America’s New Economy

There’s a lot of talk about America’s new economy and how we all have to do whatever is necessary to adapt to it.

People who work for a living are being overwhelmed by people who vote for a living
America’s New Economy

These animals’ view of America’s new economy is an economy based upon the productive being enslaved by the worthless and, as every previous attempt of this Keynesian nightmare has shown us, this economic model is doomed to utter failure.

As far as I can see, most of this talk – and all the jabbering spewing out of the maws of Obama and his coterie of vermin – should be rejected by we, the People of the United States of America – rejected by force and with extreme prejudice if needs be.

Already America is in a state where and when for every 1.25 productive citizens there is one resident that is either being supported through welfare or who is employed for the government in some capacity. A 1.25:1 Maker to Eater & Taker ratio is ridiculous, abhorrent to men of good character, and utterly unsustainable.

If America’s new economy is one where people who work for a living are being overwhelmed by people who vote for a living, then it’s time for drastic change starting in DC, working down to the ghettos and slums, and not stopping until America is cleansed, purified, and reborn once again as nation it was created as and always meant to be.

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Subprime Intelligence

Obama the IdiotAmerica is suffering through trying times and such trying times called for men of character and intelligence to step up and lead the way to better days. Sadly for each and every American, we’re saddled with Obama and the boy has no character of note and an obviously subprime intelligence

Yes, it’s probably too much to ask that Obama to learn from history. One could, however, quite reasonably expect anyone approaching the average human intellect to be able to learn from current events.

Such expectations that Obama had the basic human capacity to learn and adapt seem to have misplaced. In the wake of the Subprime Mortgage Crisis that caused the Great Recession, Obama’s policies for the FHA have been to do the same thing again with the same borrowers who defaulted the last time.

After two foreclosures and two bankruptcies, Hermes Maldonado, a Honduran immigrant, recently qualified for an FHA loan for a home in the Los Angeles area.

“After everything that happened, thank God I was able to buy another house.”

Under Obama, the FHA has more and more backed new home loans to so-called rebound borrowers, those who have recently defaulted on previous mortgages. The agency is now allowing lower-income borrowers with extremely low credit scores to get loans a mere three years after foreclosure and with as little as 3% down. This has resulted 40% of newer FHA-backed loans being subprime.

The natural result of this stupidity is that a large percentage of these loans are more than 90 days delinquent and many more are actively in foreclosure.† These losses have depleted the agency’s reserve fund to 0.24% during fiscal 2011, which is barely more than one tenth of the Congressionally-mandated 2% level.

With cash reserves almost nonexistent and analysts predicting that over 30% of FHA backed mortgages will be in delinquency within the next five years it’s expected that FHA will need a taxpayer-funded bailout in the very near future – to the tune of over $50 billion.

I’ll give Obama and his handlers and sycophants credit though. They don’t do stupidity in a small way; theirs is a larger than life sort of idiocy.

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Someone Call Red Bull

Some call Red Bull. Obamanomics is in a flat spin and falling groundward at 177 feet / second. Someone needs to give it wings or something before it splatters all over the nation.

Someone Call Red Bull. They seem to be able to give anything wings
Obamanomics – No Gentle Landing Foreseen

Red Bull and Felix Baumgartner seem a better choice than the Federal Government and Obama, though Felix is certainly not as articulate as Obama. He seems to favor results over rhetoric.

Of course this is a perennial problem with amateurs. No matter how often their told that 90% of chute failures are due to poor body positioning, they’re still likely to get it wrong the first few times.

Obama - Head Up Ass
Head Up Your Ass – The Keynesian Position

Yeah, someone call Red Bull and Baumgartner or – and here’s a thought – let’s throw the worthless little failure out of the White House and replace him with someone who understands business economics and whose desires are more likely to encourage the private sector to grow again.

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Krugman’s Eurod√§mmerung

The Leftist, Socialist, Anti-American Pseudo-Economist Paul KrugmanI’m not one to pay overly much attention to the various things that spew from the maw of Paul Krugman. The pontifications, ramblings, and rants of a rabidly fanatical Keynesian neo-Socialist who makes his rent working for the filthy rag known as the New York Times aren’t the sorts of things that I, or any other American, normally pay much heed to – except to keep an eye on what our nation’s enemies are thinking or emoting.

Krugman is willfully dead wrong more often than not on causation and dead wrong, again willfully, every time when it comes to remediation

All that being said, Krugman is not an idiot and he is skilled enough to make solidly plausible predictions of future events, especially relatively near-term ones.

Some of us have been talking it over, and here’s what we think the end game looks like:

1. Greek euro exit, very possibly next month.

2. Huge withdrawals from Spanish and Italian banks, as depositors try to move their money to Germany.

3a. Maybe, just possibly, de facto controls, with banks forbidden to transfer deposits out of country and limits on cash withdrawals.

3b. Alternatively, or maybe in tandem, huge draws on ECB credit to keep the banks from collapsing.

4a. Germany has a choice. Accept huge indirect public claims on Italy and Spain, plus a drastic revision of strategy basically, to give Spain in particular any hope you need both guarantees on its debt to hold borrowing costs down and a higher eurozone inflation target to make relative price adjustment possible; or:

4b. End of the euro.

And we’re talking about months, not years, for this to play out.

Of course this isn’t exactly rocket science or even one of the more arcane examples of the semi-mystical art form known today as the study of Economics. Both hyperinflation and the end of the Euro in the near future are easy predictions to make in the wake of Greece’s Keynesian meltdown and financial collapse.

NOTE: Krugman’s prediction of a European financial meltdown matches my own and naturally feeds into whatever level of Confirmation Bias that I’m saddled with.

Of course these events will happen and happen soon. They were foreordained from the moment of Greece’s financial implosion under the weight of their Socialist economic policies.

I’ll add though that these event will, in turn, most likely lead to the breaking of the European Union by 2015. They can’t hold together as a government – or meta-government, or whatever they are – without a common currency.

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