Wednesday, October 22, 2008

What American will get on Jan 20, 2009.

The American electorate is so mad about the financial crisis and how Washington has handled it that they are going to put the Democrats in power in all three branches as a way to try and overcome the pain. However, the only thing that is going to happen is that the BHO White House and SMDC are going to put the economy into a "depression" style tailspin.

Here is why... (its simple economics)

1. The players in Congress are going to balloon the deficit to over a $1 Trillion dollars and blame it on the current administration. The Republicans are going to be the scapegoats for the first BHO term.

2. The SMDC is going to then start the "patriotic" tax increases to "spread the wealth" around so that everyone gets a shot at the American dream.

These tax increases will come in the form of the following format:
A. Remove the income limit cap on FICA (social security taxes) wages effectively putting an additional 6.2% tax hike on small businesses.
B. Increase the capital gains tax rate thereby reducing investment & increasing volatility
C. Increase the corporate tax rate driving capital overseas along with job creation
D. Increase upper tax bracket to 40% reducing incentive to increase production
E. Impose a windfall profits tax on energy producing companies thereby reducing energy alternatives and current production.

3. The BHO/SMDC is going to increase regulation on the financial systems just as FDR did in 1932 driving capital overseas even faster than it did in 1932 since today we have electronic data networks that can move monies around with the speed of light.

4. The BHO/SMDC complex is going to yank the troops out of Iraq in 2009 creating a vacuum into which Al Qaeda and Iran will enter thereby destabilizing the region requiring a bigger, more direct intervention (the dems way of dealing with a depression). This pull-out is going to put large numbers of military back into the job market without opportunities thereby ballooning the unemployment rate to over 10% by BHO 2nd year in office.

5. BHO is going to sponsor huge government employment programs, ala FDR's New Deal, to deal with the rising unemployment to complete the necessary steps.

These steps will push the economy over the edge and no amount of stimulus will bring it back since it is fear and lack of confidence that keeps an economy in recession, and there you have the BHO/SMDC economic plan.

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