A Wicked Financial Storm Descends On America

By: Terresa Monroe-Hamilton – The NoisyRoom

Ever since 2008, this blog has been warning about economic devastation heading our way. You see it everywhere you look today, if you bother to look that is… Gas prices are at close to an average of $4 a gallon and in parts of California, it is now hitting $7, with no end in sight. Food inflation that is rising so precipitously, it takes your breath away – but the government says there is no inflation.

In the world that is America now, all things seem to be upside down and sliding full-blown out of control. This includes the Communist who is our current Commander-in-Chief. He claims he is drilling for oil, when the opposite is true. He is blocking all of it and piling so many regulations on our coal plants in lockstep with his bud, Cass Sunstein, that they are shutting down as well. Lie after lie after infernal lie.

As for unemployment, the government is manipulating the hell out of those numbers in an attempt to calm the sheep before the slaughter. They claim it has fallen to 8.2%. Take a long look at the U6 rate, which tracks not only those out of work, but those who’ve essentially given up looking for work. It currently sits at 14.5% – close to double what is being claimed by our ‘progressive’ leadership. Real unemployment stands at closer to 19.1% and is perhaps substantially higher than that.

People are giving up on finding work. A second, even more brutal wave of foreclosures is also on the horizon. Real hunger is coming to the US and hard times that will make the Great Depression seem like the good ole days are pounding on our door. A majority of states are now close to being unable to cover pensions and other entitlements as well as expenses. Bankruptcy is an understatement for what these states are facing. So, to “solve” the problem, a number of them are taxing more which makes it worse and worse. All the while, the rising flood of fuel prices surges against the levee.

When truckers cannot fill their tanks anymore because of the cost, store shelves will become barren wastelands. Real food deserts. When people get hungry, especially when their children are hungry, they get mean and desperate. Just what the Progressives had in mind. Violence, chaos and mayhem in the streets.

So, you say… the election is not far off and we can get rid of Obama then. Maybe, maybe not… I understand a company owned at least in part by Soros will be handling voting results. It doesn’t take a genius to see how that would be manipulated. Then there is a potential war with Iran. If Obama feels his reelection is in jeopardy, war with Iran will look like just the right emergency. Or, there could be any other number of emergencies, real or ginned up like the Trayvon Martin murder that is sparking racial unrest.

If nothing else, the debt we owe will literally drag us into hell all by itself. We’re broke and we aren’t going back to yesteryear anytime soon. That would take massive cuts and pain and no one with that kind of spine exists today in our government. But until the last penny is stolen and the last party is thrown by the Progressives, they will keep spending until there is nothing left but death, war, famine and blood. And they are okay with that, trust me. We face the abyss and our leaders are embracing the gulf.

From The Economic Collapse Blog:

#1 According to one new survey, approximately one-third of all Americans are not paying their bills on time at this point.

#2 The U.S. housing industry is bracing for another huge wave of foreclosures in 2012. The following is from a recent Reuters article….

“We are right back where we were two years ago. I would put money on 2012 being a bigger year for foreclosures than 2010,” said Mark Seifert, executive director of Empowering & Strengthening Ohio’s People (ESOP), a counseling group with 10 offices in Ohio.

#3 The Citigroup Economic Surprise Index, a key indicator watched by many economists, is on the verge of heading into negative territory.

#4 We are supposed to be in the middle of an economic recovery in the United States, but bad news just keeps pouring in from major companies. For example, Yahoo is firing thousands of workers and Best Buy is closing dozens of stores.

#5 Richard Russell says that the “big money” is starting to quietly exit from the financial markets….

“My guess is that this is the big money that has been holding off as long as it decently can — and then dumping their goods just before the close. I don’t think the big money likes this market, and I think they have been slowly exiting this market, as quietly as they can.”

#6 Goldman Sachs is projecting that the S&P 500 will fall by about 11 percent by the end of 2012.

#7 All over the country, local governments are going into default and we have not even entered the next recession yet.

#8 The U.S. government will add more to the national debt in 2012 than it did from the time that George Washington became president to the time that Ronald Reagan became president.

#9 The Federal Reserve is desperately trying to control interest rates. The Fed purchased approximately 61 percent of all government debt issued by the U.S. Treasury Department in 2011. This is the only thing that is keeping interest rates in the United States from soaring dramatically.

#10 German industrial production is falling at a pace that is far faster then expected.

#11 Italy’s debt-to-GDP ratio is now up to 120 percent.

#12 The Spanish government admitted on Tuesday that Spain’s debt-to-GDP ratio will rise by more than 11 percent this year alone.

#13 Yields on Spanish bonds are rising to dangerous levels.

#14 The Spanish government is projecting that the unemployment rate in Spain will exceed 24 percent by the end of the year.

#15 Unemployment in the eurozone as a whole has risen for 10 months in a row and is now at a 15 year high.

#16 In the aftermath of a 77-year-old retiree killing himself in front of the Greek parliament in protest over pension cuts, the economic rioting in Greece has flared back up dramatically.

#17 At this point, Greece is experiencing an economic depression with no end in sight. Some of the statistics coming out of Greece are really hard to believe. For example, one port town in Greece now has an unemployment rate of approximately 60 percent.

#18 The IMF is asking the United States to contribute more money for European bailouts.

#19 At this point, even some of our top scientists are projecting economic trouble. For example, researchers at MIT are projecting a “global economic collapse” by the year 2030 if current trends continue.

We don’t have till 2030… I personally don’t think we have until 2013. As the stock market (which is hideously manipulated) teeters on the edge of Armageddon and those with any money at all are running for the exits, the warnings of a wicked financial storm descending on America are blaring for all they are worth. And it would seem America is still asleep. Prepare to reap the whirlwind of an economic collapse – we are at its door.

Breitbart.com: As mention above:  Record 87,897,000 Americans Not in the Labor Force amid  disappointing unemployment numbers that fell 80,000 jobs short of projections, another number is raising eyebrows: the number of Americans not in the labor force has hit a record high 87,897,000.

This figure explains why overall unemployment dropped from 8.3% to 8.2%, as the Department of Labor's unemployment figure does not include people who have given up hope and are not actively seeking employment.

When the number of individuals who have stopped looking for a job and/or who are working part-time but desire full-time employment is included--a figure known as the "underemployment rate"--real unemployment stands at 19.1%.

The Obama "Jobs Summit" Who In the White House Has Ever Created a Job?

Tomorrow, the Obama Administration will hold its much-hyped "jobs summit" in Washington, D.C. Plenty of politicians will be there, as well as labor bosses and academics. No doubt, some business representatives have been recruited to attend as well.
Today, in contrast, a very different group of Americans will kick off a series of "Real Jobs Summits" in Cincinnati. Tomorrow, we will be in Jackson, Mississippi.

Instead of politicians who talk deceptively of "saving or creating" jobs, we will have entrepreneurs who have actually created jobs. Instead of so-called "experts" who offer theories, we will have small business people who know the reality of joblessness in America today.

Ask yourself this:

As the Obama Administration convenes with the so-called "experts" in Washington, how many in the White House have actually created a job?

A Jobs Valley, Not a Summit

What the Obama Administration is promoting as a jobs "summit" tomorrow is in fact a jobs valley.

After 10 months and the authorization of $787 billion in government spending, the economic policies of the White House and the Democratic Congress have failed. 15.7 million Americans are out of work, 3.2 million of them since the stimulus was first passed in February. Unemployment, at 10.2 percent, is higher than the President promised it would be if he did nothing. The Obama-Pelosi-Reid economic policies are hurting, not helping.
The stakes are high, and no doubt the White House and the Democratic Congress (as does every American) would love to see the jobs numbers improve. But three fundamental facts of their approach are crippling their effort:

1. Ideology
2. Interest Groups
3. Personnel

Number 1: Ideology. Secular Socialism Has Never Worked to
Create Jobs and It Won't Work Here

The mainstream media roll their eyes and laugh at the term, but the Obama-Pelosi-Reid economic policies are genuinely secular-socialist policies.

Their central purpose is not to create wealth but to redistribute wealth.

The problem is this big government, high taxing, big bureaucracy and politician driven model simply does not work to create jobs. It was the model of the United States in the 1970s and the model of Europe today. It has never worked anywhere to create jobs and wealth, and it won't work here.

A Very Different Ideology: Free Market Capitalism

As the Obama-Pelosi-Reid machine attempts to force its secular-socialist model on Americans in the form of job-killing health, energy, and big labor legislation, American small business people are crying out for a very different set of solutions.

These are the solutions that will take center stage at the American Solutions Real Jobs Summit in Cincinnati today.

They are the solutions of Ronald Reagan and the Contract with America.

Reduced taxes to spur jobs and investment. Controlled government spending to favor entrepreneurs over bureaucrats.

Reduced regulation and litigation to produce jobs and create wealth.

If the goal is more jobs, both history and the opinions of American business people couldn't be more clear: More economic freedom works, more government doesn't.
Number Two: Democratic Interest Groups.

Redistributing Rather Than Creating Wealth

The second fact that cripples the Obama-Pelosi-Reid jobs effort is the liberal special interest groups these politicians are beholden to.

Trial lawyers, labor unions and government employees are redistributors of wealth, not creators of wealth.

When Democratic special interest groups meet, there is practically no one in the room who has created a job.
The American Solutions Real Jobs Summits will work with those who create jobs and wealth to make their jobs easier and their success more likely.

Our interest groups are the engines of our economy - the small business owners and entrepreneurs whose voices aren't being heard in Washington today.

Number Three: The Obama Cabinet.

The Least Private Sector Experience in Over 100 Years
The third reason to doubt that the Obama-Pelosi-Reid economic policies will produce more jobs is succinctly illustrated in this graph.

It shows that the Obama Administration cabinet has far less private sector experience than any administration in over 100 years. A stunning 90 percent of the prior experience of the Obama cabinet is in government, not the private sector.

These are the people America is supposed to listen to in order to create new jobs?

American Solutions, in contrast, is building a Small Business Advisory Council, a network of entrepreneurs with long experience in job creation.

The American Solutions Jobs Here, Jobs Now, Jobs First Solutions
These experienced entrepreneurs have helped us formulate a real plan for real job creation that we can enact right now to create new jobs.

1. Reduce Spending and Reform Government to Achieve a Balanced Budget.

While I was Speaker, federal spending rose by an average of 2.9 percent per year, the lowest increase since the 1920s. We can apply the same principles that worked from 1995 to 1998 to create jobs and four straight balanced budgets through smaller government, less spending, lower interest rates, and less debt.

2. Five Tax Reforms to Reward Job Creation, Entrepreneurship, Savings, and Investment.

a. Immediate Payroll Tax Relief. Allow workers and employers to keep more of their hard earned money through an immediate, two-year, 50 percent reduction of the payroll tax. This step would immediately boost the take home pay of every worker, and dramatically free up cash for every employer to hire and invest. This tax relief could be paid for with unspent TARP and stimulus money.

b. Incentives for Small Business Investment. Allow small businesses to expense 100 percent of new equipment purchases each year to help them invest in new, more productive technologies.

c. Abolish Taxes on Capital Gains. Match the Chinese capital gains rate of zero. Federal Reserve Chairman Alan Greenspan testified in the 1990s that this was the best rate for economic growth.
d. Reduce the Business Tax Rate. America has the second highest business tax rate in the world. We should match the Irish business tax rate of 12.5 percent. Combined with a zero rate of taxation on capital gains, America would become the most desirable country in the world in which to invest and start a business.

e. Abolish the Death Tax. Inheritance is the most powerful accumulator of capital. Studies show that eliminating the death tax would create hundreds of thousands of new jobs.

3. American Energy Plan to Create American Jobs and Keep American Money at Home.

Developing more American energy while protecting the environment would mean the creation of millions of new American jobs and the generation of billions of dollars in new federal tax revenues, largely without the need for any new federal spending. The first steps we need to take are to develop more of America's oil, natural gas, and oil shale resources, expand nuclear power, provide prizes for key energy breakthroughs, and an emphasis on incentives, not taxes, to achieve our energy and environmental goals.

And for more information about the American Solutions Jobs Here, Jobs Now, Jobs First plan, go to AmericanSolutions.com.
Two Visions of Jobs Growth, Two Visions of America
This week will present more than two contrasting visions of how to create new jobs, it will present two contrasting visions of America.

For reasons of ideology, interest groups and personnel, the Obama-Pelosi-Reid vision is one of bigger and more controlling government, but smaller and more anemic private enterprise.
To try to pretend that this model will produce the jobs America desperately needs is to do a grave injustice to the American people.

Americans whose goals are to provide for their families, not perpetuate their political power, know what really works to create jobs.

In Cincinnati today, Jackson, Mississippi, on Thursday, and more cities next year, these Americans will have their voices heard. We hope you'll join us.

Your friend,
Newt Gingrich

In is an interesting thought... a jobs summit put by a group of elitist people who have never worked out side of community organizing or academia and who by most people's standards have never really worked, let alone created jobs or competed in any type of business arena. And they don't invite either the U.S. Chamber of Commerce or the Federation of Independent Business Owners.

A friend sends along the following chart from a J.P. Morgan research report. It examines the prior private sector experience of the cabinet officials since 1900 that one might expect a president to turn to in seeking advice about helping the economy. It includes secretaries of State, Commerce, Treasury, Agriculture, Interior, Labor, Transportation, Energy, and Housing & Urban Development, and excludes Postmaster General, Navy, War, Health, Education & Welfare, Veterans Affairs, and Homeland Security—432 cabinet members in all.

When one considers that public sector employment has ranged since the 1950s at between 15 percent and 19 percent of the population, the makeup of the current cabinet—over 90 percent of its prior experience was in the public sector—is remarkable.

You really wonder, don't you, if they want to end the recession or create jobs at all?!?

The Obama Job Program is probably going to be life the AIG payback