Thinking is not optional

Many economists with great credentials are now saying the US is entering a new period of economic reality.  I’d tell you who they are, but that might imply they agree with my conclusions which is not my objective. I respect these individuals and their opinions, but my conclusions are my own and should not be interpreted as representing anyone’s opinion but mine. Nevertheless, I must at least state their projected economic reality.

“The New Normal” economic reality that I hear projected is for the USA to experience a significant period of years with lower GDP growth, higher unemployment rates, and potentially higher inflation rates than we have experienced over the last 20-30 years. Think about the 1970s in the US.  Maybe this next period will be similar, somewhat less severe, or potentially more severe in terms of overall economic statistics compared to the late 1970s and early 1980s. If you haven’t heard of the misery index, the sum of the unemployment and inflation rates, you will hear about it more and more in the future in my opinion, and not just from me. When Jimmy Carter won the election in 1976, this index was over 13%. When Jimmy Carter lost to Ronald Reagan in the 1980 election, the misery index  was almost 22%. The economists I’ve been following recently have not mentioned the misery index yet, but if unemployment continues up as expected by almost everyone for at least 6+ more months and inflation goes up, quite possible with the current quantitative easing (aka printing money) the Federal Reserve is engaged in, I believe economists and the media will again start talking about the misery index.

Currently the misery index is less than 13% even though unemployment is now 9.4%. It may take a while before the misery index hits 13% or beyond, that’s a good thing, but I believe the USA will see 13% and higher in the misery index, perhaps before the 2012 elections.

Today, the Supreme Court of the USA decided to pass on even reviewing the current Chrysler deal which has been questioned by many pension funds who hold (now worthless) Chrysler senior debt. Our judicial system has now completely caved on contract law, not raising even a meager voice of objection to the current stampede of smothering individual rights, property rights, and now contract law by the current administration and congress.

Congress and the executive branch now have all the legal precedent they need  to use all their power to implement whatever program(s) they wish. It’s now clear the Supreme Court is no longer a force to consider in whatever policies the administration or congressional branches decide to pursue.

If you didn’t believe my prior post yesterday, I hope you now realize socialism is HERE and growing day-by-day in the USA.

Today’s Supreme Court decision to ‘take a hike’  instead of actually addressing the obvious legal issues in the Chrysler deal simply illustrates how far we are down the road to total loss of individual rights, property rights, and rule-of-law.

Our congress and executive branches now have a gigantic ‘blank check’ to do as they wish without worrying about the judicial system getting in their way.

You may have thought I was kidding or too dramatic yesterday about mob rule now in control. Think again (or just think this time).

Almost no one seems to object to the current government policies of economic intervention into our economy and the inevitable destruction of individual rights it has already brought us and the future prospects of even more loss of economic and personal freedom as our federal deficits grow out of control.  Our country is no better, and probably worse, than almost every country in the world at this point in terms of  recognizing, preserving, and/or enhancing individual rights.  Say what?

I know you just want to keep your job and maybe get the government to lower interest rates so you can buy, refinance, or sell a home. You want the government to stimulate the economy to help in some respect, perhaps multiple respects. The cost of letting the government into economics isn’t the nirvana John Maynard Keynes would like you to believe, despite the love his policies have in our government these days regardless of most political persuasions.  Keynes lovely economic theory is but a grand smoke screen that governments have used for 70+ years to justify intervention into the economy which means taking money from some group of people, might be the rich, might be those who DON’T live in California in the near future, who knows who next year, to benefit some other group of people, presumably those who will vote for the current political party in power in the next election. This is mob rule and the end is not pretty.

Wake up America, and the rest of the world for that matter.  Socialism is HERE and growing. Don’t be naive and think you or your grandkids will win in the end.