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Monday, November 12, 2012

Between a rock and a hard place

  Now the election is over and American has found itself in dire-straights for the next 4 years with a debt ceiling crisis looming (referred to as the fiscal cliff) we are right where many on the extreme-left have wanted to put us for a long time.  Taking a page from Ronald Reagan they have put us on a road to serfdom that we may not be able to get out of without some Houdini-like maneuvers on our part.

  To those who are unclear about that last sentence let me be more expound.   Back in the 80's the US was in the middle of the Cold-War with their arch rival the USSR (Soviet Union) and many feared that the two countries would square off in a nuclear-war contest.  Ronald Reagan however turned the Cold-War into Economic-War.  Using our economic might, he ratcheted up our military spending building better aircraft, ships, submarines and satellites (Start Wars Initiative to take down incoming enemy missiles).  Russia countered our efforts by spending larger and larger parts of their GDP to build up their own military, but because of their economic model their did not have as deep of pockets as our US government did causing them to go further into debt.  As a result the people of the USSR suffered.  They had to go without for a long period of time (food and resources were in short supply).   The grumblings of "the masses" forced Russia to invoke Perestroika (reforms) that allowed more freedom of speech and ownership.   This was the beginning of the end for the USSR.

   Finally the debt was too much and the only way out was a full blown bankruptcy.  Just as a company that is debt ridden can go through bankruptcy so also a country can and the methods are quiet similar.

   First a company sells off its less necessary and viable parts allowing it to focus on its main areas.  For Russia, this was letting go of its eastern block countries like Poland, Rumania, Yugoslavia, Czechoslovakia etc.  With these gone, Russia would be able to serve its own people better

  Second a company must restructure itself and come up with a better business plan/model.  This may mean firing the CEO and several VP's and managers while also changing their system of rewards and bonuses.  For Russia, this was throwing away their old Constitution and system of government and coming up with a new system that is fairer and just.   Their new system allowed capitalism and free-markets to come in and develop new businesses.  

  With the first 2 steps in place, a company needs to bring in new investors to help fund them and pay off old debts (or at least the ones they can pay back).  Without the first 2 steps, very few would be willing to take a chance.  For Russia, we became their largest investor and gave them loans to keep their lights on until they could become a democratic republic.

   Now here we are facing a debt crisis.  Not one created by external forces, but one created by those inside who care little about our history and our system of government.  Like Russia, we have been duped into running up huge debts through social-security, welfare, medicare and food-stamps.  Later on we will start to feel the weight of the debt of all debts: Obamacare.  All of this, at a time when our country is not at its HEIGHT of economic power, but at its WEAKEST.  Our economy is in a perpetual recession (no one likes to say DEPRESSION anymore).  Higher taxes coming will do two things.

   1) Slow our economy further causing more layoffs. These layoffs will increase to government 
       expenditures in welfare and food-stamps.
   2) Higher taxes will cause lower revenues (Laffer-curve) as incentive to grow income will be
       reduced.  Higher debts will call for MORE taxes and therefore reduced revenues

   At some point we, like Russia, will have to say "UNCLE" and call in the bankruptcy attorneys (the UN) to negotiate a new system of government.   This new system of course will not be as free as the last one, because to them it's FREEDOM that is the cause of all the ills in this world.   To them, too much freedom is a bad thing and allows too much money to go in the hands of too few.  Ronald Reagan predicted this day would happen and said in his 1960 speech, "When that time comes, our surrender will be VOLUNTARY because by that time we will have been weakened within: spiritually, morally and economically".

   To those of you who think this is all just conspiracy stuff, let me discuss what happened in 2008.  If you remember when the debt-crisis first came out in the fall of 2008, by January of 2009, Congress had a 2000 page stimulus bill ready to pass with over $800 billion in goodies to pass out.   Did that bill just write itself?  Of course not.  A group called "The Apollo Alliance" had been working on it over several years in the "event such a catastrophe occurred",  Amazing huh?    We are so lucky to have such a group spending their time thinking about these things.  Given this, don't you think there are people out there right this very minute working on a NEW CONSTITUTION for us to pass in the event we just might need one? 

   What can be done?  We are in a very difficult position.   If business pushes itself and gets the economy running it will only encourage more people to vote for the democrats and would show Obama as the "economic saviour" of our country and further push his agenda.  If business slows down and lays off more people then that plays into the democrats hands all over again and will cause us to race towards the fiscal-cliff.

   To me the only solution would be for business to shutdown in a massive way such that no matter how much sugar the media tries to put on it things will look extremely bad.  This will destroy Obama's clout and any "mandate" he thought he had and hopefully by 2014 we would be able to have a revolution at the polls where people will vote with their pocket books and not their bleeding-hearts.

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