Friday, July 2, 2010

The Collapsing Economy

It seems that every where we look today, the economy is stagnant or declining. Companies are worried about what new laws are going to be passed that must be complied with. Look at the new requirements in the Gulf Coast--due to new regulations, no shallow water drilling permits have been issued, putting thousands out of work, and perhaps bankrupting some of the smaller businesses.
Obamacare is over 2000 pages long. If you're a small business, you're not even going to be able to interpret it without a lawyer. You'll probably either carry on as usual, and then get hit with fines, or start shedding employees until you have none. Go here for an article on the 20 or so new or increased taxes brought on by Obamacare. And, no surprise, just like in the UK, high risk patients will probably not be worth the government funds it would take to cover them.
Many businesses are either keeping positions unfilled or eliminating them. The city of Maywood in California is going to contract out its services.
There is growth in the government. But we know that government is a consumer of wealth, not a producer, so there must be growth in the private sector to support it, but there isn't any to speak of. Can we say Cloward-Piven strategy?
So we are well down the road to oligarchy in the US, with banks and the favored politicians benefitting from the work of entrepreneurs and their employees. If you want to read a more detailed analysis, you should read this article by Zubi Diamond, and his book, Wizards of Wall Street & Washinton Lapdogs. His article talks about the Dow going to 2000. I had recently talked to a friend about the Dow going to 1900, and then there is this article from the UK.

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