Read What I See

1) We will not fall back into a recession because we never came out of the first one. Indicators are rigged to appear as we did when in reality some economists insist that we are in a depression. The rising price of oil will accelerate the dipping and it will allow blame of double dipping by the depression deniers.

2) Foreclosures may not get worse. With no buyers for those homes, banks are better off letting owners in default stay in their houses. Under probable dollar devaluation in not a distant future, many homes that are under water could resurface and it would make it easier to modify existing loans, as the owners could see their debt drop again below market value.

3) Continuation of the existing wars for much longer is not likely. The military will not be exempt, with a price tag that is 20% of the budget, and responsible for more than half of the $1.4 trillion deficit it has become much harder to sell that concept to a nation that is hurting financially. In addition, if we do go thru a dollar devaluation it would instantly become even much more expensive to finance it and a harder sell to our citizens who then would be in even more economic pain.

4) The Republicans who have regained control of Congress will not do anything about the deficit other than to talk about it. In fact, with the extension of the tax cuts they just made it worse. If they cut spending, it will accelerate the economic situation towards a full blown and inevitable lasting depression. Any cuts made would be painful and would do very little to slow down our fall into the debt black hole.

5) There will be no solution available for States and Municipalities to resolve their insolvency problems. Their attempts to nickel and dime citizens with fees and new taxes are doomed and it only hurts the private sector of the local economies as it takes money away from the people who spend in their business. Cutting spending will fail to solve the problem and would do little more other than to create new ones. 2011 will mark the beginning of Municipality and pensions default.

6) Consumer spending will not help the dying economy simply because it will not be there. Living off credit card eventually ends and 2011 will be that year. Once that point is reached, in which the income debt ratio is overcome by debt then new spending becomes a thing of the past. The number of Americans that are crossing that threshold is not reducing but instead increasing rapidly. Economic indicators showing that Americans are moving away from credit cards and that means less spending.

7) There will be not cuts in public assistance for unemployment and Food Stamps. The last thing government wants is a starving population and families unable to feed their children. Hunger is the number one producer of social unrest and they are going to push that inevitable event as far back as they can. So, as the economy, unemployment, and suffering continues to increase they will do their very best to feed as many people for as long as they can. The big challenging issue for them in 2011 will be how to achieve this while food prices rapidly increase. The natural war against obesity is on its way.

8) No, Obama will not be impeached in 2011 for not being a U.S. citizen. Those who continue to fight this battle are in a no win situation. Much money was spent by those in power to install him as President. As long as Barack understand his role as a puppet and do not try to do as John F. Kennedy did and buck heads with those who really run the show he will be protected by them.

9) The Truthers will not get their way either. They will continue to battle for a new and open investigation of all of the irregularities and unanswered questions about 9/11, such as wanting to see a video of the many available but unreleased of a plane crashing into the Pentagon. Sorry, no luck there you can’t see them. Truthers will continue to insist that they cannot show it because it was not there and their battle will persist. They will continue to use the mysterious collapse of WTC building 7 as their catalyst but any change in the official story would be catastrophic for our government therefore it is not likely to happen regardless of what the evidence shows or at least not for now.

10) Last but not least for the Fox News lovers. No, Bill O’Reilly will not change his ways, and his viewership will drop, and he will not tell you. He will continue his relentless work for the NeoCons. He will do his best to scare you half to death with the hoax of terrorism, will continue to over talk and put words in the mouth of his guest, and will shut off their microphones when they are making him look bad.

Bonus:

11) Congress will not shut down government by denying an increase in the debt ceiling. As the debt will top out around March they will increase it again and again and the Fed will print more and more to finance it until the dollar losses most if not all or its value.

In summary, some will read this and will conclude that they will not be pessimists of our current condition but instead will begin the New Year with and optimistic view and hope that things will turn out much better. These predictions were not intended to be any of the above but instead just a realistic look at the facts. It is an indisputable fact that our Federal government is no longer financed by tax payers. One third of the budget is financed with counterfeit money that is stealing what is left of our wealth and anyone else in the world that has invested in it. More devastating is that the trend is rapidly growing and it is irreversible. Our economy is vastly stimulated by direct or indirect spending of a bankrupted government. The majority of those spending money are government employees who earn twice as much as those in the private sector or those who benefit from their spending. In the short term this is unsustainable and it soon will end.

Happy New Year.