Two Paths for the US Economy: Extinction or Revolution.

Two Paths for the US Economy: Extinction or Revolution.

Dear Friends:

I do not believe that an economic recovery is truly in store for the United States, and I am extremely frightened by the two glaring alternate possibilities that lie ahead in the American Futurescape. Deeper indebtedness without a means of repayment never, ever works. Unemployment (and underemployment) is growing. Consumer and business credit markets are tightening… I see an endless chain of band-aids over a gangrenous body. Are we a terminally-diagnosed patient? Are we, the patient, a sovereign nation lying in a hospital bed whose life is being artificially, scientifically prolonged through illusions, rhetoric and deferred consequences (stall tactics).

The innovators and entrepreneurs, our most productive and prolific business population segment, are not being fed much more than lip service. Collectively and collaboratively, we are called upon to take our future into our own hands. We can only do this by uniting and cooperating. Through my work with The National Networker Companies, I was led to the notion of the GICBC – the Global Interworked Cooperative Business Community. I now see this new entity as an ark to transport the willing seedlings of a new socio-economic system to a safe landing place while the flood waters rise.

Look up the GICBC in a Google search. If you feel yourself compelled to help with the groundwork required to build a future that does not have to result in extinction or revolution, please click on http://bit.ly/contactTNNW , and reach out to us. Just be certain to put “GICBC” in the subject line.

àOne of the best treatments for emotional or economic depression is to take action. Isn’t it time we, as entrepreneurs, emerging business leaders, aggressive networkers and innovators, stopped standing idly by, hands at our sides, and watching a parade of blunders, gaffes, lies and post- mortem disclosures?  

The excerpted and edited information which follows begs several questions:

1. Who is making economic policy and is the ultimate controlling force in the US economy? Is it Congress, the Treasury or the Federal Reserve Board? Has the White House any real power to intercede or control – or is it merely a symbolic institution that routinely leaks or announces “news” that is actually palliative rhetoric? Who is in charge? Who (name them!) has the power?

2. Do the country’s citizens and taxpayers have any say whatsoever in this process?

3. What will be the ultimate implications and costs of this currency and bond printfest?

4. When will the inevitable aftershocks be felt?

5. Who will be impacted and how? Who will pay this incredible, unprecedented, chasm of unsupported and ever-growing debt? Can it ever be repaid?

àThe average US citizen has come to distrust the government, large corporations, and even the notion of “honest business.” The middle-class is fast evaporating. There are more “working poor” than ever before in US history, both in absolute numbers and in percentage of the total population. A smaller percentage of US citizens (and other parties) owns and controls more of the entire nation’s wealth than ever before. We are becoming very like a creature with a tiny brain and a giant body which is unfed. Don’t creatures like that tend to become extinct?

Please read the brief excerpt which follows…

Faithfully,

Douglas Castle
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Dirty Government Tricks... Heartbreaking Tales of Corporate Chicanery... and the Biggest Investor Myth of a Generation...

February 23, 2010

NOTE: This material was excerpted from a direct email investment solicitation sent to me by THE MOTLEY FOOL. I have edited some of the content. I do not endorse their publication, its point of view, or any of its investment recommendations. I do not offer financial, investment, tax, legal, accounting, health or medical advice. I merely offer my opinion in a non-professional capacity for the purposes of illustration, edification and entertainment. Really. Faithfully, Douglas Castle http://aboutDouglasCastle.blogspot.com p.s. I occasionally quote other writers because I enjoy their style of writing, or because I believe that they might have something valid to express. I share these materials with my readers as I deem appropriate.

Dear Fellow American,

Talk about a low-down, bag-over-the-head, kick-to-the-groin tactic...

On Christmas Eve 2009, while Americans were smack in the middle of holiday festivities... wrapping presents, spending time with family and friends, and toasting the season...

The U.S. Treasury quietly issued a press release. In hopes nobody would notice. And few did at that moment.

Here's the story. In September 2008, when the government first stepped in and bailed out America's two largest mortgage companies, Fannie Mae and Freddie Mac, Congress put a $200 billion limit on federal assistance...

Last year, the Treasury doubled the amount to $400 billion. And then on Christmas Eve 2009 -- they lifted the limit altogether!

The Wall Street Journal dubbed it "the Christmas Eve taxpayer massacre."


Of course, "bailout" and "federal assistance" are just government-speak for reaching into taxpayers' wallets and giving our money to failing and flawed companies.

You see, we're being forced to buy senior preferred stock from Fannie and Freddie to cover their exponentially mounting losses. And while the government would have us believe these firms are being nursed back to health, the truth, as you'll discover in a second, is more insidious than anyone could've imagined.

The government would have you believe the mortgage companies you're being forced to invest in (bail out) are being nursed back to health...

But would you believe these companies are actually being directed by the government to lose money? It's true.

According to The Wall Street Journal, "The loss cap is being lifted because the government has directed both companies to pursue money-losing strategies by modifying mortgages to prevent foreclosures."

In other words, Fannie and Freddie are now being permitted and directed to lose even more money, transferring wealth from taxpayers to overextended borrowers and flawed businesses.

In other words still -- we're being forced (by the government) to invest in companies directed (by the government) to lose money. Can there be anything worse?
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