The credit crisis, the mortgage meltdown, the financial system solvency, all of these have been held up as the “root of the problem” of America’s current economic woes. What isn’t mentioned is job loss and funding the War on Terror.
Just today, Hank Paulson said
We must now take further, decisive action to fundamentally and comprehensively address the root cause of our financial system’s stresses…The federal government must implement a program to remove these illiquid assets that are weighing down our financial institutions and threatening our economy,
Mr Paulson is ex-CEO of Goldman Sachs where he helped to create the toxic debt now tanking the economy. He is sure bail-outs for his rich buddies is the way to go. He wants to buy up those “illiquid assets.”
What caused those assets to become illiquid in the first place?
How do homes go from being worth hundreds of thousands of dollars to only a few thousand?
The answer is lack of demand and inability to pay the bills due to job loss and a devaluation of the dollar due to the War on Terror’s funding.
Since the Clinton era, America has mass exported good paying jobs overseas in the name of increasing corporate profit. America has been literally hemorrhaging jobs and it only accelerated during the dot-com bust. There was no recovery, only an increase in spending fueled by readily available debt. There is no such thing as a job-less recovery. In fact there is no recovery without net job and wage increases which has not yet occurred.
I was involved in start-up dot-com companies. I watched some 5 of them come and go in a matter of 4 years. Most everyone I knew that worked in technology switched to real estate after the bust. When that tanked in 2006 they moved to financial companies. Now they are being put back on unemployment once again as the financial system tanks.
Many are moving away. It is estimated that the Cleveland area has lost some 100,000 residents since 2000, or nearly 20% of it’s population. Mass population movements mean disaster. The only area with more loss in this time period was New Orleans due to Hurricane Katrina.
Tent cities are springing up in and around many major metropolitan areas. Job-less, home-less and desperate, they eek by the best they can on dirt plots and parking lots.
Meanwhile, the Senate just passed the defense spending bill for 2009, of $612.5 billion, including $70 billion for operations in Iraq and Afghanistan. This will all be borrowed from China and Japan and fuel further inflation.
The American middle-class is feeling pinched. Our living expenses are skyrocketing, with inflation over 5%, while our real wages are decreasing and that’s if we are lucky enough to be employed. National unemployment is at 6.1, though many more than that are unemployed. They stop counting you as unemployed when your benefits run out.
Ohio unemployment is at 7.4%. I have repeatedly warned that Ohio is a preview of what is coming to your own states. Better start believing it.
These are the official numbers from the government, which we know has lied to us repeatedly on numerous occasions on everything from war, medicare, and the economy. Just last week Mr. Bush claimed the economy was sound. Facts just keep getting in the way of their world view. Real unemployment is estimated to be at some 13-14%. Holy cow!
Our Congress won’t even end the H-1B Visa program that will allow 65,000 foreign workers into our country to work in 2009. Just who do these clowns think they work for?
Obviously they work for international business and the wealthy globalists. Not one single bill has passed that would help the average person. That economic stimulus package wasn’t designed to help people, but to boost spending and stave off recession. They weren’t done emptying the Treasury and needed more time to do so. Every other law passed while either party was in charge removed our rights and cost us more money we don’t have and raised our national debt.
Adding insult to injury, not only do we pay nearly 50% of our earnings in taxes, both the major candidates want to make military or civil service MANDATORY for citizenship. Is this socialism or is it fascism? I can’t tell anymore, but it certainly isn’t freedom and democracy, or even a republic.
Likewise we must stop expecting someone else to do the hard work for us. Hurricane Ike blew threw central Ohio with the force of a level one hurricane Sunday September 14, 2008. Every home in my neighborhood was damaged. Today is Friday, September 19, 2008 and my home is the only one with the roof fixed. I climbed up there on Monday with my father-in-law and we replaced the shingles ourselves. A contractor would have cost at least $1000 dollars. My total cost was $31. I won’t need to submit a claim on my homeowners insurance so my rates shouldn’t increase and they won’t drop my coverage. Do things people, don’t wait for someone else!
We had ~1.5 million without electricity since that storm. There are still some without to this day nearly a week later. Be prepared for such disasters. They are only going to increase as our climate changes. You need to have a plan for up to at least 6 months without modern conveniences.
Go and vote. Talk to people voting. If the vote tally doesn’t add up to what you experienced, don’t believe it. They have lied about that too in 2000 and 2004, perhaps even before that.
Until jobs return and real livable wages are paid to workers, we will continue the slide into oblivion. Please remember who caused this mess and who tried to warn people. It’s hard to tell who to trust anymore. Go by their actions, and not their words. Don’t believe me. Go and talk to your neighbors and friends. Find out how they are doing. We must band together to weather this storm or else we will all fall. UNITED WE STAND!
Best of luck to my fellow countrymen. Hold on tight and remember our history. We are strong and proud, not weak cowards like they want us to think. Fix things yourselves, don’t wait for the government to help. The government won’t be coming for anything but our guns.
NOTE: I was banned from this site and branded anti-semantic by Mr Thompson. Mr. Thompson, I am not anti-semantic, and I have refrained from posting even though I had access to do so since blogs were discontinued and then re-instated. I just had to weigh in on the current crisis and remind everyone why we are where we are.
If you see fit to re-apply my ban, I understand and it is your site. But please do not lie about my statements. I did cite my source, though it was in the reply thread and not in the original post. It is not anti-semantic to criticize Israel or else it would be anti-catholic to criticize Italy, or anti-mormon to complain about Utah. If it is, then it must be anti-muslim to criticize Iran. It is not hate, just the facts, like I always try to report. And I would be happy to know who on the list presented was not dual Israeli/American for future reference. But you did not cite your source so I could not look it up! 🙂