We were just gouged on January 1st for a fresh round of tax hikes and health insurance rate increases. And we are being told by Washington that we must prepare for another round in February of even more tax increases and Austerity cuts. We were also just told by IMF chief economist Olivier Blanchard that every 100 billion in budget cuts in Europe did three times as much damage to the GDP as had been predicted. We were recently told by Wall Street economists at J P Morgan and Goldman Sachs that we could expect the US economy to shrink 1.5% due to the January tax increases and another 1.5% for Obamacare health insurance rate increases.
People all over America are getting their first paycheck of 2013 and are shocked to see how much less money they are taking home due to higher taxes. Others are going to medical clinics and learning that their co-pays and pharmacy charges are higher. Over the next month small businesses and millions of people will pay more for health insurance because the Obamacare bill was written by health insurance corporations.
So the question of the day is this: What if instead of a projected decrease of 3% in the US economy, Blanchard is right and our GDP decreases three times as much or at an additional 9%? Maybe that European figure does not apply to America and the January 1st tax increases only shrink America’s GDP by an additional 6%. The US GDP grew at less than 1% in the last quarter of 2012. Dr John Williams at Shadow Stats says the real inflation rate is 9.6%. If we subtract 9.6% from 1%, we get an economy shrinking at 8.6% in 2012 and starts out shrinking anywhere from 11 to 17% in 2013. Suppose the economy only contracts another 12 or 13%, even the bought and paid for media will no longer be able to deny that we are entering another Great Depression. Must I remind you again that at least 3 million Americans died of starvation in the 1930s.
That is my limit. I am not willing to sit around and let Wall Street, the politicians and the lying corporate media starve 10 million Americans to death in this current Depression. We only have 4 more weeks to say No to Washington before the Too Big To Jail Banks, the Military-Security Industrial Complex and Israel get to the Congress and the President to push the American economy over a cliff. If we let them raise taxes and cut benefits, we will be far worse than Greece today or Germany in 1932.
I say No to tax increases and No to Austerity cuts. The politicians are talking about an additional trillion dollars in taxes and an additional trillion dollars in budget cuts over ten years. We cannot survive even those miniscule 100 billion dollars a year in cuts and tax increases. Besides all these budget talks plan on doing is to limit the growth in the debt so we can pay interest on 21 trillion dollars as opposed to 25 trillion or more. You might tell the next politician or media personality you meet that 5% interest on even 20 trillion is 1.7 trillion dollars more than all of America’s tax collections so radical change is needed within the next 4 weeks. Following are a few budget items we can safely cut though I would combine these cuts with some spending increases on badly needed infrastructure.
I would completely eliminate the Transportation Security Administration and let the airlines pay for security. This will eliminate genital groping by government goons and cause tourism to boom. The Congress could also affirm the Fourth Amendment which forbids searches and seizures without probable cause and a warrant.
I would also abolish the Department of Homeland Security including the 72 Threat Fusion Centers and those 200,000 high paid consultants. Also on the chopping block would be warrantless wiretaps and data mining, Of course those 30,000 drones should be stopped before it is too late to save what few freedoms we have. Why do we need armed drones overhead? Is America to become the next Pakistan?
I would eliminate all vaccines for those under 12 months and over 65 years of age. Vaccination does no good for people at those ages. I also would eliminate all vaccines that cannot be proven safe and efficacious. I would also tell insurers they no longer have to reimburse for medications that are not significantly more effective than home remedies. Deep breathing exercises reduce blood pressure. Vitamin D3 and cinnamon reduces blood sugar swings better than do most prescription medicines. That should save us a ton of money.
Overseas we need to stop the endless wars and occupations. We could reverse the decision to invade 35 more African countries. We could stop funding the mercenaries attacking Syria and cut off all aid and assistance to Al Qaeda in Libya. We could pull our troops and mercenaries out of Iraq and Afghanistan. We could pull our Navy out of the Persian Gulf. I would park a naval task force off the coast of Gaza and Palestine so Israelis can no longer kill Palestinian fishermen. I would seize that platform off the coast of Gaza that the Israelis use to steal Palestinian natural gas. This would make the Palestinians energy self-sufficient.
I would also cut off all aid to Israel because it is illegal under American law to give aid to any nuclear power that does not sign the Nuclear Non-Proliferation Treaty and allow UN-IAEA inspections. I would also eliminate loan guarantees to Israel which are more than our military aid.
I would use all of the above savings to increase spending on infrastructure. Our bridges are collapsing. The net savings should be enough to meet the budgetary need to cut federal spending over a trillions dollars a year.
But after we get through this next round of cuts in February we need to move on to what will really fundamentally change things. The Treasury must seize control of the Federal Reserve bank. And we must seize control of the Big Five Too Big To Jail banks. They are all bankrupt. We need to seize 100% of all illegal assets in those banks and apply it to the public debt. We also need to issue a non-interest bearing currency to replace Federal Reserve Notes. We need to ban fractional reserve banking. All of this would be a first step towards monetary reform.
We can no longer allow bankers to charge us interest on money they created out of nothing.
For the benefit of new readers let me repeat my predictions for 2013. I expect the Bond Bubble and the dollar to crash. Inflation will cut purchasing power to half of what it was in January of 2012. This will cut paychecks and pensions in half. This will be caused by people overseas dumping dollars. I expect more than 1,000 cities, counties, school districts and other local government agencies to default on their bonds. And I have said the US Treasury deficit for the calendar year 2013 will for the first time in history pass two trillion dollars.
I will also predict that 2013 is the year that Americans get really pissed off at the government.
Notes:2013 The Year Americans Realize They Cannot Afford Any More Wars For Israel
Signs The Bankers Are Prepping You For World War Z
Sacking, Looting And Destroying America 1994-2013
LOL!! I Stole 3.5 Trillion Dollars From You. I Dare You To Do Something.
How Gun Grabber Feinstein Stole $100s Of Billions In Gold