A "New" Form of Economics Perpetrated Upon a Complacent American Population and an Unsuspecting World

“America doesn’t have reserves and it doesn’t have anything except, so far, the ability to borrow,” [Jim] Rogers said. “That’s not going to be good for the world economy. It’s just adding more debt, more consumption to a problem that’s caused by debt and consumption.” _Bloomberg

Children in high places are determining the future of the world's economy. Mind-child Barak Obama has joined with mind-child Tim Geithner and the mind-children of the US Senate and US House of Representatives to cancel the private sector in favour of a neo-fascist form of top-down feudalism.The exact form of this brave new reich will be spelled out to the populace as soon as the mind-children in charge decide what it will be.

...Democrats will take the stimulus increases and make them part of a new, higher baseline for future spending growth. Anyone who proposes to cut from that amount will be denounced as "heartless" and Draconian.

The Republican staff of the House Budget Committee has calculated what happens to future spending if Congress continues to fund 19 of the most politically untouchable programs at their new stimulus levels. The list of 19 includes Pell Grants, Head Start money for poor kids, nutrition programs for seniors, Medicaid, special education, food stamps and cancer research at the National Institutes of Health, among others. Across a 10-year period through 2019, these 19 programs alone would increase federal outlays and tax entitlements by $1.59 trillion.

The nearby chart shows how the bill will increase the 2009 budget deficit, which is already the largest in modern history. Perhaps you recall the deficit wails from the Reagan years, but the peak deficit was only 6% of GDP in 1983. In the Clinton years we were told taxes had to rise to reduce a deficit of merely 3.9% of GDP. CBO estimates the 2009 deficit will reach 8.3% of the economy, not including the stimulus or bank bailout cash. Toss in those, and analysts at the Strategas Group estimate the deficit could hit nearly $2 trillion, or 13.5% of the U.S. economy. _WSJ

The Obama plan: Borrow more money than the world's economy can support, and consolidate power through any mechanism imaginable. The American people haven't a clue what this power grab is leading up to. The rest of the world is even less prepared.

But it is good news for all the dictators of the world who couldn't wait to see the collapse of Pax Americana. The world is departing the era of any pretense to the rule of law, and returning to the historical stand-by era of the rule of strong and ruthless men.

If the strongest and most ruthless men hail from Russia or China, the world will assume a certain form. If the strongest and most ruthless men hail from Pakistan, Caracas, or Lagos, the world will assume a quite different form.

The rules are changing. Wait and see, or take steps to prepare. Your choice.