Why Obama is Sabotaging U.S. Economic Growth

"Barack Obama is either an idiot or an enemy agent. Either way he is not fit to be president."

From NewsWithViews.com
By Zubi Diamond

If the financial reform bill passes, the bad Wall Street will win, the good Wall Street will not. And investors and American families will lose.

As I explained in my article, The Dodd “Financial Reform” Bill Lets Obama Off the Hook, the bad Wall Street consists of the hedge fund short sellers, the predators who loot investment capital and slow down economic growth.

New home sales have dropped by 33 percent. The unemployment picture is not improving. The stimulus bill did not work. What is happening to our economy?

I wrote in my book, Wizards of Wall Street, that we will never recover from this crisis until the 7-point action plan is implemented.

My recommendations include restricting short sale transactions, ending mark-to-market accounting completely, restoring the old financial market circuit breakers, and restoring the old uptick rule without any modification. These changes will protect invested capital and save the capitalist system.

You cannot solve a problem unless you know correctly and truthfully what caused the problem.

The elected officials and the big media lent deaf ears to my analysis and forecasts. But everything I predicted is unfolding before our very eyes.

But brace yourself: the worst is yet to come unless my recommendations are implemented completely.

Treasury Secretary Tim Geithner says the U.S, can no longer drive global growth. What does this mean?

Answering a question on the BBC, Geithner said that the administration is now taking steps to come out with better growth outcomes across the global economy.

Translation: The administration has purposely hamstrung U.S. economic growth as a way to burst the bubble of America’s supremacy. The financial reform bill carries this process forward by suppressing the capitalist spirit, business freedom, and economic growth.

President Obama had hoped to carry his trophy legislation to the Chinese and Russians at the G20 and G8 meetings. It would have been like bringing America’s head on a platter.

Ask yourself: with the administration passing the financial reform bill, will it translate to solving the economic crisis? Will it translate to robust economic growth for America? Will it heal the private sector and create more jobs and reduce the unemployment rate or stop the stock market from crashing again? The answer is “No.”

Then you should ask yourself: Does the Obama administration know this? The answer is “Yes.”

The Obama Administration knows very well that passing the financial reform bill is not going to improve the unemployment picture, or solve the economic crisis, or even prevent the stock market from crashing again. Yet they rushed it through without fixing the root cause of the economic crisis—the influence of the hedge fund short sellers that are organized in the Managed Funds Association (MFA), the most powerful special interest group in America.

Billionaire George Soros is one of its most prominent members.

If anything, the passing of this financial reform bill is a guarantee that the U.S. economy is not going to recover, and that the stock market will crash again and again and again, leading to more job losses and increased unemployment.

Why are they doing this? Tim Geithner just gave you the answer. They do not want the United States of America to drive global growth anymore. And that is in alignment with the agenda of George Soros, the MFA, and the Center for American Progress, which I call the Center for American Destruction. They are bursting what George Soros calls the bubble of American supremacy in order to achieve global equilibrium among nations.

It’s also called international socialism.

They do not want America to be the global economic leader anymore. They will “redistribute” America’s greatness to other economies, namely China and Russia, to achieve a balance of power by transferring our technology and technological advantage to them.

Obama is carrying the water for George Soros and the MFA. He is lobbying the European world leaders to continue stimulus spending, borrowing and printing more money to replace the $11 trillion that has been looted from the U.S. economy, as well as an additional $3 trillion looted from our European allies and world economy, for a total of $14 trillion.

The final outcome of all this unsustainable spending and debt will be the collapse of the global capitalist system, the collapse of America and her European allies preceded by the greatest stock market crash of all time.

The Dow will collapse to 2000. It will be the “I have fallen and I can’t get up” level.

Unless corrective action is taken and taken fast, George Soros will prevail in his quest for the destruction of the global capitalist system and permanently transfer global economic leadership from the West to East, from America to China.

Carrying out this agenda is your President, Barack Obama.

The Chinese are already good at practicing capitalism. It is the source of wealth creation, through which they sustain their socialism.

What they and the Russians need more than anything else is our technology and our know-how and ability to innovate. They want our technology and our technological innovation. Barack Obama wants them to have it. And he is giving it to them. The transfer process is occurring as we speak.

America’s technology companies will go to Russia and China and build a Silicon Valley for them with Chinese and Russian workers in the factories learning, studying, and copying from the Americans after which when they acquire the knowledge, they will kick the Americans out.

Barack Obama has embraced our enemies and shunned our allies. He has pursued policies that will strengthen our enemies and weaken our allies.

Barack Obama is either an idiot or an enemy agent. Either way he is not fit to be president. Misguided Americans have inadvertently elected a dummy or an enemy agent as their President.

The financial reform bill is the death knell to capitalism in America and the installation of socialism in America.

The financial reform bill was written by the hedge fund short sellers.

The passing of the financial reform bill will signify officially through legislation the end of capitalism and the installation of Marxist socialism in America.

But Americans do not want the tyranny of socialism.

With the passage of the financial reform bill, and Mary Schapiro at the Securities and Exchange Commission (SEC) being a captured regulator, and the agency being under the influence of the Managed Funds Association, the invested capital of America’s capitalist investors is not protected by any law or regulation.

American corporations are trapped, hogtied and caged. They are now like toothless tigers, having been defanged by the MFA through this financial reform bill with a U.S. government seal of approval.

There will be more stock price manipulation through unrestricted computerized hedge fund short selling, wreaking havoc on the capitalist publicly traded companies and their shareholders. And no one can do anything about it.

Our publicly traded companies can now be held hostage by the hedge fund short sellers as they continue preying on investors. They can evaporate any of the publicly traded companies in short order. They demonstrated that capability in the “flash crash” of May 6, 2010, when they drove down the stock price of Accenture (ticker symbol CAN) from $44 per share to one cent per share in a 15-minute time period.

Any company considered “too big to fail” under the financial reform bill can be looted and seized. Their share prices will be driven down to zero through unrestricted computerized hedge fund short selling. This process will wipe out the shareholders and investors.

These are the “Wizards of Wall Street.” Let the blackmail and intimidation of corporate America begin.

We are in a fight for the survival of America. Capitalism is synonymous with America. Capitalism is Americanism.

Do not leave this fight to the next man, because there is no next man but you. You must do your part to spread the truth.

Only when we get the big megaphones like Glenn Beck, Mark Levin or Rush Limbaugh to tell the American people the truth, do we stand a chance of stopping the diabolical agenda of George Soros and Barack Obama. Otherwise, they are prevailing every day as we speak, and gaining momentum.

But by the time the people realize the truth, it may be too late with nothing left to salvage.

George Soros said that because America is too powerful, even if nations join together against America, they will not defeat her. He thinks a “regime change” in America from capitalism to socialism is possible through very difficult economic conditions.

This is what is happening now as we speak.

I have the solution for job creation in the private sector and the solution to end the economic crisis.

More taxes or more stimulus spending is not the answer.

The answer is not tax cuts, either. Tax cuts in our current state are like offering a sick child an ice cream when what the child needs is a medicine to cure the illness, after which a bowl of ice cream will taste very good.

Tax cuts are good but they will not solve the economic crisis or create jobs in the private sector.

What is needed is legal protection for the invested capital.

I repeat: You have to protect the invested capital that is needed to create jobs, and to protect the value of our homes and assets. You must restrict short sale transactions, end mark to market accounting completely, restore the old circuit breakers, and restore the old uptick rule to their original condition without any modification.

You must encourage and protect capitalism and risk-taking, before the private sector can see a recovery and start creating jobs.

Consider that the Chinese and Indian economies are growing, expanding and even over-heating. They both rejected and banned short selling. As a result, their invested capital is protected.

The Australian economy is growing, expanding and over-heating. The Australians preserved the short sale restriction regulation and the uptick rule. Hence, invested capital and stock equity ownership in Australia are protected by law.

The European governments which lost money in the Wall Street collapse can follow the money paper trail from their side. They have an idea of what happened; the Germans have already banned naked short selling.

To counter the misinformation and the influence of the special interests, I am imploring all the freedom lovers and patriots to pick up the phone and call your favorite TV or talk-radio host or any important personality who you may have access to, and see if you can get through to tell him or her what is going on.

We are in a fight.

This is a fight to save America, to save capitalism, and to protect us from the disaster of socialism which is fast approaching. Time is running out.

Zubi Diamond, a successful businessman, stock market investor and trader, has about 15 years of financial market experience and more than 23 years experience as an entrepreneur. His research led to the book, Wizards of Wall Street & Washington Lap Dogs; The Scam That Elected Barack Obama.

Fox News Poll: 79% Say U.S. Economy Could Collapse

The latest Fox News poll finds that 79 percent of voters think it’s possible the economy could collapse, including large majorities of Democrats (72 percent), Republicans (84 percent) and independents (80 percent).

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Economic Black Hole: 20 Reasons Why The U.S. Economy Is Dying And Is Simply Not Going To Recover

From The Economic Collapse
By Michael Snyder

Even though the U.S. financial system nearly experienced a total meltdown in late 2008, the truth is that most Americans simply have no idea what is happening to the U.S. economy. Most people seem to think that the nasty little recession that we have just been through is almost over and that we will be experiencing another time of economic growth and prosperity very shortly. But this time around that is not the case. The reality is that we are being sucked into an economic black hole from which the U.S. economy will never fully recover.

The problem is debt. Collectively, the U.S. government, the state governments, corporate America and American consumers have accumulated the biggest mountain of debt in the history of the world. Our massive debt binge has financed our tremendous growth and prosperity over the last couple of decades, but now the day of reckoning is here.

And it is going to be painful.

The following are 20 reasons why the U.S. economy is dying and is simply not going to recover....

#1) Do you remember that massive wave of subprime mortgages that defaulted in 2007 and 2008 and caused the biggest financial crisis since the Great Depression? Well, the "second wave" of mortgage defaults in on the way and there is simply no way that we are going to be able to avoid it. A huge mountain of mortgages is going to reset starting in 2010, and once those mortgage payments go up there are once again going to be millons of people who simply cannot pay their mortgages. The chart below reveals just how bad the second wave of adjustable rate mortgages is likely to be over the next several years....

#2) The Federal Housing Administration has announced plans to increase the amount of up-front cash paid by new borrowers and to require higher down payments from those with the poorest credit. The Federal Housing Administration currently backs about 30 percent of all new home loans and about 20 percent of all new home refinancing loans. Tighter standards are going to mean that less people will qualify for loans. Less qualifiers means that there will be less buyers for homes. Less buyers means that home prices are going to drop even more.

#3) It is getting really hard to find a job in the United States. A total of 6,130,000 U.S. workers had been unemployed for 27 weeks or more in December 2009. That was the most ever since the U.S. government started keeping track of this statistic in 1948. In fact, it is more than double the 2,612,000 U.S. workers who were unemployed for a similar length of time in December 2008. The reality is that once Americans lose their jobs they are increasingly finding it difficult to find new ones. Just check out the chart below....

#4) In December, there were also 929,000 "discouraged" workers who are not counted as part of the labor force because they have "given up" looking for work. That is the most since the U.S. government first started keeping track of discouraged workers in 1949. Many Americans have simply given up and are now chronically unemployed.

#5) Some areas of the U.S. are already virtually in a state of depression. The mayor of Detroit estimates that the real unemployment rate in his city is now somewhere around 50 percent.

#6) For decades, our leaders in Washington pushed us towards "a global economy" and told us it would be so good for us. But there is a flip side. Now workers in the U.S. must compete with workers all over the world, and our greedy corporations are free to pursue the cheapest labor available anywhere on the globe. Millions of jobs have already been shipped out of the United States, and Princeton University economist Alan S. Blinder estimates that 22% to 29% of all current U.S. jobs will be offshorable within two decades. The days when blue collar workers could live the American Dream are gone and they are not going to come back.

#7) During the 2001 recession, the U.S. economy lost 2% of its jobs and it took four years to get them back. This time around the U.S. economy has lost more than 5% of its jobs and there is no sign that the bleeding of jobs is going to stop any time soon.

#8) All of this unemployment is putting severe stress on state unemployment funds. At this point, 25 state unemployment insurance funds have gone broke and the Department of Labor estimates that 15 more state unemployment funds will likely go broke within two years and will need massive loans from the federal government just to keep going.

#9) 37 million Americans now receive food stamps, and the program is expanding at a pace of about 20,000 people a day. The United States of America is very quickly becoming a socialist welfare state.

#10) The number of Americans who are going broke is staggering. 1.41 million Americans filed for personal bankruptcy in 2009 - a 32 percent increase over 2008.

#11) For decades, the fact that the U.S. dollar was the reserve currency of the world gave the U.S. financial system an unusual degree of stability. But all of that is changing. Foreign countries are increasingly turning away from the dollar to other currencies. For example, Russia’s central bank announced on Wednesday that it had started buying Canadian dollars in a bid to diversify its foreign exchange reserves.

#12) The recent economic downturn has left some localities totally bankrupt. For instance, Jefferson County, Alabama is on the brink of what would be the largest government bankruptcy in the history of the United States - surpassing the 1994 filing by Southern California's Orange County.

#13) The U.S. is facing a pension crisis of unprecedented magnitude. Virtually all pension funds in the United States, both private and public, are massively underfunded. With millions of Baby Boomers getting ready to retire, there is simply no way on earth that all of these obligations can be met. Robert Novy-Marx of the University of Chicago and Joshua D. Rauh of Northwestern's Kellogg School of Management recently calculated the collective unfunded pension liability for all 50 U.S. states for Forbes magazine. So what was the total? 3.2 trillion dollars.

#14) Social Security and Medicare expenses are wildly out of control. Once again, with millions of Baby Boomers now at retirement age there is simply going to be no way to pay all of these retirees what they are owed.

#15) So will the U.S. government come to the rescue? The U.S. has allowed the total federal debt to balloon by 50% since 2006 to $12.3 trillion. The chart below is a bit outdated, but it does show the reckless expansion of U.S. government debt over the past several decades. To get an idea of where we are now, just add at least 3 trillion dollars on to the top of the chart....

#16) So has the U.S. government learned anything from these mistakes? No. In fact, Senate Democrats on Wednesday proposed allowing the federal government to borrow an additional $2 trillion to pay its bills, a record increase that would allow the U.S. national debt to reach approximately $14.3 trillion.

#17) It is going to become even harder for the U.S. government to pay the bills now that tax receipts are falling through the floor. U.S. corporate income tax receipts were down 55% in the year that ended on September 30th, 2009.

#18) So where will the U.S. government get the money? From the Federal Reserve of course. The Federal Reserve bought approximately 80 percent of all U.S. Treasury securities issued in 2009. In other words, the U.S. government is now being financed by a massive Ponzi scheme.

#19) The reckless expansion of the money supply by the U.S. government and the Federal Reserve is going to end up destroying the U.S. dollar and the value of the remaining collective net worth of all Americans. The more dollars there are, the less each individual dollar is worth. In essence, inflation is like a hidden tax on each dollar that you own. When they flood the economy with money, the value of the money you have in your bank accounts goes down. The chart below shows the growth of the U.S. money supply. Pay particular attention to the very end of the chart which shows what has been happening lately. What do you think this is going to do to the value of the U.S. dollar?....

#20) When a nation practices evil, there is no way that it is going to be blessed in the long run. The truth is that we have become a nation that is dripping with corruption and wickedness from the top to the bottom. Unless this fundamentally changes, not even the most perfect economic policies in the world are going to do us any good. In the end, you always reap what you sow. The day of reckoning for the U.S. economy is here and it is not going to be pleasant.

Michael Snyder is an attorney, a Christian activist and a conservative blogger who lives and works in Arlington, Virginia. More of his work can be found at his daily news blog (http://themostimportantnews.com/) and on his blog about conservative politics (http://thetruthwins.com/).

Swiss Topple U.S. As Most Competitive Economy: WEF

From Reuters

Switzerland knocked the United States off the position as the world's most competitive economy as the crash of the U.S. banking system left it more exposed to some long-standing weaknesses, a report said on Tuesday.

The World Economic Forum's global competitiveness report 2009/2010 showed economies with a large focus on financial services such as the U.S., Britain or Iceland were the losers of the crisis.

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