An Inverse Relationship

Gay rights continue to advance at the expense of religious freedom. In February of this year the Arizona legislature passed a bill that would have provided legal protection for businesses and individuals who refused service to customers based on religious objections. They felt a need to do this because of several instances in other states where business owners were being forced by law to violate their religious beliefs. (This has previously been discussed here.) In the case of a New Mexico photographer who refused to provide their services to a gay couple's commitment ceremony, they were sued and the case made it to the state supreme court. In the words of a supreme court justice of New Mexico who ruled against the photographer, they "are compelled by law to compromise the very religious beliefs that inspire their lives". This bill that would have prevented this from happening in Arizona and was vetoed by the governor of Arizona after much opposition from outside groups such as the NFL who were threatening to move Super Bowl XLIX from Arizona to California if the bill was passed.

It also appears that if you are a CEO of a large company you no longer have the right to support the belief that marriage should only be between a man and a woman--in other words, affirming the definition of marriage that has existed for thousands of years. The CEO of Mozilla Firefox had to resign because he supported proposition 8 in California that reaffirmed the definition of marriage as being between a man and a woman. Mozilla said that it stands for diversity and equality and therefore can not have a CEO that supports marriage as being between a man and a woman.

As society's acceptance and support of homosexuality increases religious freedoms are decreasing. Eventually, holding and expressing beliefs against homosexuality will lead to you never getting a job, loosing your current job, and eventually imprisonment. Being arrested for speaking out against homosexuality is already a fact of life in some European countries. (NBA players are being fined for gay slurs.) In the not-too-distant future, a blog post such as this won't be allowed to be posted on the internet. This slow acceptance and submission to an ever encroaching tyranny by a society is how countries end up like the old Soviet Union and China as it existed under Mao. While the tyranny in those countries were brought about by violence, this new tyranny--and undermining of the foundations of our society-- is being advanced in the name of "love", "diversity", "tolerance", and other feel-good words. Who can be against love in all its forms and manifestations?

Sequester

The government is finally cutting spending that is of such a massive magnitude that the number of aircraft carriers are being cut back in the Persian gulf, illegal aliens have to be released from jail, people will be loosing their jobs, and many other catastrophic events will be headed our way according to our president. What is the cause of all of this calamity? 85 billion dollars worth of cuts that will take place this year. This is a lot of money or about half of a percentage point of the official debt of 16 trillion-- the real debt is around 100 to 200 trillion dollars-- or about 10 percent of this year's projected budget deficit. Here are some numbers to help put this extremely massive spending cut into perspective. The government borrows about 4 billions dollars a day, 85 divided by 4 equals 21. So the amount of money that will be cut is equal to about 21 days worth of new debt. The other days of the year the government will still be adding debt at the rate of about 4 billion per day. The government borrows 35 cents of every dollar spent, and under the sequester it will borrow 32 cents for every dollar it spends. That is a reduction in the rate borrowing by 2 cents or 6 percent. And this says it all: from Feb. 27 to Feb. 28, you need to check out the link to Treasury.gov to put this into perspective., the government issued about 85 billion dollars worth of debt or “In other words, the entire apocalyptic impact of the sequester for 2013 was offset by one day's debt issuance.".

To sum up this 85 billion spending cut: it is extremely insignificant. The government will never do with less money. The government will never reduce its sphere of influence in the economy. Not under Ronald Reagan or any president (click on the chart below). The state will continue to expand no matter who is at the reins. It is sad that our elected leaders will not be honest with the American people by warning them of the true economic crisis that is headed our way and warning them to prepare for what is coming. And instead of our leaders helping to prevent this crisis by making the necessary spending cuts and entitlement reforms that will avert this coming economic reset, our leaders will lie to and scare the American people when the government has to make such a small and insignificant cut and attempt to make it unnecessarily painful by cutting things that really matter like national defense as opposed to cutting waste like funding for studying shrimp running on tread mills. While our elected leaders will not level with the American people about the coming economic reset, there are plenty of investors with a proven track record of predicting economic events that will: Jim Rogers, Kyle Bass, Peter Schiff, Stanley Druckenmiller, Marc Faber, and others. It is time for Americans to stop getting taken advantage of and get their heads out of the sand, pull up their pants, pick up a magnifying glass, and get some clues.

Financial Collapse 2020-2035

Here is some more information to help you to better see that the "most predictable economic crisis we've had" is headed our way: it is obvious to those that care to look. Here is some more good new about our economic situation from the Congressional Budget Office, CBO. It paints a very bleak picture where America is headed towards a Greek-like crisis between 2020-2035.

As negotiators look to gimmicks and changing assumptions to reach a deal on raising the debt ceiling, a new report by congressional budgeters out Wednesday is offering a grim outlook and ugly alternatives for dealing with increasing debt. The report by the Congressional Budget Office says that the debt will eat up the government’s spending ability, and offers two scenarios -- both potential trajectories -- that they say by 2035 will push the debt either to most of the annual gross domestic product or to nearly twice the economic power of the U.S. Already, the CBO says, the debt has spiraled out of control in just three years. 'At the end of 2008, that debt equaled 40 percent of the nation's annual economic output (a little above the 40-year average of 37 percent). Since then, the figure has shot upward: By the end of this year, the Congressional Budget Office (CBO) projects, federal debt will reach roughly 70 percent of gross domestic product (GDP) -- the highest percentage since shortly after World War II,' reads the report.

This increase in debt is staggering and can't be maintained. The August 2 deadline to raise the nation's debt ceiling is fast approaching and it looks like some sort of a deal has been reached between republicans and democrats on raising the debt limit in exchange for spending cuts. But these are very unlikely to be real spending cuts. They will probably be like the phony cuts to this years budget that started out as 100 billion and turned into 60 billions that ended up being a couple of million dollars. If real cuts can't be made at the present, then how will it be any easier or possible to make them at a latter date when it will be a more difficult proposition?

The fact is that America has reached the point that other countries of past and present have reached in this stage of their economic collapse that results from deficit spending-- made possible by central banks-- to fund an over bloated welfare state. The leaders knew/know that they must cut spending but that this will lead to social unrest and lost of social cohesion--check out Greece-- and that such cuts are politically impossible to make-- look at recent attacks on the proposed cuts to medicare. So the leaders create more debt in the attempt to delay the day of reckoning to buy time to come up with a better solution to the economic problems. This "better solution" never materializes and economic collapse is always the end result. This time the collapse is not an individual nation or region of the world but the entire globe. When the nations of the world find themselves in this state of collapse, they will be forced to put aside political and cultural differences while they come together for a short time as the result of the interconnectedness of the economies of the world to form international alliances, agreements and governing bodies as a means to salvage the situation. Look at the relationship between Germany and Greece. Germany is bailing out Greece against the will of its people again because they failed to live up to its austerity measures. Germany is doing this because of the risk of the financial contagion--German banks are invested in Greek debt-- affecting Germany. It is only a matter of time before Greece and then the EU collapses to be followed by America around 2020-2035.

What can you do to prepare yourself for this economic crisis so that you can thrive? Live life but prepare yourself mentally for a very bad economy, know basic survival psychology, stay out of debt, get out of debt, increase your line of available credit, have a couple months of extra food, own some precious metals, invest in commodities and assets with intrinsic value, read the Bible, and know that agriculture is going to be the next big thing according to a prominent investor. Or do what the majority of people throughout history do in situations like these which is to be unawares which leads them falling on their face and being raped. sometimes literally. "In hyperinflation[ or economic collapse], a kilo of potatoes was worth, to some, more than the family silver; a side of pork more than the grand piano. A prostitute in the family was better than an infant corpse; theft was preferable to starvation; warmth was finer than honor, clothing more essential than democracy, food more need than freedom." Quoted form Adam Fergusson's book "When Money Dies". Inflation and economic depression is always the end result when central banks control a nations money supply. To see this clearly read "The Creature From Jekyll Island".