Tuesday, January 12, 2010

The facts, just the facts please..........

When I was growing up on the many Indian reservations of my youth, (my Dad worked for the Bureau of Indian Affairs), it was the "in-thing" to hunt. Most of the Indian reservations I grew up on way back then did NOT have game and fish codes and few reservations had any enforcement of conservation laws even if there were any.

In those days, deer hunting wasn't a sport, it was a way to put cheap meat on the table. I did alot of it. I shot alot of deer growing up and driving up to an elderly Oglala couple's home in the cold winter with a freshly killed deer to give to them was to share a generous gift. In return I would take commodity cheese to my parents house. Those were the facts back then.

Today the facts are different facing this nation. Here are some to ponder.

8 million jobs were lost in just over the last year

Homes are still foreclosing at the rate of 300,000 a month

Commercial real estate is toxic and is entering a hightening rate of defaults

Credit is again tightening, commercial credit is down for the last 6 weeks or so, same in Europe

Consumer credit dropped a record 17.5 billion bucks last reporting month.

Govt tax intake is dangerously down

Real unemployment is over 20% and not getting better.

All govt programs have failed, 3% success is failure.

7 or more million homes are foreclosed and not on the market as banks hold them back for better prices.

Central banks are now buying gold rather dramatically.

State governments are entering Hotel California one by one.

The "too big to fail" banks are in no better shape than two years ago due to "black hole" bailouts.

Remember these words? Federal Reserve Chairman Ben Bernanke said on July 16, 2008, that Fannie Mae and Freddie Mac are "adequately capitalized" and "in no danger of failing." Then-Secretary Treasurer Henry Paulson declared on August 10, 2008, "We have no plans to insert money into either of those two institutions."

►Both Fannie and Freddie were nationalized 28 days later, on September 8, 2008.

Ben Bernanke claimed on February 28, 2008, "Among the largest banks, the capital ratios remain good and I don't expect any serious problems of that sort among the large, internationally active banks..." Henry Paulson added on July 20, 2008, that "It's a safe banking system, a sound banking system. Our regulators are on top of it. This is a very manageable situation."

►Since the recession started in December, 2008, 144 banks have failed.

Paulson informed us on April 20, 2007, that "All the signs I look at show the housing market is at or near the bottom."

►The number of foreclosures skyrocketed shortly thereafter and will now any day surpass those during the Great Depression.

Ben Bernanke announced on June 20, 2007, that "[The sub prime fallout] will not affect the economy overall."

►Less than one year later, the stock market crashed, losing 53% of its value, and is still down 25% despite one of the biggest bounces in history.

Those in charge of our country's finances not only failed to see the crises developing and then bungled the handling of the recovery, they've deliberately misled us about what they're doing to our currency. In spite of emphatic promises, flowery speeches, pat-on-the-back assurances, and continual reassurances, here's what they've actually done to the dollar:

Since September 1, 2008, the monetary base has ballooned from $908 billion to $2.0 trillion. The current monetary base is now equal to bailing out General Motors 23 times.
Bailout funds in 2008 and 2009 total $8.1 trillion. That's almost 78 WorldComs. It's over 123 Enrons.
U.S. debt has risen sharply, from $6.2 trillion in 2002 to $12.1 trillion today. That's over $39,000 per citizen.
David Walker, the comptroller general of the Government Accountability Office from 1998-2008, warned that the U.S. is on the hook for $60 trillion in unfunded liabilities. Independent analysts peg the figure at near twice that. Whatever the number, it is incomprehensibly large. The only way we will meet these liabilities is to print the money and inflate them away.
We're bailing out corporations that should fail, making financial promises we can't keep, and adding layers of debt we can't possibly repay. And the real killer is, if we don't have the cash, we just print it. It is, by any reasonable account, the "blunder that will plunder" the next several generations. It is changing America permanently, and the problems will persist long after you and I are laid to rest.

Bottom line: after all the bailout programs, housing initiatives, rescue efforts, stimulus schemes, bank takeovers, wars, unemployment benefit extensions, and numerous other promises, the biggest financial deception of the decade is what the U.S. government is doing to the dollar. Nothing else even comes close.

This reckless activity has spooked our foreign creditors, weakened our global standing, diluted our currency, is punishing savers and retirees, and ultimately sets us up for a level of inflation this country has never seen before.

The facts, just the facts.

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