The Fed 3 18 2009

There are many things going now on that are very unsettling. Many of my friends, to my consternation are Obama lovers. However, I am fearful the majority may be overlooking the single most damaging action the federal government has taken to date. On Wednesday of this week, the Fed, in conjunction with the US Treasury did the equivalent of printing one trillion US Dollars. This resulted in the immediate fall of our currency, and a corresponding 70 dollar an ounce increase in the price of gold. At the same time, commodities prices, including oil went up dramatically. The increase in oil prices, coupled with the cap and trade legislation will paralyze industry in our country. Obama, I feel, is merely creating the public outcry over the AIG bonuses to throw off media attention from the actions affecting the money supply. This is a huge gamble, equivalent to a doubling down, ride all bet, and roll of the dice. If this sudden jolt to the currency supply fails to stimulate growth, the US government will be functionally bankrupt. We are already in the position where even China refuses to buy any more Treasuries. If that weren’t true there would have been no reason for the Fed’s actions on Wednesday. Apparently Hillary Clinton was dispatched on a fund raising tour around the world and came home with empty pockets. This is obvious to analysts, but the press has failed to understand, or refused to make these facts known for their own reasons. Obama is the best snake oil salesman the world has ever seen. We have to make people understand this before he destroys us and everything America stands for.



By myself, anything I do will have no effect on the government. I write to the president and the congress regularly, with no apparent effect. I would like to do anything and everything I can, including an outright revolution, to stop the current regime from ruining our country. There are many groups out there now trying to organize resistance, but very few are more than partisan efforts in favor of other like minded politicians. I am not interested in simple partisanship. I have constitutional conservative principles, but feel that the republican party is only slightly better than the democrats on the other side. Both political parties have let us down. I am in favor of major change in our government including limiting public offices to no more than one term in any one office. This would ultimately result in the removal of career politicians from our midst. I can see no other way to defeat these idiots in Washington, than to remove them all, and start over.



I am answering emails to various groups I hear from in hopes I can find some organization with a chance to do something positive. We are fighting an uphill battle however. Even the 5000 or so participants in Cincinnatti’s Tea Party last week went unreported for the most part. The media is on the side of Obama. Ultimately the public will come to understand what is happening, but we may be beyond help before that happens. I have talked to so many people who I have a lot of respect for that fallen for the hate the rich propaganda. I don’t understand why, but I can see it happening. The government’s actions just do not line up with the rhetoric. 95% of Americans get a tax cut that amounts to at most 60 bucks a month. The cap and trade tax on carbon fuel will cost us hundreds if not thousands a year if you drive, heat, cool, or buy anything manufactured in the US. The global warning issue is just that, an issue as yet not even determined to be real, and yet we are making major changes to the economy at a time when we are entering a depression. I don’t know if there is really global warning or not, but 2009 is not the time to add a punitive tax to energy. 2009 is also not the time to implement a national healthcare system, or an overhaul of the educational system in the US.



Obama is taking us down this road now only because he has momentum and the excuse of a crisis, while he ignores the real crisis of trillions in toxic assets, and virtually no liquidity in the credit market. He now wakes up on Wednesday of this week and takes his shot at solving the credit crisis by printing one trillion dollars. This is a fools bet that has never, in the history of civilization, worked to improve a declining economy. We are in this mess because our population and our government lived beyond our means. Assuming the fix is to double the debt, and drive deflation out by creating an abundance of dollar bills is insane. In every other situation where something like this was tried, the result was hyper inflation. It will happen again. For those in their 20s or 30s, 10 years in a hyper inflated economy may be survivable. For those of us in our 40s and up, hyper inflation will render our life savings virtually worthless. If it takes a wheel barrow full of money to buy a loaf of bread, it will require you to have a job that pays double or triple the earnings we used to accumulate our nest eggs. There will be no way to keep up or catch up. IF we aren’t able to stop Obama before his actions take root, I can see no way to protect myself from this other than leave the country, and go somewhere not exposed to US influence.