Simple Economics
The End of the U.S.

•   Outside the Neighborhood   •
A Newberry Springs Community Alliance Special Report

Speeding to doom!

January 21, 2013

      The local economy of Newberry Springs, CA continues to suffer as the Obama Administration in Washington, D.C. continues to pump recently printed inflationary currency into the global market.

      Despite claims that the U.S. economy is recovering based upon national numbers that the housing market is recovering, that construction of new homes is up slightly, and unemployment stats are reduced, these claims fail to note that the numbers are largely based upon the replacement of thousands of homes that have been damaged from weather events, that many of the unemployed have given-up looking for poor "under employed" jobs, and that the administration last year (before the election) wrote-off tens of thousands of jobless from the unemployment rolls under the excuse that they had been unemployed for so long that they were "chronically unemployable."

      So yes, the unemployment numbers are far worse than what we are told... but we held the course through the last election.

      One number that the Community Alliance monitors is the state line vehicle count on the I-15 at the California/Nevada border.  Despite claims last year that the economy was improving, the December 2012 vehicle count dropped below that of December 2011.  The weekday traffic average dropped 8.80 percent and the weekend volume dropped by a whopping 16.57 percent; and this was over the already depressed figures for December 2011.

      A key factor is the price of fuel that has nearly doubled since the Bush Administration as a result of inflation.  Nearly half of what we pay for fuel is due to the overprinting of currency by the Federal Reserve under the Obama Administration.  Paychecks and government relief don't keep up with it and Americans' standard of living has steadily declined.

      Poor financial regulating under the last Bush Administration triggered the current recession; and the poorly managed bail-outs by the Bush Administration miserably failed; but far worse has been the Obama Administration's inept throwing of even far greater money into the economy to stimulate it.  Rather, he is bankrupting it.

      Both administrations have given the bail-out funds to friends and kiss-ups such as banks, financial institutions, and political supporters.  Not to the common citizen who can stimulate the economy from the roots up.

      An example of Obama's misdirection that is harming Americans and their well being is the billions of dollars that are going into solar and wind electrical generation; the most inefficient and expensive means to generate electricity.  Added to that are the power farms that are being located great distances from the end users requiring billions of dollars more for transmission lines.

      Solar and wind are not dependable 24/7.  In California for instance, the law requires that solar and wind generation be backed-up with other reliable power; so new grid delivery systems from other states (and Canada) and new traditional power plants are necessary.

      Solar and wind power does not represent the "free" eco-source of energy that President Obama has trouted.  When these "green" systems become fully online, ratepayers will be see a near doubling of their electrical bills that will further lower their standard of living.

      The greatest crisis to the U.S., even its existence, is the Obama Administration's attempt to raise the national debt ceiling.  Unfortunately, the Republican opposition is expected to buckle and permit it.  Most Americans have no idea what this means to them.

America's new wooden debt nickel.

      Under a maneuver by Republican President Richard M. Nixon in 1971, the U.S. dollar was taken off of the gold standard.  Today, the U.S. dollar is only worth the perception that people place upon it.  As more and more paper currency is being printed by Obama, the American people and their world trading partners are losing their trust in the dollar.

      What we have now is a gigantic $16.5 trillion dollar national debt that is ballooning bigger.  Rather than take measures to control and lessen it, the Obama Administration is pushing for the expansion of it; hence, his call for an increase in the national debt's ceiling.

      To understand how serious and damaging this is, the U.S. has had to borrow this (debt) money from China and others around the world.  When Obama states that we must raise the debt ceiling so that the U.S. can responsibly pay its bills, he is talking about raising the debt so that the U.S. can borrow more money to pay its debt interest payments.  Naturally, the interest payment borrowed (from the debt ceiling increase) then becomes part of the ever increasing debt.  Obama also wants to further increase the size of the federal government to skyrocket his popularity and the debt further!

      The lenders are in a situation that they must now continue to lend and support the U.S. by continuing to buy its notes because they now understand that the U.S. dollar is simply based upon a huge ponzi scheme.  If the lenders do not continue to purchase more notes, the U.S. dollar will collapse as well as the lenders' own economies; and that of much of the world's.

      Unfortunately, as the dollar's ponzi bubble gets bigger and bigger, it will eventually collapse as all ponzi bubbles do burst.  What the Obama Administration is doing, as well as the administrations before it, is simply postponing the national collapse so that it will hopefully happen during a future administration.

      No wishy-washy politician wants to tell an uneducated and stupid American population that they must expect less than what they are getting from their government.  As the bubble continues to exponentially grow, the bigger it gets, the more devastrating its rupture will be.  As most of the world depends upon the U.S. dollar, its collapse will ripple throughout the globe.

      This reality over the U.S. dollar has zoomed-up the price of precious metals such as gold, silver, and platinum; especially coins that can be privately held for bartering upon a national collapse as all banking institutions will likely close to freeze a run on funds.  In the depression of 1933, Franklin D. Roosevelt in March declared a "bank holiday" for days to head off panic-stricken withdraws.  Bank customers lost an aggregate $140 billion in bank failures.

      If there is any question of the teetering of the U.S. economy, one only has to look at the Department of Homeland Security's preparations in its own recent purchases of metal. . .   hollow point bullets.

      In fact, over 1.4 billion rounds of bullets have now been ordered by a multitude of agencies.  These are not military purchases; but they are by federal domestic agencies who are also purchasing thousands of automatic weapons.

      In August of 2011, the Community Alliance posted an article Dollars and Sense.  At the time, the national debt was $14.2 trillion.  The article compares the relationship of the national debt to that of a family's budget in easy to understand terms.  (Very short and highly recommended reading.)

      The 21st century's Tea Party movement was birthed primarily over the recognized need to limit the federal government's rapid expansion and to address the growing national debt.  Their message to limit government isn't popular with non-patriots who prefer to sell their liberty and country in exchange for dependence upon federal handouts.  President Obama, who promised the most in giveaways, received the majority of the recent primary vote.

      Economics however will eventually rule.  The debt bubble will burst with a near total destruction of our government as we know it; including governmental welfare programs and Social Security.  This can all happen tomorrow or in ten or more years.  The time isn't known as it is dependent upon the economics and the will power of the lenders that are proping-up the dollar.  We are at the mercy of China and others who have their own growing problems.

      Greece has had the European Union available to bail it out.  There is noone for the U.S.

      What is certain, is that eventually even the lenders will lose control.

      Without taking the cure pill of financial cuts now; Uncle Sam will stumble to an eventual collapse.  The failure of the U.S. dollar will likely bring widespread civil unrest with bullets flying.  So prepare for it Newberry Springs.  The Obama Administration already is.

The Gross National Debt

National debt solution.