Kentucky Conservative

Posts Tagged ‘economy’

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President Obama is not faring too well at the G20 conference. If anything, the proposals he brings to the table are being met with wholesale rejection; by Germany and China in particular.

In all fairness, who can blame China for their position on the matter? The Fed wants to print $600 billion – not based on any Treasury holdings to back it – to purchase bond debt back from them at a devalued rate on the dollar.

I’m not a financial expert, economist or accountant, so I need these things put in layman terms for me to understand. But I can balance a checkbook and know you can’t spend more than you make or things start to bounce.

I believe the scenario being put forth by our president goes something like this:

Let’s say I have a net worth of $100,000,000. I have almost all of that money invested or budgeted. You lone me $1,000,000 so I can purchase products from your company. I issue you a bond (IOU) guaranteeing a specific very low rate of return over a specified period of time on this loan. Additionally, I promise to buy a certain amount of your products with the money you loaned me.

Everybody is happy right? I place an order for $1 million worth of your merchandise and you deliver it to me. My customers get the consumer products they want at bargain prices (because I can’t manufacture them for that price domestically) and your company has a guaranteed customer base which to service. The sky is bright blue and the world is hunky dory, right?

You send me a bill for $1,000,000, plus interest on the loan, for the items I received. I have already re-sold the stuff you sent me to my customers at a hefty profit. But being a greedy sort, I want more.

I also own a local printing company that has the ability to print money on demand. I ponder this opportunity and devise a plan to retire my debt to you at a discount. I’ll just print more money without backing it up with any additional collateral.

For the sake of simplicity, let’s say I print $10,000,000 in brand new $1 bills. My total currency circulation is now $110,000,000 but my net collateral worth is still only worth $100,000,000.

This devalues my paper money by 10% – every dollar I have in circulation is now only worth $0.90 in reality.

I cut you a check for $1,000,000 to pay my bill and send it to you. You cash it but it only offers $900,000 in buying power anywhere you try to use it. You are not a happy camper to say the least. You got screwed out of $100,000 and I walk away grinning like the village idiot.

That is what happens when an economy is inflated with devalued currency; inflation happens.

Let’s take this scenario real time. Say you are China and you made this deal with the US for $1 trillion and we paid you back at 90 cents on the dollar. You would lose $100 billion in the deal. You would also be more than a little upset no doubt. I would rather doubt a warm reception from you next time I came to you with a business offer.

“Burn me once, shame on you, burn me twice, shame on me.”

But the damage doesn’t stop there. The dollar is now only worth ninety-cents anywhere we, Americans, try to use it; including here at home.

The cost of living here instantly increases by 10%. The cost of producing anything here goes up 10%. Everything goes up in cost while wages remain the same.

Growth stalls in domestic businesses as they look for more ways to re-capture this 10% loss: no expansion is made, downsizing becomes the flavor of the month and benefits are cut for those lucky enough to keep their job.

Businesses are in business to make profits for their shareholders after all, and not in business to provide a place for people to go when there is no money to be made. If there are losses to be absorbed, they will almost always be on the employee/consumer end of things. It’s the nature of the beast.

When the economy stops moving and commerce slows or comes to a halt, you have a recession.

And that is where we sit at this moment. Everybody at the table is sitting on their hands to see who will move first. The Ivy League economists and talking-heads scream the recession is over, but it was them that got us in this mess.

Some how, I don’t think Harvard, Yale and Princeton have much to offer us in way of hope if this is an example of their “superior education and wisdom.” They may be pretty book-smart, but they sure are street-stupid.

Even if we buy products as imports, we will pay more for them because the dollar is only worth $0.90 abroad. One by one we are alienating trading partners and the day will come when no one will do business with us anymore.

“To be trusted you must be trustworthy.”

We are losing that status with every tick of the clock. No one wants to do business with known liars, scoundrels and thieves. And that is who holds our national purse strings in the form of the Federal Reserve Bank (who are owned by the New World Order elitists).

This is exactly the reason President Obama is talking to India, Indonesia and others. He is scrambling to find our next victims in this ponzy scheme being perpetrated by the New World Order.

The United States is the biggest obstacle for the NWO to overcome to complete their objective: one world government that owns all business interests and assets, with one government controlled world economy, ruled by a small group of elites over the serfs comprised by of the rest of us.

Our current world global chaos is not accidental, it is highly orchestrated and very well planned out by these globalists. The total collapse of the US economy is instrumental to their plan; this will allow them to swoop in like buzzards and devour our broken economy.

Never doubt for a minute they don’t have the wealth to do it – they already own about 75% of the globe. And they are buying up America one infrastructure at a time.

Scoff at this information if you will, it’s your future. The question is no longer if there will be a global revolution, but only when will it occur. You best be deciding where you stand now so you know if you want your freedom or are comfortable with assimilation when the global machine gobbles everything up.

Obama Redefines America’s Gift to the World

No one wants to make concessions in their personal situation, but we are at a point in time when that no longer matters. The American people are going to have to make some very hard decisions and we are all going to have to pay the fiddler in one way or another.

I am anxious to see more details of this proposal, if for no other reason than to get the ball rolling toward a solution. At least the left is making a token effort to consider belt tightening at this point. Perhaps they heard more on election day than they are being given credit for.

U.S. Debt Proposal Would Cut Social Security, Taxes, Medicare

Freddie Mac, the provider of residential mortgage financing, said on Wednesday that weakness in housing led to a third-quarter loss of $4.1 billion and another draw from the Treasury to maintain its positive net worth.

The company warned that costs might increase “significantly” as snags in the foreclosure processes at major loan servicing companies increased delays in working with troubled borrowers and selling properties.

Freddie Mac’s loss included a $1.6 billion dividend payment on senior preferred stock purchased by the Treasury since the financial crisis and housing slump pushed the mortgage buyer into conservatorship in late 2008.

Read More: Freddie Mac Reports Loss and Takes Draw From Treasury

All meetings have been held, all speeches have been made and now it is time to decide our fate as a nation. We sit on the edge of a great crevice. Will we turn back away from it or plunge ourselves over the edge into oblivion?

The liberal left has controlled both Houses of Congress for the last four years. They can scream and shout about obstruction from conservatives all they want, but we all know that is a falsehood.

Here is a quick review of what the liberal left has done for (to) us over the last four years:

Remember this legacy when you step into the booth to vote tomorrow. You are the only chance we have left to turn this mess around.

It bears repeating; when Democrats took control of Congress in January 2007, unemployment was 4.6%. Now, after four years of their harebrained policies, unemployment is somewhere between 9.6% — 17%.

Vote your conscience and good luck on the outcome.

This is a Nevada race but it’s import has a national punch to it. Senate Majority Leader Harry Reid, along with House Speaker Nancy Pelosi, form the right arm of the left-wing agenda of President Obama’s administration.

For our conservative efforts to be successful, Reid and Pelosi must be removed from power. Period. End of story.

Senator Reid has endorsed every far-left agenda Obama has proposed.

* He supported and helped push through the vastly unpopular health care reform known as “Obamacare.”

* He sided with President Obama in opposition to the security of our national borders by joining the lawsuit against Arizona to stop them from sealing their borders against invasion by illegal aliens.

* And much more of the liberal bent.

Reid won’t be on the ballot here in Kentucky come November, but Kentuckians must stand behind our conservative family in Nevada in every way possible. Donate time, money or both to ensure Sharon Angle’s success on November 2nd. Our national well-being depends on it.

See where both of these candidates weigh-in on the major issues facing our nation today in this 1-hour debate:

Part 1

Part 2

Part 3

Part 4