America's Worst Economic Depression

by Robert M Davidson

  All told, Chinese investment in the United States is expected to hit a record high this year , on the back of a record $3.6 billion already invested in the first half of this year in 33 different mega-projects. I’m sure you know of the U.S. movie theater owner and operator AMC Entertainment Holdings, the one that probably operates your local movie theater. It’s now owned by the Chinese.

  Thing is, Chinese acquisitions of U.S. companies and properties is only going to accelerate quite dramatically going forward. China’s banks have the money to invest directly, or to loan to Chinese companies making U.S.-based investments.

  Chinese banks now have the clout and the balance sheets to back it all up. Plus, they are getting more and more favorable treatment by the U.S. Federal Reserve, who is now giving its stamp of approval to one Chinese deal for a U.S. company after another — plus approving many of China’s top banks to open in the U.S. and offer Americans typical banking services.

  It’s all part of the process that I’ve been warning you about — how Washington is working with Beijing to ease the transition from the U.S. being the number one economy in the world to China rising to number one.

  It’s inevitable and Washington knows it. They will never admit it to you. But behind the scenes they are doing everything they can to help China — because in the end, it gives Washington hope ...

  Hope that it can inflate its debt problems by also devaluing the U.S. dollar against the Chinese currency, the yuan.

  Obama has continued the trend established by President Reagan in utilizing the Plunge Protection Team for political ends. In using the PPT to buy stock index futures contracts causing the Dow (DJIA) to rise from 10,150 on September 1, 2010, to 11,118, just before those November elections, he helped insure the election of many Democrats. Without this wrongful activity in pushing our US stock market higher, any Democrat up for re-election with only a 5-6% point win would have most likely been defeated in the 2010 election.

  Sadly, this political manipulation of the US stock market did not end in November but continues into this current day, because a higher stock market is one of the public's first indicators of a better economy. The Obama government, like those presidents since Reagan created the PPT, continue to spend billions of our tax dollars simply to orchestrate this latest "smoke and mirrors."

  Even the robust performance of the stock economic fundamentals and the stock market in September is a kind of lie. The market was ramped up by the infusion of tens of billions of dollars from the Federal Reserve. In effect, the government simulated an economic recovery by monetizing stock market averages, a shocking allegation nevertheless supported by the facts. Analyst Peter Cooper gives some deep background on the Fed's market manipulation, explaining that the profits in stocks were made "exclusively from after-hours action." The way Cooper explains it , futures desks would simply bid each other higher al l n i ght ; lea v ing the market o pen to h igh frequency traders to shave off pennies the next day, then repeat the process after the next close. ; " In a nutshell, this is the secret of the past phenomenal market performance," . he writes. "So this is what has fooled us, and we are humbled! Perhaps we should have expected this with the benefit of hindsight . The largest Fed intervention in markets in history could hardly take place without doing something equally big in the stock market." Looking forward, however, what the Fed in fact has created is another huge bubble in U.S . stock market valuations. Not only are stocks expensive given the reality of the economy . They are also being artificially i nflated in value by outright manipulation aided by the cheap money doled out to investment banks. Much of the government manipulation of stock prices was meant to have ended w i th quantitative easing (QE). But it didn't. A Sept. 28 article published on the Zero Hedge blog argues that the "only reason" stocks rallied in September was because the Federal Reserve pumped tens of billions into manipulation of stock prices. [clxxiii]

  Little by little, you begin to recognize that the President’s Working Group, or PPT, is not just an Obama specific problem. Since Reagan's introduction of this "tool" in the first quarter of 1988, it has been used increasingly by Democrats and Republicans alike to interfere with America's free markets for political reasons. It is unlikely any US President will be strong enough to disband the PPT, and save American citizens the billions of tax dollars it will continue to drain.

  Monday saw a rally for the 10 th time out of the past 12 Mondays, which is fishy, and it was sharp. If the PPT is goosing markets on Monday… [clxxiv]

  As further case in point on these wrongful manipulation activities, when our nation was out of money in August of 2011, the actions of the PPT were likely suspended as there were no funds to buy stock index futures to manipulate our stock market. Then, when the S & P rating agency downgraded the US credit worthiness on August 6, 2011, we saw the first few days of true, un-manipulated stock market activity - with more net stock market selling days, and the biggest downward moves since 2008. You think the “smoke and mirrors” will ever stop?

  President Obama has been as consistent in spending billions using the PPT virtually every day of his tenure as his Administration has been in printing billions of dollars. It is doubtful any President has spent more money on the PPT.

  Looking ahead at an economy destined to collapse totally, there's little doubt that succeeding presidents will also perpetrate these awful dual practices of pouring billions into the PPT while simultaneously printing billions. Everyone knows that these irresponsible practices will only continue to dig still further generations deeper and deeper into debt. America will also move further and further away from the soundness of its founding principles.

  As President Obama entered this presidential election year of 2012, the PPT has been spending more money than ever trying to drive our stock market to new highs to help insure the look of a rosy economy - and, Obama's re-election.

  As surely you know, President Obama has brought up the likelihood of a depression numerous times as a consequence of certain named factors or as tied to his predecessor George W. Bush. His statements send great fear through all parts of our nation and are the direct opposite of what President Franklin Delano Roosevelt (FDR) did during similar times as now.

  [clxxv]

  FDR had numerous private meetings shortly after becoming president with specific religious and business leaders, top press sources, and others from both the Democratic and Republican parties to get all on board with not using the "depression" word or any other words of economic negativity and to replace such language with words of hope and better days. He carried this message of hope in his regular radio addresses as well as his speeches throughout the country.

  In conjunction with our President’s 2012 run for a second White House term, he spoke about his latest plan to turn around our housing ills. The heart of this plan will allow homeowners - current with their payments, to refinance their mortgage in line with current, lower interest rates. Do you think this benefits the banks, lenders, and current mortgage investors?

  [clxxvi]

  Some political commentators have suggested this latest housing effort is tantamount to "buying" a massive amount of votes. Economically, and this should come as no secret to you, this could bring our economy closer to another deeper contraction or that overdue Second Great Depression.

  The way people are gonna be made to feel is that Obama is fixing their mortgage. He’s fixing the fact that their house is underwater. He is going to lower their monthly payment, the banks, the rich guys are gonna take the hit on it, millionaires and so forth. Your house is going to have value again. In one fell swoop with an executive order, we’re gonna fix the housing problem. We’re gonna bring value back to everybody’s number one asset. [clxxvii]

  With the recent - though quite questionable - election of Barack Obama to a second term as President, we know that his fiscal budget plans will be continuing to increase and well above our nation’s declining GDP. As you might imagine from what you’ve read so far, Obama’s second term i
s likely to continue increasing America’s debt and the burden on still more generations.

  Spending in the President’s budget rises inexorably from today’s $3.8 trillion to $5.8 trillion in 2022. Throughout the decade, outlays hold stubbornly above 22 percent of gross domestic product (GDP), more than twice the New Deal’s share of the economy in its peak years. In constant dollars, outlays are more than three times the peak of World War II. [clxxviii]

  During Barack Obama’s first term as president of the United States, the debt of the federal government increased by $5.8 trillion, which exceeds the combined debt accumulated under all presidents from George Washington through Bill Clinton. The new federal debt accumulated in Obama's first term equaled approximately $50,521 for each household in the country. [clxxix]

  As you might imagine, one thing you can be sure of after a President’s first term is a better understanding of their leadership and direction for the country. For whatever reason, President Obama was probably elected the first time where there was less known about him and his background than any other previous candidate for America’s highest elective office.

  Now, you will understand all these things better about our President Obama. As just two examples from this book: Why do so many brain trust members seem to prefer another leader than Obama? Why has there been no further mention on the matter of the separation of church and state? Well, you should get those answers and more in the closing pages of this section.

  As you’ve recognized about President Obama from the reading so far, he has not been honest about our country’s real unemployment or possibly about our real GDP or about the real reasons behind our “negotiations” with China. Of course, everyone knows that politicians are not long on integrity, and you’ve already been given examples of that less than endearing quality in most every president depicted in this book. Unfortunately, all have strayed from America’s founding values, though doubtfully, no president in America’s history as much as Barack Obama.

  Even in the days of our founding fathers, there were surely cases of political expediency when the whole truth was not placed on the table. Yet, President Obama offers more examples of dishonesty than any other president in our lifetimes and likely, ever. As such, this is a stark contrast from our founding fathers. Here are just a few other examples of Obama’s dishonesty:

  The president who campaigned for a more “open government” and “full disclosure” will not unseal his medical records, his school records, his birth records or his passport records. He will not release his Harvard records, his Columbia College records, or his Occidental College records—he will not even release his Columbia College thesis. All his legislative records from the Illinois State Senate are missing and he claims his scheduling records during those State Senate years are lost as well. In addition, no one can find his school records for the elite K-12 college prep school, Punahou School, he attended in Hawaii. What is he hiding? Well, for starters, some of these records will shed light on his citizenship and birth. [clxxx]

  Accusing someone of lying is a serious matter. Especially when that someone is the President of the United States. Charges of that nature should be leveled based only on absolute proof of a deliberate statement, intentionally made, whose sole purpose is to deceive. Based on this criterion, President Obama is a liar. Demonstrably so. And a disturbing pattern is emerging that allows for the possibility that our president is a serial liar. [clxxxi]

  A funny thing is happening after Democrats thought they won the elections. Not only are there rampant stories of voter fraud, but it appears that this time, oddly enough, some people seem inclined to do something about it... On the national front, there have been widespread stories of electronic voting machines switching votes for Mitt Romney to votes for Barack Obama. The reports began with early voting in some states and continued through Election Day… Auditor Robert Ashcroft said on Election Night, he observed that the polling software would switch to a default for Obama in about 5 to 10 percent of cases. He questioned how pre-election polls showed Obama and Romney virtually tied, but then on Election Day, Obama got a huge groundswell of support. According to an analysis by World Net Daily, Obama also recorded much larger margins of support in states that do not require voter ID than he did in states that check voter identification [clxxxii] .

  Appearing on NBCs “Meet the Press” on Sunday, President Barack Obama said that he cut spending by more than $1 trillion in 2011. However, the White House Office of Management and Budget says that federal spending increased by $147 billion from fiscal 2010 to fiscal 2011. [clxxxiii]

  As a further contrast to our nation’s founding fathers, wouldn’t you like to understand President Obama better? Everyone knows that he was a social worker before he first entered politics. As such, he’s been the only president from that type of background. You probably already know that such a background puts him on a much different footing than most Americans and their form of livelihood.

  What’s most important about his social work is what he was truly advocating - consistent with his lifelong learning and love. Obama has been surrounded since his birth by Communists and Marxists. His career as a social worker, an Illinois State Senator, a US Senator, and now US President has never been far from his early Marxist/Communist roots, as evidenced by his own history as well as those with whom he surrounds himself.

  Unfortunately, the record definitely shows that the values of Barack Obama's family are Marxist and far out of the American mainstream. Ann Dunham's…high school friends said she "touted herself as an atheist" and considered herself a "fellow traveler." According to Webster's dictionary, a fellow traveler is translated from the Russian poputchik, "a person who espouses the cause of the party, especially, a Communist Party, without being a member." At the University of Hawaii, she met a Kenyan student, Barack H. Obama, in a Russian language class. Obama's Marxist politics meshed nicely with Dunham's... Dunham… exposed her son to Frank Marshall Davis, a member of the Communist Party, USA. According to Dr. Gerald Horne, Davis mentored Barack Obama, Jr. as a young man... When Obama, Jr. left Hawaii to attend Occidental College in Los Angeles, he continued to gravitate toward Marxist friends and organizations... Upon arriving in Chicago, Obama once again chose to cultivate Marxist friends such as William Ayers, a member of the Weathermen whose stated goal is to achieve "the destruction of U.S. imperialism and achieve a classless world: world communism." In making one of the most personal choices anyone can, an adult Barack Obama joined Trinity United Church of Christ and embraced its radical pastor, Rev. Jeremiah Wright, who espoused Black Liberation Theology which has Marxism as its economic foundation. At each stage of his political development, Barack Obama has been guided by Marxist mentors… [clxxxiv]

  Obama’s Marxist/Communist ideology is against everything America’s founding father’s dreamed and desired for this democratic experiment. While that may offer concerns enough, did you sense that President Obama doesn’t have a great love for our country, its flag, its Constitution, and businesses, too?

  You don't have to be a conspiracy theorist to recognize the damage Obama is doing to the republic, and we haven't even touched on his unconstitutional and lawless usurpations of authority. The question isn't whether he is intentionally destroying America. The question is whether he is intentionally pursuing a set of policies that are definitely damaging America, irrespective of his motives. The answer is -- irrefutably, emphatically -- "yes." [clxxxv]

  I cannot be the only veteran who finds this disturbing. Seems like the 50 United States are nothing compared to an America united with Obama as its core instead of the states. Only a person who either despises America, or was never raised in America would not see a problem with replacing the stars with Obama's campaign image… As angry as this makes me, I really am not that shocked. After all, Obama was disrespecting the flag all the way back when he was still running for the Democrat nomination in the Summer of 2008. His wife, Michelle was even caught on camera wondering what all the fuss was over a
damn flag at a 9/11 memorial service for those who died in the attack. [clxxxvi]

  President Obama has demanded the protections of the U.S. Constitution be expanded to the enemy. At the same time, he is working to deprive American citizens (including an ex-president?) of those same rights. [clxxxvii]

  Obama through his presidency has had problems with business. In fact, he doesn’t like private run business at all. Biggest glaring example: “You didn’t build that.” Obama has no practical experience and no means of knowing that his theories will not work. Yet he gets frustrated during his speeches and this is where the “Let Me Be Clear” phrase comes in to play. And he starts talking down to us Subjects. [clxxxviii]

  Do you remember the earlier comments on how it appears that America is having a hard time meeting even its interest payments on its massive debts? Well, that could be part of the explanation behind the possible soft dollar interest payments, described in more detail on the next page.

  [clxxxix]

  Obama’s State Department is giving away seven strategic, resource-laden Alaskan islands to the Russians…. The seven endangered islands in the Arctic Ocean and Bering Sea include one the size of Delaware and Rhode Island combined. The Russians are also to get the tens of thousands of square miles of oil rich seabed surrounding the islands. The Department of Interior estimates billions of barrels of oil at stake…. The agreement was negotiated in total secrecy. The state of Alaska was not allowed to participate in the negotiations, nor was the public given any opportunity for comment. This is despite the fact that the Alaska Legislature has passed resolutions of opposition – but the State Department doesn't seem to care…. Now is the time for the Obama administration to stand up for the US and Alaskan rights and invaluable resources. The State Department's maritime agreement is a loser – it gives us nothing in return for giving up Alaska's sovereign territory and in valuable resources. [cxc]