The Decline And Fall Of The American Empire

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Ask Bob Rae how spending his way into prosperity worked for him.

Depression looms. Vox Day reasons the coming depression will be 30% larger than TGD.

When America stops buying, Canada's 75%-exports-to-America economy will nosedive as jobs are lost and exporting businesses downsize or collapse.

It's not going to be pretty, folks.

set you free, exactly and that plus McGuinty's policies have turned what once was Canada's economic engine into a socialist basket case.

Mark says "It's not going to be pretty, folks". Hopefully you are wrong that this will turn out this way, but I expect you will be right. Just like the 1930s, most segments of society will suffer.

Mark

All the more reason to build the Northern Gateway pipeline now.

Contraction is inevitable, Ken, and it will be more painful than what was experienced in the 1930s. I encourage you to follow Vox Day's writings on the economy. (He is the author of Return of the Great Depression, a must read.)

The *minimum* economic contraction when govt stops spending borrowed cash is 12%.

Mark:
I agree. It amazes me how many Canadians do not think we have the 'Debt & deficit' disease. The Conservatives are doing little to prepare the country for this inevitable fiscal disaster. Here in BC our government magically generated $1.4 billion in unexpected revenue. The idiot MSM simply move on to the next titilating feature. Efforts at serious debate simply generates mocking reference to dinos. No discussion of where we are and where we are headed.

People who experienced the '30s (I'm not one of them) will be the oracles that might teach us how to survive. I fully expect this coming depression to last 15 to 20 years. When governments lose the confidence of the people to meet their committments then what is left? Gold at $10,000 might not be that far fetched.

Synchro -- totally agree.

Debt consolidation?

Well, we could always appoint the Chair of the Robert Mugabe School of Economics, University of Harare, to lead the US economy. The US is already bankrupt. Obama is hoping to just kick the can down the road long enough to allow his massive money-printing operation to inflate away a big chunk of his debt. The fact that the markets still think the US is solvent is part of why many will make an absolute fortune shorting the dollar. Like the Chinese!

I find the public Relations debate interesting because it won't amount to anything. Someone should have changed President Obama's prompter to read; "It's the debt stupid...not the ceiling" Like most demented ideologues he actually believes that his rhetoric will change the economy. So it will be a continued downward spiral for the USA.
Watch for the tipping point when their armed forces seriously deteriorate... I wish something was new
in the world and USA landscape, but we can at least enjoy the living history of Empire Lost.

As in the Chinese already know they won't get paid back in full.

Any single corner "Variety Store" store owner in the USA could give wise counsel on operating successfully for the family subsequent well being.

Sadly, neither elected members of Congress, Senate or the President understand the concept of running a successful "Variety Store".

Printing more paper money and borrowing from other countries, is the idiot path to downfall and utter failure of the enterprise.

Let the chinese go in and start seizing USA federal properties.

That would be sooo great to see.

I suggest they start with military stuff.

There seems to be this assumption that life as we know it would be impossible if governments would live with their means.

These cloud dwelling "intellectuals" truly believe that they have the expertise to fully understand any subject and could care less if they ruin the lives of millions as they bear no personal responsibility for their disasters they just move on within their rarefied circle.

A good friend, an American, was over on Sunday and we were talking about Toronto where she has lived for many years and she commented that Ford lacked experience to run such a large city and didn't seem to have the physical charisma as its mayor. I replied, with all due respect to her, explain the experience your president, the most powerful leader of the free world, has. She is a Republican and after a few stunned seconds replied "I guess you are right, he doesn't have any."

Yea...the Chicoms seizing American military assets sounds like a brilliant idea.

It's amazing you can type.

Simple solution, 25% import levy on Chinese consumer goods. Amounts raised go straight back to China to pay off the debt. So they could keep the money there until there was no debt. If people stopped buying some of the goods, then they would probably get made in the U.S.A. or at least Mexico which might reduce the crime rate in Mexico.

Or how about a Starbucks tax, that could raise a fortune too.

Have noticed that Washington state gamblers come up here to B.C. to spend massive amounts on sports lottery especially in NFL season. Must be a market for a U.S.-based sports lottery, I think the only action most of them can find now is in Nevada.

There is loose money around, the trick is to find ways of transferring it from the underground economy to the treasury, instead of having it flow offshore, into the pockets of pimps and whores, or just gambled away in places that aren't taxed.

Trim the fat off the public service, stop all overseas military misadventures for ten years, and things might turn around gradually. It won't happen overnight, and I'm betting the two main parties are too far up the Chinese wazoo to think of taxing their trinkets.

quebecois PEDariste: "That would be sooo great to see."

Glad to see you're sticking with your Social Democratic roots there, dippiste. So you're wishing for a ChiCom takeover of the United States, specifically the military.. classy. Perhaps a touch short sighted.

China has enough of a problem trying to hide the gross manufacturing over-capacity and real estate bubble brought on by this recession. Another dip and the commodity suppliers such as Canada will really feel the pain. NDPs in Quebec may be alright though as the ROC are shameless masochists in always subsidizing that "nation" of ingrates.

... meanwhile all a spiteful, privileged, self-identified Quebec person can do is spews their 'social' love of our American neighours through advocating violence and military take over, typical proggy.

NDPiste

Good news laddie...its nearly month end so your Alberta based stipend should be in the mail soon.

Now you'll have some meaning to your life...you know...looking forward to August 1st.

Try to make it last the month so you'll have something to do besides sitting in your mom's bsmnt typing drivel.

The *minimum* economic contraction when govt stops spending borrowed cash is 12%.

Vox day is making a big mistake, IMO. That estimate assumes there is no sympathetic ( and beneficial ) boom in investment if gov. spending actually showed a decrease large enough to eliminate the deficit. Firms would probably respond with increased investment, once the defiict ( and the threat of higher taxes ) is removed. Anyone contemplating an investment that requires more than 12 months to earn the expected return is sitting on the sidelines, until and unless the Obamacare and threat of higher taxes is gone.

If the US demand for Canadian goods declines, it will cause a problem, but Harper is far more likely to be able to manage the situation than anyone else. The psychic shock and its effect on consumption and investment in Canada would be probably be much larger than the effect of reduced exports.

Re Boehner's speech - he is tying his party to reducing the deficit, and simultaneously sidelineing Barry on the issue. If Obama gets beaten, the party that's left are the Republicans, and politically they won't be able to pursue the spendthrift habits they exhibited under GWB. The Tea Party folks are a big chunk of the Republican primary voters, and they will defeat any RINO in the primaries.

Progress will be certain once Obama is gone.

bankruptcy, for those of us who aren't allowed to print our own money

The *minimum* economic contraction when govt stops spending borrowed cash is 12%.

Vox day is making a big mistake, IMO. That estimate assumes there is no sympathetic ( and beneficial ) boom in investment if gov. spending actually showed a decrease large enough to eliminate the deficit. Firms would probably respond with increased investment, once the defiict ( and the threat of higher taxes ) is removed. Anyone contemplating an investment that requires more than 12 months to earn the expected return is sitting on the sidelines, until and unless the Obamacare and threat of higher taxes is gone.

If the US demand for Canadian goods declines, it will cause a problem, but Harper is far more likely to be able to manage the situation than anyone else. The psychic shock and its effect on consumption and investment in Canada would be probably be much larger than the effect of reduced exports.

Re Boehner's speech - he is tying his party to reducing the deficit, and simultaneously sidelineing Barry on the issue. If Obama gets beaten, the party that's left are the Republicans, and politically they won't be able to pursue the spendthrift habits they exhibited under GWB. The Tea Party folks are a big chunk of the Republican primary voters, and they will defeat any RINO in the primaries.

Progress will be certain once Obama is gone.

Hey guys, don't help quebecois NDPiste get his rocks off the only way he can.

I have already warned my children to be as prepared as they can, as this will not end pretty. There could be a repeat of the the early 1980s or worse.

NDPiste

I was reading over at PJM that China has a similar debt/GDP problem....without the problems with the US paper it is holding....essentially China is printing money as well.

Geopolitically China is a "PAPER TIGER".

INDIA and BRAZIL are another matter entirely.

"All the more reason to build the Northern Gateway pipeline now."

The Isreali's are proceeding with exploiting their massive shale deposits....the main reason the musslim nutbars are getting itchy....

The US is currently a powder keg....the "Gun Walker" thing is evidence of the Dem's recognition of that(desperation). Difficult to predict what will ignite it....probably election fraud....

Apparently the administration polled the military as to whether they could get assistance to disarm the public.....the answer was not "no"...it was "HELL NO!".

This Just In, New regulations reveal The Fed has secretly loaned 16T Us to Us Banks, Foreign Banks and Companies. On the full faith and credit of the US taxpayer without their consent or oversight.. The Fat Lady Is Clearing Her Throat... http://globalresearch.ca/index.php?context=va&aid=25750

Small C,

The question is how much damage will he be able to do in the mean time.

I am not prone to conspiracy theories, but some days I wonder whether he does this stupid stuff intentionally. But that would be admitting that he is a Megamind evil genius and I have come to believe he just isnt that smart, he thinks he is, and thats where all of the problems begin and end.

But right now the GOP cant get their act together. RIght now they would be wise to back Boehner's plan and show that the Emporer has no clothes. Obama can be the auto signing machine.

Stop the damage, even Reid and Pelosi know Obama is a problem.

In related news, the Canadian dollar is seen and recognized more and more as a safe haven currency as the world is slowly moving away from the greenback's main exchange currency:

http://ca.ibtimes.com/articles/186235/20110725/cad-turning-into-a-safe-haven.htm

That's certainly good news in a long term but short term our export competitiveness to the US gets even more challenging.

Could Canada see a major influx of American immigrants in the near future?
Freedom loving and hard working, entrepreneurial Americans are certainly welcomed...We certainly could use more that have the same values and aspirations that what we have been letting in from other Countries.

Many say the 21st Century is Canada's...

The sad, sad thing about all of this profligacy is that people who've lived frugally and never spent above their means, and may have managed to put some money away for their and/or their children's futures, are going to be the big losers.

The bankers? The spend-like-there's-no-tomorrow-max-out-their-credit-card cretins? The dishonest politicians? The Wall-Street rats?

Except for the maxed-out-credit-card cretins, the others will have enough money stashed away to tide them over a recession/depression. In fact, they'll make money because they'll be able to buy up all the stuff going cheap the rest of us will be selling to hopefully keep our heads above water.

What a GIANT SCAM. The U.S.A. -- heck, the world -- couldn't have got a POTUS like Obama at a worse time. He's a total disaster.

quebecois NDPiste: "That would be sooo great to see."

'Would love to hear you still saying that if it ever happens.

Chicoms: no social safety net, no $7.00 day care, no half-price university/college tuition, etc. Quebec wouldn't know what hit them.

'Sad thing is, frugal, live-within-their-means folks will suffer because of all of the crooks in the banks, Wall Street, government ... who will all have a stash to see them through a recession/depression.

Stephen- agreed. The radical left runs the dem party, and they feel Obama are is the trump card, once the subsidies start flowing, American politics will be a European welfare state forever after.

syncrodox

From your typing to Harpers computer.
Where going to suffer with US, but we can take steps ameliorate the damage.
God help us all with this buffon Obama destroying any fiscal sanity by Marxists wishful thinking.
JMO

Make trading with China so unpleasant and completely infeasible that one would rather let the Ebola virus into his home than buy from China. Let the Indians march China into the sea. Quebec NDP might be bothered but everyone else wouldn't.

Holy Crap, this guy gave Presidential Speach!

I detect a bubble about to burst ..... Obambams Head.

Posted by: Peter O'Donnell at July 26, 2011 11:51 AM

Yo Pete! WTF is up wit you man? You be messin wit my business at your peril!

If you see a Cadillac with Nevada plates parked outside your house - just stay home for the week, you read me?

batb; I wonder everyday how an economy the size of "Coliforneeas" which has 34 million people paying on a 80? billion debt, can be in such dire straits while the WELFARE BUM QUEBEC has racked up 200 billion in debt at 1.06 American, cheap university tuition paid for by AB. Daycare paid for by AB, 3 rounds of invitro paid for by AB, power from James Bay being sold south and all money being pocketed by the froggies, no royaltys to Canada, and Froggie Charest, still the nerve to badmouth Albertas OILSANDS! HEY ED, YO BOY YOU LISTENING doesn't take a dirt road scholar to figure out this one aint gonna go home with the lipstick still on..

"Let the chinese go in and start seizing USA federal properties. That would be sooo great to see. I suggest they start with military stuff."

Gee, a frenchie who's against the military. Who would have predicted that?

Good thing it didn't happen in 1944, eh, moron? Because it'd be hard bailing out your cheese-eating surrender monkey brethren with no naval assets to carry the troops. Remember that little dust-up from your history books, NDPisser? That was the petite fracas in europe that most of your yellow quebecois forbears decided to pass on, including d0uchebag PET, who swanned around the land wearing a german helmet.

Idiot.

mhb23re

Laura Ingraham Vs. Bill O'Reilley on the debt sealing/TEA party position:

O'Reilley: "TEA party is extremist because they don't want to compromise"

Ingraham: "They were sent to Washington to slash big spending and reign in out of control expenditure...I don't view that as extremist, I see that as doing the job they were specifically elected to do..."

See the whole thing:

http://www.foxnews.com/on-air/oreilly/index.html#/v/1069666331001/oreilly-vs-ingraham-on-the-tea-party/?playlist_id=86923

Peter O'd-ing:

Simple solution, 25% import levy on Chinese consumer goods

Smoot, meet Hawley.