It is End-Time

I know what you’re thinking; when I predicted gloom and doom, despair and desperation, an economy on the precipice; you scoffed from behind your rose colored glasses, wrote me off as a short busser, then continued down Pollyanna road. Now; oh now, the very financial wisdom I postulated, posited and spoke of so pointedly seems quite prophetic and proper. It is the financial end-time but it’s worse than even I put forth. The housing market meltdown, “via the sub-prime debacle” was only the first shoe to drop. There are at least shoe stores of shoes dropping behind curtain number two; unbeknownst to Middle America or Obama voters.

As America is focused on the chia pet, “Rod Blagoyavich”, those wacky, loveable leftists that burned to the ground Sarah Palin’s church, the shoe size of Baghdad reporters, Rome is burning and the left is buying marshmallows. Pay attention here as this is likely to be one of the best economics lessons you’ve ever had. And, for free; I make economics interesting. Even for Obama voters.

The sub-prime meltdown has gone global and seeped into commercial properties. Investors Business Daily predicts a forty percent occupancy rate within two years. That’s shoe number two. Clodhopper three is the ballooning un-employment numbers that are increasing prime rate defaults. Nike® number four is much more Machiavellian and diabolical. High un-employment, sub-prime defaults, commercial defaults and prime defaults produce what we are seeing in California; contracted revenues to local, state and federal receipts. As government continues to expand to the, “be-all, end-all” of the huddled masses, this financial train is coming down the mountain at break neck speed, brakes be damned and will come off the tracks.

The Federal Reserve, also known as, “the financial stooges” intends to combat the fiduciary meltdown by throwing pies at each other, poking each other in the eye, yuk, yuk, and lowering interest rates to zero or less, ala Alan Greenspan. Note; economics lesson number one. Cheap money always finds a home. Not always a good home, but a home. Cheap money after 911 has a symbiotic duality of shared responsibility with those cheese eating, rat faced democrats whom cheerleadered Fannie and Freddie, the root of all evil.

Present day; enter George Bush, Hank Paulson et al. As a conservative I have a reoccurring dream that, “Darth Vader”, Dick Cheney, quietly suffocates the compassionate conservative and takes his rightful place on the throne. I mean really; we are going to spend our way out of debt? Not bloody likely mate! Try that in your personal finances.

The Federal Reserve is investing $billions in T- bills with a guaranteed return of rate at zero. If that’s not the rooster crowing at midnight I don’t know what is. It’s also called inventing money. Look this is simple; and, it’s simply explained. Recently a representative of Israel revealed a conversation that he had held with our President. It went as so; Bush told, “HIM” that America would always be there for Israel, provided that we survived. Commodity sellers are predicting gold at $2000 an ounce next year. The dollar is falling with oil though oil is pegged to the dollar. We are seeing record deflation. Short sellers have taken over Wall Street. The Fed, Treasury and option sellers are running around like their hair is on fire. It is the financial end-time; it’s just no one wants to admit it, yet.

Depressions are the frog in ever an increasing hot water kettle. Regardless of your historical perspective or education, America did not enter a depression with the crashing markets of 1929. No; soon after the crash, markets spiked and ebbed. That is, until government got involved. We are the only country that refers to the worldwide depression as, “the great depression”. Because; we are the only country to suffer it for a decade, thanks to our benevolent government. We are pursuing the same track as the linear thoughts of Hoover and Roosevelt. Government intrusion in markets only insures everlasting harm.

It would seem that no government wants a little pain on their watch. Instead, punting great pain; ala kicking the can down the road, onto the next generation. Doing so only makes the looming crisis larger while mortgaging our children’s future. But now, the road is a dead end for the can. It is the end time, buckle up, it’s apt to get bumpy from here.

What to watch for. Treasury notes are yielding zero return. T-bills are simply American debt. Foreign countries have stopped buying our debt, knowing we can never possibly repay. And; the final shoe to drop will be a run on the dollar. When this happens we’ll, “overnight” turn into a third world, banana republic, looking to Mexico for aid.

What we could do but won’t, and why. While it isn’t possible to avoid a great deal of financial pain there are things, “legitimate practices” our government could so engage. First, we could repeal the compliance hindrances that government has shackled business with. Then we could apply common sense initiatives, such as a flat corporate tax rate of five percent. Applying the same rate to capital gains taxes would infuse private investment into industry and spawn the erection of industrial infrastructure. Manufacturing jobs would tsunami back to our shores as producers enjoy the benefit of production near consumption.

Of course, we will never do that, preferring to go down with the ship, as it were. Democrats will never accept a lowering of taxes on evil corporations as they are the genesis of class warfare. And, even if they were predisposed to do so, Russia, China and India all have much lower corporate tax rates than we do. They would never abide industry returning to America. For if we endeavored to do this, these countries would flood the world with our dollars, collapsing our economy. So, as I said, and will stand firmly by, “It is the End Time”.
Conservative Springfield 17 Dec 08
It is End-Time