What to do After the Money Bubble Explodes?

Every “real” economist out there knows the United States is not immune from the laws of physics or economics for that matter. We have had the Savings and Loan bubble, NASDAQ bubble, housing bubble and now the biggest bubble of them all our fiat (dollar) currency. Moody’s is predicting a drop in the USA bond rating around 2013. That means the deficit will increase because of higher interest rates on our short term bonds to unsustainable record levels. Others are looking at 2011 when a lot of commercial real estate is scheduled to be refinanced or defaulted on. Combined with tax hikes and the chaos in Europe some economist seem to think the coming crash is closer than we all anticipate. Nobody knows for sure but we do know when it does happen it will be devastating.

Nobel Prize winning economist Paul Krugman doesn’t have a clue about economics

So what to do? Fortunately most politically savvy people including Democrats are knowledgeable about the impossibility of the Obama Administrations current path of fiscal insanity. There is a good possibility Republicans can take the House and Senate creating gridlock and giving the economy some much needed breathing room. Gridlock will create more economic certainty and business loves certainty not chaos. That’s step one.

Step two is getting the communist loons out of Washington. That means defeating Obama or impeaching him. The communist “progressives” need to be run out of Washington just like the NAZI’s were run out of Berlin in 1945. No mercy should be showed any of these crazies. Jail them for violating our constitution and throw away the key.

Step three get real economists in charge of the federal government. Most of what the federal government does is a complete waste of time and money. We have departments overseeing financial transactions, oil drilling, natural disasters and many others. They do nothing but react and pretend they are doing something. Most of the time they watch porn, screw lobbyist, harass industry, pretend they are smart, ask congress for more money and drag down the productive members of society. We need to fire about 75% of the federal work force in 30 days or sooner. Fire them with an executive order and move on. The remaining bureaucrats can clean out the office space. These parasites need to get a real life.

Economist Peter Schiff saw the housing bubble in 2003, wrote about it, warned viewers on several business networks and understands economics. Doubtful he will ever get a Nobel Prize.

Real economist would reform entitlement programs. They would end the Ponzi schemes and return medicine to the private sector. Medical services would become much more affordable if Medicaid and Medicare were eliminated.

Why? Simple supply and demand. Government programs inject huge amounts of artificial cash into the medical system. This drives up cost. Eliminate the subsidy of government cash, artificial monopolies caused by restricting sale of insurance over state lines and other restrictions on hospitals, medical schools and payments to out of country medical providers like Columbia and Mexico and cost would drop my guess 50%. Doctors can only charge what people can pay.

Why did the cost of health care go up so dramatically after WWII? Government interference into the marketplace created artificially high prices for medical services and monopoly prices for health care coverage. Without the artificial monopolies and government infusions of cash prices will drop to market clearing levels. Real economist understand this. The other 90% get caught up in minutia and theoretical crap.

The goal is to get people in power that can facilitate the transaction to post dollar bust economy that will not follow rigid dogma and rules. For example when the bubble burst and the dollar drops like a rock allow any currency that merchants will accept for goods and services. Allow merchants to do business in gold, silver or whatever viable form of money is acceptable for exchange. The United States did it from 1837 to 1913 and it worked. We can do it again. We don’t need to repeat the Wiemar Republic where people pushed around wheelbarrows of cash to buy a loaf of bread. When the dollar explodes let the people do what is best for themselves.

When the money bust comes if the right people are in place the transition doesn’t have to be a gut wrenching transition into communist USSR or fascist NAZI Germany. If we get people in government who will take out the communist and have the guts to kill the entitlements and federal government intrusion and regulations the transition can be accomplished in a year maybe less.

CATO scholar Dan Mitchell has made several videos explaining government policy and economics that the average viewer can understand. Dan understands economics. Doubtful he will ever win a Nobel Prize.

People ridicule me because I like Sarah Palin. Romney is better; Huckabee is smarter and so forth. Palin is stupid, bla, bla, bla. Some on the left are scared of her because she’s not corrupt or indoctrinated with a Harvard degree. Some on the right just don’t have the balls to go after Social Security or Medicare. I like her because she has guts and more important she has good instincts.

In the book The Survivors Club the author talks about how in a emergency 10% of people do the right thing, 80% do nothing and 10% do the wrong thing. Being familiar with economics I see that in my field.

Nobel Prize winner Paul Krugman is so smooth and brilliant in his arguments about economics he won the ultimate prize for it. After reading his work and watching him on YouTube all I can do is scratch my head. The guy may know the lingo but he has NO understanding of economics whatsoever. He wanted housing inflation back in 2003, he thinks printing money and inflating our way out of debt is just fine. He believes in price ceilings and floors whenever they suit his fascist goals. Everything he says is stupid and offensive to any economist who understands economics and wants to maximize personal utility for the masses. Krugman is an elitist and clearly does not care about what is best for the people and has an political agenda that clouds his thinking. He is wrong in his economic analysis in my opinion about 90% of the time or more. People say “but he won the Nobel Prize in economics.” Yes he did and so did USSR communist Leonid Vitaliyevich Kantorovich in 1975. I think it’s safe to say Mr. Kantorovich’s economic theories did not stand the test of time.

My favorite economists Dan Mitchell and Peter Schiff get things right. Same area of study with totally different analysis of economic problems. I would group them in the 10% of the population that does the right thing in a crisis. Palin might not have the economic education but she would have on staff economist like Schiff or Mitchell that would react correctly when the dollar bust comes. I would trust her with my life unlike the waffling Romney who blows in the wind or the Jesus Christ welfare entitlement state weak ass Huckabee. In a crisis Romney would be useless and Huckabee would be out in the soup lines dolling out food to the masses. Maybe a good photo op but of little use. Palin would have the, for lack of a better term, balls to kill Social Security and the Federal Reserve while other Republicans stood around with their thumb up their ass hoping for the storm to pass so they can win the next election.

USSR economist Leonid Vitaliyevich Kantorovich won the Nobel Prize in 1975 with some of the most beautiful and complex mathematical modeling that failed miserably in the real world.

To get these people in place will require a herculean effort. The price of failure is catastrophic. When Russia fell into economic chaos with the defeat of the Russian Army in 1917 Vladimir Lenin assumed power.

Communism took hold and lasted 72 years. 72 years of genocide, gulags, living like pigs, long lines for toilet paper and a degrading life style for the masses while the elite lived like royalty.

Economic collapse in the 1920’s Germany paved the way for Hitler in the 1930’s. The communist “progressives” in the White House know this. They are intentionally spending the United States into oblivion. Their game plan is to shoot for 2013 after Obama is re-elected. They feel with redistricting and the Negro face on the ballot for president they will sweep back into power. After that if the dollar collapses then it’s just another crisis to consolidate the dictatorship over the peasants. Illegal aliens will pour into the country and capitalist will flee for their lives. We the people get the short 12 year collapse and defeat like Germany or the long torturous 72 year reign of terror. Either way life sucks unless you are part of the elite.

We can turn this around if we get the right people in place and stop pretending programs like Medicaid and Social Security matter. They don’t. They were always a fraud. The WWII gimme generation ripped off their kids the baby boomer’s. The time for the crying is over. Old farts 1 baby boomer’s 0. Get over it for your kids sake.

Who do you want in power when it all comes crashing down? Republican milquetoast Romney, Huckabee, Pawlenty or one of the 10% that knows how to react in a crisis? Let’s get the Republicans in the House and Senate in 2010 and Palin in the White House in 2012 and sent the communist packing into hiding for another 50 years.