Monday, April 11, 2005
The Financial Train-Wreck Approaches
78% INCOME TAX RATE HIKE?
April 8, 2005
Grab a cup of coffee and bear with me on the length of this column. I continue to get more phone calls and e-mails than I can handle. Americans are worried. They are getting angrier by the minute. They want to know what they can do and how bad is it - really? Patrick Henry said we are apt to close our eyes against a painful truth. So, true, but closing our eyes isn't going to fix any problem and it certainly won't make it any easier to make sure your assets are protected because bigger trouble is coming on the economic horizon.
According to the White House's Minister of Disinformation and Deceit, in a speech at the Detroit Economic Club by President Bush on February 8, 2005, Bush "discussed his strategy for ensuring America's prosperity by restraining spending, promoting pro-growth policies, and strengthening institutions like Social Security for future generations. The President has put forth an ambitious agenda to ensure that America's economy remains the most prosperous in the world. To accomplish this, he has proposed a three-pillar strategy, which includes: restraining spending by the Federal Government; working with Congress to pass legislation that promotes economic growth - including making his tax cuts permanent; and reforming the institutions fundamental to American society, so that they can meet the realities of our new century."
This is rather interesting when one compares other reports and statistics available both before and after this speech by Bush. Is the economy doing great? Why do pundits use the words "sluggish, but improving." What is the truth? The real truth is being told by individuals like Richard D. Caccavale, who stated in his February 24, 2005, column, America's Parallel World: "Every aspect of America seems permeated with debt, and that should be worrisome to all who are more prudent. This incomprehensible, staggering debt weighs heavily upon society and there is only one entity that benefits; that being the elitist cartel of banks. When the Soviet Union collapsed, it was not because communism was defeated, but rather it was a collapse of their currency caused by insurmountable debt. "
The unemployment rate isn't 5.5%. In a column titled, Hidden Unemployment, by Richard Du Boff, one can see how the government deliberately uses deceptive measures to fool the American people into thinking jobs are there and that their administration is responsible for creating them. First of all, it's not the government's job to create jobs. This is well and fine for communist countries, but not for America, a Constitutional Republic.
If you examine the government’s 2004 statistics, the civilian non-institutional population of United States males, age 16 and over, was 107.7 million people. Out of those 107.7 million males, 14.7 million, are estimated to be 65 or older. Using these numbers of men between 16 and 64, which historically has made up the work force in America, this number would be 93 million. Out of those estimated 93 million men, the government does admit that 4.4 million of them are unemployed - unemployed being defined as an individual who is 100% inactive doing no work at all.
Now, here's the kicker: the government chefs who cook the books define someone "employed" if they work only one hour a week! Looking further at the government chef's numbers, we see that in addition to those 4.4 million males over 16 who are not in the work force, subtract from that the 28.7 million over 16 who also aren't working from the estimated number of men in the country plus the close to 12 million age 65 and older males, you get approximately 16.8 million men between the ages of 16 & 64 who aren't working. Adding to those number the "official" number of unemployed 4.4 million and we see a number of 21.2 million unemployed men in the 16 - 64 category. All this makes the "official" 5.5% unemployment figure take on a different meaning, doesn't it?
What's the cause of this? America's toxic trade policies and our participation in NAFTA & GATT. Fox News carried this eye opening news item that Americans are paying no attention to, but should: March 11, 2005: Trade Deficit Hits $58.3 Billion in January. Big U.S. Trade Deficit Has Some Worried WASHINGTON — The U.S. trade deficit (search) climbed to $58.3 billion in January, the second highest level in history, as Americans' appetite for foreign consumer products and automobiles hit record highs.
Keep buying foreign America and soon your job will be south of the border or to some communist country. As a matter of fact, China, which is financing much of the American debt, is the same communist government that has a dozen nukes pointed right at U.S., murders its own people at will and has made no bones about destroying America as a world superpower. Everytime you buy made in Communist China, you are funding their efforts to destroy us. I've written about this on my CD until I'm blue in the face. Please, don't tell me you can't buy Made in America for just about anything except computers. I do it all the time or I go without.
Another major warning sign of the crumbling of America's economy can be found at General Motors and the falling of the dollar or more appropriately, it should be called the death of the dollar. Of course, most Americans, even those who do understand such things, seem unwilling to acknowledge the coming financial disaster.
On November 24, 2004, On State Street, carried an ominous title to one of their articles: 'Economic Armageddon' by Brett Arends, who wrote: "Stephen Roach, the chief economist at investment banking giant Morgan Stanley, has a public reputation for being bearish. But you should hear what he's saying in private. Roach met select groups of fund managers downtown last week, including a group at Fidelity. His prediction: America has no better than a 10 percent chance of avoiding economic "armageddon." Press were not allowed into the meetings. But the Herald has obtained a copy of Roach's presentation. A stunned source who was at one meeting said, "it struck me how extreme he was - much more, it seemed to me, than in public.'' Roach sees a 30 percent chance of a slump soon and a 60 percent chance that "we'll muddle through for a while and delay the eventual armageddon.''
Americans heard finely honed propaganda spewed under Bill Clinton about America's "interdependence" on foreign markets. Mr. Bush has repeated such dangerous rhetoric. Dangerous how? Because when the "global economy" goes, so will America's or we might actually lead the way in the collapse. Citing an article from Reuters, Rome, Italy on November 22, 2005:
"Italian Prime Minister Silvio Berlusconi has launched a savage attack on the European Union's budget rules, saying the Stability and Growth Pact had to be reformed if the eurozone wanted to see strong growth. In a hard-hitting column to appear in Tuesday's edition of Il Foglio newspaper, Berlusconi repeated his threat to bring down his government if recalcitrant coalition allies refused to back his plans for income tax cuts in 2005. Berlusconi said the cuts were needed to revive a lethargic economy, but stressed the strength of the euro currency was also weighing heavily and called on his EU partners to revise the Maastricht Treaty on which the stability pact is based. "The blessed introduction of the single European currency has thus far produced the exact opposite result of what the euro was created for -- an asphyxiated economy and hobbled growth under the burden of 'stupid' ties," Berlusconi wrote."
While the American people sit slumped in the easy chair watching mindless trash on the boob tube, doing fancy moves on the ski slopes or prowling the malls, the world banking cartel has been creating this monster called a one world government that isn't going to work and we can already see the walls starting to crumble and when it does, Americans will see far worse than their grandparents did in 1929 and for the next eleven years of depression.
The brilliant Dr. Edwin Vieira has been attempting to educate and warn the American people about the true state of affairs and the harsh reality that this economy will collapse because of its fiat currency system. And, as he so brilliantly pointed out in his April 5, 2005 column, when this recession goes into a full blown depression, don't look to Washington, DC to save your bacon, they're busy barricading themselves - not against terrorists - but because they fully expect the American people to blame them for losing everything they've ever worked for and allowing a financial collapse.
While Mr. Bush was busy lying to those attending the dinner mentioned in the first paragraph about "saving social security," apparently he didn't hear the announcement last week by House Speaker, Dennis Hastert when he announced that Congress "probably wouldn't get to social security this year. Probably in 2006." Translated, this means these irresponsible, inept fools in Congress are going to allow this entire system to go down the rat hole. No? Apparently neither Bush nor Hastert have taken a good look of what's looming in less than four years:
"A path breaking study by Jagadeesh Gokhale of the Federal Reserve Bank of Cleveland and Kent Smetters, a former deputy assistant secretary at the Treasury —commissioned by former Treasury Secretary Paul O’Neill— estimated a $44 trillion fiscal gap. It laid out a few painful options on how to meet the liabilities:
More than double the payroll tax, immediately and forever, from 15.3 percent of wages to nearly 32 percent;
Raise income taxes by two thirds (roughly 78%), immediately and forever;
Cut Social Security and Medicare benefits by 45 percent, immediately and forever;
Or eliminate forever all discretionary spending, which includes the military, homeland security, highways, courts, national parks and most of what the federal government does outside of the transfer of payments to the elderly."
Such corrective actions grow more severe each year. Waiting just until 2008, the end of the next presidency, would mean raising the payroll tax to 33. 5 percent instead of 32 percent, the study found. Gokhale said that fresh numbers from the Medicare trustees show the fiscal gap has since grown to $72 trillion, $10 trillion of that for Social Security and an astonishing $62 trillion for Medicare, the government health care program for the elderly. “The long-term picture is pretty bad,” Gokhale said."
While America burns, Congress and Bush fiddle. There is no money in the U.S. Treasury. Every penny of spending by Congress to fund the government is borrowed from the privately owned "Federal" Reserve. These numbers are so mind boggling, most Americans simply switch off - a fatal mistake because they are real and nothing is being done by Congress to address this catastrophe in the making. Where will you borrow when the roof caves in? Do you have enough money in your savings account to keep you afloat for at least one year? What happens when your two incomes won't keep you afloat? Do you have at least 25% of your portfolio in gold and not worthless "Federal" Reserve notes?
These are all critical questions every American should be addressing, but too many aren't and it makes me sad. I know all too well what history records, i.e. the deliberately engineered crash in 1929 and the terrible consequences that followed. It is most unfortunate that too many Americans refuse to see that history does repeat itself. In the very detailed and researched, The Greatest Story Never Told - Winston Churchill and the Crash of 1929, author Pat Riott takes you through the events of one of the greatest financial disasters that swept through these united States of America with chilling details such as:
"On the night of October 29, 1929, the same evening of the crash, Churchill was guest of honor at a bizarre celebration attended by over 40 bankers and master plungers of Wall Street at the Fifth Avenue mansion of Bernard Baruch." The average American can't tell you a thing about Bernard Baruch, but they know Barry Bonds' statistics, who starred in the sit-com Friends, the size of Pamela Sue Anderson's bust, Oscar favorites and other meaningless garbage. They will come to regret their folly.
While I don't get paid for writing my columns either for NWVs or Worldnetdaily.com, my husband and I have worked hard to become completely debt free except for our house. John and I are prepared for a currency collapse which means we don't keep worthless paper, we keep the only real "money" there is and that is gold. I am fully aware how difficult it is out there for all of us average folks, especially those with children and working parents, but these painful facts must be addressed before you lose everything you've ever worked for or what little you might have now. As for those who think we can't or won't have a total collapse, I simply tell folks to remember: It wasn't raining when Noah built the Ark.
Also, don't forget to help out your elderly parents who might not be plugged into the net and base their decisions on their favorite news anchor or Wall Street broker who wants to tie up all their money in worthless paper instead of putting some in precious metals. My parents are not on the Internet and I've been helping them getting squared away so they will continue to have an exchange of real money when things get real bad - and they will. If you're not certain of how the banking cartel is robbing us blind, my little booklet, Why A Bankrupt America, will educate you and it's an easy 45 page read. While I retired Bankrupt America last year after sales of 1.6 million (I never paid myself a penny in royalties), I recently made a special arrangement with Harvey Gordin of El Dorado Gold to provide a free copy to anyone who calls him, no strings attached.
I sincerely hope Americans begin to take a good hard look at protecting their assets and what is coming just over the horizon. The gimee-gimee crowd that bribes Congress for free prescription pills, free medical care, free this and free that are part and parcel to the coming collapse. There are no free lunches and America will find out in the not too distant future about what those government freebies, "entitlements" and all this borrowing will mean to their financial future.
One thing Americans have done by their refusal to hold their elected public servants accountable for these insane trade policies and their refusal to abolish the privately owned central bank, is they have forced their children and grand babies into a life of indentured servitude to enrich the private banking cartel. I urge you to join the swelling ranks of Americans who are implementing Operation Clean Sweep in every state of the Union. This is something everyone can do and will make the difference between success and failure.
© 2005 Devvy Kidd - All Rights Reserved
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Devvy Kidd authored the booklets, Why A Bankrupt America and Blind Loyalty, which sold close to 2,000,000 copies. Devvy appears on radio shows all over the country, ran for Congress and is a highly sought after public speaker. Get a free copy of Why A Bankrupt America from El Dorado Gold. Devvy is a contributing writer for www.NewsWithViews.com.
Devvy's website: www.devvy.com
E-mail is: firstname.lastname@example.org