Saturday, June 12, 2010

AMERICA'S MAD DASH TO TYRANNY

I really hate to always be the bearer of bad news, but I've never seen a more "perfect storm" developing like America finds itself in now:

Do you realize that GW Bush's tax cuts expire on January 1st, 2011 so there will be massive tax increases from next year.

This is the last piece of the puzzle that snaps into place to create the perfect storm, which could possibly play out something like this:

1) Congress passes Financial Reform Bill in August, putting the Treasury in fiat control of roughly 70% of the U.S. economy should an economic crisis ensue.

2) Congress passes watered down version of American Power Act in September putting in place a massive "Carbon Tax" on an already struggling economy.

3) Congress "fails" to pass Amnesty bill assuring big Democratic losses in November but is very successful in creating angst among Latinos (the real purpose of the "failed" Amnesty bill).

4) As a backlash to Obama's Socialist reforms, Republicans win simple majorities in both the House and the Senate in November, but are unable to win super majorities necessary to pass legislation and are far from 67% required to repeal Obamacare, The Financial Reform Bill, the American Power Act and even to extend tax cuts.
5) Congress becomes gridlocked with neither party is able to pass any legislation to fix growing economic and social unrest.
6) Tax rate increases goes into effect from January 1st, 2011 (which always leads to decreased tax revenue--Laffer Curve effect (look it up))
7) Historic budget deficit spending continues ($1 TRILLION/year budget deficits for next 8 years-Congressional Budget Office numbers, not mine) Total National Debt passed $13 Trillion last week and unfunded liabilities are $109 TRILLION (S.S., govt. pensions, Medicaid/Medicare, etc. (not a typo)) Deficits will explode once tax revenues decline from next year.
8) As the U.S. National debt explodes, so U.S. debt holders (China, Japan and EU) will demand higher interest rates on U.S. debt due to increased risk.
9) As interest on National Debt increases, U.S. budget deficits accelerate, creating pressure to raise taxes and freezing credit markets.
10) With falling corporate profits and tight, companies are forced to cut capital spending and to layoff employees.
11) As Unemployment rises, unemployment benefits and other entitlement spending spirals out of control.
12) A ripple effect ensues and EU and Asian economies are on the verge of collapse.
13) World Stock Markets collapse.
14) The Treasury Department exercises powers created in the Financial Reform Bill and starts taking over companies in financial trouble.
15) U.S. Government quickly goes through remaining TARP II funds trying to "rescue" failing companies and tries to secure additional debt to meet growing financial demands.
16) China, Japan and Europe are also strapped for cash and refuse to finance additional U.S. debt and actually call-in existing U.S. loans.
17) America refuses and technically goes into default.
18) U.S. retaliates with a trade war against China and China reciprocates.
19) U.S. labor unions sense chaos and instigate bloody riots. Huge riots in Europe are also orgainzed.
20) With a gridlocked Congress and chaos in the streets, Obama blames capitalism for the economic collapse and declares Martial Law.
21) With a gridlocked Congress, and worldwide economic and social chaos, numerous Executive Orders are issued and perhaps the 2012 presidential election is "postponed" for the "good of the nation."
22) With expanding Executive powers and the powers granted under the Financial Reform Bill, the U.S. Treasury basically takes control over 70% of U.S. economy.
23) Obama puts in left-wing supporters to "temporarily" run the companies taken over. The U.S. officially becomes a "temporary" Socialist state similar to Venezuela and the end-game is complete.
24) Most of the Bill or Rights are "temporarily" suspended under Martial law and Presidential power is secured by additional Executive Orders.
25) Left-wing organizations around the world instigate various international crisis: attacks on Israel, union riots throughout EU, North/South Korean problems escalate, Kashmir conflict escalates, African war-lords run amok, Iran develops nuclear weapons, etc.)
26) With escalating world crisis, Obama is forced to extend "temporary" powers until world order is reestablished.
27) Tyrannical Socialist governments are established around the globe and a move towards global governance (not a global government) is established through the U.N. and financed by an International Carbon Tax via the Chicago Carbon Exchange (Estimated to be $10 Trillion in carbon tax revenues by 2020 if Cap & Trade legislation is passed in EU, Asia and the U.S.

Now I'm certainly not saying that all these things are going to happen, but, what I am saying is that variations of all things have happened in history: U.S.S.R. (Stalin), China (Mao), Vietnam (Ho Chi Min), Cambodia (Pol Pot), North Korea (Kim), Venezuela (Chavez), Cuba (Castro), Italy (Mussolini) , Germany (Hitler).

I'm also not comparing Obama to any of these tyrants, but, history is very clear that Socialism always leads to tyranny. This is because Socialism is so inherently inefficient that it eventually pays people not to work through entitlement programs and penalizes companies so severely with taxes and regulations that are necessary to finance inefficient social programs that the whole system eventually collapses in on itself.

Initially, Socialism leads to modest living standards (shared misery) and numerous social "benefits", however, these can only be financed by massive national debt as social entitlements always exceed tax revenues because business growth is curtailed by ever increasing taxes and regulations.

The massive debt is always followed economic collapse, which leads to either severe rationing of goods, services and freedoms or a thankful return to capitalism and the reestablishment of personal freedoms through a Republic form of government (small central government/strong local government; what our Constitution originally established).

If the collapse is followed by a democracy (large central government/weak local government), the model is destined to go through another cycle of Socialism/collapse as politicians seek reelection through expanded entitlement programs and the people vote themselves more money. (see EU, Japan, Korea, America (now), Russia, Eastern Europe, etc.

So, were do we go from here? I have no idea. If America really wishes to keep its freedom and avoid tyranny it must do all of the following:

1) Adhere strictly to every single word of the Constitution (that's it, basically)
This will, however, logically lead to the following changes:
1) Pass a Constitutional Amendment limiting Federal spending to 8% of GDP and never allow debt financing unless 67% of both Houses agree to do so in case of an national or international emergency.
2) Pass a Constitutional Amendment for Senate and House term limits.
3) This will lead to:
a) a 50% reduction of Federal employees.
b) a massive shift of Federal responsibilities being returned to the states.
c) whole Departments and thousands of Federal agencies will be disolved i.e. if it ain't in the Constitution the agency cannot exist.
4) Phasing out Federal Social Security (if States want to try it, fine, people will vote with their feet.
5) Phasing out Federal Medicare and Medicaid (if States want to try it, fine, people will vote with their feet.)
6) Dissolve the Federal Reserve. Period!
7) Evaluate going back to the gold standard. (I can go either way on this)
8) Toss in the garbage can the 80,000 page Federal tax code and start a Federal 14% flat tax (Capital gains tax ZERO, Dividend Tax ZERO, Estate Tax Zero -- Yo! executives, you play games with these one, you go directly to jail; to general population no appeal no country-club correction facilities)
9) Tear down all country club correction facilities.
10) Pass Amendment where Congressmen and Senators must read every single word of every single bill they vote on. (you purger yourself on this one, see (#8) about jail time.
11) Pass Amendment disallowing all pork spending and bill riders. You want something for your State, you present it to the House and Senate for a vote. Period.
12) Build THE WALL and protect our southern border.

What can Americans do to avert disaster?

1) Get out and vote in November for Conservative Republicans or Democrats that revere the Constitution and never vote for any politician that thinks the Constitution is a "living/flawed/adaptive" document.
2) Call your Congressmen and Senators and tell them not to vote for the Financial Reform Bill or America Power Act and that you want them to build THE WALL to protect our borders and only allow legal immigration.
3) Go to a TEA party and see if that's interesting.
4) Go to Washington D.C. on August 28 to show solidarity to restore America. (Visit Glenn Beck homepage for details).
5) Get out of debt.
6) Learn about investments alternatives.
7) Read the Constitution http://www.usconstitution.net/const.txt
8) Get involved in politics.

Sorry for the long post, but I'm afraid America really doesn't have much time left to survive as our Founders envisioned if we continue on our path to certain tyranny.

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