Doomsday Clocks: Are We Heading for Another Great Depression?

Doomsday Clocks: Are We Heading for Another Great Depression? Is America heading toward another Great Depression? The answer may not be a definite “yes” or “no,“ but rather an eerie ”maybe.”

In yesterday’s Wall Street Journal, Donald Luskin laid out an argument for why, should we continue on our path, America might be poised to repeat the mistakes it made that lead up to and perpetuated the Great Depression. In other words, if history is a great teacher, we could be its worst students.

What may allow the “history repeats itself” cliche to ring true, he says, is the expiration of the Bush-era tax cuts and a renewed aggression toward trade via a recent amendment to the Smoot-Hawley Act — a union favor: both “doomsday clocks” with a deafening tick-tock, tick-tock.

First, where we find ourselves. Explaining a chart showing the stock market in the early part of the century and now (seen above), Luskin paints a fork-in-the-road picture:

“This week corresponds on the chart to mid-August 1937, when the cumulative effects of massive hikes in personal and corporate tax rates, severe monetary tightening, and aggressive business-bashing by the Roosevelt administration tipped the economy into the ‘depression inside the Depression.’”

We are at that tipping point. And while “we’re not repeating all the mistakes of 1937,” Luskin says, the impending tax increases and trade act are bad enough.

So what about those tax cuts/tax increases? Why are they such a big deal? Simply put, letting the tax cuts expire means a 3.3% decrease in income for every American, Luskin says, citing the Tax Policy Center. Add all that up and “if the Bush tax cuts don’t get extended, that’s a 2.3% hit to 2011 GDP.” The result: “instant double-dip recession, starting at midnight, Dec. 31.”

But instead of stimulating the economy by not taking everyone’s money, “Democratic leaders and the Obama administration want to roll the dice for the sake of ideology,” and only give tax breaks to certain groups — even though they could “switch off the doomsday clock” by not being a respecter of tax brackets. But that doesn’t fit into the ideological bubble.

Still, that alone may not be cause to dust off the Hoover flags and prepare the generators for shanty towns. As it goes, “it takes two to tango,” and there’s a dance partner. That partner is trade protection.

Enter the Smoot-Hawley Act.

“Last week the House passed the Currency Reform for Fair Trade Act,” Luskin explains. “It’s an amendment that gives dangerous new protectionist powers to the notorious Smoot-Hawley Tariff Act, the proximate cause of the global Great Depression.”

That paragraph might have induced a yawn. And unfortunately, that’s what happened in the thirties. “This lack of concern resembles many Americans’ disregard for the effects of the Smoot-Hawley Tariff Act, signed into law by Hoover in June 1930,” says Amity Shlaes in an op-ed in July. Shlaes is the author of The Forgotten Man: A New History of the Great Depression. “Republicans told themselves that the tariff couldn’t hurt much since trade was a small part of the U.S. economy at that point.”

Not only did it hurt, it crippled. Citing experts in economics, Shlaes points out “the progress of the Smoot-Hawley legislation tracked declines in the stock market,“ and ”the tariff reduced investment all over the world and, therefore, produced deflation.”

Luskin picks up on this and expands on it by pointing out that the new amendment to the act amounts to a labor favor. How? It requires that the “Department of Commerce take a foreign country’s currency interventions into account in determining whether its trading practices are unfair.”

Translation: if a company wants to import a box of plastic widgets from China, the DoC must determine if China is selling them below cost and at how much below cost (a process called “dumping,” which is a tactic used to put competitors out of business by underselling a comparable good). Should DoC believe China is selling widgets too cheap, then it must step in and raise the price. The percentage that unions such as the AFL-CIO and UAW would like to see the price increased by is “as much as 40 percent.”

“Not a single Chinese export good could survive such a test,” Luskin writes,”virtually the entire volume of China’s exports to the U.S. suddenly would become subject to countervailing duties.” That means business costs will increase. And basic economics teaches us that when business costs increase, those costs must be dealing with in two ways: cutting costs or increasing revenues. Workers bear the brunt of the former, consumers the latter. The country all of it.

The bill then amounts to “a nuclear threat of mutual assured economic destruction. If carried out, it would crush trade between China and the United States, which are huge export markets for each other.”

That brings us back to where we started: are we headed toward another depression? We can’t know for sure. But if, as Luskin worries, “cooler heads do not prevail” after the election, “maybe” becomes more than just a scary thought. It could prophesy an impending reality.

Comments (134)

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  • outwest
    Posted on October 5, 2010 at 1:04pm

    The progressive philosophy is going to back-fire big-time when this scenario becomes reality.
    The strong who survive will ultimately get to decided who else survives. Who are you going to share your food with when this nation is starving to death?

    Report Post »  
  • AMERICA4EVER
    Posted on October 5, 2010 at 12:59pm

    Considering what might be on the horizon, I would like to survey all members here, as to what they would suggest the normal American can do to prepare for this financial collapse.

    Report Post »  
    • GONZO_G
      Posted on October 5, 2010 at 1:02pm

      Go in lock-down mode. Lock-down and secure your home then work with neighbors to lock-down your neighborhood.

      Finally remove any infiltrator.

      Report Post »  
    • rick
      Posted on October 5, 2010 at 3:54pm

      What a question. I mean a good one , but it’s the fact that so many of us that have envisioned what “may ” come in the future on these lines , have to start seeing questions like this asked.

      What was once and not so long ago considered conspiracy and crazy tin foil hat like thoughts , are becoming a very unpalatable reality in the minds of the thinkers.

      As for your answer from me , I don’t have one for you , I think each one of us needs to take steps on personal lines and then move towards our niebors. But before that I feel many of us will simply “disappear ” , sure , sounds like I am a mad man , fair enough.

      Report Post » rick  
    • countryboy42
      Posted on October 5, 2010 at 5:40pm

      Meet your neighboors, find out what skills they have, and talk about the safety of the area. My neighboors get together often, and we know who has what, and some of us have plans in case everything goes to h#ll.
      The main problem that I see, is if the power goes out for any length of time. Why? No water unless you live in an area that is gravity fed. Check out “One Second After” and “Alas Babylon” , also Lucifer’s Hammer for some interesting ideas about what if.
      Keep your powder dry.

      Report Post »  
    • FoBoT
      Posted on October 5, 2010 at 5:45pm

      get out of debt
      have a one year supply of food storage, things you can eat when the grocery store is empty
      pray

      Report Post » FoBoT  
    • faires
      Posted on October 6, 2010 at 11:38am

      American forever, stock up on Dry goods, canned foods & water__you obviously have a computer< check out survivalist links for lists!__Its better to be prepared and not need it, than to need it and have nothing!___Gods Speed My Friend!

      Report Post » faires  
  • Mary M. Tebbe
    Posted on October 5, 2010 at 12:58pm

    It’s really up to us whether we head into another great depression or not. We find ourselves at a crossroads and we need to make some tuff decisions. Knowledge covers the earth now, especially because of our access to the internet so people are more informed with the economic data, and I will leave the interpretation of that data to those that know it best. Instead I will approach it from another angle, because Scripture tells us our ROOT PROBLEM. America doesn’t really have to experience a doomsday.
    There are two schools of thought in Deuteronomy where Moses gave us the blessings and the curses that would come upon us if we did or did not follow God’s laws. America’s train has sure fallen off the track here. First of all if we obeyed God’s commands he would set us high above all nations of the earth, and all the blessings would come upon us and accompany us. We would be blessed in the city and blessed in the country. Our children would be blessed and be a blessing to us. Our crops and our livestock would be blessed. We would have plenty of food to eat. The Bible also tells us that the Lord would grant that our enemies that rose up against us would be defeated before us. God said that he would send a blessing on our barns and ON EVERYTHING THAT WE PUT OUR HANDS TO. And the Lord would bless us in the land that he was giving to us. (paraphrasing here!) We would be God’s HOLY PEOPLE (see 2 Samuel 7: 23 – 24) and then all the people of the earth would see that we were called by the name of the Lord, which in Scripture is always written as The God of Israel. We find too that the Lord would grant us ABUNDANT PROSPERITY and would bless the work of our hands. YOU WILL LEND TO MANY NATIONS BUT WILL BORROW FROM NONE. The Lord would make us the HEAD and not the TAIL if we paid attention to the commands of the Lord. Then we would always be AT THE TOP, and NEVER AT THE BOTTOM.
    Of course, among the curses found in the Scripture, the opposite would be true. We would be cursed in the city and the country, not have enough to eat, our offspring would be cursed as well as our crops and herds, etc. God would send on us curses, CONFUSION and REBUKE in everything that we put our hands to until we were destroyed and come to sudden ruin because of all the evil that we would do in forsaking Him. We would be plagued with diseases and destroyed, and struck with wasting diseases, with fever and inflammation, scorching heat and drought, blight and mildew until we perished. Our enemies would defeat us, and we would be afflicted with madness, blindness and confusion of mind. The ALIEN who lives among us would rise above us higher and higher, but we would sink lower and lower. THEY (the alien) WOULD LEND TO US, BUT WE WOULD NOT LEND TO HIM. He would be the head, and we would be the tail. If we disobeyed God he would SCATTER US AMONG THE NATIONS, from one end of the earth to the other. There we would worship false gods that neither we or our fathers had known, and among the nations we would find no resting place for the sole of our feet. God would give us ANXIOUS MINDS, EYES WEARY FROM LONGING, and A DESPAIRING HEART. We would live in constant suspense, filled with dread both night and day, never sure of our lives.
    This does not paint a pretty picture, but it is still true today, as it was in Moses day when he first taught this to the ancient Israelites. Of course, we know the story. They did not take heed to Moses‘ words and God’s commands and they became scattered and lost all over the face of the earth, and remain there to this day. Our history destroyed and erased by our enemies, our leaders and preachers misguiding us and choosing greed and lies over leading God’s people in the right direction…we remain lost and uncertain of our future now. We face bleak times until we finally return to the God that called us by his name.
    I keep saying these things on this website because Glenn asked us to come forward and pledge ourselves and our wealth and our sacred honor. Well, I can pledge myself and my sacred honor. That’s all I have to give. I understand our ancient history and I understand God’s Word, and that’s what I have to offer. It isn’t much, but I give my opinions freely for those of you who want to heed it.
    Of course there is another scenario: God said in Scripture, If my people (Israel) which are called by my name (The God of Israel) would humble themselves and pray and seek my face, then would I hear from heaven and would forgive their sins and heal their land.
    Our enemies mean business. They are not playing games. Neither do we have time to. It is now or never. The choice as I said is up to each of us. Do we love this country? Then stand up and fight for it. Every vote will count. Elect the right people that will get us back on track and slowly but surely we will climb out of the mess that we have gotten ourselves into.
    My husband wondered if we should start building the fence now?!

    Report Post » Mary M. Tebbe  
  • mutt
    Posted on October 5, 2010 at 12:54pm

    The clock started ticking the moment the Great Pretender was sworn in. He has been deliberately nudging us towards financial collapse and instability as a method to invoke socialism. This was no accident, a well thought out plan to destroy America from the inside, at least until the Tea Party came along. He is nothing more than the pitchman for Soros and those one world order folks. Impeachment does not go far enough, treason is better yet.

    Report Post » mutt  
  • wscitgo
    Posted on October 5, 2010 at 12:41pm

    Here is an optimistic viewpoint on what will happen:

    Paul Farrell Explains Why The Fed-Wall Street Complex Will Self Destruct By 2012
    http://www.zerohedge.com/article/paul-farrell-explains-why-fed-wall-street-complex-will-self-destruct-2012

    Optimistic because without the Federal Reserve and our corrupt banking system being replaced, we are all doomed. Note also that I don’t agree with everything Farrell says—he is an old style anti-Republican, but he is an equal opportunity basher and will call out the banking system, albeit never actually admits it is run by progressives.

    Also, many will argue that we need to continue to allow a corrupt group of private bankers to run our entire economy (redistribute wealth from everyone to themselves), that we should allow corrupt New York progressives to dictate what we can or cannot have—–well, learn economics and basic free markets and you will realize the U.S. is not a free market—-we are a centrally planned one worse than what most communist countries have.

    Want to fix America? Stop focusing on left-wing politics and focus on the real root cause—the progressives that have taken over our banking and Federal Reserve.

    ALSO, educate your friends and neighbors that even though the progressive LIE and say that the republicans are in bed with the banks, the real story is the progressives are not only in bed with the corrupt banks, THEY ARE the corrupt banks. Don’t lie the MSM lies and distortion make you believe that the republicans are the bad guys—REMEMBER, the republicans VOTED AGAINST the bailouts, the progressives voted for them.

    Report Post »  
  • ethanmurray1
    Posted on October 5, 2010 at 12:40pm

    Unfortunately, for real “change” back to what this country was supposed to be, the system must collapse, and then be rebuilt, with safeguards against the professional political class. This could/will be a very dangerous time, as people like Obama will argue for more government power, and say the American experiment has failed. We conservatives must be ready to push for a return to the original intent of our country and Constitution. As in our Revolution, I am afraid blood will need to be spilled, as the despots will have their goons (such as SEIU) out to intimidate and kill people that oppose the new socialist nation they have in mind. Hopefully it will work out, but it will be quite a ride.

    Report Post »  
    • GONZO_G
      Posted on October 5, 2010 at 1:00pm

      My sentiments exactly! We must all stand firm. I don’t believe that we are in the minority but if we are may God give us the strength as he did in the battle of Jericho.

      Report Post »  
  • Lori
    Posted on October 5, 2010 at 12:37pm

    Some of us are ready, but we also need to think of others as well.
    Faith. Family. Friends.

    Report Post » Lori  
  • Deafmark
    Posted on October 5, 2010 at 12:36pm

    world war 3 coming up???

    Report Post »  
  • Fek Man
    Posted on October 5, 2010 at 12:35pm

    The sad thing is if we had allowed the finacial institutions fail, the progressives would have lost all their money and the country would now be on the road to recovery.

    Report Post »  
  • jnword
    Posted on October 5, 2010 at 12:35pm

    The stockmarket has always been a “Sting” operation get the fools to overspeculate does not matter if it steel,railroads,land, mortages.copper ,oil ,twinkies even…. then short sell,replace with new phantom stock ,drive the company into bankruptcy, lucrative outcome naked stocks there has been since 1819 there have been “12 panics” in the market up this point,Gaps were 38 yrs,then 16,14,20,14,9,25,21 would be the panic of 2008…, now since I am a conspiracy REALIST, 13 just seems to keep popping up with the Illuinati that own the Money! It might just be at our back door sooner than we think !

    Report Post »  
  • Rothbardian_in_the_Cleve
    Posted on October 5, 2010 at 12:34pm

    This is going to hurt. But, our country has been though worse. We will endure. God willing, we will rise out of this stronger and better than ever before. This will be our chance to end this line of thinking once and for all.

    I think either we go through a tribulation remove the threats to the republic and thus restoring the public sentiment to return to the constitution OR there must be a peaceful secession to a new republic with those ideas.

    What is for sure is that the course we are on and the establishment’s commitment toward that end is unsustainable. Now, they hope that the system will collapse into their political structure. WE must ensure that the system collapses onto the foundation of the constitutional republic that was abandoned. THAT is the struggle that awaits us. And the victor in THAT battle is undetermined.

    Report Post » Rothbardian_in_the_Cleve  
  • Ruler4You
    Posted on October 5, 2010 at 12:33pm

    It’s these kinds of circumstances that separate the strong from the sissies. Never give up! If we are going to go down, it’s no better to go as a sissy than it is to go like a strong principled person. Losing is still losing. But winning is victory!

    Report Post » Ruler4You  
  • parmajohn
    Posted on October 5, 2010 at 12:23pm

    Hope and change = Franks and beans…..God…Gold…..Guns….Get it while you can…

    Report Post »  
    • The Four Gs
      Posted on October 5, 2010 at 12:52pm

      Make it the four Gs, God, guns, gold, and goods. We’ll be bartering soon, so be sure you have plenty to do that with. And goods includes food, lots of canned and dry storage food, at least a year’s worth.

      Report Post »  
    • rightwingwacko
      Posted on October 5, 2010 at 1:05pm

      Hey speaking of bartering I’m looking for an old fashioned foot pedal sewing machine. Because when cap and trade passes I won‘t not only be able to buy clothes for my kids but I won’t be able to sew any for them because my machine is is electric. Actually when all these new taxes hit bartering will be the way to go. Because I’ll be darned if they deserve any more of my money I work for.

      Report Post » rightwingwacko  
    • countryboy42
      Posted on October 5, 2010 at 2:10pm

      If the fit hits the shan, lead will be worth a LOT more than gold.
      Keep your powder dry.

      Report Post »  
  • omigosh
    Posted on October 5, 2010 at 12:20pm

    Progressives refuse to take seriously the lessons of history. Learn and be empowered is not
    a concept that they embrace.

    Report Post »  
    • drattastic
      Posted on October 5, 2010 at 12:27pm

      That’s because ******** are children ,they think daddy (government) will always bail them out and take care of them.

      Report Post » drattastic  
  • claymoremacm
    Posted on October 5, 2010 at 12:18pm

    If the manure hits the fan,I would hate to be an Urbanite,or Suburbanite for that matter but what do I know I am just a hick in the mountians

    Report Post » claymoremacm  
  • Not On My Watch
    Posted on October 5, 2010 at 12:16pm

    Folks,
    We are not in a good situation here. Don’t know if there is anything we can do but hang on because it is going to be one hell-of-a bumpy ride!

    Report Post »  
  • OTR
    Posted on October 5, 2010 at 12:13pm

    History is a tool that a person can used for good or bad. You make the decision…..

    Report Post »  
    • Skwerl E. Muckenfutch
      Posted on October 6, 2010 at 1:37pm

      The only problem is that those in charge are versed only in revisionist history. It will be hard to avoid repeating history if you don’t know the truth.

      Report Post »  
  • wscitgo
    Posted on October 5, 2010 at 12:13pm

    All of the above may well be true, but there are more serious, long term ramifications of our manipulative economic policy that should be considered by those who just want the stock market to “go up”.

    Most people that religiously contribute to their 401K or other retirement plans each month do not realize that the U.S. stock market is the most corrupt ponzi scheme ever known to mankind. Aside from the corrupt accounting tricks that are all blessed and encouraged by our corrupt government, the executives at the top of these corporations see their “stock” the same way our corrupt Federal Reserve sees the dollar—-as paper that can be printed to loot wealth from the owners to themselves. When you combine the fact that most corporations are a charade, AND yet, these corporations are able to loot Americans by getting them to transfer their present wealth to these corporations via so-called investments in the future (retirement), essentially, what American corporations and the U.S. government have figured out is how to loot Americans savings. While the stock market has been a Ponzi scheme for many years, during the past several decades the sophistication with which Wall Street, the Government, and crooked executives loot the American public is unrivaled in history.

    At the end of the day, constitution loving conservatives should not be rooting for the stock market to go up. To begin with, it won‘t be your money as Wall Street’s ponzi scheme will loot it, one way or another. Moreover, if the market recovers, that will be referendum on Obama and the progressives anti-American, marxist/socialist strategy. Remember, the average American is an idiot (I’m sorry, it’s true), and most cannot balance their own checkbooks. When they see the market going up, they believe things are getting better—-but they are not. Our stock markets and financial markets are corrupt financial ponzi schemes run by corrupt government and bankers—–AND MOST OF THE BANKERS ARE SOCIALIST/MARXISTS—-LOOK AT THE DONATION RECORDS TO OBAMA, JPM, Goldman Sachs, Citigroup—-all of these banks are anti-American, marxist organizations that are looting the country.

    FWIW, NOBODY should be rooting for our corrupt financial markets to recover—–they need to collapse and all of the criminals rooted out. Yes, it will be painful, but it is the only way to take back the country. Now, on a realistic note—-not gonna happen because Americans are stupid and just want the market to “go up”. So sad people are willing to trade short term “perceived” gain for long term enslavement by the most corrupt government and financial oligarch the world has ever known.

    Report Post »  
    • seayalater73
      Posted on October 5, 2010 at 12:54pm

      I am unsure just how motivated top wall street types are toward socialist ponzi schemes, but I can approach that with an open mind.
      What I am fully sure of is that the fundamentals of our national economy have been getting weaker by the decade as we all slided further and further away from manufacturing and technology development. We are almost exculsivelly a service-based economy. That does not put us in good positions to protect ourselves from the whimsies of the elites. Remember: if it ain’t grown, it gotta be mined. That is where a nation’s wealth always comes from. If a petering few Americans are engaged in those realms, then we are poised to be dominated by foriegne powers.
      Quite literally service-based careers are killing us, and selling our kids into future slavery. Why doesn’t the government give FASFA preference to those seeking degrees in the fields we really need? Would that not be an appropriate application of federal powers toward our national interests? Why do all their solutions seem to steer away from anything that is really, fundamentally, in our national interest?
      You might be onto something, becuase I surely smell a rat…

      Report Post »  
  • Momma M
    Posted on October 5, 2010 at 12:12pm

    I am hearing more from more of my friends and family members that they’ll be stocking up on essentials as much as possible before the end of this year. Not quite the Y2K mentality, but not all that far off either.

    We’re slipping down a very slippery slope and if we, as conservative citizens, can’t halt the lunacy infecting our politicians… we’re in deep-poop!

    Report Post » Momma M  
  • Freedom fighter
    Posted on October 5, 2010 at 12:07pm

    Im ready. Bring it

    Report Post »  
    • Rothbardian_in_the_Cleve
      Posted on October 5, 2010 at 12:43pm

      I’m not sure that you are aware of what will happen. This isn’t like your 401K is going to evaporate. This is going to be martial law, you versus the state, private property seizures, live off the land kind of stuff.

      No matter how “ready” you are for that, I‘m not sure that you’re ever really ready for the hardship to humanity. Nobody wants to see that or would ever be ready for it.

      Report Post » Rothbardian_in_the_Cleve  
  • Fireman451
    Posted on October 5, 2010 at 12:07pm

    The difference between 1937 and now is that FDR was in the middle of a 4 term dictatorship with another unearned Democrat congress rubber stamping his measures and receiving payoffs in the form of arbitrary price controls and make-work programs.

    Obama’s re-incarnation of FDR’s grand social welfare and government intrusion will be abruptly ended this November.

    If FDR actually had an equal and opposing pillar of American government in congress during his presidency, the depression may have ended earlier and we may not be burdened with the Ponzi Scheme that is Social Security. Social entitlements never produce proactive self reliance.

    Vote, and make sure your friends and family vote to bring balance back to our run away government. If we fail, America fails and the graph above will become our destiny.

    F451
    Chicagoland

    Report Post » Fireman451  
    • wscitgo
      Posted on October 5, 2010 at 12:18pm

      While Obama’s dictatorship may be ended, you have it totally wrong because he is nothing more than a “placeholder” put there by the corrupt financial establishment on Wall Street. Just take a look:

      http://www.opensecrets.org/pres08/contrib.php?cycle=2008&cid=N00009638

      Biggest contributors:

      University of California $1,591,395
      Goldman Sachs $994,795
      Harvard University $854,747
      Microsoft Corp $833,617
      Google Inc $803,436
      Citigroup Inc $701,290
      JPMorgan Chase & Co $695,132
      Time Warner $590,084
      Sidley Austin LLP $588,598
      Stanford University $586,557
      National Amusements Inc $551,683
      UBS AG $543,219
      Wilmerhale Llp $542,618
      Skadden, Arps et al $530,839
      IBM Corp $528,822
      Columbia University $528,302
      Morgan Stanley $514,881
      General Electric $499,130
      US Government $494,820
      Latham & Watkins $493,835

      See Goldman Sachs, JPM, Citigroup? These corrupt financial organizations are the ones that got Obama elected—he is simply carrying out their marxist/socialist agenda to control the population. Listen, Obama is an anti-American progressive marxist that hates America, but don’t blame him for what is happening—–the seeds of our destruction were planned and planted in the halls of the financial elite—-ALL PROGRESSIVES.

      Bottom line—be optimistic if you want but Obama is meaningless in the grand scheme of things. The United States has the most corrupt financial system in the world, and it is designed to loot the middle class and create a two tier class system whereby the elites enslave the majority to carry out their progressive social justice goals—in other words, a few will have it all, the rest will have nothing unless they are given it by the elite bankers and other corrupt elites.

       
    • slickmeister
      Posted on October 5, 2010 at 12:43pm

      Great points Fireman451. There is no reason to assume that we are doomed to repeat history just because of parallels between market movements and between Dear Leader and FDR.

      I say the result of the Obama regime’s reign will have more in common with what followed his predecessor – Jimmah Carter – than with Roosevelt, the first Socialist president.

      Report Post » slickmeister  
    • computerdweller
      Posted on October 5, 2010 at 1:55pm

      Obama can sit on his behind for two years and veto everything. He‘s already got the congress and senate to make enough changes in federal agencies that they don’t need him to continue destroying the economy and they intend to do more changes to these agencies in the lame duck session.

      wscitgo is correct about big business. Patrick Henry said all governments by their very nature become tyrannical. He should have said all bureaucracies and that includes government and business. Big is bad.

      We must take control of the senate and find enough democrats to vote to override obama’s vetoes. We must also offer real changes that will reduce cost of health and education cost. The first will save the people and the second will save the states. I sent this email to Rick Scott, hopefully the next Florida governor.
      As one who is infinitely familiar with doctoring and hospitals, and as one about to be a Governor you are in a unique position to make both private health care and state controlled medicaid prices drop. Your associate could do the same in the US Senate for medicare.

      As an administrator you know that 30 to 70 percent of the cost of these programs is pass through charges to cover the fact that you need to wait endlessly to get paid and don’t know if you will get paid in full. You could make your case that this is so by showing a labs rate card which shows this 30 to 70 cut for those that pay by cash or credit card. Instead of pushing for measures that cut small percentages from cost, why not attack this figure by switching to an immediate pay system. As a programmer I know I could set up an immediate pay system with fraud protection built in. I could do it in a matter of months, so i’m sure others can.

      The only rub is that private insurers would need to capitalize to remain in the program and pay immediately and the state would need a way to get funds to start paying on time. By combining this plan with a plan to reduce the cost of education would allow you to hit some lottery income to do this. At the federal level the would need to find another way.

      The school problem is just as easy and rewarding to solve. Can’t touch teachers, or employees, but you can save a fortune for building and maintaining schools by changing the concept of a schools physical plant and no one would complain. Locate the sports, auditorium, etc. as area community activity centers and locate numerous teaching trailers close to home. With crossing guards, kids could walk to school, while buses would still be needed to bus them to the sports/activity center. everybody wins. I’m fairly sure this would cut school cost 30 to 50 percent too. Then start educating the population about the fair tax and the repeal of the 16th amendment.

      Report Post »  
  • BQI
    Posted on October 5, 2010 at 12:02pm

    There are a number of variables that will impact this analysis. Today BQI posted an article and video that begins part of the explanation. Later today, BQI will publish some shocking video that will help readers understand what America is facing.

    Black Conservative Blog: http://www.blackquillandink.com

    Report Post » BQI  
    • pmjme
      Posted on October 5, 2010 at 4:56pm

      Great site – Keep the videos coming!

      Report Post »  
    • whitaker
      Posted on October 5, 2010 at 10:48pm

      It is russian TV. RT is biased aginst america just like our media is biased to favor the left.

      Report Post » whitaker  
  • cubber
    Posted on October 5, 2010 at 12:02pm

    Are YOU ready? We all need to be.

    Report Post » cubber  
    • ANTIPATHIZER308WIN
      Posted on October 5, 2010 at 1:01pm

      Its Bush’s fault! Obama said not to be concerned so I’m going to buy a new Chevrolet. How about you?

      Report Post »  
    • cubber
      Posted on October 5, 2010 at 1:14pm

      I’m sticking with a REAL company. Going to buy a Ford instead.

      Report Post » cubber  
    • tobywil2
      Posted on October 5, 2010 at 1:31pm

      Many people are posting statements claiming President Obama is “incompetent,” “dumb” or “stupid. They are just plain wrong.

      To classify Mr. Obama as “dumb” one must believe that he is actually trying to improve the economy. In recent history, almost all coups, resulting in a dictatorship were preceded by a very severe economic crisis. Remember when Rahm Emanuel , Obama’s chief of staff, stated one should never waste a crisis. What do you think he meant?

      Mr. Obama presents 3 alternatives:
      Ignorance, which can be cured with knowledge
      Stupidity, which is forever
      Evil, he plans to avenge King George III by destroying the American Revolution and create a dictatorship.

      Almost every initiative that Obama has instigated is destructive to the economy. Does anyone really believe that a President can be that stupid or ignorant? If you do, I have some perfectly dry, vacant land that is completely ready for development in Florida for sale cheap, cash only. http://commonsense21c.com/

      Report Post » tobywil2  
    • Yankee Blue
      Posted on October 5, 2010 at 2:57pm

      I’m waiting for my GM company car.

      Report Post »  
  • mazzarom
    Posted on October 5, 2010 at 12:01pm

    The Senate will pass this and Obama will sign it. Obama will then veto any tax bill that keeps the current top tax rates for the rest of his term. Combined together this will complete his goal of bringing our economy down to the level of the rest of the world. It may take more than a decade to undo this and recover.

    Report Post »  
    • rightwingwacko
      Posted on October 5, 2010 at 12:56pm

      Hon, they’ve already passed a bill to raise our taxes. IE the financial reform bill. Did you know there will now be a tax every time money exchanges hands? You deposit your check, tax, buy groceries, tax pay your bills another tax? This is on top of the taxes we already pay and in the health care bill every time you pay for something over $600.00 you have to issue that person a 1099 so they can tax that. So your a little behind on the raising taxes bit It has already happened. And it’s on everyone including those of us who make under the promised $200,000 yearly

      Report Post » rightwingwacko  
    • walkwithme1966
      Posted on October 5, 2010 at 1:22pm

      Obama does not have a goal of bring the economy down….that is Beck’s fear mongering talk and it is irresponsible. Beck is just trying to scare everyone to death so he can sell more books, and videos.
      http://wp.me/pYLB7-bc

      walkwithme1966  
    • tobywil2
      Posted on October 5, 2010 at 1:27pm

      Today’s conflict is between freedom and tyranny. Of course, those who support oppression of the individual do not call it tyranny.

      Time will decide who is wins and the conclusion is imminent. If freedom is lost a very barren future for the human race is ahead as we sink back into the “Middle Ages.”

      The American Revolution, that lifted the world out of the “Middle Ages,” cannot survive the growth of bureaucracy and loss of individual freedom contained the three 2000+ page laws that have already been passed. Remember, the Bible is only 1500 pages long.

      One final thought, if tyranny was in mankind’s best interest, the oppression that characterized the Middle Ages would have resulted in prosperity and happiness. The perfect economic system would have been discovered and there would have been no American Revolution.

      Tyranny dominated the world for thousands of years and the result was always poverty and despair. Who really thinks it will be different if tyranny again rules the world?
      Ayn Rand said “don’t envy the Millionaire’s mansion; fear the millions that crave your refrigerator.” http://commonsense21c.com/

      Report Post » tobywil2  
    • Post-Progressive American
      Posted on October 6, 2010 at 5:15am

      The storm is coming…

      We are now at an economic crossroads. We can either make the usual mistakes of the past and plunge down the path headlong into the storm, or we can take the road less traveled and skirt the edges and look to the fair weather beyond.

      Increasing taxes and economic stimulus through inefficient and corrupt Government spending is the usual path, and we know where that leads…longer and deeper depression. But we also have the historical examples, though used less often, of limiting Government, reducing Government spending and reducing taxes…which usher in periods of significant prosperity.

      Choose you path.

      Report Post » Post-Progressive American  
  • Maybe the GEESE Know More than the BEES Know
    Posted on October 5, 2010 at 11:51am

    herman cain is THE MAN!

    Maybe the GEESE Know More than the BEES Know  
    • NoName22
      Posted on October 5, 2010 at 12:14pm

      Amen on Mr. Cain.

      Mark Walsh an AOL exec, they’re no good anymore.

      He sits there and says the middle class drives the nation……but wants to tax small businesses. What a damned fool.

       
    • Vast Right Wing Conspiracy Czar
      Posted on October 5, 2010 at 12:50pm

      So i signed up for the DNC news letter, cus i just wanted to laugh at the trash these bums are peddling … And once a week a different white staffer writes me an email asking me for three bucks ..

      This morning i got an email from Michelle Obama asking me for the usual 3 bucks, but she included this whopper …

      “Now, Barack and I need you to help show that energy again. Because this is such a critical moment, a group of grassroots donors are ready to match any contribution you can give.

      Across the country, teachers and firefighters, truckers and nurses have made pledges of support hoping to inspire you to take the next step. Because of them, a $3 contribution will become $6.”

      I love how Unions are now considered “Grass roots”

      what a scam.

      Report Post » Vast Right Wing Conspiracy Czar  
    • GONZO_G
      Posted on October 5, 2010 at 12:51pm

      In my opinion he is probably the best choice for America to REALLY pull us back from the ObamaBrink.

      I mentioned Herman the other day and I am glad to see this. He could possibly surpass Reagan if he is able to take the oval office.

       
    • bulldawg
      Posted on October 5, 2010 at 1:35pm

      Yes the man is speaking out against the morons who claim to have run a business. Lets push this to the top, Herman Cain for President. Can you see it now a Black American who has ran a business against one who has never even worked in one but insist he know how to bring the economy back from the brink. This could be better than the thrilla in Manila.

      Report Post » bulldawg  
    • roguetea
      Posted on October 5, 2010 at 1:48pm

      rogue, Truth, Economic Agenda
      This nation is full of Great Americans, gaining voice, and many ears, Cain is certainly one of them. I expect and hope, we will be hearing much more from him.

      I have noticed since mid-summer, talk of a second dip or even a Depression has dropped off. I attribute this to a shred of respect, a willingness to hold breath to allow enjoyment of these last movements of decent calm before final descent, and hope against all hope by easing the doomsday rhetoric this Administration will turn its back on its current and deliberate suicidal heading.

      The do-it-all-wrong Congress has flown the coop, much of the Administrative Economic death squad has fled, and it gets incredibly lonely and increasingly unpopular at the top. Question form: How bad? What will Great Americans do about it? Are we squarely on the course, truly desired by this increasingly isolated Administration? How to name and who to blame for a second Recession or a Depression is not in doubt. We will all know who stopped the bucks, or more like who horded the bucks for evil intent.
      tea party, ReAct 2010, ROGUE ON

      Report Post » roguetea  
    • bulldawg
      Posted on October 5, 2010 at 1:55pm

      TO WALKWITHME1966 look you troll if you don’t have the intelligences to watch the markets yourself and stop blaming your nightmare Beck for your lack of insight then go back to watching MSLSD. As we speak the DOW is up 175 points and gold is up $26 an ounce, now tell us whats wrong with this picture, you can’t so I will, the Fed is printing money so they can buy their own dept in turn is destroying the value of the dollar while the floor is buying and selling so fast the average man can’t get in and wall street is eating up the profits, we are headed right up hill for a fall the feds can‘t and won’t survive, so where are you in the big picture, up a creek without a paddle, so instead of whining the talking points of the Socialist party formally known as the Democratic party you better start trying to figure out how to survive the next bubble. so good luck! http://www.givemeliberty2010.com

      Report Post » bulldawg  
    • american1st
      Posted on October 5, 2010 at 8:41pm

      lol @VRWCC i am on that same list, they wont get my 3 dollars, but i happily send a reply to every request for money i get….i wonder if they read them ;)

      Report Post » american1st  
    • Cynic-clinic
      Posted on October 5, 2010 at 9:51pm

      The US has tried repeatedly to get China to revalue its currency upward to help stop the US trade deficit but China has stubbornly refused. The latest move to get the Ch of Com involved might just be another warning to China to take some positive action. If the bluff doesn’t work, we’re in big doo-doo.

      Report Post »  
    • flamedone1968
      Posted on October 6, 2010 at 12:47am

      Vast Right Wing Conspiracy Czar

      Can you send her a bill for… oh… say $3,000,000,000 and hope the unions will match your bill to her? LOL

      Report Post » flamedone1968  
    • neverending
      Posted on October 6, 2010 at 11:24am

      Herman Cain is THE MAN!! Mark, Mark – if you can find just a portion of a brain somewhere – oops – nevermind libs have no brain. Experiencing just the tail end of the Depression I certainly pray we don’t experience it again. If we do – the younger generation won‘t have a clue what to do to get through it so they’ll do what they do best – PROTEST!!!! Wake up America!! Go Herman Go.

      Report Post »  
    • tolbertratliff
      Posted on October 6, 2010 at 2:07pm

      Very true. I was curious to see the tapeline that said extending tax cuts would cost 700 billion. Companies won’t hire now because of the FEAR of tax increases. Less taxes means more operating capital, which leads to expansion and jobs that would generate 700 billion. A no brainer, and I like this Cain gentleman, very insightful.

      Report Post » tolbertratliff  
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