Often the bearer of bad tidings is frowned upon;
please do not do this, I have written this in an
attempt to help you prepare for what is to come.

As we enter this New Year it behooves us all to reflect on our recent economic situation, that of our past, and what we might expect from 2006. I for one am very pessimistic regarding our economy, and how we will fare in the coming months. Bush the lesser and his Neo-Cons in conjunction with the FRS and a credulous congress have seen to it. Under Allen Greenspan in the short 18 years that he was chief of the FRS he inflated the dollar by 74%. Had his acts been policy since the founding of the FRS in 1913 the dollar would today be totally worthless. Some of us have learned from our parents what a disaster the depression of 1929 was; I think this one will be worse. Congress has seen fit to spend without regard to available assets for decades, and displayed to us all that they have no interest in fiscal responsibility or in the common man. They have in the face of reality voted themselves pay increases every year accounting to over $15,000 in just in the last four years. Our president is under the sway of a group of rabid zionists who call themselves Neo-Cons; they are nothing of the sort. Most of these individuals' parents were the Bolsheviks of the 30's. These individuals primary motive force is the support of Israel in all matters before America is even given a thought. Many are dual nationals, sharing citizenship with Israel.

For most of the 19th and 20th centuries Western civilization firmly accepted steadfast economic polices that had been the bedrock of society for generations. These included finical restraint, self-reliance, savings; all seem to have escaped the present generation, who in an orgy of spending are not only bankrupting the nation but also themselves. Savings are now nationally at zero. Without savings there is nothing to fall back on, there is no progress because there is no cash to fund it. There is no capital for investment in production facilities or for R&D to develop new products. The level of debt, individual, corporate as well as governmental can only be classed as catastrophic. Some Americans borrow money from credit cards to make market investments; the average credit card debt exceeds $ 14,000. In housing the new and most popular means of financing the purchase of a house in no money down and interest only mortgages. Also second mortgages that are called equity loans, these to a large extent are based on grossly inflated real estate valuations, not sound equity valuation.

These issues are in no small part of government policies specifically tax law that provides incentive for irresponsible individual behavior. Such polices as taxing income on savings, taxing Social Security and pensions, taxing capital gains, all policies unique to America. The graduated income tax that penalizes free enterprise. They have even instituted "death duties" taxes leveled on your estate after you die. In fact it is fair to say that the entire American tax structure is designed to stifle growth, incentive and development. It is a small wonder that Americans that are retiring are moving out of the country at ever increasing rates. I have heard the figure of 50,000 per month bandied about.

Borrowing money for speculation and consumption of non-necessities is now commonplace. Americans do not ask themselves do I really need this? No, indeed they simply say I want this, and then go on to buy it with borrowed monies. Every time they commit this act they bolster China's power over us and our economy.

The government is certainly no different. Congress and the executive spend like drunken Indians. First the president makes a budget proposal that is outlandishly out of proportion with available tax income, and then congress chose to doubles that with trailers of every sort of nonsense. In every year they spend billions upon billions we don't have and then tell the FED to speed up the printing presses. They sold every ounce of silver that was in inventory, and most of the gold. Our money today is backed by only debt. Every time congress spends more than they collect in taxes, which is always, they just print up more fiat (paper) money that they then support by selling bonds. (Debt) Representatives and senators have amassed pensions worth millions at our expense. The largest holders of American debt are Japan and China. To make matters worse we spend money we do not have, like $30 billion for AIDS in Africa, $ 2 billion a day in military expenses based on wars for an other nations benefit. Billions upon billions for federal government departments that are useless like Energy, Education, HHS, Homeland Security, HUD, and Veterans affairs.

Signs of the time is the newly appointed chairman of the FRS Mr. Bernanke's statement that; he will speed up the printing presses to stem deflation. Let's hope he reads this: Inflations only cause in America is the actions taken by the FRS. Inflation is the product of spending more than you take in. Inflation produces a devaluation of the currency and thereby an increase in consumer pricing. Inflation cannot be produced in the private manufacturing and retail sector it is produced by the FRS. So, Mr. Bernanke How about taking note of these facts and doing something about it for a change?

The FRS (Federal Reserve System) is not federal it is a private corporation whose principal stockholders are the major NYC banks. (52%) It is not a reserve because it has no reserves. It is not a System because it is an incorporated corporation under NY statute. Member banks of the FRS hold all shares of the FRS.

What the FRS has stated by Mr. Bernanke is that he hopes to be able to keep the finical bubble economy in the air, by just like his predecessor, continuously inflating the dollar, thus devaluing it. The result will be a spiral of increasing prices for everything you purchase.

Reality tells us that you cannot spend more than you make, certainly not in the long run. It is also a well-accepted axiom that if you purchase more than you produce you will go broke. We now have a national trade-deficit that exceeds $ 50 billion per month. We can thank the national policies of "Free Trade" the Trojan horse of the N.W.O. for this. Trade cannot be free when five separate international treaties regulate it. In 1911 the mercantilists of England were successful in implementing free trade as a national English policy. They instituted this policy to increase profit. By 1913 the year before the Great War average blue collar pay in England had deceased by 25%. We need not go much further to understand the reasons for the war that was to come. Is not the same scenario being played out today? When the boys in Disneyland on the Potomac succeeded in implementing NAFTA, to which 86% of Americans were opposed, by the illegal EO (Executive Order) by Bill Clinton, we nationally and annually went from a $ 5.6 billion trade surplus with Mexico to a $ 50 billion deficit in a short nine years. We also have lost over 3000 manufacturing plants, and 3.7 million direct high paying manufacturing jobs. Worse yet American manufacturers are building $ 2 billions of new plants in Mexico every single year. Not satisfied by these results the idiots in Washington foisted CAFTA (Caribbean American Free Trade Agreement) on an unwilling and unwitting American citizenry. This on top of another load of treaties all consummated by bureaucrats not elected to anything. These are WTO (World Trade Organization) and GATT (General Agreement on Trade and Tariffs) the two treaties that regulate international trade. Well, there you have it free trade regulated by NAFTA, CAFTA, WTO, GATT all of which were instigated by multinational corporations through a process called NGO's (Non Governmental Organizations) Hell, they are the government, we all of us Nationalists clearly underrated whose pockets our so called elected bums are in.

Nationally, individually and corporately we are all in debt up to our proverbial eyeballs. I do not see any likelihood of a reversal of the policies that have brought us to this precipice. This is the reason for my lack of optimism. I see 1929 on the horizon, but unfortunately the indicators of it are considerably worse than they were in the Great Depression. Shoddier then that is the fact that international entanglements and banking including the FRS are no longer national but international, which spells out not just an American tragedy but a worldwide one.

If the American economy goes bad, then the world economy will quickly follow. All the holders of American debt instruments will dump them on the market causing the dollar to loose value rapidly. The shift to the EURO and away for the dollar as international reserve currency that is already in motion it will accelerate driving costs on this side of the Atlantic through the roof. Everything else will like a game of, tipple the dominos, fall into place. And you will be left holding the bag.

A. H. Krieg's books are available at 1-800-431-1579 Latest book is The New American Newspeak Dictionary $12.95 US.

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