Japan Meltdown Due

Japan entered their economic depression in the 1990s. Their government has been spending like we are and now their national debt is 266% of their GDP. When they meltdown, they will go into hyper-inflation and ruin their currency. We will not be far behind them. Nothing else is more important than reversing our government spending binge. So far, the Federal Reserve has debased the dollar to death by ten thousand cuts. We have been bleeding out about 4% a year in currency debasement since 1913. The Japanese meltdown could happen as soon as the fourth quarter of 2010. This disruption will have a double dip effect on our stock market. If Japan melts down at the same time the Fed plans to pull back on M3, they will end their pull-back to “help” with the Japanese crisis. Don’t let them do that. It will assure that we will be taken down the same drain with Japan.

The Federal Government gives $400 Billion a year in bribes to the States. The Federal Government is broke. We need to gradually decrease the amount of printed and borrowed money that goes to the States. We also need to remove unfunded liabilities from States for Public Education, Healthcare and all other purposes. States should consider what they are going to support and throw off the rest.

The Treasury and Federal Reserve have now given over $25 Trillion to banks in the form of zero cost loans to deleverage their businesses. The Fed is buying U.S. Bonds, because there are more Bonds than buyers. The TARP was the tip of the iceberg. All the bailed-out banks and financial firms should have been allowed to go bankrupt.