New Jobless Report Suggests Double Dip

As the President and Democrats keep telling us that the economy is growing and that we are coming out of the recession, first-time unemployment claims keep going up each week. This week it is at 484,000 reported claims.

If you look at a chart that shows the new claims, we see a trend. We see the first cip of the recession, where unemployment was high, and then the supposed recovery as claimed by the President, but now the new reports shows us beginning a new dip. This new dip suggests we may be looking at the double dip that we have been concerned about

What a double dip means is that we are likely heading for a hyperinflation.

How close are we to the reality shown in this video? Now don’t freak out! I know it’s alarming but I show it to get your mind thinking of the possibility and to plan for what you will do to survive.

The economy is breaking at an alarming hate, in spite of what Washington tries to tell us.

If the economy crashes, we will quickly accept socialism or whatever government Obama gives us because we will feel that we won’t have a choice. So yes, I believe Liberals plan this eventual event.

How Will World Problems Affect The US?

Will the Greek financial crisis — as well as events in Portugal, Spain and probably Italy — affect America? Will their crisis’ cause a collapse of the euro and destabilize Europe?

At this time, it appears there is only one nation in Europe that seems somewhat stable and that investors can trust: Germany.  In addition, investors can support the euro as “credit-worthy” if Germany continues to back up the debt. I read a report about this subject on Newsmax.com, who, make the following claims:

“The current $1 trillion fund …will not satisfy the market once the larger obligations of Spain ($1.6 trillion) and Italy ($2 trillion) come into question, states Newsmax.”

“While conservatives are quick to blame the social welfare policies of Greece and the other Club Med nations for their deficits, the fact is that this increasing level of debt is what inevitably happens when a nation is not allowed to use monetary policy to counter economic downturns.”

Perhaps European events of late sound familiar to us in America, and stand as an example of what happens when a nation’s deficit threatens the stability of their economy — which is the same situation America finds herself.

Because the German-dominated European Central Bank is in charge of interest rates, these troubled nations do not have the ability to use “zero interest” as an option like we’ve seen the Federal Government do in this country.

As a result of the situation these nations find themselves, the only way through a recession is by fiscal policy. Of course, all this does is  lead to deficits that are out of control and a debt that cannot be repaid.

To make the problem worse, German voters will likely not favor it’s government assuming the responsibility of other nations’ debts. In that case, the euro is dead and we will see country after country fall — much like the dominoes affect.

Some have spoken about creating a two tier euro, one backed by Germany, but this is merely a euphemism for the end of the single currency for the continent. The next step would lead to “One World Currency”.

Newsmax.com observes that, “Ultimately, those who wanted to broaden the European Union will have trumped those who sought to deepen it and blocked the path to total political unity, at least on a continent-wide basis.”

“This does not mean that trade barriers will return to Europe and it does not preclude deeper ties among the well-behaved nations of northern Europe. But it does mean that the United States of Europe will not come to be.”

“Those who value freedom should heave a sigh of relief at this prospect.”

What do you think will happen to our own economy when Europe and other nations have these problems?

• I suspect that our Trade Agreements will be affected in a number of ways.
• I suspect that Tourism to these countries will change.
• I suspect that our own sovereignty will be affected greatly when our own currency is devalued, so much so that we cannot trade with viable nations in the future.
• I suspect that any of these scenarios will cause a hardship on our nation, but combined, it will be the final blow to our standard of living and America will fall.

People must accept that what happens to other nations affects us in the United States because we are all tied together in world trade and commerce. We cannot expect our government to protect us because they can’t. We will have to protect ourselves and fend for ourselves — all of which means we need to prepare for such an event.

We must store food, non-hybrid seeds that will produce year after year (which hybrid seeds can’t do), at least 1 gallon of water per person per day, emergency supplies, communication equipment, and have an ability for alternative living.

You may want to check out our store at Shop.OurDayShopping.com for items that help you reach these goals.

Also, OurDayShopping.com, News.OurDayShopping.com, Specials.OurDayShopping.com may be useful as well.

What To Do Now

The days ahead will be very dark and scary for awhile. The last several reports have likely left some of you concerned about your future, and for good reason. Truly, the America as we know it is soon coming to and end. Forces working against our liberty will prevail for a time.

It appears that we will no longer be a Democracy of Republics but a land ruled through socialism. It also appears that we have forgotten the foundation upon which this land was established and upon which it has been a blessed nation. We have strayed so far from those standards that the “Founding Fathers” would barely be able to recognize it now. You need to recognize what appears to be ahead of us so that you know how to respond to it.

We have prospered as a great nation but forgotten the Lord in these blessed times. We fornicate every day like it is our way of life instead of a diversion from the right. We do despicable evils to one another and kill our unborn because a child does not fit into our plans. How self-centered can we be, and how narcissistic can we be to think we can continue to do such evils and escape the Lords wrath.

You rarely hear me speak to you in this light. I try to keep my faith and theology out of the news, but in this case, after seeing the “handwriting on the wall” through the videos I’ve presented for your viewing, you need to know that our days of freedom as we know it are over. 

It’s up to you now on what you choose to do from here on out. I suggest you take your dollars and turn them into things that can be used after the fall of America. I suggest you use those dollars to buy food, alternative power, maybe a motor home or Mobile home and put it on some property in the country. Surely there will be rioting and other undesirable things going on so prepare to deal with that reality as well.

Now lastly, let me give you a quote from my friend Pastor Bob at www.daytonawestside.com.

God wants us to always remember that He is greater than any problem that we will ever face. His provisions are greater than any need we will ever have. His love for us is greater than any obstacle that we will ever encounter and all He wants us to do is to open our eyes and see Him in all of His glory and allow Him to win the victory for us. We can be sure that He will take care of any situation that we look to Him to handle. His timing may not be according to our schedule and He may come at what we see as the 11th hour but He will come if we will just trust in Him and in obedience cling to Him and His instruction and direction for our lives. 

President Bush’s Final Speech

Watch this video of  Fox News Report on President Bush’s Final Speech. Do you think President Bush should take the major part of the blame for the recession he leaves to President Obama, or do you think other factors, including Congress ignoring the problem years and years ago, is to blame?

Americans have such a short memory. They forget all the good that transpired over the past several years, after September 11th sent us into a tailspin. I believe President Bush did a fine job in uniting the American people and keeping them focused on the problems we faced back then. I also believe he did more for this country in keeping us safe from another attack than probably any other president in our history.

So why can’t Americans remember the good things President Bush has done, and instead, make fun of him and blame him for everything wrong in America today? I don’t like what that says about America, do you?  It seems to me that President Bush is damned if he does, and damned if he doesn’t protect America by going to war in other lands. It also seems fair to say that most of the blame should be put on the oppossing political party and biased media for too much emphasis on the negatives of war and ignoring the positives that we have enjoyed and that Iraqi’s enjoy.

It seems we are acting like spoiled children when it comes to complaining about what we don’t have and forgetting the blessings. We are happy when we get what we want and everything goes well, but then cry and say things we shouldn’t when things don’t go as well as planned. As if spoiled children when we have to go without in order to fund a war, we relentlessly complain until Congress or the President gives in to our demands…even if those demands are not what is good for us. 

Now here we are at the end of an era and the beginning of a new one. Will we learn from our past mistakes or will we continue to demand more than we should from our government?  Will we run ourselves into a deeper hole because, like spoiled children, we demand too much and give up too little to have what we want?

Obama is going to be in a difficult position when he takes office! He will need our support and our willingness to do what it takes to get out of the mess Wall Street, Congress, Politicians, and Corporate CEO’s greed put us in these past ten years.  

I realize that many of the programs we want the President to push through Congress are goodones. However, that won’t help if we can’t really afford them or we put the security of our nation at risk by cutting the military and weapons.  If we don’t control spending and we don’t protect America from future attacks, we will be in a bigger mess than we are now.  What good is gained to trade our protection for programs if we get hit again by terrorist?  Their targets are our communications, transportation, and financial institutions! What good are programs if these systems are taken out?  In other words, what good is a loaded down wagon (i.e., government is the wagon loaded up with expensive programs) if there is no horse to pull it or no place to take it?

 
Also see: 
Having a Sense of Entitlement

The Market Is Blamed

Congress Knew About Fannie Mae in 2004

Where Are We Headed Now?

We know by now that we are in a recession, and have been for over a year. It only took the media a year and the government a year to tell us what we already knew, that jobs were being lost, that our spending power grew less and less, and that gas prices drove in the nail to an already sick economy.

So where do we go now? Are we headed for recovery or a depression? It all depends on what Congress does with bailout plans and what we do this Christmas. Will we go out and spend more than we can afford and charge up the credit cards, or will we be conservative and buy less; in other words, will we stay within our means?

I venture to speculate that we will do what we always do at Christmas time, we will spend more than we can afford or than we should but just a little less than usual. What do you think?

Have we not learned from the past? Have we no worries about the future? Have we thrown caution to the wind and decided to “pay the piper” tomorrow? Or by chance, have a number of us learned to become frugal and spend money wisely this Christmas season?

I have made my Christmas gifts. I made beautiful crocheted ponchos for granddaughters and crocheted sweater vests for the grandsons. The older ones get money because they need it to pay for driver’s licenses and insurance. I made a blanket for my brother, father, and step mom. All that added up to about $200. Last year I spent about $700, so I think I’ve done well this year.

Remember

Spending Our Way Into Oblivion

REPOST OF GOPUSA
Spending Our Way Into Oblivion
By Harris R. Sherline
October 20, 2008

How much longer can the United States continue to spend more money than it takes in, and how much longer can we continue our spendthrift ways before something literally gives? The numbers are getting so big that they are beyond comprehension.

For example, billions and trillions of dollars are almost impossible to understand. Generally, we seem to know what a million dollars can buy. We see the number in the prices of real estate and homes, or perhaps the statistics about various businesses. But, we rarely see big numbers illustrated in terms that are easier to visualize. For example, a billion dollars is 1,000 times one million, and a trillion is a 1000 times one billion.

Considering a billion dollars in terms that may be easier to grasp, at an average of $1,000 per month, based on U.S. Social Security Administration statistics, it would cover the social security benefits for over 83,000 seniors (age 65 and over) for one year, and a trillion dollars could pay social security benefits for every senior in America, a total of about 36.8 million, for over two-and-a-quarter years.

America’s politicians are rapidly spending our way into oblivion. Almost a trillion dollars for the Bailout package, including 25 billion for the auto industry, 150 billion for the Federal Deposit Insurance Corporation (FDIC), an 85 billion loan to insurance giant, A.I.G., along with millions of dollars of “pork” for Hollywood producers (no wonder Hollywood is so anxious to produce anti-Bush movies), stockcar race track owners, Caribbean rum producers, Alaskan fishermen, and who knows what else. Remember, this bill was about 450 pages of text, and since it was handed to Congress only about one day before it was approved, it’s obvious that no one read it or really knew what was buried in it.

In addition, two bills sponsored by Barack Obama are currently working their way through Congress: the Jubilee Act (S. 2166) would cancel as much as another $75 billion worth of Third World Debt and the Global Poverty Act (S. 2433), at an estimated cost of $845 billion.

All this adds up to about two trillion dollars, enough to pay Social Security benefits to the entire senior population for more than four-and-a-half years. We are told the money comes from borrowing, which amounts to putting more currency into circulation.

The ultimate result is inflation. How much and how fast is anyone’s guess, but history is clear about what happens to governments that increase the supply of their currency without appropriate controls and corresponding increases in production. It’s simply a matter of too much money chasing too few goods.

Argentina experienced chronic inflation from 1949 through the 1980s. Hyperinflation exploded to almost 5,000 percent in 1989, when government expenditures reached 35.6 percent of GDP (Gross Domestic Product) and subsequently topped out at over 20,000 percent.

A more contemporary example is Zimbabwe, where hyperinflation reached 12,000 percent in 2006, then increased to the point where a single Zimbabwean dollar was eventually denominated as about $10 trillion. The government was finally forced to lop ten zeros from their currency so the calculators could handle the numbers.

When this happens, people refuse to hold their own nation’s currency and convert their money to other assets that they believe will hold their value as their currency continues to rapidly depreciate. In Argentina, wealthy citizens tried to deposit their money in American banks or they bought stock in American companies. The less wealthy attempted to hold U.S. $100 bills or bought houses or gold or commodities, such as rice — anything to get rid of their pesos. They also tried to offset the consequences of unbridled inflation by indexing contracts, which adjusted payments to compensate for the rise in prices over time.

The bottom line is that the currency of a nation that is experiencing runaway inflation becomes worthless, productivity decreases, capital takes flight, and there are a variety of other consequences, such as the government refusing to redeem the bonds it has issued, etc.

The U.S. is rapidly headed down this track. Running continuous deficits and issuing bonds far in excess of our ability to pay is the beginning of the cycle. We’ve been doing this since WWII, and Americans instinctively know that it’s not right. They may not be financial experts, but they know a con when they see one, and most of them seem to recognize what’s happening now with the “$700 Billion Bailout” and have been protesting very vocally. Unfortunately, only a few members of Congress have been listening.

It’s not too late to stop the train, if common sense is allowed to prevail. If not, we can only look forward to more and higher inflation, just as in Argentina or Zimbabwe, with all the consequences that go with it.

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NOTE: Read more of Harris Sherline’s commentaries on his blog at “opinionfest.com.

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Note — The opinions expressed in this column are those of the author and do not necessarily reflect the opinions, views, and/or philosophy of GOPUSA.

COMMENTARY

• How do you see this problem being resolved?
• Do you think there is anything you can do to off-set this problem in your own homes?
• Are you going to begin putting your assets into other things like foreign currency or gold?
• What are your current plans to resolve this issues in your own homes?
• Will your own out-of-control spending habits change now that you see the problem our government is experiencing?
• What plans can you make now that will help you deal with the coming crash with the situation takes a nose-dive?
• Do you have some suggestions for families that you have found helpful?

I welcome your comments on these questons so that your answers can help all of us. I am not an economic experts, but I am sure some of you out there reading this report are, and can help us if you are so inclined. I hope you will be inclined to help us and that we will heed your advice.

Thanks,

Judith Sherman
Editor