Friday, November 5, 2010

Austerity Measures Coming To America

By Ray Gano
Austerity measures - In economics, austerity is when a government reduces its spending and/or increases user fees to pay back creditors. Austerity is usually required when a government's fiscal deficit spending is felt to be unsustainable. - source -http://en.wikipedia.org/wiki/Austerity_measures
IF you were like me, you were watching the new speaker of the House, Rep. John Boehner of Ohio, as he told a crowd of supporters, "This is not a time for celebration."
He went on to say, "It is a time to roll up our sleeves and go to work. We can celebrate when small businesses begin hiring again. We can celebrate when the spending binge here in Washington has stopped. And we can celebrate when we have a government that has earned the trust of the people that it serves."
While I am very glad at the republican sweep in the elections, this sweep will not stop what has already been put into action by the Federal Reserve
See no matter what, the Federal Reserve is still moving forward with thier plans to purchase US debt with money printed out of thin air. The fancy name for this is quantitative easing.
What this will do is drive government bond yields to levels that we have not seen since the great depression. The US dollar is now moving into "junk bond" status.
What is going to take place is higher inflation, in fact it is believed that the inflation is going to be so much that it is goign to cause a major shake- up in currency and bond markets globally.
The outcome will be huge price increases, and again it does not matter who is in office, congress or senate; the Federal Reserve, a privately held corporating of banking elites are doing this. There is nothing "federal" about this organization. They are the ones who control the money and they do not care how many lives will pay for thier usery and greed.
In fact, just three weeks ago silver was siting around the $19.00 range. Today it is $26.69. It was $24.00 just two days ago, that is till the Feds announced that they were in fact going to enact QEII.
Now, there is a chance,very slim, but a chance that we can possibly escape some of what is before us. But what it will take is massive amounts of sacrifice. 
The new speaker of the House, Rep. John Boehner said, "It is a time to roll up our sleeves..."
Like it or not, "rolling up our sleves" means Austerity Measures are coming to America.
On Nov 2,201 the United Kingdom's PM David Cameron's coalition government announced massive cuts to the military and social housing in an attempt to reign in out of control deficits before addressing a very large debt. 
In France, an estimated one million protesters took to the streets against austerity measures proposed by the Sarkozy government which would raise the retirement age from 60 to 62. Well, our retirement age is 65, so personally France can suck this up. But what they are looking at here in the US is to move the retirement age from 65 to 70. 
Greece's economy has collapsed, and now Portugal's President is warning of a major crisis unless thier new austerity budget is accepted. Ireland is not be far behind in collapsing.
Europe is facing hard lifestyle changes, and the US is not far behind them.
On February 18, 2010, President Obama signed an executive order called "The National Commission on Fiscal Responsibility and Reform." He did this by executive order because Senate was unable to pass a bill agreeing to a binding all powerful fiscal commission. Yet another abuse of power from this president.
Like the many other draconian "Czars" he has given power too, this commission will also wield authority and power.
On Nov 1, 2010  the Deficit Commission used the New York Times as a messenger service to tell politicians — and us the American people exactly what they intend to do if Republicans win the House and a good number of seats in senate.
It’s all there in black and white: They’ll cut benefits, increase the financial burden on the middle class, and make sure that wealthy Americans aren’t troubled by the kind of sacrifices everyone else will be expected to make so we do not default on our debt.
Here are the quick points...
(1) The average family health plan in the United States cost $13,770 in 2010. At a Federal tax rate of 25%, that’s $3,440 in new taxes — and the costs of these plans keeps skyrocketing. Employers would pass these costs on to employees, and would probably also reduce benefits (which is permitted to some extent under the new law) in order to reduce their own costs.
(2) The loss in middle-class wealth through plunging household assets is one part of the problem. Another is the fact that so many homeowners are paying mortgages based on grossly inflated home values, since banks have not had to write down any of the principal on these loans. And the bank bailout has not “broken even” or “made the taxpayer money,” despite reports that suggest otherwise.
(3) About those “unnamed supporters”: “Unnamed” by who, exactly? By Calmes herself, apparently. Are they “supporters” of the Commission, of eliminating these tax breaks, or of something else? Are they Commission staffers, or do they work for an advocacy group of some kind? Colmes doesn’t say. Has she read the New York Times’own policy about unnamed sources? Unattributed sources are only to be used for clearly stated reasons, which should be provided in the article. But then, disclosure have never been the Deficit Commission’s strong suit.
(4) Social Security’s fully funded through 2037, and then 75% funded after that. Lifting the cap on the payroll (FICA) tax would fix it forever. But Republicans will resist that, so your benefits are going to be cut instead. How? By raising the retirement age and altering the price index and cost-of-living formulas. That would come to an estimated 16.5% across-the-board cut in benefits – all because Republicans have drawn a line in the sand.
Co-chairs Alan Simpson (former Republican Senator from Wyoming) and Erskine Bowles (Bill Clinton's Chief of Staff) have promised, as basically ordered by our illustrious President. That everything will be on the table when it comes to balancing the budget, including social security, taxes, the military, and Medicare.
Does this need to be done? Yes it does.
But will those who govern, lead and make all the laws do the right thing? I pray that enough constitutional conservatives made it into the house and have the fortitude enough to stand when they see present day evil making headway.
I also pray that Republicans take seriously that the people of the United States have spoken. We are sick and tired of the abuse and we want it stopped now.
Now I have to say that I am encouraged by Senate Minority Leader Mitch McConnell (R-Ky)and the speaches he has been giving. The president is saying compremise and McConnell is saying "no you are going to what the American people want." I like his tough, take no prisoners, draw the line in the sand attitude.
Now how long it lasts and will they stand firm is another thing.
If sacrifices are spread out evenly and if we as a nation turn back to God, I can see us making our way through this storm. It will be difficult, but it is possible. But it will mean sacrifice as a nation.
What I fear is that those in power will take the easy way out. That most likely is create a major war effort. That has always been the answer when the FIAT Model starts to break down. Just in case you do not know, America is based upon the FIAT monitary system, and she has always conducts a major war effort to try to get ourselves out of debt.
History has shown this time and time again.
When we could not fix our debt in the 1800's, we had the civil war. When we could not fix our debt in the 1930's we went to war. This is why I say that the odds are very good that we will go to war. Odds are also good that we will ramp up our military machine and go to war with Iran.
If we do not go to war, then we will continue to try to spend our way out, which we all know that is a dead end street that will result in entering a sever depression / hyperinflation even quicker. 
Austerity Measures are coming to America, we have been officially warned by John Boehner and no matter what, it will be carried out and we will feel the pain. To which direction we take, will be seen.
Will they send our young men and women across the sea to shed their innocent blood to pay for the banksters and Wall Street exececutives massive greed?
OR...
Will they just sacrifice America on the pire of Mammon and let this nation sink into third world status wiping out the middle class and stealing just about every bit of wealth the American people have built.
Both of these senarios will send this nation into an "econimic winter" where not much growth and great hardship will take place.
I have to be honest and say that there are times I do not relish the job God has given me. I know that many people are excited with the turnout of the elections and I know am raining on their parade, being doom and gloom and seem to always be pointing out the negative.
But I am a Watchman, called upon by God. I have got to sound the warning, the fire is in my bones. But not only that, the blood of the innocent will be upon my hands if I stand silent.
Scripture says...
Ezekiel 33:6-7  But if the watchman see the sword come, and blow not the trumpet, and the people be not warned; if the sword come, and take any person from among them, he is taken away in his iniquity; but his blood will I require at the watchman's hand. 7  So thou, O son of man, I have set thee a watchman unto the house of Israel; therefore thou shalt hear the word at my mouth, and warn them from me.
Therefore, I must sound the alarm.
So what does the road look like possibly ahead?
We will probably see a "positive bump" in the markets, things will seem to be doing well. As a matter of fact the markets are reacting in the positive these last few weeks because "stock prices" are up. What they fail to see is that they are up due to inflation. In other words it is taking more dollars to purchase the stock than it did say a month or so ago.
The stock prices are not going up, the buying power of the dollar is going down. Don't believe me, look at the price of gold - $1,396.50. Gold and silver has consistantly been going up since July.
If a positive speed bump takes place, we may see the price of gold and silver drop for a bit(if it does, buy silver). This will be the calm before the storm. Things will seem to be rosy, but it will be only for a season. We will still have the same problems, same issues and the same gigantic mountainous debt facing us. Then the tide will change and we will see massive inflation take place in just a matter of days.
What do we do?
We need to be doing all that we can to prepare our selves spiritually, mentally and physically for the sake of the Gospel. Many will be hurting and need the hope that we have to offer in Jesus Christ our Lord.
If you have not protected your wealth, then I would start finding mediums of wealth to purchase like silver. If a drop comes, that will be the time to purchase silver, it will skyrocket after that.
If you want to learn more about silver, get Prophezine's Christian Guide To Silver.(http://www.prophezine.com/pz_store/)
In fact here is what PZ Insider Danny said...
"I'm new to investing in silver and I have to tell you that your "Christian's Guide to Silver" DVD is a "wealth" of information.  After watching the DVD, I was able to find over $30 worth of silver just sitting in my closet. Coins that I would have eventually rolled up and cashed in at the bank or just spent for far less than $30.  This DVD has already paid for itself and then some. Everyone who wants to learn about investing in silver should watch this DVD!"  
It is up to those of us who are the laymen who must be ready. Many of The pastors and shepherds have let us down, seeking approval of the world, instead of standing with the Word of God.
I believe God is seperating the wheat from the chaff. He is calling laymen to be ready for service. We must be ready to stand with boldness and credibility and to not be burdened as to where our next meal comes from or where to lay our head. We have been good stewards and we have prepared for the coming storm.
Finally, I leave you with the following...
Ephesians 6:13  Wherefore take unto you the whole armour of God, that ye may be able to withstand in the evil day, and having done all, to stand.


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