This is in response to all who say that the things President Obama says need to be done, should be done by him.

All the “good things,” being done require spending to maintain them. When the collapse comes, they will still be in the toilet because there won’t be government employees to maintain the systems. There won’t be enough doctors. There won’t be enough of anything because that is what happens when a currency collapses.

We import a lot of our medical supplies and medicines. They will be virtually out of range of purchase with a collapsed dollar. Solar energy for what? If you aren’t producing anything, you don’t have the means of paying for electricity at any price and solar isn’t cheap yet and won’t be for a long time. We don’t have a long time.

We don’t even probably have enough time to get started on most of the things he is talking about if we get cut off from foreign loans in a global depression. People have to remember that everything he is calling for requires loans to do it. We can’t even pay for existing services with the declining tax revenues.

Where is the world going to get the money he wants to borrow if they have gone, “negative?”

It is like a senior in my community yesterday saying, “what are they going to do, let them starve?” And I answered “yes,” and she was floored. “You can’t do that,” she said. And I asked her, “Who is going to pay for the food the unemployed, sick and needy require if the U.S. is cut off from foreign loans?

Print the money? Sure, but who will take it. As stated, we import what we need. Why would you sell anything to a nation and accept worthless currency when you can sell it to the rest of the world and at least get something for it that is worth more than “devalued dollars.”

That is the risk we take if we go ahead with his plans. I don’t know if he can pull it off or not. I only know the best he can hope is to delay the collapse because it must come if we don’t reform every segment of our government. You can’t go from credit expansion society that increases debt faster than productivity to sound fiscal policy without a depression when you have gone this far. If you didn’t read the comment I made earlier with this link about that depression, read it now.

http://market-ticker.denninger.net/archives/730-Heh-CONgress-Wake-Up!.html

Quote:
We are now up to a near-30% necessary correction in GDP, a SEVERE DEPRESSION, as a direct and proximate consequence of the actions taken by you, Henry Paulson, Ben Bernanke and Alan Greenspan over the previous twenty years and, more recently, the previous eighteen months.

Fully fifty percent of the damage that HAS TO be taken was ADDED TO THE SYSTEM as a DIRECT CONSEQUENCE of your and their actions over the last year and a half!

If you do not immediately halt the path we are on, there is a grave risk that the United States will suffer an economic collapse.

We simply cannot print or borrow our way out of this mess; the mathematics of the matter cannot be argued with. Prudent Americans who are not in debt will not take on debt to over-consume any longer, and those who are not prudent are unable to borrow to over-consume as the ability to foist off securitized toilet paper on suckers by the banks has permanently ended.

THE MUSIC HAS STOPPED AND THERE ARE NOT ENOUGH CHAIRS.
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There is a lot more data and facts in that article and it should be read and considered by all Americans. We dug and dug and dug for over 20 years until we can’t even see daylight anymore. This is due to 1913, 1933, 1971 and Congress after Congress getting their advice from the same international organizations for over 80 years. Those organizations were created by the Bankers who got us in this mess and who Paulson and Bernanke and Greenspan did and do the bidding of. Now we are about to put another like them in the place of Paulson. They all support the principles of banking we have lived under since 1913 and the dollar has already devalued 95% since 1913. But, for those who say it can’t go much further, just look at Zimbambwe where a Big Mac is over $2 million and they carry $500 billion dollar bills in their wallets.

Yes, all the needs are real. That is the problem. Just like the woman in my park said, “people would starve.” You bet they will. They will lose their homes, their cars, their jobs, their standard of living, and some will lose their freedom when they steal to try and feed their family or protest the government’s actions.

Nobody has denied the “needs” are real from the Great Depression on. The only trouble is that while the “needs” are real we don’t have the production to pay for meeting those “needs” and haven’t since at least 1968 when we started borrowing more than we grew GDP.

Manufacturing went from 30.4% of GDP in the 50’s to under 10% now. Every sector of manufacturing job growth rate peaked from 1995 to 2000. Every one. From then on, each year, the rate of growth in hiring was getting smaller while the population grew and more, not less jobs were needed to keep a viable middle class. For 20 years the buying power of Social Security checks dropped for a total drop of 70%. For 20 years or more, savings by people dropped from 11-13% to zero.

Not once during those decades did the “need” go away but our ability meet those needs did.

Now, all the needs for medical records, infrastructure, energy, education facilities, etc. are still there just like they were for 50 years they were being neglected because of a lack of funding. The needs are there but, we don’t have the money and printing it won’t solve the core problem that we don’t produce as much as we consume.

Related Posts:

• More than half of the people with a job today depend on Government for their paycheck.
• The great bubble of 2009 that speculators are piling into is several bubbles.
• The U.S. will have to cut all kinds of services, including health care.
• There is a huge risk of double dip recession is the government is not careful.
• Must-Know News - Feb. 28 “Back to crash!”

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