Wednesday, October 01, 2008
The second Great Depression is well on its way and this bail out will only put it off. If McCain can not be stolen in Executive order # 51 will be!
Executive order #51 is a terrible power in Bush or McCain's hands!
You may remember I have done numerous stories on this rapidly developing perfect storm with the rapid slide into Forever war instigated by Bush as the world militarizes and unites to take on Bush and his insistance of dominating the world and having his way. For years trying to wake up every senator, Congressman, media outlet, anyone that would listen that everything Bush has done to worsen the plight of the middle class and widen the gap between the have's and have nots has been done to create Bush's idea of a new societal order. He has been following from day one what I know as the Russian Doctrine of Destruction first used by Russia in the 1860s It is on my website Divide and Conquer! You must create disorder so you can come to the rescue with your new order to replace it. Bush is doing it here and around the world or so he thinks!
You see what he is doing around the world instigating war while the country is occupied with the financial collapse of America that was set up under his guise! This entire mess makes him look inept which he is but all of it has been done on purpose with the end goal of emplacing Executive order #51 if this 3rd election can not be stolen for McCain. The foundation for this to happen is increasingly being set and I am very concerned for our future. This perfect manufactured storm comes closer to fruition every day. Wachovia is now being absorbed and that blows me away. This bailout will do nothing but further the Bankrupting of America and pushing back our Demise to this fall or certainly before January 20th when Bush will be forced to invoke Executive order # 51. I have posted numerous times on this still developing 2nd greatest Depression. just remember what party was at the helm then and that it took war to get us out because what goes aroung comes around and what is preparing to happen will dwarf WW2 and the Great depression combined because we are in a purposely weakoned state and it is all happening at the same time!
While Greenspan warns this collapse could be worse than the depression and Bush warns of the severe damage it could cause the country if the bail out is not passed I just want to remind you of what an expert Michael Whitnry wrote explaining this set up 20 months ago:
Greenspan successfully piloted the nation into virtual insolvency. In fact, the parallels between our present situation and the period preceding the Great Depression are striking. Just as massive debt was accumulating in the market from the purchase of stocks "on margin", so too, mortgage debt between 2000 and 2006 soared from $4.8 trillion to $9.5 trillion. In both cases the "wealth effect" spawned a spending spree which looked like growth but was really the steady, insidious expansion of debt which generated economic activity. In both periods wages were either flat or declining and the gap between rich and working class was growing more extreme by the year. As Paul Alexander Gusmorino said in his article, "Main Causes of the Great Depression": "Many factors played a role in bringing about the depression; however, the main cause for the Great Depression was the combination of the greatly unequal distribution of wealth throughout the 1920's, and the extensive stock market speculation that took place during the latter part that same decade".
The same factors are at work today except that the speculation is in real estate rather than stocks. Just as in the 1920's the equity bubble was not created by wages keeping pace with productivity (the healthy formula for growth) but by the expansion of personal debt. Also, one could buy stocks without the money to purchase them, just as one can buy a $600,000 or $700,000 house today with zero-down and no monthly payment on the principle for years to come. The current account deficit ($800 billion) could also weigh heavily in any economic shake-up that may be forthcoming. Bob Chapman of The International Forecaster made this shocking calculation about America's out-of-control trade deficit: "US debt was up 10.1% to $4.085 trillion and accounts for 58.8% of all the credit issued globally last year. That means the US expanded credit at a much faster rate than the economy grew. This was borrowing to maintain a higher standard of living and attempt to pay for it tomorrow." Think about that; the US sucked up nearly 60% of ALL GLOBAL CREDIT in one year alone. That is truly astonishing.
There are many similarities between the pre-Depression era and our own. Paul Alexander Gusmorino says: "The Great Depression was the worst economic slump ever in U.S. history, and one which spread to virtually all of the industrialized world. The depression began in late 1929 and lasted for about a decade....The excessive speculation in the late 1920's kept the stock market artificially high, but eventually lead to large market crashes. These market crashes, combined with the misdistribution of wealth, caused the American economy to capsize. "(The income disparity) between the rich and the middle class grew throughout the 1920's. While the disposable income per capita rose 9% from 1920 to 1929, those with income within the top 1% enjoyed a stupendous 75% increase in per capita disposable incomeA major reason for this large and growing gap between the rich and the working-class people was the increased manufacturing output throughout this period. From 1923-1929 the average output per worker increased 32% in manufacturing8. During that same period of time average wages for manufacturing jobs increased only 8% (This ultimately causes a decrease in demand and leads to growth in credit spending)
The federal government also contributed to the growing gap between the rich and middle-class. Calvin Coolidge's (pro business) administration passed the Revenue Act of 1926, which reduced federal income and inheritance taxes dramatically(At the same time) the Supreme Court ruled minimum-wage legislation unconstitutional. On Monday October 21, 1929, the over-valued stock market began its downward plunge. It managed a brief mid-week comeback, but 7 days later on Black Tuesday it plummeted again; 16 million shares were dumped and there were no buyers. The game was over. Confidence evaporated overnight. People stopped buying on credit, the bubble-economy collapsed, and the mighty locomotive for growth, the American consumer, hobbled into the Great Depression. Tariffs were thrown up, foreigners stopped buying American goods; banks closed, business went bust, and unemployment skyrocketed. Tens years later the country was still reeling from the implosion. Now, 77 years later, Greenspan has led us sheep-like to the same precipice. The economic dilemma we're facing could have been avoided if the expansion of personal credit had been curtailed by prudent monetary policy at the Federal Reserve and if wealth was more evenly distributed as it was in the '60s and '70s. But that's not the case; so we're headed for hard times. Mike Whitney the second Great Depression
McCain is taking a hit for his Politicizing of Bush's created crisis
McCain is not the one to deal with this Bush created crisis Obama is. McCain is the one needed to continue this new order crisis here and around the world. Knowing that and that the President now has too much abusive power that will never be allowed in in Democrats hands i am increasingly concerned as the Bush created crises and perfect manufactured storm come to a head perfectly for a third stolen election Implementation of Executive order #51.
I reiterate Executive order #51 is a terrible power in Bush or McCain's hands!