Starting a business is not easy, which is why most people don’t even try and the few that do are young and full of energy.

This is Part 7 of an article series which takes a look at a 7 steps to lift you out of the recession, no matter how deep it gets.

As the unemployment stands at 10% and the chances of an economic recovery slip into history, millions of American’s are going to soon realize that they are going to have to take matters into their own hands. 

They are going to have to create their own jobs by creating their own businesses.  Many of them never thought they would need to create their own business.  This wave of new business ventures is going to bring the culture of new business into the mainstream culture.

Within a few years, when a young person is asked what he/she is going to do, they will no longer say ‘I’m going to x college in the spring’, but instead they will say, ‘I’m going to help my dad/mom start a business in the garage’.

This is the kind of cultural shift that I see coming and with it the economy will change.  For one, a lot of businesses trying to get started will increase the demand for businesses that cater to small businesses.  Therefore consider starting a business to help small businesses (I'm considering this idea myself).

Personal networking is also going to be very important and I’m sure social media is going to play a large part in that.  But more than that, small businesses need to build a network of suppliers and customers that are reliable, consistence and profitable.  They cannot waste much time with mediocre suppliers or business partners. 

Once these networks are well established, a small business acts like a big business and the established big businesses have a difficult time competing with them.  Big businesses are going to feel the increased competition.

With money and jobs bleeding out of big businesses because of malinvestments, they will also have to cut spending on lobbying the government for price, wage or supplier controls or any other way to create and maintain a competitive advantage. 

The culture of small based businesses will grow and fill the gap created by the collapsing phony economy 2.0.  The unemployed will become self employed, risk takers that bring a new wave of products and services into the market.

But creating a business has never been easy and many times results in failure. The collapsing economy will take time to reveal new consumer needs.  New ideas may be needed during the collapsing period and then no longer needed a short time later.  Other ideas will not be visible until competing ideas become too expensive or in short supply.

It will take relentless will and vision to drive your business into the future. It will take self motivation to get up each day and try something else or continue calling suppliers or potential customers.  It will take a lot of energy, which is why the young college aged will likely be the foundation.

Here are a few good books to help encourage you.  

Will and Vision: How Latecomers Grow to Dominate Markets

Blue Ocean Strategy: How to Create Uncontested Market Space and Make Competition Irrelevant

Conclusion

In my opinion, it is inevitable that the economy is going to continue to crash until the ‘vender financing’ relationship what we had with our foreign trade partners comes to an end and we once again have to save money before purchasing goods. 

The process is going to lower our wages and our standard of living, but at the same time it is going to create tremendous business opportunities that will take relentless will and vision to bring into existence. 

It will be a great adventure for our nation, a time like never before.  A decade of great small business successes and failure as the culture of new business spreads across the nation.   

I hope you enjoyed this article series and gained some insight about the future of the economy and how we are going to be apart of it.

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History tells the story of how government debts and endless stimulus packages cannot restore the economy.

Economic central planning does not work because government does not have the key element for success. 
That key element for successful economic planning is the guiding wisdom of the consumer. 

The consumer is the champion of the economy because only the consumer can tell the market how many products and services they are willing to purchase and at what price they are willing to pay.

The consumer’s decisions determine profits and losses, which guide investments into the businesses that are capable to meet the demands of the consumers.

A government run economy disregards the decisions of the consumer and tries again and again to make decisions for consumers to force profits to appear to pay for the wages of the people they have hired.  But it never works. 

The only way for economic central planning to work is if the government takes control of how everyone spends their money and if they had an endless supply of money to continue spending on endless government programs.

As I have written before, we are on the path to hyperinflation and the dollar is going to have to sink in order for us to pay for the wealth we have already spent. 

Obama’s budget projections for the next ten years are impossible to finance.  Something very bad is going to happen between now and then.

History Has the Answer

It was not until 1947, when wartime spending ended and the government drastically cut spending before we truly recovered from the Great Depression.

From 1945 to 1948 the Federal government cut expenses from $98.4 billion to $33 billion.  Many were worried that this two-thirds cut to Federal spending would lead to another Great Depression with high unemployment, but they were all wrong.

What happen next was just the opposite.  Private-sector production increased by almost one-third in 1946 alone, as private capital quickly found its way into the businesses that were the most capable of meeting consumer demands. Unemployment dropped and corporate share prices soared.

Capitalism ended the Great Depression

It was capitalism that finally ended the Great Depression, once the bogus government central planning and massive intervention programs were scaled back and the federal budget was drastically reduced.

It’s a good thing that history repeating itself because nobody remembers it the first time.

Obama and Congress are repeating the Great Depression with the same misguided ideas of FDR.   But the future hope we have is that someone is bound to figure this out one of these days and start reversing the spending.

According to history, it’s going to take a two-thirds reduction in government spending before the economic recovery will begin.

Perhaps one of the best explanations of what happen can be found in Thomas J. Dilorenzo book, "How Capitalism Saved America".

How Capitalism Saved America: The untold history of our country   "How Capitalism Saved America"

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The U.S. is on the path to hyperinflation and tyranny as capitalism, individual liberty and freedom are being destroyed. 

The good news is that we can stop the trend and reverse course.  In order to do that we need to understand what the primary causes are that are leading the nation to tyranny.

In part 1 I listed the 7 causes of tyranny that are gaining support.

These causes have been gaining support for many years, but the economic crisis has increased their momentum and created a window of opportunity for the government to push for tyrannical control of the entire economy.

6. The Misguided Pursuit of Personal Value – What I mean by this statement is that people have a natural instinct to be valued.  We all want to be valued and be a part of something that is doing something good. 

The problem comes when we are taught humanism (as mentioned in Part 2), because our natural response to the condition of not understanding who we are results in a misguided pursuit of significance in the world.

Humanism teaches us that we are our own gods and our value is based on our ability to live according to our natural desires, without moral rules.  This way of thinking leading to power struggles in which greed and corruption dominates the mind of everyone.

The pursuit of significance becomes the pursuit of simple pressures without regard or respect or the wellbeing of anyone else.   If right and wrong are determined by each person, than pursuit of significance becomes the path to meaning and satisfaction and importance to gain control and power over others in order to consume more and enjoy more pleasures than everyone else. 

This misguided pursuit of personal value supports a powerful government that is capable of controlling others, while handing out extra privileges and money to the fortunate few that are well connected to the political elite. 

This misdirection of personal ambition is the result of the false identity found in the fundamental teachings of humanism that has been taught in the public schools for several decades. 

The political system is clearly consumed by this misguided ambition for power rather than the desire to serve the public for the greater good of the nation. 

Without a drastic change in political leadership, the nation is headed to a breakdown of democracy as power become centralized and strengthened.

7. Economic Central Planning – I have written extensively about economic central planning, which is administered by a central bank like the Federal Reserve.

The Federal Reserve is the source of global inflation and the reason that inequality continues to grow.  Inflation pushes money up as the rich continue to get richer.  The politians when use the growing inequality to market to the public to further support for a larger government with more socialism and regulation and central economic planning.

The previous 6 causes of tyranny are all in support of government economic planning, which leads to the failure of democracy and the need for a dictator.  (Tyranny)

But in order to completely control the entire economy, the government needs to control the values that are being taught, distributed and published – which means they cannot be taught by religion or parents anymore. 

People cannot be allowed to freely distribute information that may work against the central control of the economy because it would reduce the value of central planning and reveal their failure.

Freedom of speech, religion and safety must be handed over to the government in order for economic control to be completely centralized.  This is the path we are on and the purpose of this article series is to wake up the public before we end up with a tyranny.

Conclusion

The spirit of anti-capitalism is at its highest level in American history.  The only reason that anti-capitalism ideas are peddled is to gain power.  To believe in capitalism is to believe that the free market enterprise is the best tool to build wealth.  That business owner’s should be free to operate their business without government intervention or government control.

Capitalims is made up of consumers and producers, like you and me.  Trusting in capialism is trusting you and me. The current government is unwilling to trust you and me. 

Anti-capitalism is a power grab.  Expanding the government to control the economy is economic central planning.  Central planning does not work, because no one in politics (even Alan Greenspan) has ever proven to be smarter than the free market (you and me) in deciding what we want to purchase and at what price.

Without a free market, the strength of the economy cannot be trusted (like the GDP) because of the inflation and expansion of credit that distorts the actual growth.  Capitalism results in economic balance, stability, predictability and slow growth.

Capitalism leaves nothing for elected officials to offer the public.  The only way to offer the public something more than slow and predictable growth, is for elected officials to take control of part of the economy.

The problem lies in the fact that even a small step away from capitalism, leads to a path of socialism and as more and more of the economy is taken over by central planning - soon there is not enough capitalism left to produce wealth - and that is what we are facing today.

This process is well documented in Friedrich Hayek's book “The Road to Serfdom”.

The Road to Serfdom (slavery)

This is also why many economist are split into two primary views of the economy, while politicians are only interest in one.

Our political leadership is literally selling the nation into financial slavery. The expansion of our government does not lead to more freedom, but to slavery. 

I hope we can wise up and stop the expansion of government before we get any closer to complete tyranny. 

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The U.S. is on the path to hyperinflation and tyranny as capitalism, individual liberty and freedom are being destroyed. 

The good news is that we can stop the trend and reverse course.  In order to do that we need to understand what the primary causes are that are leading the nation to tyranny.

In part 1 I listed the 7 causes of tyranny that are gaining support.

These causes have been gaining support for many years, but the economic crisis has increased their momentum and created a window of opportunity for the government to push for tyrannical control of the entire economy.

4. Socialism – Socialism is easy to explain and very few agree to support it, yet many support government policies that are socialistic in nature. 

Socialism is based on the idea that collective governing is better them self governing. The ideas lead to increasing taxes and regulation and expanding programs that force more people to become dependent on the government.  

The promise of socialism is that more people will be taken care of than if they are left to take care of themselves.

The problem is that socialism cannot deliver what it promises because it undermines the foundation of capitalism, resulting in the reduction of wealth of the entire nation while growing the government until the day comes when the economy can no longer afford the government that was created to solve these problems.

Some acknowledge that we have a mixture of socialism and capitalism, which they believe is better than either of them.  But this is simply not the case. 

A mixture of socialism and capitalism cannot exist long term, because socialism undermines the very fabric of capitalism.  One of them will always dominate and today that is socialism.   You cannot support both socialism and capitalism.  They represent two drastically different systems which are at odds with each other.

Capitalism is about honoring the entrepreneurial spirit of hard work, risk and self-reliance. It is about liberty and freedom and it is solely responsible for America’s prosperity.

Socialism is about government reliance without hard work.  It’s about taking money from successful people who have earned it and giving it to others.  The ideas are packaged and sold to the people by political leaders as if the people have been victimized by business owners.

Socialism is a transitional stage between capitalism and tyranny. Socialism also leads to the need for a centrally planned economy to control all means of production, distribution and jobs. 

Creeping Socialism Has Destroyed the Foundation of Capitalism

5. Fascism – Fascism like socialism is easy to explain and very few agree to support it, yet many support government policies that are fascist in nature. 

But fascism is much more dangerous because it leads to the notion that a nation needs to weed out the weak people and the weak ideas in order to truly become a collective vibrant nation.

Fascists claim that culture is created by collective national society and its state and therefore cultural ideas are what give individuals identity, and thus rejects individualism.  This leads to a reduction in individial rights, like the freedom of speech and the freedom of religion.

In viewing the nation as an integrated collective community, fascists claim that pluralism is a dysfunctional aspect of society, and justify a totalitarian state as a means to represent the nation in its entirety.

Fascism supports government run businesses that control entire industries and block all competitors, enslaving people in government jobs as they take over entire industries like healthcare, automotive, mortgage lending, etc. 

In many ways, we have adapted this aspect of fascism with as many as 70% of the jobs in the US now controlled by the government.

Political frustration (such as Obama is facing with his healthcare plans) leads political leaders to think that democracy is not getting the job done anyone and power needs to be more central in order to effectively control the economy. 

When congress passes laws that give the President more control over the economy, like a national healthcare system, they are creating a more fascist nation.

In part 5, I’m going to continue with the causes that are gained support and are leading the nation to tyranny.

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The U.S. is on the path to hyperinflation and tyranny as capitalism, individual liberty and freedom are being destroyed. 

The good news is that we can stop the trend and reverse course.  In order to do that we need to understand what the primary causes are that are leading the nation to tyranny.

In part 1 I listed the 7 causes of tyranny that are gaining support.

These causes have been gaining support for many years, but the economic crisis has increased their momentum and created a window of opportunity for the government to push for tyrannical control of the entire economy.

3. Environmentalism – Environmentalism is perhaps the most powerful anti-industry industry in the world. 

Supported by the public’s strong desire to do something significant and good for the world, environmentalists have gained tremendous political influence in the last decade.  

In many ways the drop in Christian morality has transferred the need to do something good in relationship with God to doing something good in relationship with man. This transfer of desire to do something good and feel important, corresponds perfectly with the increased teaching of humanism in the public schools that I addressed in the previous article.

Only the results are much less effective because humanism is based on the false belief that people are capable from within themselves to turn their lives around and join the collective 'goodness' in the world.

The lack of 'goodness' found in people to protect the environment creates the need to force people to be 'good' by strong arming them with government regulations and life changing penalties. (Tyranny)

Christianity, on the other hand, teaches people their true identity which changes the way they think about the world that God created for them, resulting in a self-governed people that has no need for a massive government police system, burdening the economy with another costly government bureaucracy.

Like most people, I agree with the ideas behind environmentism, like keeping the air and water supply clean, protecting animal life, not wasting resources, etc.. 

But those good intentions need to be considered against the negative effects on the economy when creating permanent government regulations.   Many of the claims that the world is running out of energy or that CO2 is destroying the world have been unproven and questioned by the science community.  

In many cases they have been used to overhype a political agenda – like Al Gore – who makes money selling costly energy alternatives that we are forced to buy when regulation increases the cost of traditional energy sources.

Businessmen (capitalist) like Al Gore are using the political system to create competitive advantages against competing companies in order to make a profit.  I’m all for earning a profit, but using the political system to force consumers to purchase your products is what Adam Smith called ‘mercantilists’. 

Mercantilists are political entrepreneurs who gain an unfair advantage through special privileges created by government intervention.

Their profits are gained by manipulating the rules, not by producing better products at lower prices that benefit the consumer.  Consumers pay higher prices, not lower prices.

Worst of all, environmental regulations almost always cause energy prices to increase.  Energy is the lifeblood of industrial capitalism.  The higher energy prices get the more jobs we lose in manufacturing, the higher the trade deficit gets and the higher the nation debt increases.

For example, the Cap-and-Trade bill in congress a few months ago would increase the cost of energy by $1000-3000 for each family.  This is not a good idea, especially when we are facing the deepest recession in modern history.

The result is the entire nation gets poorer and more dependent on government jobs. 

Perhaps one of the best explanations of how this has happen can be found in Thomas J. Dilorenzo book, "How Capitalism Saved America".

How Capitalism Saved America: The untold history of our country   "How Capitalism Saved America"

In part 4, I’m going to continue with the causes that are gained support and are leading the nation to tyranny.

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The U.S. is on the path to hyperinflation and tyranny as capitalism, individual liberty and freedom are being destroyed. 

The good news is that we can stop the trend and reverse course.  In order to do that we need to understand what the primary causes are that are leading the nation to tyranny.

In part 1 I listed the 7 causes of tyranny that are gaining support.

These causes have been gaining support for many years, but the economic crisis has increased their momentum and created a window of opportunity for the government to push for tyrannical control of the entire economy.

1.  Humanism –  Humanism is a religion.  The humanism religion teaches that humans are our own gods and we determine our own destiny.  This is the religion that is taught in the public schools today, which has replaced Christianity in 1963 when the Bible was removed from public schools. 

Of course no one admits that humanism is taught in the public schools today, because the bible was removed in order to claim that public tax money cannot be used to teach religions.  Yet, creationism was replaced with the teaching of evolution, which is one of the foundation values of the humanistic religion. 

Humanism is the belief that we are self justification, there are no absolute truths, and right and wrong are determined by each individual’s personal values.  These are the dominate values being taught today in the public schools across the nation, values which are the principle values in the religion of humanism. 

Humanism has also become the most dominate among politicians, because it is the most politically correct and tolerant of other values or beliefs. 

Even Obama, who claims to be a Christian, said during his speech at the U.N. that his faith is in the ‘goodness’ of humans to change the world.  This is much difference from the doctrine of Christianity which teaches that faith must be put in Jesus Christ alone.

Humanism teaches that the only guiding rules are that which the government impliments. Therefore the only way to control society is by government oversight - as opposed to religious rules. As social problems arise, the government is always seen as the solution.

The teaching of humanism to the next generation is perhaps the most dangerous because it creates a growing momentum to support a tyranny. 

2. Social Justice and Economic Equality – Perhaps Friedrich Hayek tells it best when he described social justice as ‘the Trojan Horse through which totalitarianism has entered many societies in the world’.

The irony of the term ‘social justice’ is that it undermines justice by empowering governments to take money from the very people that justly earn it.  It allows the government to confiscate things from people that deserve them and give them to people that do not deserve them.

Social justice destroys the rights of individuals and their ability to earn a living with hard work and savings.  In this sense, supporting social justice is that same as supporting thieves to rob your neighbor’s house.

Social justice is implemented by central control to enforce the process of wealth redistribution and therefore its support naturally leads to greater power in a top down dictatorship form of government.   (Tyranny)

The process of implementing social justice is also in direct conflict with capitalism. Capitalism relies on the formation of large pools of capital to invest into new businesses.  Social justice attacks all pools of capital labeling them unjust. 

Therefore support of social justice is support for anti-capitalism, in which the nation can only get poorer and poorer until everyone is in poverty. 

Many contemporary Christians justify their support for social justice by their compassion for the poor and the growing rate of poverty.

However, there is no question they care, but their compassion is often tied to a political or economic ideology that is long on heart and short on wisdom. The best of intentions cannot help the poor unless channeled into actions that are supported by sound economics. 

This is why poverty has not been reduced and why these good intensions continue to fail.  Increasing the size of the State does not increase the justice of the poor. This is a lie that is so easy to get entangled into believing.

It is the State that created the injustice, as it grows it destroyed moral values, personal freedom and the foundation of economic stability.

Here is an excellent book by Ronald Nash that provides much more details.

Social Justice and the Christain Church

In part 3 I’m going to continue explaining the causes that are gained support and are leading the nation to tyranny.

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The U.S. is on the path to hyperinflation and tyranny as capitalism, individual liberty and freedom are being destroyed. 

The good news is that we can stop the trend and reverse course.  In order to do that we need to understand what the primary causes are that are leading the nation to tyranny.

I have discussed the path to hyperinflation at length in other articles, so I’m going to focus this discussion on causes that lead to tyranny. 

The tyranny that I’m talking about is a complete loss of freedom and individual liberty as the government becomes the dominate structure that controls everything from our health to our jobs to our homes to our safety to the information to consume to the religion we practice.

The result of a tyranny is that the people become slaves to the nation in which they live.

Now you may be thinking, we are not as dumb as the nations that fell into tyranny.  It’s easy to think that we are smarter than the nations that fell into the trap of tyranny or that our government structure is superior, but if you read through history the nations that fell into tyranny where some of the most advances and smartest. 

Therefore every nation needs to be on the lookout for the signs of tyranny and be aware that it is a slippery slope that is hard to detect – like boiling a frog in water – that results in tyranny. 

The reason a tyranny is hard to detect is because the social causes that support a tyranny are easily disguised in such a way that we everyone finds themselves supporting. 

Who is willing to say, they don’t support feeding the poor or housing the low income or saving the whales or teaching religion equality or government stimulus to reduce unemployment?

Nobody, yet these good intentioned ideas can be used to disguise government policies that lead to tyranny. 

Here is the list of the top 7 things that are leading to tyranny;

1. Humanism
2. Social Justice and Economic Equality
3. Environmentalism
4. Socialism
5. Fascism
6. Misguided Pursuit of Personal Value
7. Economic Central Planning

These seven things are at the heart of the path to tyranny in the U.S. and they are all currently getting a lot of publicly support. 

In part 2 I’m going to explain these 7 leading causes of tyranny in detail to gain a better understanding of the cynical forces behind these ideas – that are supported by seemingly good intentions.

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Over spending causes true consumer demand to be very difficult to realize because the additional money causes consumers to spend in ways that they wouldn't normally spend. 

This is Part 6 of an article series which takes a look at a 7 steps to lift yourself out of the recession, no matter how deep it gets.

Adding money into the economy, like the government has been doing for many years through loose monetary policies, causes consumer spending distortions. 

Injecting money (inflation) into the economy causes these distortions in consumer spending. These distortions are the reason that many businesses are going bankrupt and many more have been bailed out.  

When the government artificially juices the economy, they increase consumer spending, but consumers spend the new money that they think they got for free on non-essential goods, like cars, entertainment, eating out, luxury items that they would have lived without if they didn't get the easy money. 

In the process consumers reduce their spending on basic essential goods and instead turn to hiring others to do many of the things that they used to do themselves like cut their lawn and clean the house. 

Malinvestments

The result is a drastic shift in spending.  Businesses that produce non-essential luxury items see a boost in sales quickly increase their investments in production.  And businesses that produce essential goods see a decrease in spending and quickly begin decreasing their investments in production. 

As expected, investors shift money to the more profitable businesses, which are based on the shift in consumer demands. But the investments are misguided because consumer demand has been misguided.

This concept is called ‘malinvestments’

Injecting money into the economy results in investments being misdirected, which eventually leads to major losses as the government stimulus money misguides producers into thinking consumer demand was higher than it really is. 

The Correction

When the easy money runs out consumer demand drops even lower than it was before the easy money was handed out, resulting is way too much supply begin produced by some businesses and not enough supply by other businesses. 

This is how the government caused and continues to cause capitalism to fail.  If governments didn't expand the money supply, investments wouldn't end up in the wrong places and businesses wouldn't need bail outs. Supply and demand would always line up. But that wouldn't be any fun for the politicians who like to play monopoly with our money.

The businesses that over-produced (cars, houses, boats, etc.) have to liquidate their supply and suffer major losses that results in bankrupties, high unemployment, recessions and depressions.

The under-producing businesses miss the opportunity to profit by not having enough products to sell. 

And consumers end up having to pay higher prices for the goods that are under-produced because of the shortage of supply. Everyone ends up with less wealth.

This is why we have too many houses, too many cars, too many shopping malls, etc.

When the boom turns into a bust, the governments answer is to increase the money supply (inflation) even fasters to get the economy back on the path to hyperinflation.

Real Consumer Demand

Ok now that you understand how ‘malinvestments’ can mislead businesses with phony consumer demand, you need to consider what true consumer demand will be after the government stops playing matchmaker with the economy - and believe me they are going to soon be forced to stop.

As I said in the previous article, consumers are going to be interested in buying essential goods like, food, water, clothing, housing, entertainment, information, education, furniture and basic household supplies.

These are the area’s in which successful businesses will be found. These are the areas to think about starting a business in today so that your business will thrive in the future.  Consumer demand is going to shift from non-essential goods and services to essential goods and services.

For example, one of the local businesses where I live that has grown the most last year, was a used clothing store.  The owner recently just opened two additional stores.

Large businesses are going to feel a lot of pain because they will not be able to react to the change in consumer demand.  It will be the small business sector that will come alive, quickly creating new products and services to meet new consumer demands.

Many businesses will continue to suffer from misguided investments that will not alllow them to hire people back. It is unlikely that the jobs they cut will be restored unless they are successful in new markets. 

Therefore businesses that were focused on markets that thrived while consumer credit was expanding and housing prices were rising, are in desperate need of attaching new markets if they are going to survive.

That means that a lot of people are not going to be able to find a job and their best opportunity is perhaps to get a job at a new business or to create their own job by starting a business.

This is good time to start a new business based on true consumer demand, because credit is tight, savings are gone and incomes are flat.  The current consumer demand today is more dependable then is was three years ago.

So if you build a business today, you are unlikely to suffer a downturn because consumers are not likely to get a boost to consumer spending for many, many years.

In Part 7, I’m going to talk about how difficult is it to create a business and how important it is to prepare yourself to apply relentless will and vision. 

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Sometimes I get emails from readers that ask me why I’m so negative about the economy.

They say things like, “You sound like you want a depression”.  Tell me you haven’t had that thought before.

Actually, what I really want is the same as everyone else.  I want to see the economy recover, with stable growth year after year forever. 

I just have a more realistic way of thinking about how we are going to get there from where we are today.

I Hate Going to the Dentist

Some of you were lucky enough to be born with good teeth.  Not me.  I cannot even eat a candy bar without getting a cavity.  On top of that, I have a sweet tooth.

Putting off the dentist is like putting off the depression.  The longer I wait, the more damage will happen and the more it’s going to cost me to get fixed. 

I hate going to the dentist, yet I go because (my wife makes me) I know the consequences of not going are worse than if I do go. 

Just the same, I want the bad investments to clear the market as soon as possible, so that the real economic recovery can get started.

The economic disaster we face was caused by a decade of excessive spending, driven by a housing bubble, created by reckless monetary policies. 

Why would we want to go down that road again?

When I get back from a visit from the dentist, the last place on earth that I want to go is back to the dentist.  I know that junk food is the cause and if I eat more I will end up back at the dentist. 

It’s painful not to be able to eat whatever I want, just as it’s painful for us not be able to spend more money then we want.  But we must. 

We all like to find a way around the consequences of our actions.  I sometimes tell myself that if I eat small candy bars, I can avoid the dentist. 

Just like we try to look at the latest news and say the economic recovery is coming because consumer spending was up 0.5% in January. 

But it’s not going to happen.  There is no recovery.

In that same report, personal income was only up by 0.1% and savings dropped.  Consumers are broke, credit it tight and savings don’t exist.  Therefore, it is virtually impossible for consumers spending to lead to an economic recovery and consumer spending is 70% of the economy. 

I cannot even eat the small candy bars just we as a nation cannot continue spending money that we don’t have.

I am trying to bring the nation away from the cliff of economic collapse, by educating consumers to stop spending money that we don’t have. 

The more people I can get pulling the nation away from the cliff, the better our chances are that the nation does not go over the cliff.  And it doesn’t help that Obama is standing on the gas pedal.

Who Really Wants a Depression?

The question I have is; who it is that really wants a depression?

If I’m trying to avoid a depression and a sinking dollar, then what are the Wall Street economist, the government policy makers and the academic economists trying to do?

They are pushing the nation closer to the edge of the cliff, a complete economic meltdown. Why listen to them? 

The Wall Street economist naturally want to continue selling Stocks and Bonds to their customers and are willing to say anything to get more sales.

Government officials are desperately trying to paint a rosy picture of the economy in order to keep their jobs – despite the long-term consequences of their short-term disastrous (cash-for-anything) policies. 

The academic economists are busy putting together theoretical models of perpetual prosperity to show that they are valuable to society and capable of leading the nation in economic wizardry.  

I'm Only Trying to Save the World

None of the influential economic parties in our culture are telling us the truth.  They all have more incentives to be dishonest then to be honest. 

I am perhaps the only one you may know that is being completely honest with you about the state of the economy.

I may be the only economist in your corner.  All these others jokers are working for your economic destruction.

Saving the U.S. from economic collapse is saving the world from economic collapse.  Therefore, I am only trying to save the world.  Join me as we try to save the world together.

This article is based on a similar article I read today at the Daily Reckoning. Here is there version.

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Several major indicators show the economy getting much worse, just as predicted.

First, consumer confidence just registered its lowest reading since 1983 – that is 18 years ago. 

With no new jobs being created, how could it be anything but record lows? 

A lot of people don't have jobs and are beginning to worry that it could be a long time before they do.

Second, mortgage demand just fell to its lowest point in 13 years.  With millions of foreclosures hitting the market as banks begin dumping their housing assets on the market in a last ditch to survive and government programs and low interest rates coming to an end, how could housing demand be anything but dropping?

Third, state tax receipts are still falling - for the 5th quarter in a row.  States pension funds are facing more than a 1 trillion dollar shortfall and several states are soon going to face massive program cuts and tax increases as they come to the edge of complete bankruptcy – begging the Federal government to give them more printed money.

Forth, the number of problem banks just rose 27%, with over 700 banks on the FDIC troubled list.  Banks are going to being falling like mosquitoes next to a mosquito zapper.

As we move past the eye of the storm, cover the windows and get into the basement because this storm is going to rage for a long time.

The government is against the wall and completely out of ammo, as the people are beginning to rise up (tea party rallies, polls, resent elections) and realize what a disaster the government has brought upon on. 

The only way out is for the public to stop the government spending and then retake control of the economy, completely rejecting the welfare and victim mindset that has haunted the nation for decades.

We need to start with sound money, the opposite of the funny money we have today.  Then we need to stoke the spirit of entrepreneurship by honoring the formation of wealth and promoting the free market, the only justifiable means to motivate true economic growth.

How much longer will we wait before starting the recovery?

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