MasterPo says: This blog is about topics and issues that are of importance to me. I am not one of the countless blogging lemmings that are tripping over each other scurrying down the hill and off the cliff of blogging oblivion trying to write the greatest blog on the latest topic de'jour. Your comments are welcome.

January 4, 2010

Is It Time to Panic Yet?

As been often stated here in recent times, MasterPo is not a conspiracy theorist! (MasterPo also doesn't like to repeat himself but this needs to be said to remind readers.) There are plenty of conspiracy dedicated blogs, websites and videos out there you can easily find if that's what floats your boat.

But 1+1 still equals 2 (regardless of what passes for "education" in public schools today).

I don't know if it is the result of an actual plan or simply the ultimate outcome of the sum total of a bunch of stupid decisions and text-book theory applications. But clearly the American economy – indeed, the traditional American way of life itself! – is in deeeeeeeep trouble. In spite of what the great Messiah in Washington and his obedient minions keep spouting, it isn't improving. You don't have to be a Nobel Prize winning economist to see that.

As of writing this:

- The Fed just revised down 3rd quarter 2009 GDP to a mere 1.2% from over 3%.(Footnote: Just imagine if a major company had so grossly overstated its earnings. Imagine the calls from the Wise in Washington for the SEC to be up and down the company books and investigate the company's management!)

- Unemployment is still 10% and likely to increase once the holiday season is over.The American dollar is in the toilet and being flushed deeper down every day.

- Our own Federal Treasury, as stated by the chairman Ben Bernanke himself, actually supports the idea of making an international currency rather than using the U.S. Dollar for major world commodities.

- Ol' Ben himself, in a recent testimony before a Congressional hearing, said the U.S. Treasury gave $500 BILLION to foreign banks and has no idea where the money was spent!

- The Federal discount interest rate is, for all intents and purposes, at zero.

- Healthcare "reform" is about to be passed that guarantees an immediate tax hike as well as higher premiums. Even the Obama administration's own people admit it will be years before the promised savings comes to pass (yea right!).

- Cap&Trade is on the horizon for 2010 and Obama himself has promised (with a smile!) that electric rates will double at least under the plan.

- The VAT tax is being proposed – get this – to help pay for the national debt!

- And the Bush tax cuts are going to expire at the end of 2010, which Obama has promised not to renew. But, as Nancy Pelosi said recently, returning rates back up to where they were before the cuts is not a tax increase!

- And I won't even go into the Iranian nukes, Chinese government buying of American bonds, or the Russians ignoring anything we ask them to help with.

It is true that at any time you can always find someone claiming the sky is falling. Back in the '80s every book store I went into had displays and racks full of books that talked about the "Great Depression of the 1990's" etc etc. Didn't happen. In fact the 90's were pretty good (no thanks to Clinton but that's a separate topic). I skimmed many of these books and the points they made did make sense. Just as many of the points made by "experts" and pundits today about our economic situation and the future of America. But life didn't pan out that way.

But just because it didn't happen doesn't mean the very real potential wasn't there. And while "potential" for risk is always with us, it doesn't mean to ignore it.

"Hope" can be defined as the last act of the desperate. When all else fails, hoping that somehow somewhere something will happen to make it all better is desperation. Not reality.

Is it time to panic? I don't know.

But I do know that for the first time in my life I have an uneasy feeling in the pit of my stomach that isn't going away (and it's not the mushroom pizza I had for dinner last night).

I will leave you with this thought:

Nations come and go.But gold survives.


Steve Howard said...

Our own Federal Treasury, as stated by the chairman Ben Bernanke himself, actually supports the idea of making an international currency rather than using the U.S. Dollar for major world commodities.

I couldn't find this, but am very interested. Do you have a reference I could read?

MasterPo said...

My bad. It was Timmy Geithner. Here's a link to one article about it: