax rates. The standard deduction will no longer be doubled for married couples relative to the single level.  The dependent care and adoption tax credits will be cut.

No Job Creation with Select Extensions
While each of these policies lowers taxes, none will encourage job creation, because they do not increase the incentives for individuals and businesses to work, save, invest, or take on new risk.

Tax Hikes Will Not Create Jobs
Tax hikes on high-income earners will cause the most productive small businesses that provide jobs for the vast majority of workers to cut back on hiring. Higher taxes on high-income earners will also slow investment, which will further inhibit job creation.

The return of the Death Tax
This year, there is no death tax.  For those dying on or after January 1 2011, there is a 55 percent top death tax rate on estates over $1 million.  A person leaving behind two homes and a retirement account could easily pass along a death tax bill to their loved ones.

Higher tax rates on savers and investors

The capital gains tax will rise from 15 percent this year to 20 percent in 2011.  The dividends tax will rise from 15 percent this year to 39.6 percent in 2011.  These rates will rise another 3.8 percent in 2013.

Personal income tax rates will rise
The top income tax rate will rise from 35 to 39.6 percent (this is also the rate at which two-thirds of small business profits are taxed).  The lowest rate will rise from 10 to 15 percent.  The 25% bracket rises to 28%, the 28% bracket rises to 31% and the 33% bracket rises to 36%.  Itemized deductions and personal exemptions will again phase out, which has the same mathematical effect as higher marginal tax rates.

Backwards Plan to Stimulate Growth
The tax relief Obama wants to keep doesn’t create jobs, while the ones he intends to get rid of do.

Plan Fails Cost–Benefit Analysis
The tax revenue from pro-growth policies that would help small businesses and create jobs pales in comparison to the revenue from the tax relief policies that spread the wealth around.

OBAMACARES NEW AND HIGHER TAXES JANUARY 1, 2011

The Tanning Tax
This went into effect on July 1st of this year.  It imposes a new, 10% excise tax on getting a tan at a tanning salon.  There is no exemption for tanners making less than $250,000 per year.

The Medicine Cabinet Tax
Americans will no longer be able to use health savings account (HSA), flexible spending account (FSA), or health reimbursement (HRA) pre-tax dollars to purchase non-prescription, over-the-counter medicines (except insulin).

The HSA Withdrawal Tax Hike
This provision of Obamacare increases the additional tax on non-medical early withdrawals from an HSA from 10 to 20 percent, disadvantaging them relative to IRAs and other tax-advantaged accounts, which remain at 10 percent.

Brand Name Drug Tax
Starting next year, there will be a multi-billion dollar tax assessment imposed on name-brand drug manufacturers.  This tax, like all excise taxes, will raise the price of medicine, hurting everyone.

Economic Substance Doctrine
The IRS is now empowered to disallow perfectly-legal tax deductions and maneuvers merely because it judges that the deduction or action lacks “economic substance.”  This is obviously an arbitrary empowerment of IRS agents.

Employer Reporting of Health Insurance Costs on a W-2
This will start for W-2s in the 2011 tax year.  While not a tax increase in itself, it makes it very easy for Congress to tax employer-provided healthcare benefits later.

The Alternative Minimum Tax and Employer Tax Hikes
When Americans prepare to file their tax returns in January of 2011, they’ll be in for a nasty surprise—the AMT won’t be held harmless, and many tax relief provisions will have expired.  These major items include:

The AMT will ensnare over 28 million families, up from 4 million last year
Congress’ failure to index the AMT will lead to an explosion of AMT taxpaying families—rising from 4 million last year to 28.5 million.  These families will have to calculate their tax burdens twice, and pay taxes at the higher level.  The AMT was created in 1969 to ensnare a handful of taxpayers.

Small business expensing will be slashed and 50% expensing will disappear
Small businesses can normally expense (rather than slowly-deduct, or “depreciate”) equipment purchases up to $250,000.  This will be cut all the way down to $25,000.  Larger businesses can expense half of their purchases of equipment.  In January of 2011, all of it will have to be “depreciated.”

Taxes will be raised on all types of businesses
There are literally scores of tax hikes on business that will take place.  The biggest is the loss of the research and experimentation tax credit, but there are many, many others.  Combining high marginal tax rates with the loss of this tax relief will cost jobs.

Tax Benefits for Education and Teaching Reduced
The deduction for tuition and fees will not be available.  Tax credits for education will be limited.  Teachers will no longer be able to deduct classroom expenses.  Coverdell Education Savings Accounts will be cut.  Employer-provided educational assistance is curtailed.  The student loan interest deduction will be disallowed for hundreds of thousands of families.

Charitable Contributions from IRAs no longer allowed
Under current law, a retired person with an IRA can contribute up to $100,000 per year directly to a charity from their IRA.  This contribution also counts toward an annual “required minimum distribution.”  This ability will no longer be there.

In a recent Investor Intelligence Newsletter it was reported that America will head into a double dip recession when the Bush Tax cuts are eliminated and new Obamacare taxes come into effect.  These taxes have not yet hit the American public or businesses and when tax day April 15, 2011 comes, the reality of Americas economic situation will be evident.  To a society debating political rhetoric, the true consequences of the greatest tax hikes in history during the “Great Recession” will be a stark reality as 1930’s style deflation from Keynesian economic policy causes the American Standard of living to reach levels not seen for 80 years.

Congress may change hands and pass new tax law to lessen the economic severity of these indicated tax increases, but the pen of approval or threat of veto is in the hands of the President.  We can only HOPE he will do the right thing and CHANGE economic policy to the one that is presented to him by a new congress in 2011!

Note: Information on tax policy found from several sources; The Heritage Foundation, Report by the Joint Committee on Taxation by Congress, and Ryan Ellis article on Wednesday, July 7, 2010 – The Largest Tax Hike In History .

“In this world nothing can be said to be certain, except death and taxes.”

…………………Benjamen Franklin

Fannie and Freddie hold or guarantee more than $5 trillion worth of mortgages. That is approximately one-third of U.S. GDP. Because of their federal backing, Fannie and Freddie provide capital and guarantees to the mortgage market at lower prices than private financial institutions can offer, which ultimately transfers risk from the two entities to taxpayers.

VOLKER RULE

Public policies were enacted by congress to promote home ownership to those who could not afford to purchase a home but due to relaxation of the Fannie and Freddie guidelines the fox was let into the henhouse. Now this massive reform bill is trying to remodel the hen house and they know it will work if, when the fox gets kicked out, he makes less of a profit from lending.  This will be done by reducing and eliminating the financial market manipulation from banks and financial institutions from derivatives trading, purchasing and selling stocks, bonds, options, commodities, termed the Volker rule in the new legislation.

MORTGAGE QUALIFICATION ADDRESSED

This bill will also get mortgages back to an affordability realm such that the loan qualification by both equity and credit are adequately addressed as was the case before government pushed the market into making bad loans under the illusion that everyone should own a house so government via Freddie and Fannie reduced the guidelines for qualification of what they would buy from lenders.  The qualification aspect of the mortgage crisis has been addressed but in many cases the new mortgage guidelines are so restrictive that only those with golden credit are able to qualify.

This converts to less mortgage financing than in the past and consequently less new development especially when factoring in the growth in unemployment and the shadow inventory of homes still on the balance sheets of banks and financial institutions still left to be sold over the next two years.  All indicators are bad signs for the real estate market.  Don’t believe the indexes on the real estate recovery there is a distortion to the data.  The homes being sold are at lower prices in the worst neighborhoods which pulls the median prices down which distorts the pricing being used in touting a home sale recovery.  Half of the homes sold have been foreclosed upon verses in 2005 when that was one-percent of the market sales.

CONGRESSIONAL IRONY

How ironic to have the august body of congressmen who authorized relaxation of loan rules to take place, by Fannie and Freddie’s underwriting policies, which in turn led to the financial melt down.  Now these same congressmen are reforming the system which they were in charge of and due to their  short sightedness were responsible for the mortgage debt crisis in the first place.  Congress did not enhance protections to regulations in the mortgage system but allowed Fannie and Freddie to take steroids and looked the other way when indicators of a melt down were starring them in the face.

Under the new reforms, loans will not be sold to Fannie and Freddie in the same old way but banks will be required to retain at least five percent of the mortgage liability and if there is a bad loan that five percent is the first amount that goes to pay the default such that the bank shares the risk. Not a bad concept but the big question is the unfunded Fannie and Freddie liability from the other 95 percent that they hold. How are they protecting the taxpayers risk? Why is congress doing nothing about that?

INTERNATIONAL CONSPIRACY CAUSES MORTGAGE MELTDOWN

Let us consider the implications of this Fannie and Freddie problem from not being addressed in the bill by our elected officials in congress. At the time of the fiscal crisis, as reported by then Treasury Secretary Paulsen, in mid 2008 Russian officials approached the Chinese government and suggested that both dump the securities of the Fannie and Freddie to put pressure on the U.S. to fully back them. The Chinese apparently demurred but, according to the federal register, they still sold nearly $50 billion during 2008 while the Russians liquidated their entire holdings of over $170 billion. This episode put enormous pressure on Fannie and Freddie, increasing the spread between Treasuries and Fannie-Freddie debt enormously and practically killing the repo market. In the end the U.S. was forced to put Fannie and Freddie into conservatorship.

As indicated in this example government participation in the debt market having packaged Freddie and Fannie debt to international buyers without adequate checks and balances provided a conduit for fiscal disaster.  Let us just consider the trillions of US debt that is now being sold on the open market to finance the Keynesian economic model of government stimulus to promote private sector growth, an issue now being discussed at the G20 summit in Toronto Canada.  The American $860 billion in combined stimulus spending is not reducing unemployment as it was promised to do, on the contrary unemployment is headed back up and the President is calling for more stimulus spending to keep the phantom economic recovery from dematerializing.

Considering it is not in the realm of impossibility for nations that view America’s fiscal situation as a means to their own distorted ends with unmerciful intentions, how is congress protecting taxpayers from the type of economic terrorism that occurred two years ago?  An America not protecting itself from the onset of an international monetary crisis will lead to another fiscal disaster given the amount and ownership of debt by countries that are hostile to America’s prosperity while the Keynesian ponzi scheme by government officials continues unabated.

ALTERNATE SOLUTION

To protect itself from the future bursting debt bubble, followed by an impending depression, government should privatize the Fannie and Freddie debt slowly over time and take government out of the mortgage business.  If the Keynesian economic model, Obamanomics, cannot stimulate private sector growth without continued government subsidies and stimulus then government should be taken out of the capitalist operating model.  Simply put, if the private sector cannot function without government guarantees and subsidies then these should be made explicit and priced accordingly and removed from the economy over time.  Make government the referee not participating in the ring as a player where it has always shown its ineptitude and take the tax payer off the hook as a backstop for the too big to fail bailouts.

Let us quickly look at the Obama administration’s flagship effort to help people in danger of losing their homes in the Home Affordable Modification Program (HAMP).  This program was to assist those close to foreclosure by participating in a government run program designed to lower borrower’s monthly payments from mortgage companies which would get government incentives to reduce borrowers monthly payments.

As of today, more than a third of the 1.24 million borrowers who enrolled in the $75 billion HAMP have dropped out because they cannot make the payments.  The Obama administration initially pressured banks to sign up borrowers without insisting first on proof of their income. When banks later moved to collect the information, many troubled homeowners were disqualified or dropped out.  Requiring homeowners already financially underwater to provide documentation of income has turned people away from enrolling in a program because  they know they cannot qualify for funding.

HAMP AND RAFS BOTH BAILOUT PROGRAMS

HAMP has worked so well that a similar and modified provision is included in the new RAFS act where failing corporations can go to the Fed and be bailed out.  Only under the RAFS act the debtor can remain anonymous and the Fed can make these loans under guidelines that they deem appropriate for the circumstances which they encounter and deem feasible.  To accomplish more bailouts, a $50 billion fund was provided in the Senate Bill, and a $4 trillion in “secured loans” bailout fund in the house bill.  This bailout provision has been termed crony capitalism because the Fed is directly responsible for financially rewarding firms that fail while the taxpayer remains on the hook for the bailout.

House Financial Services Committee hearing, Sept. 10, 2003:

Rep. Barney Frank (D., Mass.): I worry, frankly, that there’s a tension here. The more people, in my judgment, exaggerate a threat of safety and soundness, the more people conjure up the possibility of serious financial losses to the Treasury, which I do not see. I think we see entities that are fundamentally sound financially and withstand some of the disaster scenarios. . . .

Americans will be made to bow submissively to her domestic captors, and pay tax to a new ruling class that uses bribes, lies and treachery to maintain control over their subjects.  The national nervous progressive fever will not exempt them from the disease that caused its infected followers to willingly gave up liberty and free choice for government mandates.

The repudiation of freedom on the part of the prudent and imprudent political ruling class to adopt a policy directed against the very nature of man, all to gain a part of the financial excess that they themselves wish to distribute in accordance with the dictates of their fascist nature is a plague that will kill the host.

Progressives have deceived themselves into the unmistakable declaration of submission to a higher authority because their instinct as a people whose nature is too feeble and uncertain to stand up for the very freedom that made their country the greatest nation in the world has again been chained into submission by an socialist oligarchy.

Those infected with the government disease have left their faith and virtue in the hands of men found holy by stature but not by principal, or character.  In following the character of their ideologue captors, who have proven they have no morals only brute force mob control to shackle the all-to-naïve people who believe in men, they have lost touch with their humanity and traded in their liberty.

Let us speak of the progressives as a race of men easily wiped out and extinguished by a stronger race therefore they seek a political overseer to hold the power of their liberty when they themselves cannot find the inner strength to provide for their families by their own efforts and therefor seek government enforced fairness in the name of equality and freedom.

There is another race of Americans who beyond all doubt are the strongest, not by expecting entitlements  from bureaucratic bosses and subjecting themselves to domination but who know how to succeed under the worst conditions by means of virtues now termed vises yet they are Americans who do not need to be ashamed before the new modern ideals of progressive statists.

The genius of America was not in the expansion of government control but in the protection of basic human rights and liberty to pursue innate individual demands to create lives without the manacles of financial burdens mandated by the statists. Yet those have inculcated the institutions of education with training to be intellectually and financially subservient to big government when it suits their needs.  They have a history of subservient following fearful as a deer in the gaze of a capitalist lion seeking refuge in being controlled by the herd rather than using the herd to maintain its liberty.

Whether they are too big to fail seeking bailouts from financial ruin or empowering government dictators to infringe upon liberty in the name of fairness and equality, Americans have allowed themselves to be dominated and controlled once again after 244 years of freedom modeled after the failing form of a Teutonic European Empire.

America’s is about to lose its AAA bond rating.  The debt service to fund the entitlement society, the governments majority ownership of financial and health insurance industry, auto and banking as well as the expansion of government employment necessary to control this massive enterprise is causing a financial implosion to an already weak and unemployed society.

Currently, 46 if 50 states could file bankruptcy in 2010, states are running out of money and their bills and tax refunds owed to the citizens will go unpaid.  Banks will not make any more bad loans and the Fed cannot possibly support another two trillion dollar State bailout.

With no loans, and States out of cash 2010 marks the end of the United States as we have known it.  No State has ever filed for bankruptcy protection but the taxpayers are out of work, out of cash and out of patience with unprincipled government spending.

As Washington continues its massive socialist agenda with higher corporate taxation through cap and trade and shifting the burden of its unfunded mandates for illegal immigrants on already cash strapped states, Government is in process of financially imploding America and in this emergency will grab for more power and control from a naïve, believing and unsuspecting progressive public.

The economy of this nation cannot climb out of depression when the leader of the free world speaks with forked tongue in attempts to pass legislation that will destroy the economy by adding explosive new debt bombs set to go off in the future through policies put in place by the current Marxist-fascist regime.  Federal mandates with no corresponding automatic cost reduction is like giving a license to steal while promising to fund a police force to arrest the criminal.

Obama isn’t lying he is just using deception, corruption, and detrimental reliance on his words, all tools to create and enforce a fascist state upon Americans.

Does He Lie?

By Charles Krauthammer
Friday, September 18, 2009

You lie? No. Barack Obama doesn’t lie. He’s too subtle for that. He . . . well, you judge.

Herewith three examples within a single speech — the now-famous Obama-Wilson “you lie” address to Congress on health care — of Obama’s relationship with truth.

(1) “I will not sign a plan that adds one dime to our deficits — either now or in the future,” he solemnly pledged. “I will not sign it if it adds one dime to the deficit, now or in the future. Period.”

Wonderful. The president seems serious, veto-ready, determined to hold the line. Until, notes Harvard economist Greg Mankiw, you get to Obama’s very next sentence: “And to prove that I’m serious, there will be a provision in this plan that requires us to come forward with more spending cuts if the savings we promised don’t materialize.”

This apparent strengthening of the pledge brilliantly and deceptively undermines it. What Obama suggests is that his plan will require mandatory spending cuts if the current rosy projections prove false. But there’s absolutely nothing automatic about such cuts. Every Congress is sovereign. Nothing enacted today will force a future Congress or a future president to make any cuts in any spending, mandatory or not.

Just look at the supposedly automatic Medicare cuts contained in the Sustainable Growth Rate formula enacted to constrain out-of-control Medicare spending. Every year since 2003, Congress has waived the cuts.

Mankiw puts the Obama bait-and-switch in plain language. “Translation: I promise to fix the problem. And if I do not fix the problem now, I will fix it later, or some future president will, after I am long gone. I promise he will. Absolutely, positively, I am committed to that future president fixing the problem. You can count on it. Would I lie to you?”

(2) And then there’s the famous contretemps about health insurance for illegal immigrants. Obama said they would not be insured. Well, all four committee-passed bills in Congress allow illegal immigrants to take part in the proposed Health Insurance Exchange.

But more important, the problem is that laws are not self-enforcing. If they were, we’d have no illegal immigrants because, as I understand it, it’s illegal to enter the United States illegally. We have laws against burglary, too. But we also provide for cops and jails on the assumption that most burglars don’t voluntarily turn themselves in.

When Republicans proposed requiring proof of citizenship, the Democrats twice voted that down in committee. Indeed, after Rep. Joe Wilson’s “You lie!” shout-out, the Senate Finance Committee revisited the language of its bill to prevent illegal immigrants from getting any federal benefits. Why would the Finance Committee fix a nonexistent problem?

(3) Obama said he would largely solve the insoluble cost problem of Obamacare by eliminating “hundreds of billions of dollars in waste and fraud” from Medicare.

That’s not a lie. That’s not even deception. That’s just an insult to our intelligence. Waste, fraud and abuse — Meg Greenfield once called this phrase “the dread big three” — as the all-purpose piggy bank for budget savings has been a joke since Jimmy Carter first used it in 1977.

Moreover, if half a trillion is waiting to be squeezed painlessly out of Medicare, why wait for health-care reform? If, as Obama repeatedly insists, Medicare overspending is breaking the budget, why hasn’t he gotten started on the painless billions in “waste and fraud” savings?

Obama doesn’t lie. He merely elides, gliding from one dubious assertion to another. This has been the story throughout his whole health-care crusade. Its original premise was that our current financial crisis was rooted in neglect of three things — energy, education and health care. That transparent attempt to exploit Emanuel’s Law — a crisis is a terrible thing to waste — failed for health care because no one is stupid enough to believe that the 2008 financial collapse was caused by a lack of universal health care.

So on to the next gambit: selling health-care reform as a cure for the deficit. When that was exploded by the Congressional Budget Office’s demonstration of staggering Obamacare deficits, Obama tried a new tack: selling his plan as revenue-neutral insurance reform — until the revenue neutrality is exposed as phony future cuts and chimerical waste and fraud.

Obama doesn’t lie. He implies, he misdirects, he misleads — so fluidly and incessantly that he risks transmuting eloquence into mere slickness.

Slickness wasn’t fatal to “Slick Willie” Clinton because he possessed a winning, nearly irresistible charm. Obama’s persona is more cool, distant, imperial. The charming scoundrel can get away with endless deception; the righteous redeemer cannot.

Two Million March On Capitol to Protest Government Spending

Americans have woken up!  They are mad as Hell and “Just Won’t Take it Anymore!

Up to two million people marched to the U.S. Capitol today, carrying signs with slogans such as “Obamacare makes me sick” as they protested the president’s health care plan and what they say is out-of-control spending.

The line of protesters spread across Pennsylvania Avenue for blocks, all the way to the capitol, according to the Washington Homeland Security and Emergency Management Agency.

People were chanting “enough, enough” and “We the People.” Others yelled “You lie, you lie!” and “Pelosi has to go,” referring to California congresswoman Nancy Pelosi.

Demonstrators waved U.S. flags and held signs reading “Go Green Recycle Congress” and “I’m Not Your ATM.” Men wore colonial costumes as they listened to speakers who warned of “judgment day” – Election Day 2010.

Richard Brigle, 57, a Vietnam War veteran and former Teamster, came from Michigan. He said health care needs to be reformed – but not according to President Barack Obama’s plan.

“My grandkids are going to be paying for this. It’s going to cost too much money that we don’t have,” he said while marching, bracing himself with a wooden cane as he walked.

FreedomWorks Foundation, a conservative organization led by former House of Representatives Majority Leader Dick Armey, organized several groups from across the country for what they billed as a “March on Washington.”

Organizers say they built on momentum from the April “tea party” demonstrations held nationwide to protest tax policies, along with growing resentment over the economic stimulus packages and bank bailouts.

Meanwhile, Comrade Obama, acting like the Alinski-Marxist-fascist he truely is   “kept up a steady weekend drumbeat of cheerleading for his health care plan in a campaign-style rally, on the radio and Internet, and on network television. He planned to continue the pace with more events designed to seize control of the health care debate following his address to Congress last week in which he urged Democrats and Republicans to come together.”

America is in the beginning of a deleveraging crisis which it hasn’t experienced since 1930 and it took a world war to get out of it.  This time there is an inexperienced Marxist-fascist idealist at the helm bent on fundamental change away from capitalism toward communism in response to a catastrophe created by government.  That will extend the recession/depression into the future until the priority is job creation instead of communist ideology and nonsensical rhetoric in a campaign that does not answer policy questions but labels Americans asking for answers as anti unruly dissenters.

Currently the US has 1.7 times the level of debt as compared to 1930, not mentioning the level of derivatives about $1.25 quadrillion that are obviously out of control.  Deleveraging by private sector, reducing debt level, is overwhelming the government stimulus. Businesses and Americans for that matter to survive in these uncertain times are cutting their debt, liquidating assets and only spending on the essentials. Aggregate private debt is $2 trillion or 5% deleveraging creating a $100 billion cut in demand, at this time.

Government developed the TARP program for banks to help reduce debt of its customers and the only way to access TARP funds is to reduce by 30 percent, the amount of debt of its most distressed customers.  This takes time and will cause further bankruptcy while businesses await recovery of demand that is not returning.

Bank nationalization, allowing larger banks to gobble up the more insolvent institutions has proven to make profitable the big banks Goldman Sacks, Wells Fargo, and Bank of America, by acquisition of assets of debtors at bargain basement prices, with the assistance of the government, thereby creating an ever greater ability of a smaller group of banks to monopolize the credit system which is set up to pump out as much debt as possible thereby making as much profit as possible for their big banker owners.

Easy credit, cheap money and massive borrowing caused the problem; a continuation of government debt has proven that jobs are not created, a continuation of the big banks and governments creating more debt through refinancing and more leverage at artificially low interest rates will not create more jobs.

The fundamental structure of government regulation that led to this financial catastrophe must be changed.  Government must back away from nationalizing private institutions and promote capitalism. Thereby creating an atmosphere for the business sector to understand that there will be no disincentives for increasing production, that employment with added union incentives and higher payroll taxes and higher capital gains taxes, and higher income taxes, if your sub-chapter S corp. makes over $250,000, which is just about every small business, a recovery will not happen in a state of fear.  The outcome of Obama’s policies is that American businessman will not venture into the creation of jobs unless there is certainty that the government meddling will stop.

Comrade President Obama and his unconfirmed cabinet of communist czars are rubbing their hands at the opportunity to socialize capitalism.  The problem as communists see it is freedom for business to prosper in an environment that supports job creation, the expansion of manufacturing, the benefits associated with creating profit from business enterprise.  However, businessmen who risk their talents on their perception of what Americans want and are willing to provide goods and services to meet that anticipated demand are not stupid.

What is happening, as Comrade Obamas attempts to reorder society’s priorities by mandating green job creation in a market place that does not support or incentivize this yet to be determined demand is more uncertainty.  But the demand is coming for green, people will be planting victory gardens as they did in the 1930’s!

The rise in power prices from cap and trade and taxation of all forms of energy production, not to provide more efficient production of energy resources but to artificially create demand through government disincentive, is a job killer.

Under the new communist policies of Comrade President Obama the revolution he was looking for in fundamentally changing America is backfiring.  Americans are becoming mad as hell, it’s the economy stupid!

The more his charismatic theatrics and bloviating campaigning for more government control intensifies, the greater revolt from every day Americans who want a job, will blow back in his face a revolution the size of which has never been seen before in American Politics.

Amidst Obama’s lower and lower job performance ratings and a disgusted public catching on to his communist agenda, the real culprit in this credit crisis is government itself for allowing the unregulated government institutions of Fannie mae and Freddie mac that ran the secondary credit market to purchase garbage from wall street and resell it world wide is going free.

Comrade President Obama with your communist bureaucratic czars attempting to reform America into a Cuba, a Venezuela, a Russia, by not reforming government to an effective and effective institution to work cooperatively with the private sector, more economic chaos will result.  The momentum of this chaos is directly related to the greater government intervention you seek.   The harder you blow the more the sails of counter revolution will fill and the ship America will sail faster and faster toward solving this problem without you!

Americans no matter the party want to generate wealth, prosperity and provide for their families. The only thing standing in their way is your administration and any liberal congressman that offers more government instead of freedom for the private sector to create jobs.

When the priority is jobs, not health care, not cap and tax, not global warming, not nationalization of banks, financial institutions, the auto industry, not more unions but PRIVATE SECTOR JOBS then America will get back on track.  Communism is not a job creator but a job killer.

The US trade deficit has since shrunk to $27 billion but was $77 billion a year ago. The chart shows exports have shrunk, but imports are shrinking faster as the US consumer gave up purchasing.  The more the price of oil goes down the more the trade deficit will shrink, this would be a good thing.

Deflation is propelling the US Trade balance to head for more healthy territory.

The Fed and US citizens out purchase China as holders of  US Debt

The market for Treasury bonds is now more reliant on U.S. buyers — including the Federal Reserve after its recent buying spree — than the Chinese.

China held $801.5 billion in Treasury debt at the end of May. The Fed at that time held about $598 billion, although that has now risen to $704 billion. The latest figures for U.S. households, from the first quarter, showed holdings of $643.9 billion — more than double the $266.6 billion in the fourth quarter of 2008.

The rising budget deficit, which has led to record issuance in recent months, doesn’t necessarily mean the government is becoming more indebted to foreigners. While the U.S. government is borrowing furiously, the current account deficit has actually halved from an annualized $829 billion in mid-2005 to an annualized $409.5 billion in the first quarter of 2009. That shows the U.S. is now less dependent on external financing, because it is saving more domestically. The U.S. government may be in hock, but it is increasingly to its own citizens.

This is the important question for Americans you can experiment with the economy of the state but will you experiment with your own life and that of your family?

It appears Americans are doing just that, yielding to the sleep of words from the teleprompter mouth piece of the State surrendering body and soul to the sickness of a man’s radical ideology because he sounds so reasonable, is so articulate and attractive and willing to break from the past and provide a transparency to government so that all could have firsthand knowledge of pending legislation.

So all could participate in changing America, into a new society where all could participate in the redistribution of wealth.  A man who promised openness in the White House, who promised to do away with politics as usual and bring all stake holders into the discussion so that he could bring fundamental change to America.

In the first six months of his administration we have found that his words were, a means to a communist end. Or rather Americans just misunderstood him because the ambiguity in context of traditional terms of American values and the constitution, which Comrade President Obama took an oath to protect, would cut towards prosperity, openness freedom and liberty but his words were a cover for his Marxist-fascist sickness.

Freedom and liberty are for the State to provide on behalf of the PARTY members and media cling-ons who hope to participate in PARTY hierarchy by providing political propaganda news coverage in the main stream media.

Americans are not given time to read bills as promised, but are met with hostility when asking for an explanation and reasoning behind pending legislation, they are called names effectively categorizing them into groups of dissidents rather than respecting them for the power they allow their representatives to yield.

Obviously, Comrade President Obama is a fraud.  He is sick and carrying within him his philosophic madness, fully intending to infect all Americans by either direct contact or through the air waves.

The administration’s “Green Jobs” czar, Van Jones, himself stated in a 2005 interview his environmental activism was a means to fight for racial and class “justice,” and that he was a “rowdy black nationalist,” and a “communist.”  How can Americans expect to get back to work in an severely weakened economy with communists running the government, putting the American economy in massive debt from which there is no recovery.

As Americans wake up in a state of illness, menatlly stressed that sickly thinkers are in charge of their destiny, that their health consisting of freedom of choice and liberty from PARTY dictates, is now so infected with a disease so devastating they wonder if they and their families will survive this mental viral contagion now being administered in monumental doses by the State run media.

In weakness, or reversion having taken stock of this morbid condition that will push America into obscurity from a place when in times of good health the spirit of pride in the accomplishments of this nation and the freedoms it has created by sacrificing the blood and treasure of its citizens, one remembers to look with a sharper eye at the intrinsic foundation, at their own inner strength that this illness is a calamity brought on by hitherto unhealthy thoughts.

The unconscious disgusting ideology governed by mountains of misunderstandings from media outlets that provide the voice of the Messiah are being seen from a sick bed as the root cause of this illness from those delirious few who have awakened to the facts.

Either the body constitution of all classes, colors and creeds recognize that the infection being wrought upon American society will kill it, as it is now dying with symptoms of unemployment, nationalism, home foreclosures, bank failures, and  run away government spending people must get up off their death beds and answer one question.

What is the worth of existence if on the whole such Marxist-fascist parasitic affirmations historically proven to murder their very host, be allowed to gain full control of the one country in the world that promotes and provides a beacon of freedom and liberty for all peoples?

If her people were to lie down powerless with a disease of their own making and allow their constitution and sovereignty to be taken given a premonition of the end of days, with their will exhausted by impoverishment, would there not be one man willing to go forth and venture on the judgment that what has been considered “truth” is the very root and cause of this infection.

Man must have the courage to follow his suspicions about truth to their ultimate conclusion and if answers are sought and withheld or given but masked in political jargon then the only cure is inoculation that will kill the Marxist-fascist parasite for the collective health of all peoples, races and mankind in general.

It is high time for the Marxist-fascist parasites to be rooted out and eliminated before the host is killed.

Based upon Comrade Presidents Obama’s nationalization of the banking sector of the once free American capitalist economy, financial assessments must be viewed based on the Government controlled assets.  Lets see how they are performing:

J.P. Morgan Chase, an amalgam of some of Wall Street’s most storied institutions, now holds more than $1 of every $10 on deposit in this country. So does Bank of America, scarred by its acquisition of Merrill Lynch and partly government-owned as a result of the crisis, as does Wells Fargo, the biggest West Coast bank. Those three banks, plus government-rescued and -owned Citigroup, now issue one of every two mortgages and about two of every three credit cards, federal data show.

Larger government control of the financial sector is here to stay.   Government will pick the winners and losers based upon partisanship and support for the Democratic Party’s policy’s.  The American market is no longer free it is now a government favored market ensuring that the greatest amount of banking control of the private sector is done by government controlled banks.  Competition will not be allowed by the Fed.  It will not give preferential rates to private banks who in conglomeration could compete with the fully controlled government institutions thereby reducing revenue from the amalgam of wall street owned institutions

Free market competition is a thing of the past, it is now controlled by government  for the benefit of the people, not by the people for their own benefit.  A liberal progressive agenda has completed a coup d’etat of the US government that has replaced freedom and liberty with  Marxist-fascist programs.

American reporters are nothing but a bunch of blond cheerleaders who are fed information in the dark and do not know enough math to figure out their days too are numbered, but they only know what they are told told to believe and to them the economy is now growing.  When economist projections and the real world facts they diddle with look to make a move they were too inept to interpret they get their pom- poms out and start cheering!

What are they cheering about, lets take a look:

Four straight quarterly declines in GDP, which measures the country’s total output of goods and services, mark the first time that has occurred on government records that date to 1947, BUT the  fourth consecutive decline, was far smaller than the previous two quarters. The good news is that it was stronger than the 1.5 percent decline that private economists “believed” would occur.

Economists believe the unemployment rate, currently at 9.4 percent, will keep rising through the spring of next year. Christina Romer said Tuesday (she believes) the unemployment rate is likely to keep rising and hit 10 percent this year.

Corporate inventories were cut more than initially estimated, that weakness was offset by upward revisions in other areas.  Inventories need to  be cut to the bone if no one is buying it keeps costs down, as does laying off employees.

What could the upward revisions be?  Government intervention!  Lets forget about the taxes needed to keep government alive, the massive debt balloon hasn’t hit yet but public financed tax spending is what is slowing the decent into a make believe recovery.

Government found that consumer spending didn’t fall as much as they “believed” it only fell at 1 percent, economists believed that 1.5 percent was going to be the fall in consumer spending.

But the  true bright spot is government billions in the cash for clunkers program and the $787 billion stimulus Government cash programs that  are “believed” to spur the economy.

Sales of new and existing homes have risen but are nothing compared to the actual number of national foreclosures.

The only business that is booming is Government!

When old people die, from weakened state of sickness with organs having been stretched to the limit in life as if the body were indestructible have their revenge be it but a fleeting one.  Yet the brain, the seat of the mind undergoing a violent socialism as the vital resources of the system demand all production in the name of the state, make his death bed behavior and the nature of this time a sad reflection considering a life of privilege or one with a hand stretched out.

So it is at this time that those with superstitions, religious crosses, or political aspirations show the cards of their tarot, some in fear others with something to profit from, as if dying, crossing over, were much more of a consequence to benefit from  than presenting useless words that gain nothing but raising the white flag of surrender to a power that knows no fear, that has no death, that embraces all and shows no forgiveness but is forgotten by the living until the time is right.

And so the solemn bystanders with tears, testimony and transcendence offer in silence and emotion their own respects others inveigh a conscious vanity, comic if it were not for the seriousness of the matter at hand with a comment such as:

“Ted Kennedy’s dream of quality health care for all Americans will be made real this year because of his leadership and his inspiration,” said House Speaker Nancy Pelosi in a statement.

The serious way in which the death of every man who for a time lays in state, is watched by the living and how his body is treated at this time, though the soul departed, shows the inner character of the mortal man in attendance be it with love in their hearts or evil to gain, as if the life and sacrifice of it in the face of eternity  would give a damn for either.

In those who would carry on, in fleshy atomic cloths hoping to ring some amount of compensation and repayment as if life were to be forsaken, may find themselves in an exalted state over the lives of others or asleep in their cloths in the gutter, may they but melt into the earth only to be reborn to seek life with a soul that learns to find the infinite free nature of man to the sound of one hand clapping.