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ROYC75
09-17-2012, 06:33 PM
Why we are on the brink of the greatest Depression of all time

By Wayne Allyn Root

Published August 23, 2012

FoxNews.com

Read more: http://www.foxnews.com/opinion/2012/08/23/why-are-on-brink-greatest-depression-all-time/?intcmp=obnetwork#ixzz26lzL2szK




http://www.foxnews.com/opinion/2012/08/23/why-are-on-brink-greatest-depression-all-time/?intcmp=obnetwork


Everywhere from FoxNews.com to CNBC.com, I suddenly see commentators warning of pending doom, economic collapse, and a new Great Depression. Welcome to my club. Perhaps America's politicians and economists should have paid attention to an entrepreneur and small businessman that has been warning of economic collapse and a new Great Depression publicly for over two years.

More importantly, none of the current commentaries mention the "why's" of this slow motion economic collapse...beyond the obvious -- mountains of deficit and debt. None of them mention the dysfunctional structure of the current U.S. economy and the massive changes in the work ethic and mindset of the average American.

I am a successful small businessman and a patriot who loves America and always sees its greatness. I am also an optimistic, positive thinker who always sees the glass half full.

But not this time.

This time we are in such deep trouble, the only solution is a radical restructuring of the politicians, the economy, and the way we view personal responsibility versus government handouts. If those changes don't come then we are facing a long decline and the eventual end of America.

The economy is crumbling. The situation is turning more hopeless by the hour. The more government gets involved, the worse it gets. Coincidence?

-

This time the results are going to be dramatically worse than 1929. This time we are facing The Greatest Depression ever.

Why? Because The Great Depression had NONE of the structural, economic, and social problems, nor the massive obligations we are now facing. Read the facts:

In 1929 America was not $16 trillion in debt, plus facing over $100 trillion in unfunded liabilities. Thatís over $360,000 in debt per citizen.

In 1929, most of our states were not bankrupt, insolvent and dependent on federal government handouts to survive. One county (Cook County which includes Chicago, Illinois) now owes over $108 billion in debt (the biggest part of it in unfunded government employee pensions).

In 1929, we did not have 21 million government employees with bloated salaries, obscene pensions, and free health care for life. Today 1 out of 5 federal employees earn over $100,000.

Today, 77,000 federal employees earn more than the governors of their states.

Staggering numbers of federal government employees retire at a young age with $100,000 pensions for life.

Unfortunately on the state and local levels itís even worse. There is now nearly $4 trillion in unfunded pension liabilities for state government employees.

Protected by their unions and the politicians they elect, government employees are bankrupting America. In Illinois there are retired government employees making over $425,000 per year.

No one could have imagined any of this in 1929. There is no possible way to pay these bills moving forward.

In 1929, Social Security, Medicare, and Medicaid didnít exist. The federal government had no such obligations threatening to consume the entire federal budget within a few years.

In 1929, there was no such thing as welfare, food stamps, aid to dependent children, or English as a second language programs. Americanís didnít consider it the responsibility of government to pay for breakfast and lunch for school students -- let alone for illegal immigrants at school.

Who could have imagined back in 1929 that one seventh of America's population would be on food stampsÖand the federal government would ADVERTISE to encourage even more Americans to sign up for food stamps and welfare.

Who could imagine back then that the federal government would team up with the President of Mexico to encourage Mexicans living illegally in America to sign up for food stamps?

Who could have imagined back then that the president would offer not just welfare, but waivers to allow any state to opt out of requiring work to receive welfare?

Back in 1929, who could have imagined 86 pregnant teenage girls all in one Memphis high school?

In 1929 we had families, moral codes, and churches to prevent this kind of tragedy. Do you actually believe this is just one abnormal high school? There must be record numbers of pregnant teens all over America. They have figured out that the choice is to either work a drab, depressing job paying minimum wage, or pump out babies and have government pay your bills for decades to come. But where will the money come from? This will overwhelm the system with generations of massive debt. This is a nightmare.

In 1929, legal immigrants wanted only to work. My grandparents, who came to this country from Russia and Germany, received no government benefits. They worked day and night to provide for their family and become American citizens. It was sink or swim. My grandmother Anna Root never took a penny in welfare, even when my grandfather died and left her with no job, no money, and 7 young children. So back in 1929 immigrants cost us very little.

Today we have millions of illegal immigrants and their children collecting billions of dollars in entitlements from U.S. taxpayers.

In one state (California) illegal aliens cost taxpayers over $10.5 billion annually just for education, health care and incarceration. Do you now understand why California is bankrupt and insolvent? This is spreading across the country.

More dysfunction? Today new studies show that almost 20% of American children under age 18 are obese and therefore prone to suffer pre-diabetes, diabetes, or cardiovascular disease.

Even worse, by 2020 experts predict that 52% of the adult population of America will have either pre-diabetes or diabetes.

Do you understand the cost of diabetes? This alone will overwhelm and bankrupt America's health care system.

In 1929 we had no federal disability program. Today almost 11 million Americans are on disability. There are more citizens on the disabled rolls than the population of 39 of our 50 states. This is far worse than the welfare or unemployment rolls- which have time limits. Disability is forever. The ratio of able-bodied workers to disabled in 1967 was 41 to 1. As of June 2012 it is now 16 to 1. It is impossible to pay this bill long term.

But wait...it gets worse. Now soldiers are in on the act. Are you aware 45% of returning vets are claiming "disability" -- a number that dwarfs all prior records in the history of warfare. No nation can afford this.

In 1929, we had an education system that was the envy of the world. Today our public schools are in shambles. We spend the most money in the world, and get among the worst results. The difference today? Teachers unions are in charge, instead of parents. Our students graduate with few skills, are qualified only for low paying manufacturing jobs that no longer exist -- they've been shipped to China and India. What will this workforce do for the rest of their lives? Live off the government dole? Who will pay for it?

In 1929 taxes were much lower. Forget the tax rates -- they were meaningless. In those days we had a cash economy, so most businesses paid little or no taxes. Sales and FICA taxes didnít exist. Today the combined local, state, property, gas, sales, FICA and federal taxes are the highest burden in history.

Unconvinced?

When income taxes started in 1913, the average American was untouched. Only the richest 350,000 Americans paid a 2% income tax. Today the average American works until April 12th just to pay his or her taxes.

This stifles entrepreneurship and hinders the financial risk-taking necessary to create jobs and get out of a Great Depression.

New numbers just out for July back up my contention that disaster looms. Sales tax revenues plunged an alarming $539 million below expectations in California last month. The jobless rate rose in July in 9 out of 10 battleground states -- Iowa, Florida, Michigan, Nevada, New Hampshire, Pennsylvania, Virginia, Colorado and North Carolina all had higher unemployment (while Ohio held steady). They say bad news comes in threes. Well here's the worst news of all- the American Petroleum Institute reports that demand for oil in July was at the lowest level since 1995. These figures are alarming -- to say the least.

Do you get the picture? Our country is staring at the Greatest Depression ever. We face a long slow decline towards the end of America -- unless we change paths and policy quickly.

The economy is crumbling. The situation is turning more hopeless by the hour. The more government gets involved, the worse it gets. Coincidence?

The solution is actually simple: dramatically cut the size, scope and power of government; cut spending; cut entitlements; cut taxes; cut government rules and regulations that smother, damage and destroy businesses, prevent startups, and kill jobs; reform Social Security, Medicare and Medicaid; reform public employee pensions; stop the wars (we can no longer afford to police the world); end or reform the Fed; end bailouts and stimulus (ask Japan about the failures of repeated stimulus); end the Democratic obsession with green energy and high speed rail (ask Spain about the waste in those two programs); encourage oil and energy exploration; encourage job creation by small business and the private sector; term limit politicians; institute school choice; and back the dollar with a gold standard.

Or, like so many other great empires of history, America may never recover from this Greatest Depression of All Time.

Wayne Allyn Root is a capitalist evangelist and serial entrepreneur. He is a former Libertarian vice presidential nominee. He now serves as chairman of the Libertarian National Campaign Committee. He is the best-selling author of "The Conscience of a Libertarian: Empowering the Citizen Revolution with God, Guns, Gold & Tax Cuts." For more, visit his website: www.ROOTforAmerica.com.

Read more: http://www.foxnews.com/opinion/2012/08/23/why-are-on-brink-greatest-depression-all-time/?intcmp=obnetwork#ixzz26lzEDcIj

Brock
09-17-2012, 06:35 PM
Wayne Allyn Root, pro football handicapper and economics expert.

BucEyedPea
09-17-2012, 06:49 PM
Wayne Allyn Root, pro football handicapper and economics expert.

Got nothing to articulate as usual.

Bill Parcells
09-17-2012, 06:51 PM
Got nothing to articulate as usual.

Yeah, you have 150,000 posts on 3 different boards with 3 different usernames in 6 years. you are the master articulator.

NOW WHINE AND CRY LIKE A BITCH AND CALL ME A STALKER..BWAHAHAHA

LiveSteam
09-17-2012, 07:14 PM
Yeah, you have 150,000 posts on 3 different boards with 3 different usernames in 6 years. you are the master articulator.

NOW WHINE AND CRY LIKE A BITCH AND CALL ME A STALKER..BWAHAHAHA

LMAOLMAO AWESOME!

Brock
09-17-2012, 08:39 PM
Got nothing to articulate as usual.

Go whack your pud to Lew.

Aries Walker
09-17-2012, 09:09 PM
Someone should invent some sort of thread filter, where I can press a button, and all threads that are just reposts of blatantly biased articles - by MSNBC, FOX News, or some completely obscure website that panders to one side or the other - are instantly erased from my 'New Posts' page. They're usually false, and do nothing but stoke the fires of inter-party conflict.

RINGLEADER
09-17-2012, 09:42 PM
Well those are interesting observations. The end is going to come when inflation comes and it will come...

Comrade Crapski
09-18-2012, 12:55 AM
Royce, good find. 1929 was bad--- but now is worse. Way too many points to address each one but yeah, the shit is going to hit the fan.

Get prepared.

ROYC75
09-21-2012, 09:03 PM
Someone should invent some sort of thread filter, where I can press a button, and all threads that are just reposts of blatantly biased articles - by MSNBC, FOX News, or some completely obscure website that panders to one side or the other - are instantly erased from my 'New Posts' page. They're usually false, and do nothing but stoke the fires of inter-party conflict.


The guy is a Libertarian.

So you are telling me that this is all fabricated ?

Denial?

Taco John
09-21-2012, 09:56 PM
Well those are interesting observations. The end is going to come when inflation comes and it will come...

It's already on our doorstep. Inflation comes to us through the oil door. All this quantitative easing is going to accomplish is increased gas prices as the OPEC nations adjust for it. They know their oil is worth more than our paper. They compensate for this by raising their prices, and the inflation trickles out from there. It works well for OPEC because they stay ahead of the inflation by sinking all of their excess dollars into US Treasuries (http://www.bloomberg.com/news/2012-03-19/opec-recycles-dollars-into-debt-50-faster-than-foreigner.html).

I think the end result will be a continuous cycle of raising oil prices, and then sinking them, then raising them, and sinking them so as to keep the boat afloat and let the economy slowly adjust for the inflation. The fly in the ointment is the social programs. People on fixed incomes end up being squeezed, and with the Baby Boomers beginning to cash their chips in, we're in for quite a bumpy ride.

ROYC75
09-22-2012, 12:01 AM
It's already on our doorstep. Inflation comes to us through the oil door. All this quantitative easing is going to accomplish is increased gas prices as the OPEC nations adjust for it. They know their oil is worth more than our paper. They compensate for this by raising their prices, and the inflation trickles out from there. It works well for OPEC because they stay ahead of the inflation by sinking all of their excess dollars into US Treasuries (http://www.bloomberg.com/news/2012-03-19/opec-recycles-dollars-into-debt-50-faster-than-foreigner.html).

I think the end result will be a continuous cycle of raising oil prices, and then sinking them, then raising them, and sinking them so as to keep the boat afloat and let the economy slowly adjust for the inflation. The fly in the ointment is the social programs. People on fixed incomes end up being squeezed, and with the Baby Boomers beginning to cash their chips in, we're in for quite a bumpy ride.


I meeting next week with a couple of investors,wanting to buy into my business. I'm thinking of of selling 45%, keep part of it and having them match what I spend on upgrades to put 5 people to work.

I know I can increase sales, I just need the working capital and good personnel to help it grow. Instead of a 60% no recourse, I can qualify for 70% no recourse and quad triple my sales in 6months.

I just can't find a reason not to do this, hard times are coming and I want to make as much as possible until then.

Tough times are coming

J Diddy
09-22-2012, 12:23 AM
I meeting next week with a couple of investors,wanting to buy into my business. I'm thinking of of selling 45%, keep part of it and having them match what I spend on upgrades to put 5 people to work.

I know I can increase sales, I just need the working capital and good personnel to help it grow. Instead of a 60% no recourse, I can qualify for 70% no recourse and quad triple my sales in 6months.

I just can't find a reason not to do this, hard times are coming and I want to make as much as possible until then.

Tough times are coming

Chicken little?

Aries Walker
09-22-2012, 01:42 AM
The guy is a Libertarian.

So you are telling me that this is all fabricated ?

Denial?
I didn't say - nor do I care - to which party he belongs.

I'm saying that FOX, like MSNBC, sometimes fabricates, and almost always exaggerates, and that (although it's not the case this time) obscure agenda-driven web sites are worse than both. They're at best opinion, not journalism, and yet they are quoted regularly as if they were.

BucEyedPea
09-22-2012, 01:52 AM
Chicken little?
More nothing to contribute from JDiddy.

BucEyedPea
09-22-2012, 01:53 AM
I didn't say - nor do I care - to which party he belongs.

I'm saying that FOX, like MSNBC, sometimes fabricates, and almost always exaggerates, and that (although it's not the case this time) obscure agenda-driven web sites are worse than both. They're at best opinion, not journalism, and yet they are quoted regularly as if they were.

I disagree, some of the alternative media does a better job then the MS. There's a reason why MS is losing customers. A bumpy ride is coming. Food's already high and with the drought and more QE it's has to come at some point.

BWillie
09-22-2012, 02:03 AM
I honestly don't know where these ppl are who can't get a job of any kind. Its really not hard to get a job. Swallow your pride, get off of unemployment, take a job you don't like and feel is beneath you and hate your life like every other red blooded American

bkkcoh
09-22-2012, 07:30 PM
I didn't say - nor do I care - to which party he belongs.

I'm saying that FOX, like MSNBC, sometimes fabricates, and almost always exaggerates, and that (although it's not the case this time) obscure agenda-driven web sites are worse than both. They're at best opinion, not journalism, and yet they are quoted regularly as if they were.

So it is a case of blame the messenger and not even look at the message.

That is almost as smart as 'The enemy of my enemy is my friend'.