Editor's note: Lyle J. Rapacki, Ph.D. is a frequent contributor to RFFM.org. Rapacki is an independent intelligence analyst and consultant in behavioral analysis and threat assessment. Rapacki's reports, briefings and personal commentaries are distributed nationally. A Christian, Rapacki's motivation is to challenge people to think critically about the times we are experiencing and to prepare appropriately, especially in their relationship with God. "People die for lack of knowledge" is a defining statement guiding his writings.
by Lyle J. Rapacki
Statement of Purpose:
The content of this paper is deliberately intended to stimulate thought and discussion. Informational analysis comprising global security, national security of the United States of America, economic forces as a dimension to national security, culture, freedom in human rights, defense and the rule of law are considered within the framework of this treatise.
Overview:
A clock is ticking…prior to the clock striking the preverbal midnight, will the 2010 elections arrive and usher in a sweeping repudiation of Obama, the elites in Congress – both Houses, and undo the financial calamity that continues to morph and ooze across America; or will the economic miasma bring even further disastrous consequences and severely erode national sovereignty so a New World Order, a One-World Government with its’ own new currency be no longer speculative or a theory, but a reality. A clock is ticking, and for many folks time is quickly running out as they wait desperately for a rescue. Our Nation’s security, lead standing in the world and sovereignty are also hanging in the balance.
_______
There is a political dimension to a nation’s economy. There also is a philosophical and moral dimension, and you can not separate these from any economic discussion. The economic policies of Obama and his crowd are clearly opposite of the economic policies of a Ronald Reagan, who, arguably, was the last President of the United States who understood free-enterprise and the development of capitalism. President Bush (given his background in business) should have demonstrated more respect and understanding of basic economics, and the belief in small business as a backbone to a healthy economy, but on his watch, toxic debt began to accumulate, balancing a budget ceased to be a priority, and the floodgates to unchecked spending began to open. What occurred to alter his political compass; what, or who, influenced his philosophy?
When a society faces a strong even overwhelming financial crisis like 1929, or when Jimmy Carter was President in the late 1970’s, or presently, there are two time tested strategies in responding: Allow the free market to soar and reignite the economy – Reagan accomplished this quite successfully. Or…throw a lot of federal money at the problem, and empower the state to become all invasive. Socialism leading to Marxism follows the latter response. There are some short-term benefits with the state’s all-reaching involvement; namely, quicker response to damage by those in or facing bankruptcy. The state-run bailouts, however, create long-term dependence, inequities across the board, and actually feed the flames of poverty.
The “change” Obama and his supporters in Congress are creating are coming so rapidly they can barely be seen, and when you can’t see that which is coming at you, you can’t prepare yourself; you can not get out of the way. We had drilled into us as children stay in school, get a high paying job, save your money for a house, and invest everything else in a diversified portfolio of stocks and mutual funds. Most people can not tell you why they did this; except to say, this is the right way to save, the right way to develop financial security.
The moral political compass has been changed; a new and repressive political philosophy has been introduced, and our Nation’s economy is forever changed – just what Obama promised when he was a candidate. We just didn’t get it, and many today are still not getting it. People are stuck in denial as to the political winds that are blowing…winds that are bringing a storm and tidal wave the likes not yet seen in our country. Because the economics of politics ushering in a New World Order and One-World Government are banging at the doors of the United States.
Systematically, calculatedly businesses, jobs, and industries became obsolete! Overnight! Did you see it coming? Did those directly impacted by the close of their business or industry? Those jobs are lost, and it appears forever. What happened with, “stay in school…get a good job…save your money?”
From the beginning of December, 2009, just over a month now, I had three professional financial investment consultants tell me how well the economy is beginning to percolate, and how the prospects in the coming months are even greater! America has turned the corner! We are back!! I actually owe them a “thanks” for initiating in me the “stimulus” to author this White Paper.
_______
Prepare for Bad Times Ahead…DO NOT expect this government to help you without suffocating strings attached to their help…Prepare for Bad Times Ahead, and if I am wrong, you will have positioned yourself well and will benefit greatly. If I am correct, you will be positioned to weather the storm gathering strength just off the coast.
Reasons for Concern:
1. Taxes will be rising – on just about everything, probably including your children’s lemonade stand this summer. The elites have printed more money that is not backed by anything except a whim and a prayer, and prayer is about to be outlawed. Our Nation has created so much “magical money” we will not be able to pay it off. So…tax, tax, tax to give the appearance the government is attempting to close the massive deficits. Taxes punish the producers, the businesses that stimulate an economy. Reagan knew this, Obama could care less. Watch for growing “mob mentality” to punish the rich; those folks who pay taxes, own a business and create jobs, they make charitable contributions of all sorts, big and small. The Super Rich who party with the politicos and the elites, and who are elites themselves, will remain untouched.
2. The United States of America is the largest debtor nation in the world. We can not compete globally with the restrictions being placed on industry by Obama and his colleagues.
3. Entire industries have died. Remember the savings and investment strategies the majority followed? Well…many folks depended on the dividends paid by large companies historically considered “blue chip” investments. GE cut its dividend by 68% and JP Morgan by 86%. This means if you are a retiree living on $1,000 a month from GE’s dividend, today you’re receiving $320 instead. JP Morgan, you’re living on $140 rather than $1,000.
4. China, Russia, Saudia Arabia are all threatening to abandon the U.S. dollar as the world’s recognized reserve currency. Interestingly, they all “own” a piece of America, and we may not be able to pay back the bills and loans we have incurred. Besides, the interest payments per month we have to give up are astronomical.
5. U.S. consumers are loaded down with debt and are strapped for cash. About 70% of the U.S. economy is motivated by consumer spending. Likewise, if U.S. consumers quit spending (and many have) other countries begin to suffer immensely. Many Americans do not have sufficient savings to weather a long recession. If, the so-called recession lasts longer, consumers run out of money, no purchasing is taking place locally or domestically which spurs international economic health, thus the world sinks into a depression.
6. Unemployment continues to rise. During the Great Depression of the 1930’s and early 40’s, the unemployment rate was 24%. We are close…and the numbers do not reflect those who are underemployed or who have just given up.
7. Technology is replacing employees. This will add to unemployment.
8. Most college grads are obsolete upon graduating. Our educational system is still not preparing graduates for the changed marketplace. Frugality has become “OK” and is even necessary. For 30-years, purchases of the latest styles were “in”. People went into debt to look cool with all the latest styles and toys. No more. Money is not there…this will only add to the economic crisis.
9. Commercial real estate is about to experience a tsunami; offices and shopping centers are becoming vacant at alarming rates. This will further pull down local and state economies, and create even more fear and lack of confidence – not to mention additional layoffs. This coming crash will represent a $1-trillion hit to our Nation’s economy. Very serious situation developing here.
10. We have generations of Americans who have never experienced a serious, long drawn-out decline. If a person is only used to an expanding economy, that person is not prepared for a life in a deflating or hyperinflating economy. Psychologically, emotionally, supply-wise, people are not prepared to weather an economic storm still gathering strength off-shore.
11. Television and newspaper advertising is way down. The ripple effect from this will further create problems for local and state governments, charities.
12. Baby boomers are beginning to retire and collect Social Security and other benefits. They will learn that these benefits are not at all what has been promised…this will leave new retirees even more vulnerable. 78-million Baby boomers are coming onto the scene.
13. Pension plans are in serious jeopardy of going broke. There also are plans to convert those pensions that do not disappear into a new form of social security from which ALL can benefit.
14. Jobs have been “out sourced” to nations with cheaper labor pools. The “spread the wealth around” philosophy has already created a divide between the haves and the have-nots; the rich and the poor, and the middle-class of America will continue to shrink.
I pray I am wrong. I pray you will be able to tell me so by the end of this year. I WILL apologize, publicly. But if I am correct how will you respond to what I have reported? Are you prepared…even if only half of what I have stated is true, will you be affected? How? Could you withstand even a half-hit of my assessment? DO NOT depend on the government to fix the crisis we are still experiencing. They are creating it, even more so but quietly and away from public notice.
On Christmas Eve, the Congress of the United States passed, unnoticed, legislation to grant Fannie Mae/Freddie Mac a blank check for future bailouts (those they know are coming, all the while telling us, “the recession is over”). Did you know about this blank check? Also HR 4173 was passed by the same Congress granting $400-billion for bank bail-outs in 2010! It was also decided that only 6-lending institutions will grant home loans and mortgages from here out. I thought there was a growing housing market that would require more, not less, financial services.
The past year witnessed the Federal Government financially prop-up America. The year coming will witness the Federal Government not being able to prop-up America. “Kids, there is NO MORE money in the cookie jar!” The government is printing fiat money, in some circles it could even be called “counter-fit” but that suggests crime and deception, and the current group in power promised America a “clean” and “transparent” and “open” government.
We are witnessing the paying-off of campaign debts at the expense of all of us. This is no longer an economic crisis. It is a crisis in lack of moral leadership on both sides of the aisle; Republicans and Democrats who would rather pay-off interest groups or keep other vital groups happy and content for re-election purposes; all at the expense of small business, “Joe the Plummer,” you and me, our children, and our children’s children. A travesty in Washington, D.C. is occurring right before our eyes. The finer points of this travesty are hidden and not visible so you don’t know what is coming or how to get away from being hit.
Prepare for another economic storm, an even bigger one than what we have withstood. Prepare to fend for yourself. Prepare, with neighbors, to band together to provide for one another just like we saw during Katrina. Prepare yourself emotionally for some rough days and experiences foreign to the American way of life, as we have known her. What steps do you seriously need to take if I am correct? Even if I am only half correct in this report, can you withstand the fallout? Please…please don’t remain in a slumber state. Please don’t remain in a state of denial. If nothing else, talk to your family from a hypothetical standpoint about this information. Ask them, and yourself, “What if?”
LYLE J. RAPACKI, Ph.D.
Independent Intelligence Analysis
NOTE: Comments to RFFM.org's blog which include ad hominems or personal attack will automatically be rejected. No hyperlinks allowed.