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THE HAMPTON ROADS FREEDOM NEWS

HAMPTON ROADS: WHEN THE FEDERAL SPENDING BUBBLE ALSO BURSTS

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All the talk on cable and network news is about how the President or the Congress plans to cure the economy or provide universal health-care or even to reverse climate change. The federal government is deemed all powerful by elected officials, the media and citizens alike. The onset of the Greatest Depression has thus far only magnified that opinion.

Five years from now the television news talk is certain to be quite different. Talk of bailouts and stimulus plans and nationalized health care will be gone. In its place will be discussions of how citizens can best deal with the world on their own using local resources. References to the federal government will invoke black humor. These are the days after the final bubble has burst, federal spending and borrowing.

Even a drunken sailor has to face the morning after. Massive overspending, out of control borrowing and the irresponsible printing of money always ends in a resounding crash. That is the often played out story of failed republics across history. This is just the biggest crash ever because almost the entire world is in its grips with the United States at ground zero.

What face will the implosion of the US dollar raise back home? What will come of Hampton Roads when international trade bypasses debtor America and its self-destructive public policies?

Poverty will come to America’s middle class in one of two ways.

If the downward spiral deepens unabated money will still be in the hands of those with jobs, but the money will be of limited use in stores that lack basic necessities and all frills. People will stand in line to get groceries. Goods like clothes and electronics will be especially scarce. Those are two of the basic items no longer made in America. All the payments to the stores made by consumers will no longer buy the imports that used to line the store shelves. The fleet of trucks bringing goods nationwide will shrink to half of its size before the crash.

If economic activity does instead arouse a bit from the adrenalin of tens of trillions in new federal spending and lending, inflation will rather quickly wipe out any gains that are made in the economy. The money supply has almost doubled over the past year by dictate of the Federal Reserve. The little guy, of course, is the person harmed most by inflation. The relative winners are government, bankers and debtors.

Best case, present policies would allow the economy to stumble along zombie-like for a year or two before falling off a second, even deeper cliff. Borrowing ever more cannot cure a debt problem. It can only postpone the end and make it even worse.

Only the American impulse to spend money rapidly will benefit in the end from the final spending spree. Many American businesses will eventually refuse to accept the dollar in payment, lawfully or unlawfully.

But under either scenario the unearthly budget numbers of Washington, D.C. will fade further and further from reality. Once the Chinese Yuan backed by solid assets becomes the global reserve currency, Washington’s budget numbers will become a complete fantasy drawn on a fake currency.

With empty stores and fake money the legions of federal workers across the nation will have little reason to continue at their posts. Without the ability to trade in kind in the debased economy military and federal workers will leave national service in droves as a matter of survival. The worldwide American military machine will come home in rather short order almost certainly forever. The WWII/Cold War/Superpower era will come to its end as it did for the Soviet Union twenty years ago.

Not just public workers, but all those dependent on government payments will have to find a different way in life. Federal contracting will be a fraction of its present size. Even treasury bonds and federal pensions may default, if not wholly then partially or by the effects of inflation.



JUSTICE DENIED


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As America’s financial house of cards collapsed, the first response of President George Bush was to give everyone on the tax rolls a $600 cash gift. When this had little effect, his next move was to give Wall Street a flat $700 billion while throwing in hundreds of billions more of extra bailout for AIG and Citibank and others.

As the disaster enveloped Main Street America, President Barack Obama’s first move was to give about half of the people on the income tax rolls a $500 cash gift over the course of 2009 along with hundreds of billions more in bailout primarily for those who do not produce anything. As the true unemployment rate now soars to 20%, the President’s next move may be to spend $500 billion buying junk mortgages and consumer loans to subsidize Wall Street even more. Wall Street’s man in Washington, Treasury Secretary

Timothy Gaithner, made certain any future value of the junk assets will also end up in the pockets of Wall Street insiders. Under his plan the federal taxpayers are saddled with 95% of the risk of loss in this new bailout. Taxpayers receive only 25% of any future profit. That is what passes for a Washington, D.C. public-private partnership.

Neither administration has prosecuted anyone for the massive fraud that has wrecked the global economy. Indeed, some of the worst perpetrators on Wall Street and in Washington, D.C. now have more power than ever. The Congress, the single most responsible entity for our national meltdown, has few plans to investigate who in Washington is responsible for destroying the American Dream. The United States Attorney Generals, both Republican and Democrat, have had almost no interest in bringing the rich and powerful before the law.

Plainly, change in Washington, D.C. away from pillaging the people’s wealth is quite impossible with our present political leaders. Republicans and Democrats long ago discovered that the treasury can be raided for private advantage. Who gets what from Washington has been the main political conversation for decades. But now, trillion dollar heists of public money by powerful interest groups, right out in the open, is becoming the practice. It is our national illness reaching the terminal stage. In a free nation the people responsible for such a collapse would have already been tossed from their perches and cast behind bars where warranted. Many of the crimes committed and the criminals behind the present disaster are quite well known today. A proper investigation would uncover the commission of many, many crimes. Americans want the destroyers of AIG, Citibank, Fannie Mae and Freddie Mac to go to trial for their actions. All gains made through corruption or fraud must be forfeited.

Americans want federal regulators held to account for the shocking failure of the Securities Exchange Commission to combat fraud and of the security ratings agencies to accurately value what is being sold on Wall Street. The investing public relied on these failed institutions to do their work. A complete housecleaning with a full accounting is in order. The present leadership in Washington refuses to undertake these most solemn obligations. There is no difference between Democrats and Republicans on this central point of simple justice. The reason: a proper investigation would lead directly back to Congressional leaders and their cronies. Politicians and their moneymen have stolen our national governance for their own purposes believing Americans can indeed be fooled all of the time. Thus far, it seems they may be right. Like sheep following a pied piper, the public continues to swallow the puffing of the mainstream media of an economic recovery just around the corner. The public continues to elect to....



PASSING EVENTS


HangmanNoose

Some Things Never Change

wo legends of the Baby Boomer generation died in recent weeks under odd circumstances, David Carridine and Michael Jackson. What does being hung to death naked inside a closet while trying to get a sexual thrill say about the sons of the 60’s and 70’s? Dying from lifetime substance abuse has become routine in the entertainment world, but a new level is reached when the fallen star resorts to hospital surgical anesthesia to get that biggest high. Even oldster Boomers remain quite serious about their sex and drugs.


A Private Sale

Did you hear about the two men from the Japan Finance Ministry who were caught smuggling $140b of US Treasury Notes into Switzerland? Switzerland, of course, has a brisk open market in trading bonds for cash with few questions asked. The trunk-full of bank notes being smuggled across the border bore serial numbers identical to treasury bonds that were sold to the government of Japan in the 1980’s. When their true identity became known, the two men were released without charges and given their treasury notes back. Now is the time to buy gold!


The President is No Socialist

In the first six months of his administration President Obama has proven that he will not govern as a socialist contrary to much speculation. Socialist government takes direct control of the means of production under an egalitarian myth. Far different, Obama's record thus far is one of fascism, combining the powers of government and industry and finance into a totalitarian regime. Obama is clearly as much owned by Wall Street as any Republican. Obama is as egalitarian as the corporate boards of General Motors and Goldman Sachs are.


Governor, Please Shut Up

The travails of South Carolina Governor Mark Sanford with the press would be comical if not so painful to his family. People must admit the governor’s serial public confessions have been a new approach to hanky-panky in high places. A big change though often makes matters worse. It would just be better if married, allegedly religious office holders could manage to control their baser desires.


The Lost Decade

Remember the 70’s? How about the 80’s or the 90’s? But what decade is this? Good question. Here it is only one year from its end and the name of this decade has yet to surface anywhere in popular culture. Have no doubt there is a name. This is the “Aughts” “00’s”. Yes, the Aughts. Look it up: a second inconvenient truth. Another first achieved by the HRFN!