Videos: Federal Criminal News Alert
July 10, 2011
I have called this new feature the Federal Criminal News Alert because the title aptly describes what the Congress, the President and their owners on Wall Street are doing to you and to me.
The first video describes the hurdles the crime network know as the United States government must face to finance the debt they created and which they intend you to pay. They need at least 500 billion dollars in fresh money to rollover at lot of short term debt and to pay back the 275 billion dollars they are taking from government worker retirement accounts from May 16th to August 2nd.
Things to look for. The Congress will try a European solution to the budget by sneaking in a provision to seize private pension funds, IRAs and 401Ks and replace them with absolutely worthless US Treasury IOUs.
There has been no Social Security cost of living increase for 2 years. Some unions use this same CPI number to set pay scales. Next month there is supposed to be a cost of living adjustment which the Congress will have to abolish. The UN has reported that food prices have went up 39% over the last year. If the elderly and disabled have no pay increase for a third straight year, they will be cutting back on food and medicine purchases which will shorten their lives. As they say in Silicon Valley, that is a feature and not a bug. They want the old folks to die.
Also of concern to those under 67 is a possible increase in the retirement age to 69, 69 1/2 or even 70 years of age. You might think that most people will not be able to find work if they are 70 years-old. You would be right. The plan is to force them to take early retirement and hence sharply reduced benefits. All across America grocery stores will have to stock cat food for little old ladies. Presumably, little old men will prefer dog food.
A compromise on tax increases and the length of the budget deal will have to be reached between House Republicans, Senate Democrats and President Obama. There have been threats of a filibuster in the Senate by a few Democrats and even from one Republican. Filibusters shut down the Senate until they cab muster a 60% vote. The Democrats will want a debt ceiling increase sufficient to take them past the November 2012 elections. That is a non-starter for Republicans. They will want at least one or even if possible two more votes on the debt ceiling so they beat up Democrats in the press.
House Republicans will demand no increases in tax rates but will be forced to accept closing of tax loopholes. Older people will remember that the Congress closed all the loopholes in 1986. Since then the politicians have sold the tax code to billionaires writing tax exemptions in exchange for campaign contributions which is why the loopholes need to be closed again.
All of this is doomed to failure. The Congress cannot touch the biggest budget items which are the Federal Reserve, the Bailouts and the six wars we are currently fighting solely for the benefit of Israel. An invasion of Libya and/ or wars with Syria, Iran and Pakistan would destroy the budget and crash the economy.
If there are no additional wars and we achieve a budget cut compromise, then the Federal Reserve will still have to continue with 2.3 trillion dollars a year in Quantitative Easing (increasing the money supply to fund the budget deficit.)
In the following video, Bob Chapman says the current inflation rate is 10%. Next year the inflation rate will be over 20% and could be as high as 25% by the end of 2012. In three years the inflation rate could be 50% which he calls hyperinflation. At that point everyone on payday will run to the nearest store and buy something or anything before the price rises. In Zimbabwe on July 4th, 2008 the price of a bottle of beer rose from 100 billion dollars at 5 pm to 150 billion dollars at 6:30 pm.
President Obama might have been right when he said unemployment will not be a major issue in 2012. By then only 27% of the people might be unemployed but everyone will have lost their paychecks and pensions through a 25% inflation.