Tag Archives: recession

The Wall Street Bailout Bill is Actually a Huge Pork Sandwich

Much has been said about the Wall Street bailout bill this past week and by people more versed in economics than I. Comments ranging from “Planned Illuminati Implosion” to “The Beginning of the American Police State” have made their way across the InnerTubes like seeds blown from a dandelion. The main idea I take from this however, is that the American taxpayer and the next three generations will be paying for the past eight years of the NWO patsy Bu$hco Criminal Cult and that this will amount to eternal slavery for the sheeple.

Most of my readers will agree with this assessment and then add a few of their own for good measure, so I’m preaching to the choir essentially.

But does anyone know what’s exactly inside of this bill?

According to Yahoo ! News, the “sweeteners” and other additives to this ‘bill’, have little to do with Wall Street:

Wind power developers, disaster victims, college students, teachers and millions of taxpayers and businesses stand to see substantial benefits from the tax relief package that lawmakers added to the huge financial rescue plan.

So will more narrowly focused groups, including motor sports racetrack owners, film producers and bicycle commuters.

Virtually all of the tax breaks already exist. But many of them expired Jan. 1 for use in the current tax year, and the others will expire three months from now unless Congress renews them.

The largest group of beneficiaries in what is now the tax portion of the financial rescue bill is about 20 million mainly upper-middle income taxpayers. Without congressional action, the AMT, with originally was supposed to affect only the very rich, would add some $2,000 this year to the tax bill of people mostly earning under $200,000 a year.

Thousands of businesses are waiting for renewal of the research-and-development tax credit, which expired at the end of last year. Without that credit, industry advocates say, high tech, biotech and aerospace companies would have trouble hiring the highly skilled workers needed to compete with foreign competitors.

The Information Technology Association of America reports an $18.5 billion drop in R&D activity since the beginning of the year when the credit lapsed. The R&D credit extension would cost $19 billion over 10 years. The cost of the entire tax portion of the bill is close to $110 billion.

The renewable energy incentives include an eight-year extension of investment credits for solar energy, as well as breaks for wind, geothermal and other alternative sources. The solar industry says extension of the credits through 2016 would produce an extra 440,000 jobs and more than $230 billion in investments.

The measure also has $8 billion in tax breaks for disaster victims, $5 billion for higher education tuition deductions and $400 million in deductions for teachers who buy school supplies with their own money.

There are $3 billion in deductions for residents of states without income taxes that have state and local sales taxes. Extending the deduction would save Texans a projected $1.2 billion a year or an average of $520 per filer claiming the deduction, said Matt Mackowiak, spokesman for Sen. Kay Bailey Hutchison, R-Texas.

Of course representatives from Texas like the pork additives, they have been the biggest recipients of Federal largess over the past eight years, receiving $1.87 per dollar of tax they pay to the Empire. So what’s a little more?

Now, I’m not against hurricane victims finally getting paid for what’s been due them for over three years here ( I’m assuming Katrina and recent victims ), but I do have issue with NASCAR venues getting another year of tax breaks amounting to eight years total. That’s a three billion dollar a year entertainment industry, WTF!

In short, this bill probably won’t help the economy out in the end anyway, pundits already claim the US Empire is in recession and that this bailout will just make it drag out more, turning it into a real Depression. And truth be told, nobody has a clue how all this is going to pan out, the talking bobble-heads are as clueless as anyone else!

It’s gonna be a tough winter, I’m sure I could eat a huge pork sandwich during that time!

Tax breaks big and small sweeten financial bailout

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Had Enough Yet?

How is everyone doing this week? Still have a bank account? Company retirement? 401K? Stocks? Piles of worthless paper?

To be honest, I haven’t had the balls to check my 401K at work, I think the shock would give me a stroke!

Not that it would matter, with my luck a stroke wouldn’t kill me outright, just paralyze me. And with the US Government printing presses running 24/7 to make enough Monopoly money in order to “bail out” banks and financial institutions, the idea that Social Security will be funded when the Japanese and Chinese start calling in their markers is just ludicrous.

So begging for alms looks like a real possibility for poor, disabled folk in the near future.

Great, isn’t it?

Very real possibility. But, if we keep printing funny money non-stop to keep Wall Street consolidating into ever larger and larger monstrosities, the world might not allow us to drop forever into the blackhole sewer, because we would either start WWIII, or drag the rest of the planet down the economic crapper with us according to Benjamin Fulford in this article.

And because the theory of “decoupling” ( disentanglement from various economies ) is proving to be so much bullshit as the UK and China start to experience the “pain” of the US with its over-inflated values of property and bogus fiat paper floating all over the planet:

Even in the case where the direct effect is small — the decoupling assumption — the U.S. slowdown still can have a substantial net impact on European exports because of its indirect effect on Asian imports from Europe.

So Europeans should not be tempted to think that they are somehow “decoupled” from America’s foibles and woes. Until recently, many Europeans thought they were insulated from the current U.S. housing and mortgage crisis. But in what has been a truly malignant “export” from America to Europe, the U.S. created “garbage debt” in the form of sub-prime mortgages, and Europeans — hungry for extra yield, and as reckless as Americans — bought it. Many European banks’ balance sheets are now as contaminated as those of American banks, and no one is sure who is holding — or hiding — the junk, and how to value it.

This is why European banks are now reluctant to lend to each other. They could be lending to an institution that is in serious financial trouble.

It is hard to imagine that higher interest rates and reduced credit availability will not lead to distress for Europe’s overall economy. Yet this is exactly the stance of the European Central Bank, which is treating the euro zone as if its financial sector was somehow decoupled from the rest of the economy — and running a different monetary policy for each sector at the same time.

By pumping in whatever liquidity the financial sector needs to alleviate the credit crunch, the ECB is effectively maintaining a deflationary bias for the financial sector, whereas it has announced an inflationary bias for the rest of the economy.

A monetary policy at war with itself cannot long endure…

( link )

Which is exactly what happened in the Eurozone these past two weeks as word of impending financial insolvency of Freddie Mac/Fannie Mae became apparent and word of Lehman Brother’s bankruptcy got around, all of Europe’s markets panicked, not just one or two. As soon as they got word the US government were either directly bailing out or loaning money to these places, the panic eased some.

And so it happened once again this week shortly after Lehman Brothers, AIG started to go belly-up. Thus, the Federal printing presses are cranking up full speed to loan Monopoly money to AIG.

So what can we take from all of this?

1.) Washington ’s Three Stooges:

Greenspan and Bernanke have not been alone in what will surely be remembered as America ’s Financial Apocalypse – the eventful period ushering in a decade-long depression, as predicted in my 2006 book by the same title. Certainly, President Bush did not create these trends. But his financial irresponsibility has accelerated their magnitude. In less than eight years, he has managed to increase the national debt by 90%. As the data shows, not only has he led the worst recovery since the post-WWII era, he has also positioned his successor with budget shortfalls for many years to come due to Part D Medicare, the Iraq War, and his tax cuts for the wealthy.

Combined with the staggering deficits for Medicare and Social Security , America ’s economy will be in the gutter for many years to come even after the banking and real estate troubles cool down. No one else is talking about these issues because they’re wrapped up in the daily drama. But save this article and others I’ve written because I’ve been mentioning the longer-term problems ever since writing my book. In a few years, more people will begin to address these issues once they are transformed into daily drama.

2.) President Bush’s attempts at a recovery:

…have been so horrendous they’ve actually led to the current recession, which will turn out to be the worst in decades. I would venture to guess he is desperately pleading with officials to come up with even more gimmicks to hide the full realities of the economy so the worst will be reported only after he leaves office. But I will guarantee you if Washington and the Fed continue this reckless game of applying band aids instead of letting things play out, we will see a much bigger crisis down the road, similar to what happened after Greenspan tried to mitigate the dotcom collapse. You can bet this is going to happen because Washington does not understand the meaning of preemption.

Altogether, we have had eight years of no gains in real median wages, flat stock market returns, and minimal net new jobs. Despite what you have heard, after adjusting for debt spending, population growth and realistic adjustments to the GDP deflator, there have only been 3 or 4 quarters of GDP growth since 2005. If you adjust for military, government and minimum wage positions – i.e. jobs funded by tax payers and jobs that don’t pay anything – there have been absolutely no net new jobs. Bush’s largest gains have been with inflation, oil and food prices, debt, trade deficits, bankruptcies, foreclosures, and healthcare costs. If an assembly of the world’s leading economic strategists were to design the most destructive economic disaster possible, they could not match the results of Bush’s tenure. Even the most loyal Bush supporters will admit he has been an absolute disaster – that is if they’re being honest. America is now more dependent on foreign nations than ever – not only for oil, but also credit and manufactured goods.

3.) America ’s “Resilient” Economy:

Many of the pundits flood the propaganda networks with repeated denials of the problems, boasting how resilient the U.S. economy is. You know who they are. I’m not quite sure what they’ve been smoking. But it appears to be some sort of hallucinogen because they seem to expect Superman to bend the economy back into shape. Ladies and Gentlemen, in case mommy never told you, there is no Santa Claus and there is no Superman. And if you think Bernanke’s printing presses have an endless supply of ink and paper, just wait until the real crisis appears. So you had better get ready because it’s coming. It is virtually inescapable. And it’s going to cause devastation around the globe. Of course I’m taking about the likely implosion of the CDS market.

Let’s take a look at America ’s “resilient economy.” Let’s see…the entire financial system is in the process of blowing up. Already there have been over $500 billion in bank losses, with over $1 trillion more to come. Over one dozen banks have failed, with hundreds on deck. A handful of large hedge funds have blown up, with hundreds more on the way. Already, over $1 trillion has been transferred from the Fed to the banking cartel. But I estimate another $1.5 trillion will be needed to maintain liquidity as banks de-leverage over the next few years. Unemployment is now over 6% and inflation is over 5%, even with Washington ’s manipulation of the data. Virtually every metric in the housing market is at multi-decade lows, except for foreclosures which are hitting new highs.

Taxpayers are now on the hook for billions of dollars of potentially worthless debt held by Fannie and Freddie. It’s now official. America ’s free market economy is really a socialist system for corporations. One could argue this to be a form of Fascism. My best estimate for losses due to the Fannie and Freddie taxpayer bailout are between $200 to $500 billion. The worst case scenario would be $800 billion. If this economy is resilient, I can’t wait to see how it magically bounces back. When Superman fails to show up, Washington might consider giving David Copperfield a call. But this would be one illusion he won’t be able to pull off. Get the popcorn ready.

( link to full story )

So there you have it. Ain’t too pretty, is it?

I think this is going too fast for the Builderburglers to keep up with, the victim…er…patient has severed an artery instead of a vein and it’s in danger of bleeding to death.

And guess what, China wasn’t ready enough yet to take the reins of world economic super-power.

Too bad, so sad as Highwayman is wont to say.

So you say you don’t believe there’s an NWO, Bilderberger, Trilateral Commission or Council of Foreign Relations or any form of shadow government running anything? That’s your right I suppose.

But unless you’re a billionaire or work for the oil companies and the military-industrial-congressional complex, you’re resigned to a pretty shitty life for the coming decade if you didn’t prepare right.

Had enough yet?