Government Debt the Gasoline Thrown on the Economic Fire

Economic Recovery in the Hands of Government

The economic optimist who sees the bottom being at mid-year 2009 are becoming less boisterous as the latest batch of US and global macro data has been  – at best less than rosy.  The issue today is when or have we reached bottom.  Many are professing V shaped or W shaped recovery pattern as well as the theory that the recovery is going to be strong and robust with a return to normal growth.

The realists understand that the US economy will experience an extended period of below trend growth as Obama’s tax increases, debt overhang, and reduced corporate investments indicate that the new government driven economy of socialized business practices have caused stagflation and the practices and policy’s of the Fed and Treasury have caused inflation to increase, skewing any sign of a real recovery.

Tax policy has always stopped or started an economy depending upon how it is applied, however when government control is the principal of the party in power, economic enslavement is the best way to implement tyranny and authoritarian control of the masses, with predictable consequences as history has shown via the French Revolution.

We have been harping on the fundamentals of the economy and that no nation or business for that matter has ever spent its way out of any financial downturn by throwing a few trillion one dollar chips on the crap table when you are already down a few trillion give or take a billion.  From a technical standpoint we called for a turn in the dollar on Monday otherwise hyperinflation was setting in for an economic currency disaster.  Low and behold the dollar has shot up to 80.6 from our turning point of 78.4 not based on fundamentals but on golden ratio technical’s as discussed previously in this blog.

The Congressional Budget Office projects the debt- to-GDP ratio rising to 70 percent in 2011, the highest since the early 1950s, when the U.S. was winding down the war effort.  This is a fundamental effect from the cause of $787 billion the US Treasury borrowed via taxation and saddled American’s children and their grandchildren and their great grandchildren with when you consider the $3.7 trillion budget adopted by the new National Socialist American Worker’s Party.  One can play with the economic technical analysis while Rome burns but Rome is still burning, while Obama and his horsemen throw gasoline on the fire with enough debt to smother our future generations.

Although the April 2009 federal tax receipts were 44% less than expected when next years taxes come in to pay for more government growth amidst a sluggish economy facing growing inflation, does anyone believe this silver tongued administration has the courage to cut the social programs that it promotes?  When the government tyrants whose intent is a Marxist-fascist agenda, the best way to control the subjects is with higher taxes, will it be possible for Americans by then to wake up as California has and proclaim NO NEW TAXES?

By the time a wake up call arrives Comrade President Obama and his National Socialist American Worker’s Party in Congress will have federally funded their religious zealots such as ACORN and MoveOn.org with a smoke and mirror campaign upon the American lemmings who will follow their Authoritarian leader into the waiting arms of even greater socialist mediocrity in the coming Labor Party victory’s march to the 2010 and 2012 elections.

There can be no real campaign against state run media, and federally funded campaigns, this is how Authoritarian Rulers like Chavez and Putin stay in power.  The Rush Limbaugh’s, and Sean Hannity’s, Carl Rove’s et al of the world in charge of opposition are no match to the further destruction and disaster to affect America’s economy.  The coming opportunity for Comrade President Obama will be the financial downfall to the networks that voice a contra position to the Marxists.  Those networks are facing economic hard times.  When the government controls the banks they can stop underwriting any loans to the radio and tv stations that dare to expose the Presidents deception and agenda of Marxist-fascist indoctrination of Americans.

State run media control is already here the final cudegras will come silently as the payments on the debt to our children and their grandchildren.  Sleep America and follow the pied piper,  just don’t look for me in the crowd!