Is this "Hot" economy a house of cards?

I omit the President's name when describing the economy because people tend to give credit or point blame when the economy is not in the President's control.





PNAC Penelope loves to ask about the too hot Bush economy and she gets credit for citing sources and giving numbers but I think she offers half the picture.





When someone like me, an armchair economist, raises the issue of a devalued dollar (which started with Clinton) trade deficits and the housing market, some people assume I must not work which is simply not true. Almost everyone I know has felt some kind of squeeze. Dipping into their savings to cover rising interest rates and energy costs for one. The housing bubble is starting to correct itself, the house next to mine has been for sale over a year with no bites. Rising energy costs are reflected in rising prices for everything, like milk. And then there's the trillions of dollars in the black hole over in Iraq.

Is this "Hot" economy a house of cards?
It is worse than a house of cards. The devaluation of the US dollar started in 1913 with the passage of the Federal Reserve Act and the unconstitutional 16th amendment. It has been "devalued" 95% since then and all of the surplus from the gains in productivity have gone to the international bankers who control ALL central banks (yes even China and Russia).





Clinton's (and the World Bank) main job for this group was "globalization" making loans to third world countries in US dollars thus tying all currencies to the US dollar. When the dollar goes up in flames so do ALL currencies...to be replaced by ONE "electronic" currency which will require everyone to be "chipped" to participate in everyday life.





The "numbers" from the government are completely PHONY. In 1971 Nixon had a statistical wizard reconfigure the "inflation" calculation data so that since then the "numbers" do not include the rise in Housing, Food or Gas (energy). If these were included we would see that in fact since the 1970's we have endured approximately 3000% inflation. There are virtually NO independent economists anymore...they ALL are controlled by the international banking cartel.





9/11 was a "test run" for the coming economic meltdown. One of the objectives was to see just how much damage a "terrorist" event would do the the worlds economy at a time when all economies were strong (as well as seeing what the worldwide emotional reaction would be to an event like that). Every since September 11th 2001 the banking cartel (through the US government) has driven the economies (ALL OF THEM) to the brink of collapse. All that is needed now is a good push (read nuclear "attack" on a US city) and the whole "house of cards" comes crashing down and into the hands of the true rulers of the world the Rothschild Banking Cartel.





I'm not alone...there are many many "conservative" economists that have been warning of this for several years now...and the "governments" have done nothing to change course. I smell a conspiracy that is much bigger than just the USA.
Reply:I DON'T KNOW WHERE IT'S COMING FROM BUT MY BANK ACCOUNT KEEPS GROWING IN BOUNDS AND LEAPS. AS ALONG AS IT KEEPS ON COMING I'M GOOD. THE LAST THING I NEED IS A LIBERAL DEM RAISING MY TAXES FOR SOME CRAP THAT THEY FEEL IS NECESSARY.
Reply:So true, money is being printed at lightening speed, more loans are being made that are not in our favor. China alone has over 400 billion dollars. I'm not sure about Arabia, but its reported they own over 7% of our GDP. So how is this all good?
Reply:just ignore the record deficit and everything will be fine
Reply:Where is all this money in this red hot economy coming from and going to? It's endlessly circulating as it does in every growing economy.
Reply:The short answer is that the economy is ALWAYS a house of cards, and that even when the economy is strong, a war or disaster or market forces can unexpectedly bring it down, sometimes not even because there is a legitimate problem, but simply because there is widespread fear, and millions of people stop spending money, pulling us into recession.








More specifically, this is a very strange economic period we're in. Corporations are earning record profits. But somehow that isn't being proportionately shared with the middle class that is working for those profits. The economy is great, but the money is largely being reaped at the top, and not shared with the American public.





The only serious threat to the economy right now is a decline in home building and the real estate market. But I actually think that's a good thing in the long run, because home prices are hyperinflated way beyond what they should be, and that current forces are bringing down the cost of homes, which is beneficial to most Americans.


And even though the housing market is relatively depressed compared to what it was a year or two ago, it still is turning a net profit. It's only low compared to what the profits were two years ago.


The stock market had a noticeable correction last week, but is still considered very strong.





The bigger problems are (1) both legal and illegal immigration driving down wages with cheaper labor, and (2) offshoring jobs and companies to southeast asia. This is taking money out of the U.S. economy forever, and putting it in foreign countries, declining the value of the U.S. dollar, I fear permanently. And taking away millions of good-paying middle class jobs








A few recommended books on the subject





WHERE THE RIGHT WENT WRONG, by Patrick Buchanan





TAKE THIS JOB AND SHIP IT, by Byron Dorgan





and





WAR ON THE MIDDLE CLASS, by Lou Dobbs