Abrogation: To abolish, do away with, or annul, especially by authority.
The Obama Administration has abrogated contracts in private industry “for the greater good”. Contract Law is the basis of free enterprise and once you begin to tamper with contract enforcement you will see the demise of free enterprise. As this is written, Chrysler is attempting to survive with Fiat’s assistance. However, three of the secured bond debt holders felt that receiving 29 cents on the dollar was not enough. The Administration has clearly demonstrated that contract law is subservient to presidential desires. The President, a former law professor, must have forgotten about the need to honor contracts.
China is not happy with the U.S. Administration’s economic policies. In a recent trip to China, Timothy Geithner was laughed at by Chinese students as he was attempting to give a speech on Monetary Economics. The Chinese are creating trade agreements with Brazil, Russia, Indonesia, and other countries bypassing the U.S. Dollar in the settlement of trade.
True Unemployment is 16.4% when you include discouraged workers and those working part-time wanting to work full-time. Officially, 345,000 jobs were lost last month but 200,000+ jobs were added by the “birth/death” model which hardly ever loses jobs. “Liars figure, figures lie”.
The Administration has blown off the Tax Tea Party. In an attempt to protect the current paradigm, Obama will attempt to raise taxes in any area he can. The facade will be put in place to lead us to believe that only the wealthy will be taxed. Not so. The wealthy provide the capital for business creation which in turn benefits the average citizen by providing jobs. Obama wants to change the tax laws for small oil & gas companies. The net effect of this move will be to wipe out many of the independent exploration companies and thus lower oil output. This in turn will push oil prices up toward $200 per barrel and ultimately will tax the public at the pump. What are these guys in Washington thinking? Expect a national value added tax (VAT) to be implemented, one similar to England. Notice that they’re in worse shape than we are!
Most people were against the bailouts but the Administration did not care. GM threatened bankruptcy months ago and received billions. Now they are in bankruptcy and are receiving additional billions. What a deal!
The little people are being squeezed, you and I are in that category. Most of us are in the “too small to save” category. Have you ever noticed how the government “gives” money to the large entities and loans money to the average citizen, if they qualify? Giving a bank $5 billion at 0% interest allows them to invest the money and receive interest income without any expense. Once they are done, they simply return the money to the government. Why can’t you and I get in on some of that lovin’?
The printing of money is simply to relieve the symptoms, just like a pharmaceutical. The U.S. needs to contract and rid itself of unworkable and unprofitable businesses. If a bank can’t manage its business properly, why prolong poor management? If a car company can’t make a profit, why prolong its poor management or business model? How long do you think it will take GM to pay back $50 billion to the government out of its profits? Forever!
The greed, mistakes, and criminality of Wall Street gang is being protected at the expense of the average citizen. As our family members grow older, it becomes critically important to retain family wealth for their care. The current system is designed to extract wealth by taxation, inflation, and any other means to keep the current system going. Only the elite will be assured of asset protection.
The Bailout Bubble by definition is the last bubble of this current series of bubbles. A nation’s currency is that last bubble to inflate. History tells us that the bursting of this bubble will not be pretty. How long can this bubble continue to inflate? Only Our Heavenly Father knows. With the continued global population growth, commodities will be in greater demand. As I see it, ownership of food, water, oil, gas, gold, and silver is the only possible insurance policy the average person can have. Paper assets will continue to depreciate as the Fed tries to save Wall Street. As we proceed forward, chaos is at hand for the average citizen. When men become desperate, they will justify any action to feed their families. The nations of the earth will then turn toward Heaven and seek guidance from above… finally!