Tuesday, April 14, 2015

Electon 2016: 82 Weeks of Lies

It began on Sunday when the Democratic Party had a candidate. I lost count on how many Republicans are running. The Beat Goes On as the spins of the previous lies are repackage, reshuffled and dealt to us by big money which is backed by old money and increased in size by new money seeking to become old money.
Isn't it amazing that necessity is the mother of invention and with our future clouded everyone running has the formula to set our nation back to greatness and yet, these same pundits will never say that the country is in decline, ailing or off track. None will speak for peace, cutting the military complex and stop offshoring of jobs. None will mention the great building blocks of America: social mobility, freedom of expression and a sound currency based on histories soundest idea, gold.
What they will recite has been tested with think tanks, approved by the financial donors and is politically correct and lawyer proofed. From time-to-time they will mention studies when it benefits a pseudo issue like on Monday, the IMF stated its study on global growth. It stated the US to be 3.1% in 2015. Six months ago the same agency said 3.6%. The US grew at 2.4% in 2014 when many said 4%.  They said Japan will grow at 1%. Last year its economy shrank. They said the EU will gain 1.6% when in 2014 it barely registered a positive digit. They said China would grow at 7.4% just six months ago. Now, they say 6.8%.They always say positive growth because they base their knowledge on fiat money which needs new money to cover old money. This printing of debt to cover credit depreciates everyone's standard of living and they wonder why there is an inequality gap. The US hasn't had real growth since the 1980s, but my definition of growth is to create wealth, a living wage and slowly improve your standard of living. Their definition is expanding debt and credit and by that standard we are out of this world or as Ralph Kamden would say, "To the moon, Alice!"
Debt History
It took 231 years to put our nation in debt to the tune of $8 trillion and in the last eight years we doubled that figure. There is something seriously wrong with the mentality of these fiat people and our federal government.
In the late 1980s with the advent of the internet and cell phones, productivity increased many times over. The thinking prior to this output of work was that companies would expand and provide wage increases. Our companies expanded...overseas and no one saw wage increases. Those were some of the lies in that campaign season. The other big lie was with our national deficit. Republicans said they would cut. They did. They exported our best jobs. They increased our debt, but said growth will provide higher revenues and by 1990s, the deficit will be gone. Clinton said it would be gone by 2000. In 2000 Bush said it would be gone by 2012. In 2008 Obama said it would be gone by 2020.
Promises, Promises
Well, in a way, the money is in the bank because they are bigger now than they ever were, but the money is owed to the bank and it never gets paid. It just rolls over into new debt and credit which they call growth. Greece is the poster child. Whatever the figure, we lend to them and they pay us our newly printed money back. The Beat Goes On.
Anyway, I see the US only "growing" by 1.7% at best. However, our debt and credit will fudge those numbers. Here's the indicator.
Present Debt Picture
For the month of March our national debt was $52.9 billion which is larger than the GDP of many countries in the world. This figure is up from $36.9 billion compared to last March. Six months into 2015 the government deficit is up 6.3% from last years $439.5 billion. Yes, tax collections are up and due today, but good old Obamacare cost more than projected which always is the fact. Programs will always cost more than estimated and our economy is always smaller than projected. The CBO who said revenues will close the deficit this year and next because of "growth." Dear reader, credit and debt are not growth and that is why all of the above and future promises by ding-dongs always get it wrong. One reason why I see our debt going to $20 T sooner than expected is because there are over 500,000 baby boomers on line to collect Medicare and Social Security every month for the next fifteen years! I predict some pundit will speak about it. Whatever is suggested or claimed to save money will then be appropriated for the military. No one gives peace a chance. No one will speak for the workers of America, although they will claim they are with their first words, "My fellow Americans..." The lies aren't really beginning. They are mixed to the old tune, The Beat Goes On. If we ever are going to have a real democracy as envisioned by our founding fathers, we need to return to their thinking and the first change should be End the Fed!