Friday, October 9, 2009
United States Bracing For Bankruptcy 2010
by Ron Spangler
As President Obama accepts the prestigious Nobel Peace Award, Americans are left wondering how they will survive as our economy continues to collapse around us. Congress and the President seem to be more concerned with spending than they are with putting American workers back to work. They are so focused on reforming health care in the United States they cannot see what is going on around the world. Regardless of what America wants this Congress and President will pass a government option health care reform bill and the deficit will be increased. Illegal immigrants in accordance with our Constitution will be covered under this new government plan and the President knows it.
Nancy Pelosi has already stated there will be a Value Added Tax (National Sales Tax) passed by this Congress and signed into law before or shortly after the 2010 elections. Along with this tax there will be a hidden Windfall Profits Tax slipped into the Health Care Reform Bill that will be passed onto the consumers by the insurance companies. At a time when Canada, Australia and others are seeing an increase in new jobs and a drop in their unemployment rates our job market continues to decline. Gold prices have reached record levels and will continue to rise. This indicates the rest of the world is worried the US economy and the dollar will soon collapse under the pressure of its huge trillion dollar deficits.
Where does this leave us in 2010 and 2011, in economic bankruptcy and another Depression. The only shoes left to fall that will drive us into National Bankruptcy is China refusing to loan us more money and the dollar being replaced as the World Monetary reserve. The first step will be replacing the dollar as the currency used for trading in oil and unfortunately our treasury and our President cannot see the danger in this action.
After the President signs into law the Health Care Reform Bill, Congress will pass the Cap and Trade Bill (they like to call it the energy bill). Like the Value Added Tax and the Windfall Profit Tax this will be another tax not only on business but every consumer in America. All of this will come to a head in 2010 and the nation will be devastated.
As the rest of the world is recovering from the recession they are scared America is not going to recover and be the prosperous leaders that we once were. Instead they see America as a country that is fast approaching Socialism and worry that there will be internal conflict that could drag the rest of the world into another economic downturn. They see American leaders as weak and economically ignorant. In an effort to save their own countries from following America into another Depression they will cut all economic ties to America, especially the dollar. As a result of continued over spending, high taxes, unemployment increasing, continued printing of US dollars and the eventual increase in inflation our economy will be bankrupt before the end of 2010.
Because of the current bubble and artificial stimulus the American market has been experiencing for the past few months, Congress doesn't see a problem with our economy. The President and Congressional leaders still believe we have time and if we are patient the American job market will once again rebound. Once Americans return to work they believe we will be able to afford all of the new taxes they are going to impose on the consumer. They are living in a world of fantasy and the rest of the world knows it.
High rolling gamblers that lose are the best thing that can happen to places like Las Vegas and Atlantic City. High rolling Presidents and Congressional inexperienced leaders are the worst thing that can happen to a nation. In times of war and recessions the last thing we need is to have the inexperienced gambler treating the war or our economy like a game of chance.
There may still be a glimmer of hope for our economy but only if the President and Congress abandons the course they have chosen. They will have to immediately cut spending including reverse the proposed wholesale health care reform. They can reform health care by taking small steps to cut the cost of heath care.
They can drop any notions of any type of tax increase in the foreseeable future.
They can reduce corporate taxes and encourage business to return to the US.
They can raise interest rates to strengthen the dollar.
They can ban all pork barrel spending and prohibit any add on amendments to bills during conference committee hearings. They can rule that all spending amendments must be directly related to the bill or the amendment must be sent as a bill and stand on its own merits.
They can open up the oil fields for offshore drilling.
They can eliminate some of the government bureaucracy and red tape surround drilling within the United States. They can not only pass Tort Reform they can restrict the frivolous lawsuits by environmentalist that is nothing more than a stalling tactic to stop oil exploration in the United States.
They can use the previous stimulus money to help small business stay afloat during this recession.
They can drop the Cap and Trade idea and instead encourage small business to produce more goods at home.
The government can reduce the amount of goods they buy from foreign countries and start buying more from US businesses that produce the products in the US. By buying American goods the government can create a market here at home.
They can restore consumer confidence by showing consumers they are aware of just how serious the situation really is.
They can show the world they are leaders by dealing with illegal immigration and simply enforce the laws against hiring illegal immigrants. During this time of high unemployment there are plenty of Americans willing to do the work that illegals are currently doing.
All of these are common sense things the government can do to turn this recession around and restore our position as world leaders. Americans are hard working people that are willing to sacrifice today for a brighter tomorrow. Right now we are sacrificing without the work and the future looks very dim.