(NaturalNews) The Economic Stimulus bill passed the U.S. House of Representatives today, even after amassing a stunning 1,100 pages that no member actually voting on the bill has had time to read (http://www.youtube.com/watch?v=CvnwOjDjnH4
Is this the beginning of a new era of prosperity for America? Or is it just another round of debt spending, repackaged under the banner of "Hope" but sold with arm-twisting Fear?
Regardless of your position on whether spending more money is a brilliant way to get out of debt or just another Big Government spending spree, here are ten sobering predictions about the aftermath of this economic stimulus bill:
Prediction #1: A third economic bailout will be needed later in 2009 or 2010
The Obama bailout isn't the first. It follows an $800 billion Bush bailout staged last October. Nor will the Obama bailout be the last. Expect a third (or fourth? Fifth?) trillion-dollar bailout to be sold to the American people later in 2009 or 2010.
Each bailout, of course, will be packaged in the language of an "emergency measure" that demands overnight passage.
Prediction #2: Foreign debt buyers will become increasingly nervous about buying more U.S. debt
Chinese banking officials have already voiced their desire to request collateral
for U.S. debt. These are the actions of creditors who no longer trust their debtors. By creating and spending trillions of new dollars, the U.S. is sending a message to all foreign nations and central banks that currently hold U.S. debt
: That debt will soon erode in value, encouraging foreign debt holders to eventually start selling off U.S. debt.
See this video by Marc Faber: (http://www.youtube.com/watch?v=loa92ZG1KV8
Prediction #3: The cost of selling U.S. Treasury debt will rise
All this means the cost of the U.S. selling debt will rise. In other words, the nation will have to pay higher interest rates on the debt it continues to auction off to sucker buyers who still, for some reason, believe the U.S. will someday pay back its national debt. This higher interest rate will ADD to the existing national debt, compounding into a runaway debt increase (Argentina, anyone?).
Prediction #4: Health care will get no better
Despite all the new billions of dollars in spending on health care hidden in the economic stimulus bill, health care will not materially improve in America
. Why? Because it's still based on a "sick care" system of treating disease rather than teaching people
how to prevent disease.
Of course, there are a few mentions of the term "prevention" in the stimulus bill, but in today's medical system, that phrase is almost always misinterpreted as meaning "detection of disease." Screening, in other words. Mammograms. That's what conventional medicine thinks "prevention" is. They still refuse to teach the truth about Vitamin D. (http://www.naturalnews.com/rr-sunlight.html
Prediction #5: Price inflation on common goods will take hold in the next 12 months
As the Fed is pumping trillions into the money supply, the only reason inflation hasn't kicked in yet is because the banks are all holding on to their money
and refusing to lend to anyone. The minute the nervousness passes and all that new money gets flooded into the economy, price inflation will alarmingly accelerate, creating a heavy financial burden on the working class who will then be forced to pay increasingly higher prices for basic necessities like food and clothing (or rent).
Prediction #6: In the long run, gold will climb beyond $2,000 an ounce
As the financial system of the U.S. plunges even deeper into the recesses of insurmountable debt, gold will continue to rise in value. Expect to see prices eventually reaching $2,000 / ounce (although this might take several years to unfold due to gold price manipulations).
One gold source we recommend is www.GoldenLionMint.com
(no financial ties to them, just a straightforward recommendation).
Prediction #7: One year from now, the People will be worse off, not better off
There will be a few winners from this economic stimulus: All the rich construction companies, I.T. companies, vaccine manufacturers and others who receive money directly from the bailout agenda. But most people will be worse off
. I'll revisit this in one year to see where things stand.
Prediction #8: The federal health care database will be an I.T. disaster
The new federal database that's supposed to track all health care records of all the American people by 2014 will be a technological disaster. Imagine your local DMV's computer system, but multiplied by a factor of one thousand.
There is a good chance, in fact, that the first attempt at creating it will fail, and a second development team will have to be brought in to take over the project. Expect to see billions of dollars wasted on this effort.
Prediction #9: The "Dooh Nibor" Phrase Will Become Increasingly Popular
What is "Dooh Nibor?" It's Robin Hood
Robin Hood stole from the rich and gave to the poor. But this economic stimulus bill does the opposite: It steals from the poor and gives to the rich
. Hence the phrase "Dooh Nibor."
And there's a really easy way to know this is true: If the bailout plan were really an economic stimulus plan, they should have given the bailout money to the People
, and let the People decide how to spend it, right? But that isn't the plan. The money is being given primarily to friends of political insiders: The rich, connected elite (construction companies, technology companies, etc.) who will get paid to build stuff regardless of whether the People really need it.
Prediction #10: Future historians will cite this vote as one of the crucial turning points in the erosion of the American Empire
Can the American Empire survive runaway trillion-dollar debt spending campaigns that add to the already-immune ten trillion dollars
in national debt?
Anyone who believes in the laws of economics should realize it cannot. In the not-so-distant future, curious historians will look upon these last, desperate bailout spending spasms in much the same way we now examine the history of the Roman Empire and wonder how its leaders could have so recklessly driven it into a state of economic and political desperation.
Prediction #11 (extra): The tax cuts and food stamp benefits will be short-lived; but the debt will last a lifetime
"Diamonds are forever," say the TV commercials. Actually, diamonds only last until the divorce. What really lasts forever is the debt
you got yourself into when buying the diamonds!
At the federal level, debt is forever, too. A $400 tax cut for a middle-class American family will be swallowed up one month's time, but the billions of dollars in debt required to fund these short-term measures will linger around the necks of Americans for years to come.
It is absolutely correct to characterize this bailout as "multi-generational theft."
Do you support the plan? Or just the man?
Oddly, I have discovered many people support this plan solely because it's an Obama plan
, regardless of whether it actually makes any sense from an economic perspective. Let me just go on the record and say this: Anyone who blindly follows ANY politician (Bush, Obama, Clinton, etc.) is a complete fool.
Opposing this bailout plan is not an attack on Obama, or Democrats. It's an act of economic sobriety. I don't care who thought this up, Republican, Democrat or otherwise: Endless debt spending is a disastrous economic policy, regardless of who sits in the Oval Office. If Ron Paul came up with something this crazy, I'd blast him for doing it too (but of course Ron Paul wouldn't even dream of such outlandish debt spending).
Fortunately, most NaturalNews readers are independent thinkers who decide these things on their merits, not merely based on the name of the person announcing it. Think this stuff through
. Is yet more debt the answer to these economic problems?
And if so, will somebody please limit MY salary to $500,000 a year? I promise not to complain...
Is there a better plan? Yes!
I'm often asked what would I suggest that's better? In this case, it's easy to answer: Give a trillion dollars to the People!
Of course, I'm against such huge money creation efforts in the first place, since I believe in an honest money supply (Ron Paul, Mises.org, etc.). But if you're going to create a trillion dollars (or so... who's counting?) then why not give the money directly to the People and let them decide how to spend it?
A trillion dollars divided among American taxpayers comes to about $7,000 per taxpayer
. Imagine the economic stimulating power of $7,000 in the hands of each and every taxpayer in America. People would spend more, tax revenues would rise, and they might even afford to pay their rent for a while, which would support housing prices. Doesn't this make a lot more sense than a top-down economic agenda centrally planned by bureaucrats who have no real clue about the real, day-to-day lives of the American People?
And heck, as long as we're creating money from nothing, I'm in favor of ending the IRS and all federal income taxes
. If the government can create money from nothing, after all, then why are we still paying taxes in the first place?
Federal income tax revenues for 2008 (from individuals) were $1.25 trillion. Aw, heck, that's just another round of bailout money. We could END the federal income tax and just print the money, folks!
Again, I'm against the whole idea of creating a trillion dollars in new money in the first place, but if you're gonna do it, why not just end the income tax or give the money directly to the People who will then decide on their own, using free market principles, where to spend it, invest it or save it? Isn't that what America and Democracy are supposed to stand for?