June 11

Break the FED. The healthcare plan will finish off the United States Banking system and the treasury. The only salvation will be HIGH taxes. All the promises of tax reduction were nothing more than lies and a thinking person knew it when heathcare reform was a campaign promise.

So, get ready for the taxes, the inflation and the exodus of American business to overseas.

Business will exit because they have to pay for the healthcare for every employee. Our church employees 22 people in childcare. We ill close the childcare the day the healthcare comes into effect. We simply can not afford the healthcare tax and parents will not be able to pay the higher fees for childrecare which will DOUBLE!

The GREAT, GREAT DEPRESSION is coming. Let's all sing, "Oh, How I love Obama!"

BTW - keep watch on CRUDE OIL - today $73 a barrel. Your local station will be at $2.75. on Saturday. There go more jobs and here come higher food costs.

update May 22

California is headed for unbelievable changes. With the vote failing to increase taxes, borrow more money and make other changes the state will fall into default. Unemployment is going to skyrocket, welfare recipients will be leaving in droves for other states.

In 2002 the state of California was advised to do something about illegal immigration. Rather than send them back across the border they filled their schools and their welfare rolls. This overburdened the system and the vote reflects voter frustration with the government to end the free ride with illegals.

The GREAT DEPRESSION has begun. Like dominoes the state governments are going to collapse under the weight of those leaving one state for jobs and welfare benefits. The millions that will leave California will go to neighboring states. Those states, already facing severe budget shortfalls, will collapse just as California did. The Federal government can't bailout all the states. The question is, Will Obama bailout out California?

update - 17 Feb. 09

The stimulus is anything but. Will it create jobs? No, the economists are almost in tears with this bill because it creates a lot of government agencies (a few thousand jobs to oversee spending) but does nothing for almost two years to help the economy or the taxpayer. There are increases to veterans and medicare but the middle class are going to get slammed pretty hard.

There is talk among senators of nationalizing the banks. There are plans to take over the auto industry. Unions have been given the exclusive rights over all government construction. Living in Mexico is beginning to look appealing. The changes being proposed make Cuba look like an island paradise for socialists.

(Update Comment 1-5-09)

The Obama Team may be on to something. A reduction in the income plus a tax reduction incentive for companies to hire new workers. Should the Banks stop stealing the Bailout money and go back to lending at reasonable rates and cut their usury FEES - there may be hope to forestall depression.)

Sorry to disappoint but the Obama Team is digging a hole from which we will not avoid the worst financial disaster the world has ever known. PRINTING another One Trillion dollars will create an inflation rate to rival those of African and South American nations. We can look forward to 25% unemployment.

Things are bad but the worst is still over the horizon. The average person is not aware that jobs are being lost at the rate of half a million a quarter. Nor do they know that companies are cutting back on inventory. And, cash assets are being moved to overseas accounts. What all this means is, “You ain’t seen nothing yet!”

What can you do?

1. Buy anything gold. Be smart and don’t fall for those companies selling gold on television. The after-Christmas sales by jewelers are a better investment. In the months to come gold will lose value but the loss will be at a much slower rate than securities or commodities. When inflation skyrockets, and it will because the Federal government is going to print cash in quantities to pay for new infrastructure and the value of a dollar is going to sink, gold will hold value.

Put the gold in a lock box at a large downtown bank (branches will be robbed so often most will close). Remember Bonnie and Clyde and gangsters? In a depression desperate people will do desperate things because they have little to lose. Oh, and be sure to keep your mouth shut about your investments. Don’t tell anyone!

2. Save every penny you can. Begin now to cut expenses. Your cable TV package can be cut. Don’t renew cell phone contracts. Get rid of as many contracts as you can. Those little things we consider as necessities will be luxuries in six months.

3. A depression is when people are not spending money because they haven’t got it and can’t get it. Joblessness is predicted to rise to at least twenty-percent in 2009. It could go as high as forty-percent meaning four people in ten don’t have a job. The United States has gone from a manufacturing country to a services country. Most of the consumable goods in the world today are made in China or another developing country. The United States has banks and pizza parlors. We can’t even build cars the rest of the world wants to buy. So what does this mean to you and your family?

You may be in the forty-percent. Insurance companies, computer software companies, dry-cleaners, hairdressers and the like are in service industries and people can live without services. Affordable food will be in great demand. Local grown will replace supermarkets. Fast food will be gourmet and for special occasions. The big chains will either fold or shrink to a few stores in major cities.

Your best bet is to seek out manufacturing employment. United States companies will have an edge over imports due to cost of labor and cost of transportation. Wages and benefits will fall and only the hardest working and smartest will find employment.

4. Things will become so bad that people with gardens will have to guard their plots with shotguns. The smart people will be talking with relatives who own land and arranging to live on the property or at least use a portion for a garden. It has been said that the United States, because of our loss of manufacturing, will revert to a third-world country if the depression deepens and lasts for three years. Food will become more valuable than gold.

The worst is coming. Some economists are painting scenarios of the depression in the United States being as bad as a nuclear war. I hope they are wrong but I doubt it. The time to prepare is now. The federal government is in the process of slowing the speed of the depression but they can’t prevent it. The people of 1929 had no time to prepare but you do. To survive you have to plan. Imagine crawling out of the rubble of a major disaster, what would you have to do immediately to survive without help for six months? Go do it now!