Thursday, September 04, 2008


Before last night, Obama's numbers did not add up. Now, the numbers are goofy but they come closer to adding up.

Last night an Obama spokesperson explained that the $1,000 rebate, for those people who do not pay income taxes, will come out of Social Security. He further explained that the people who earn from $150,000 to $250,000 will see stable income tax rates. Obama has repeated the $250,000 cut off while implying that families earning less $250,000 would see income tax cuts.

In the 1960's, when my Dad, earned the much higher than average income of $7,000 per year, he maxed out his Social Security Contribution by April or May. Back then, a family income of $10,000 was big. My Mother earned better than $3,000 per year and our family was "wealthy". We spent long hours growing and canning vegetables, we seldom ate away from home, we vacationed in a tent and we wore out our jeans and our one pair of week day shoes before we got more, but we were wealthy. It was clear to our neighbors that we were wealthy because we were one of few families to own two cars. $100,000 of income and $150,000 of family income sounds large but it will soon be small. Those who see the government as the source of economic strength can never get enough from it.

Under Obama's first plan, no one would ever max out Social Security payments. To wiggle out of criticism and to make the numbers sound better, under his latest plan, his Social Security tax increase would not start until 2019 and the increase would start with a "dough nut hole". By waiting to increase the Social Security tax for 10 years, he avoids having to count it at all.

If Social Security contributions were cut by $1,000 per year times millions of payers, Social Security would be in dire straights by the time Obama's "taxes on the rich" "saved the system". In other words, Obama would make a bad situation worse with a promise to "sock it to the rich" later. He has to play these games in order to make his misleading political statements fly.

Social Security has been a "bad investment" for a long time. Those who pay the maximum, receive returns of less than 2%. Obviously not a great retirement plan, but the hurt to 100's of millions of people has been offset by the help provided to a few million people. Social Security has been collected by a lot of children, whose parent(s) suffered early death(s), and by people who suffered disabilities. My grandmother was one of the lucky ones who made one small payment into the system and received 40 years of monthly checks, even though she was healthy and financially "well-off". Who can blame anyone of accepting gifts offered by the government? Warren Buffet has said he is willing to pay ordinary rates on his capital gains but, to my knowledge, he has not written the check. In truth, the government, all the people, are better off to allow Warren to invest the money and take just 20% of his profits.

While the original purpose was a forced retirement savings plan, most people are not extremely upset by the significant "leakage" in assistance to the unfortunate. The changes promised by Obama would convert SSN into a welfare system. We already know how that will work out.

In the short run, Obama's tax plan has been all over the map. His proposal has gone from dramatically increasing the tax on individuals who make $100,000 to miraculously coming up with billions of dollars to finance $1,000 reductions in contributions by middle and lower wage people. His program is a bit like the earned income tax credit on steroids. It is a rehashing of George McGovern's plan for government to guarantee all Americans a $40,500 per year income. McGovern's figure was $10,000, but my $40,500 includes an inflation adjustment of 3.5% per year. The main difference is that McGovern was upfront about the $10,000 payment whereas Obama hides his tax increases behind the rhetoric of $1,000 tax rebates. Fortunately the public was not fooled into believing McGovern could give every family a $40k income (without massive inflation or massive tax increases).

One of the problems with Obama's plan is that he does not use dynamic scoring. He avoids mentioning that raising the taxes US businesses pay on wages would send jobs to foreign countries. As marginal production costs increase, businesses would be forced to seek lower costs elsewhere. Obama also avoids the fact that higher taxes on businesses would be paid by higher prices of goods to consumers.

Obama is in love with the "European or Japanese Model". The following numbers show what his plan would achieve.

Recent per person GDP numbers are as follows:

USA $41,800
Japan $30,300
Germany $30,500
UK $31,500

The numbers include health care and all other benefits. Are Americans willing to see a an average income cut of 27% just to tighten the spread between the rich and the poor? (Besides, the spread between rich and poor is already lower in free enterprise countries.) Do we really want to go to a system where the incentive to work is diminished? Will government receipts really go up, just because tax rates go up? Has Obama ever looked at the Laffer Curve?

The 2007 figures show that new records have been set. Even during an economic downturn, personal wealth and income in the USA has set new records. A significant percentage of our population has been hurt by the downturn and particularly by high oil prices. Lower oil prices will give consumers much more than the $1,000 rebate checks offered by Obama, without raiding the SSN trust fund. The decline in fuel costs will boost the economy and further increase the wealth of the average American (only a few small places, such as Luxembourg, has a higher per capita income).

Other large countries have higher minimum wages, longer unemployment benefits and state sponsored health care but their unemployment rates average 3.6% more than US rates. In the USA, jobs are plentiful. Even during an economic slowdown, unemployment rates are less than 6%. The USA has a very dynamic economy. Jobs are constantly lost, but new jobs are constantly created. The best part of the story is that most of the new jobs are better than the old jobs.


The risk of conflict with Iran continues to abate. Talks with Syria are set to continue, Sunday. Sarkozy, President of France, has publicly implied that additional progress has been made in talks with Iran. In the meantime, the USS Roosevelt, with its complement of 5,600 marines and sailors is now on a pleasure cruise. The ship will visit South Africa, while US negotiators go head to head with Iranian negotiators. This pleasure cruise is much closer to Iran than it was last week and it can change its mission if conditions change.


How sad? On national television, Pelosi, Reid and Obama have shown how partisanship can confuse, distort and destroy. Pelosi is now for building the new natural gas pipeline from Alaska but she is still opposed to drilling! She notes that natural gas is clean relative to fossil fuels! This was not a slip of the tongue, because she said it more than once.

Just in case some readers don't know, natural gas is a fossil fuel and it is found by drilling. Why would the USA build a 40 billion dollar gas pipeline, but not drill for gas? And, just in case some readers do not know, most of the gas found in Alaska is a byproduct of oil production. Oil and gas production go hand in hand.

Natural gas is the result of methanogen (tiny carbon eating bugs) digestion. Even when a well is drilled just to capture natural gas, the reality is that there is oil feeding the gas down there somewhere. Recently, Statoil was seeking a new place to drill when an employee said why don't we drill in one of our biggest and oldest gas fields? The field had produced gas for 30 years, but where did the gas come from? The company decided to increase the depth of some of the old gas wells. They struck 250 million barrels of oil. Coal bed methane is captured because there are similar bugs eating away at the coal.

Right now, the most productive oil wells in Alaska have up to 6 GE Aircraft Jet Engines attached, to pump natural gas back into each well. Some of the gas is used just to run the jet engines. This existing production will be sent through the new pipeline but it is not enough to justify the 40 billion dollar expenditure. Unfortunately, our speaker of the house does not have a clue. She and her friends in California have let millions of barrels of oil and trillions of feet of natural gas spew into the ocean just to prevent the "evil oil companies" to profit from it.

Last year, Harry Reid went on national TV to declare that the war in Iraq was lost. How sad?

Obama has been on national TV dozens of times with statements all over the map. He has wavered all the way from accepting defeat in Iraq to starting a new war with Pakistan. He says he would prevent Iran from acquiring nuclear arms without showing an understanding of how that can be accomplished. His solution is to talk the leaders into reason.


For commercial reasons, T. Boone Pickens, and for political reasons, democrats, keep repeating misleading statements. One is the 25%, 3% "lie". Another is the largest transfer of wealth in history lie.

There is at least an element of truth in the first "lie". The USA does consume about 25% of the oil annually consumed by the world and our stated reserves are about 3% of the worlds stated reserves. These reserves do not include oil in ANWR, oil in the National Strategic Petroleum Reserve, off shore oil that is legally off limits, and oil in numerous shale formations. It is commonly known that the USA has at least 3 trillion barrels of "non-reserve reserves". It is commonly known that at least 2 trillion barrels of these reserves can be recovered.

In addition to massive shale reserves in Wyoming, Colorado, etc. that are off limits, the Barnett reserves in Texas and the Bakken reserves in Montana, North Dakota and Canada and other massive shale reserves in Pennsylvania and West Virginia are being tapped. The US Geological Survey estimates the Bakken holds somewhere between 300 billion and 500 billion barrels of "oil equivalents". For the past 6 months or so, the increase in production from the Bakken has been about 10,000 barrels per month. The total production is up to around 200,000 barrels per day, still a very small number relative to 300 billion barrels.

There is no question, this "oil" is hard to extract. This oil was discovered in 1952. Just a few years ago, the cost of extracting this oil was greater than the cost of the oil produced. As a result, none of this oil was counted as reserves. Back when the price of a barrel of oil reached $60, the US Geological Survey for economically recoverable reserves in the Bakken to 3.4 billion barrels. Less than 1% of the oil in the Bakken is counted as reserves. Zero percent of the 2 trillion barrels in Wyoming and Colorado are counted.

We cannot count 2 trillion barrels of "rocky mountain shale" and additional billions of barrels off our coasts because the congress has declared it to be off limits. By the stroke of a pen and just a little exploration, we can dramatically change the 3% figure.

The transfer of 700 billion dollars of wealth is a total lie. We buy the oil the same way we buy building lumber to build houses. We only buy when the value of the oil is worth more to us than other goods or our paper money. I bought my house but I did not give away my money when I bought it and I do not give away my money when I fill my gas tank. I am just as wealthy after filling my tank. If I waste the tank of gas, I decrease my wealth. If I put it to good use, I will increase my wealth.


The massive rotation continues. The US 10 year bond rate continues to fall, it just traded at 3.67%. The short term fly in the ointment is a bounce in guilt and bund rates. When the fall in rates resumes, mortgage rates and commercial bond rates will join the fall. Forget about any economic forecast you have seen, the power of the bond market is real.

The bond market knows that inflation is waning. As bond rates fall, many a bank balance sheet will see leveraged improvements to capital ratios. Junk bonds have already begun to rally. Financial stocks have rallied while gold prices have collapsed. Even utility stocks have been rolling over.

Utilities are tricky beast. As consumers of energy, the first instinct is to believe that they would increase in value when energy prices fall. As highly regulated industries, utilities are not allowed to make "excessive returns". As companies of extreme operating leverage, they cannot make money unless they can run flat out at high operating rates.

With the public and businesses doing all they can to conserve, utility operating rates are apt to fall just a little. With energy costs coming down, politicians are apt to demand utility rate reductions. All the while, the massive investments utilities have been forced to make, by congress, are about to turn into massive waste.

Think of all the solar panels being installed by utilities, not because they make economic sense, but because renewable fuel production has been mandated. To paraphrase Professor Don Boudreaux, a mandate is when the government makes someone spend money to do something stupid. If it made sense to do the thing, it would not require a government mandate. The total cost of the electricity produced by solar panels is many times the price of the energy being produced by fossil fuels.

The point for investors is that we have reached the late contraction phase of the economic cycle. During this phase, bond rates go down and financial stocks go up while the broad market averages are dragged down by declining resource stocks. Consumer cyclical stocks begin to rise well before the end of the contraction. This is also the point when real estate prices begin to rise and when companies that use lots of energy enjoy lower costs.

Yesterday, when explaining to a friend the reasons paper stocks have bounced, I suggested that he look at a long term plot of Louisiana Pacific relative to Exxon Mobile. The see-saw action is obvious. Still, we are fortunate in that we are not locked into resource sectors. Resource mutual funds are pulling out of energy as fast as they can and buying paper because, by charter, they are required to remain in the sector. Individuals can move into financial stocks, consumer stocks and consumer of energy stocks.


The short run decision of the ECB and the BoE to hold short rates steady has resulted in the typical knee jerk reaction. Even long rates in the EU have bounced up.

The "big boys" with the aid of the "TV pundits" have taught the world to react to interest rate moves in exactly the wrong direction. The falsehood is that an increase in short term rates results in an increase in long term rates. The reality is that an increase in short rates in and of itself results in a reduction of economic activity, lower long term inflation and lower long term rates. Of course, rates are raised (or in this case held steady) based on the belief that they need to be high to combat inflation. Traders typically accept that the central bankers must know some secrets when they fail to lower rates when the economy seems soft. The reaction is knee jerk but it fades.

The collapse of the GBP (British Pound) has been temporarily arrested. The higher than expected short rate has resulted in a bounce in the GBP (a fall back in the dollar) and a bounce in long guilt rates. This bounce will prove temporary, unless the worlds economies are starting to fire on all 8 cylinders. The US economy is starting to hum along, but not on all 8 cylinders and many nations are approaching recession. Australia finally cut rates by .25% last week. Short rates there are still at 7%. The decision to hold EU rates steady is the decision to keep pressure on the brakes. This means the price decline of gold and oil is not over but it also means stock markets will temporarily struggle against the air sucking bonds. The US 10-year is down to 3.67% this morning. How low will rates go? The wind is being sucked out of the stock market by the bond market, but there is a stampede developing in the early cycle stocks, buy, buy, BUY!


Last night, Rudy and Sarah were exceptionally good at contrasting Obama to McCain. Huckabee did a good job of warming up the crowd but Rudy was hot and Sarah was the hottest. Sometime ago, I predicted a 2% McCain win. I was out on a limb for awhile, but now I feel secure. By next week, I predict the daily tracking polls will put McCain in the lead. I predict that a number of swing states will swing by next week. The election is still two months away and the polls will continue to wiggle, but McCain should take a significant lead by next week, just about the time the congress comes back to discuss drilling and just about the time retail gasoline prices hit $3.33.


Anonymous said...

Don’t believe one optimistic word from any public figure about the economy or humanity in general. They are all part of the problem. Its like a game of Monopoly. In America, the richest 1% now hold 1/2 OF ALL UNITED STATES WEALTH. Unlike ‘lesser’ estimates, this includes all stocks, bonds, cash, and material assets held by America’s richest 1%. Even that filthy pig Oprah acknowledged that it was at about 50% in 2006. Naturally, she put her own ‘humanitarian’ spin on it. Calling attention to her own ‘good will’. WHAT A DISGUSTING HYPOCRITE SLOB. THE RICHEST 1% HAVE LITERALLY MADE WORLD PROSPERITY ABSOLUTELY IMPOSSIBLE. Don’t fall for any of their ‘humanitarian’ CRAP. ITS A SHAM. THESE PEOPLE ARE CAUSING THE SAME PROBLEMS THEY PRETEND TO CARE ABOUT. Ask any professor of economics. Money does not grow on trees. The government can’t just print up more on a whim. At any given time, there is a relative limit to the wealth within ANY economy of ANY size. So when too much wealth accumulates at the top, the middle class slip further into debt and the lower class further into poverty. A similar rule applies worldwide. The world’s richest 1% now own over 40% of ALL WORLD WEALTH. This is EVEN AFTER you account for all of this ‘good will’ ‘humanitarian’ BS from celebrities and executives. ITS A SHAM. As they get richer and richer, less wealth is left circulating beneath them. This is the single greatest underlying cause for the current US recession. The middle class can no longer afford to sustain their share of the economy. Their wealth has been gradually transfered to the richest 1%. One way or another, we suffer because of their incredible greed. We are talking about TRILLIONS of dollars which have been transfered FROM US TO THEM. All over a period of about 27 years. Thats Reaganomics for you. The wealth does not ‘trickle down’ as we were told it would. It just accumulates at the top. Shrinking the middle class and expanding the lower class. Causing a domino effect of socio-economic problems. But the rich will never stop. They just keep getting richer. Leaving even less of the pie for the other 99% of us to share. At the same time, they throw back a few tax deductible crumbs and call themselves ‘humanitarians’. Cashing in on the PR and getting even richer the following year. IT CAN’T WORK THIS WAY. Their bogus efforts to make the world a better place can not possibly succeed. Any 'humanitarian' progress made in one area will be lost in another. EVERY SINGLE TIME. IT ABSOLUTELY CAN NOT WORK THIS WAY. This is going to end just like a game of Monopoly. The current US recession will drag on for years and lead into the worst US depression of all time. The richest 1% will live like royalty while the rest of us fight over jobs, food, and gasoline. So don’t fall for any of this PR CRAP from Hollywood, Pro Sports, and Wall Street PIGS. ITS A SHAM. Remember: They are filthy rich EVEN AFTER their tax deductible contributions. Greedy pigs. Now, we are headed for the worst economic and cultural crisis of all time. Crime, poverty, and suicide will skyrocket. SEND A “THANK YOU” NOTE TO YOUR FAVORITE MILLIONAIRE. ITS THEIR FAULT. I’m not discounting other factors like China, sub-prime, or gas prices. But all of those factors combined still pale in comparison to that HUGE transfer of wealth to the rich. Anyway, those other factors are all related and further aggrivated because of GREED. If it weren’t for the OBSCENE distribution of wealth within our country, there never would have been such a market for sub-prime to begin with. Which by the way, was another trick whipped up by greedy bankers and executives. IT MAKES THEM RICHER. The credit industry has been ENDORSED by people like Oprah Winfrey, Ellen DeGenerous, Dr Phil, and many other celebrities. IT MAKES THEM RICHER. Now, there are commercial ties between nearly every industry and every public figure. IT MAKES THEM RICHER. So don’t fall for their ‘good will’ BS. ITS A LIE. If you fall for it, then you’re a fool. If you see any real difference between the moral character of a celebrity, politician, attorney, or executive, then you’re a fool. No offense fellow citizens. But we have been mislead by nearly every public figure. We still are. Even now, they claim to be 'hurting' right along with the rest of us. As if gas prices actually effect the lifestyle of a millionaire. ITS A LIE. IN 2007, THE RICHEST 1% INCREASED THEIR AVERAGE BOTTOM LINE WEALTH AGAIN. On average, they are now worth over $4,000,000 each. Thats an all time high. As a group, they are now worth well over $17,000,000,000,000. THATS WELL OVER SEVENTEEN TRILLION DOLLARS. Another all time high. Which by the way, is much more than the entire middle and lower classes combined. Also more than enough to pay off our national debt, fund the Iraq war for twenty years, repair our infrastructure, and bail out the US housing market. Still think that our biggest problem is China? Think again. Its the 1% club. That means every big name celebrity, athlete, executive, entrepreneur, developer, banker, and lottery winner. Along with many attorneys, doctors, politicians, and bankers. If they are rich, then they are part of the problem. Their incredible wealth was not 'created', 'generated', grown in their back yard, or printed up on their command. It was transfered FROM US TO THEM. Directly and indirectly. Its become near impossible to spend a dollar without making some greedy pig even richer. Don't be fooled by the occasional loss of a millionaire's fortune. Overall, they just keep getting richer. They absolutely will not stop. Still, they have the nerve to pretend as if they care about ordinary people. ITS A LIE. NOTHING BUT CALCULATED PR CRAP. WAKE UP PEOPLE. THEIR GOAL IS TO WIN THE GAME. The 1% club will always say or do whatever it takes to get as rich as possible. Without the slightest regard for anything or anyone but themselves. Reaganomics. Their idea. Loans from China. Their idea. NAFTA. Their idea. Outsourcing. Their idea. Sub-prime. Their idea. High energy prices. Their idea. Oil 'futures'. Their idea. Obscene health care charges. Their idea. The commercial lobbyist. Their idea. The multi-million dollar lawsuit. Their idea. The multi-million dollar endorsement deal. Their idea. $200 cell phone bills. Their idea. $200 basketball shoes. Their idea. $30 late fees. Their idea. $30 NSF fees. Their idea. $20 DVDs. Their idea. Subliminal advertising. Their idea. Brainwash plots on TV. Their idea. Vioxx, and Celebrex. Their idea. Excessive medical testing. Their idea. The MASSIVE campaign to turn every American into a brainwashed, credit card, pharmaceutical, medical testing, love-sick, celebrity junkie. Their idea. All of the above shrink the middle class, concentrate the world’s wealth and resources, create a dominoe effect of socio-economic problems, and wreak havok on society. All of which have been CREATED AND ENDORSED by celebrities, athletes, executives, entrepreneurs, attorneys, and politicians. IT MAKES THEM RICHER. So don’t fall for any of their ‘good will’ ‘humanitarian’ BS. ITS A SHAM. NOTHING BUT TAX DEDUCTIBLE PR CRAP. In many cases, the 'charitable' contribution is almost entirely offset. Not to mention the opportunity to plug their name, image, product, and 'good will' all at once. IT MAKES THEM RICHER. These filthy pigs even have the nerve to throw a fit and spin up a misleading defense with regard to 'federal tax revenue'. ITS A SHAM. THEY SCREWED UP THE EQUATION TO BEGIN WITH. If the middle and lower classes had a greater share of the pie, they could easily cover a greater share of the federal tax revenue. They are held down in many ways because of greed. Wages remain stagnant for millions because the executives, celebrities, athletes, attorneys, and entrepreneurs, are paid millions. They over-sell, over-charge, under-pay, outsource, cut jobs, and benefits to increase their bottom line. As their profits rise, so do the stock values. Which are owned primarily by the richest 5%. As more United States wealth rises to the top, the middle and lower classes inevitably suffer. This reduces the potential tax reveue drawn from those brackets. At the same time, it wreaks havok on middle and lower class communities and increases the need for financial aid. Not to mention the spike in crime because of it. There is a dominoe effect to consider. IT CAN'T WORK THIS WAY. But our leaders refuse to acknowledge this. Instead they come up with one trick after another to milk the system and screw the majority. These decisions are heavily influensed by the 1% club. Every year, billions of federal tax dollars are diverted behind the scenes back to the rich and their respective industries. Loans from China have been necessary to compensate in part, for the red ink and multi-trillion dollar transfer of wealth to the rich. At the same time, the feds have been pushing more financial burden onto the states who push them lower onto the cities. Again, the hardship is felt more by the majority and less by the 1% club. The rich prefer to live in exclusive areas or upper class communities. They get the best of everything. Reliable city services, new schools, freshly paved roads, upscale parks, ect. The middle and lower class communities get little or nothing without a local tax increase. Which, they usually can't afford. So the red ink flows followed by service cuts and lay-offs. All because of the OBSCENE distribution of bottom line wealth in this country. Anyway, when you account for all federal, state, and local taxes, the middle class actually pay about the same rate as the rich. The devil is in the details. So when people forgive the rich for their incredible greed and then praise them for paying a greater share of the FEDERAL income taxes, its like nails on a chalk board. I can not accept any theory that our economy would suffer in any way with a more reasonable distribution of wealth. Afterall, it was more reasonable 30 years ago. Before Reaganomics came along. Before GREED became such an epidemic. Before we had an army of over-paid executives, bankers, celebrities, athletes, attorneys, doctors, investors, entrepreneurs, developers, and sold-out politicians to kiss their asses. As a nation, we were in much better shape. Strong middle class, free and clear assets, lower crime rate, more widespread prosperity, stable job market, lower deficit, ect. Our economy as a whole was much more stable and prosperous for the majority. WITHOUT LOANS FROM CHINA. Now, we have a more obscene distribution of bottom line wealth than ever before. We have a sold-out government, crumbling infrastructure, energy crisis, home forclosure epidemic, credit crunch, weak US dollar, 13 figure national deficit, and 12 figure annual shortfall. The cost of living is higher than ever before. Most people can't even afford basic health care. ALL BECAUSE OF GREED. I really don't blame the 2nd -5th percentiles in general. No economy could ever function without some reasonable scale of personal wealth and income. But it can't be allowed to run wild like a mad dog. ALBERT EINSTEIN TRIED TO MAKE PEOPLE UNDERSTAND. UNBRIDLED CAPITALISM ABSOLUTELY CAN NOT WORK. TOP HEAVY ECONOMIES ALWAYS COLLAPSE. Bottom line: The richest 1% will soon tank the largest economy in the world. It will be like nothing we’ve ever seen before. The American dream will be shattered. and thats just the beginning. Greed will eventually tank every major economy in the world. Causing millions to suffer and die. Oprah, Angelina, Brad, Bono, and Bill are not part of the solution. They are part of the problem. THERE IS NO SUCH THING AS A MULTI-MILLIONAIRE HUMANITARIAN. EXTREME WEALTH MAKES WORLD PROSPERITY ABSOLUTELY IMPOSSIBLE. WITHOUT WORLD PROSPERITY, THERE WILL NEVER BE WORLD PEACE OR ANYTHING EVEN CLOSE. GREED KILLS. IT WILL BE OUR DOWNFALL. Of course, the rich will throw a fit and call me a madman.. Of course, they will jump to small minded conclusions about 'jealousy', 'envy', or 'socialism'. Of course, their ignorant fans will do the same. You have to expect that. But I speak the truth. If you don’t believe me, then copy this entry and run it by any professor of economics or socio-economics. Then tell a friend. Call the local radio station. Re-post this entry or put it in your own words. Be one of the first to predict the worst economic and cultural crisis of all time and explain its cause. WE ARE IN BIG TROUBLE.

So what can we do about it? Well, not much. Unfortunately, we are stuck on a runaway train. The problem has gone unchecked for too many years. The US/global depression is comming thanks to the 1% club. It would take a massive effort by the vast majority to prevent it. Along with a voluntary sacrifice by the rich. THATS NOT GOING TO HAPPEN. But if you believe in miracles, then spend your money as wisely as possible. Especially in middle and lower class communities. Check the Fortune 500 list and limit your support of high profit/low labor industries (Hollywood, pro sports, energy, credit, pharmaceutical, cable, satelite, internet advertising, cell phone, high fashion, jewelry, ect.). Cancel all but one credit card for emergencies only. If you need a cell phone, then do your homework and find the best deal on a local pre-pay. If you want home internet access, then use the least expensive provider, and share accounts whenever possible. If you need to search, then use the less popular search engines. They usually produce the same results anyway. Don't click on any internet ad. If you need the product or service, then look up the phone number or address and contact that business directly. Don't pay to see any blockbuster movie. Instead, wait a few months and rent the DVD from a local store or buy it USED. If you want to see a big name game or event, then watch it in a local bar, club, or at home on network TV. Don't buy any high end official merchendise and don't support the high end sponsors. If its endorsed by a big name celebrity, then don't buy it. If you can afford a new car, then make an exception for GM, Ford, and Dodge. If they don't increase their market share soon, then a lot more people are going to get screwed out of their pensions and/or benefits. Of course, you must know by now to avoid those big trucks and SUVs unless you truly need one for its intended purpose. Don't be ashamed to buy a foreign car if you prefer it. Afterall, those with the most fuel efficient vehicles consume a lot less foreign oil. Which accounts for a pretty big chunk of our trade deficit. Anyway, the global economy is worth supporting to some extent. Its the obscene profit margins, trade deficits, and BS from OPEC that get us into trouble. Otherwise, the global economy would be a good thing for everyone. Just keep in mind that the big 3 are struggling and they do produce a few smaller reliable cars. Don't frequent any high end department store or any business in a newly developed upper class community. By doing so, you make developers richer and draw support away from industrial areas and away from the middle class communities. Instead, support the local retailer and the less popular shopping centers. Especially in lower or middle class communities. If you can afford to buy a home, then do so. But go smaller and less expensive. Don't get yourself in too deep and don't buy into the newly developed condos or gated communities. Instead, find a modest home in a building or neighborhood at least 20 years old. If you live in one of the poorer states, then try to support its economy first and foremost. Be on the lookout for commercial brainwash plots on TV. They are written into nearly every scene of nearly every show. Most cater to network sponsors and parent companies. Especially commercial health care. Big business is fine on occasion depending on the profit margins and profit sharing. Do your homework. If you want to support any legitimate charity, then do so directly. Never support any celebrity foundation. They spend most of their funding on PR campaigns, travel, and high end accomodations for themselves. Instead, go to and look up a top rated charity to support your favorite cause. In general, support the little guy as much as possible and the big guy as little as possible. Do your part to reverse the transfer of wealth away from the rich and back to the middle and lower classes. Unfortunately, there is no perfect answer. Jobs will be lost either way. Innocent children will starve and die either way. But we need to support the largest group of workers with the most reasonable profit margins. We also need to support LEGITIMATE charities (Check that list at This is our only chance to limit the severity and/or duration of the comming US/global depression. In the meantime, don't listen to Bernanke, Paulson, Bartiromo, Orman, Dobbs, Kramer, OReiley, or any other public figure with regard to the economy. They are all plenty smart but I swear to you that they will lie right through their rotten teeth. IT MAKES THEM RICHER. These people work for big business. The 'experts' they cite also work for big business. They are all motivated by their desire to accumulate more wealth. THEY WILL LIE RIGHT THROUGH THEIR ROTTEN TEETH. So don't fall for their tricks. Instead, look at the big picture. The economic problems we face have been mounting for well over 20 years. All of them caused or aggrivated by a constant transfer of wealth from poorer to richer. Soon, it will cause the first ever GLOBAL DEPRESION. Its not brain surgery. Its simple math. Like I said, you are welcome to run this by any professor of economics or socio-economics. If thats not good enough, then look up what Einstein had to say about greed, extreme wealth, and its horrible concequences. I speak the truth. GREED KILLS. IT WILL BE OUR DOWNFALL.

Its already underway. A massive campaign to divert our attention. Trump, Buffet, OReiley, and several others have been running their mouths about the economy. Finally admitting a hint of severity. They even have the nerve to acknowledge the possibility of a US/global depression. Still, they refuse to acknowledge the underlying cause. GREED KILLS. IT WILL BE OUR DOWNFALL.

A word for those who respond with the usual 'I know more than you. Look how smart, knowledgable, and articulate I am' crap. Let me say this in advance. I don't claim to be an expert in this field. But I did go on record with these predictions long before any public figure uttered the word 'recession'. Since then, I've gone on record against people like Greenspan, Bernanke, and Paulson. So far, my predictions have been accurate. Like I said. This is not brain surgery. For the mostpart, its simple math. When you concentrate the world's wealth, you also concentrate its capital and shrink the middle class along with the potential market for every major industry. Homes go unsold. Bills go unpaid. Banks fail. More products go unsold. Jobs are lost. More banks fail. and so on. and so on. Throughout the cycle, the rich will tighten their grip. Concentrating the world's wealth and resources even further and ensuring the collapse of every major economy worldwide. Think it can't happen? Think again. GREED KILLS. IT WILL BE OUR DOWNFALL.