"Establishment" Republicans are Neocon Fascists, NOT Republicans

My censored comment on Huffington Post 
It got several recommendations.
(Scroll down to read it all.)
  
You wrote: "Establishment" Republicans are Neocon Fascists, NOT Republicans.

They do not adhere to Republican principles of small government, low taxes and fiscal responsibility.

The Neocon Fascists advocate :-
astronomical levels of military spending - $1.2tn a year
massive Corporate Welfare - $1.3tn a year
Corporate power over the rights of the people
$1tn a year of bailouts and subsidies to the big banks
Massive printing by the Federal Reserve which only helps the financial elites in speculation to the detriment of everyone else
Perpetual war
The systematic demolition of the Bill of Rights
Mass Surveillance for domestic political control and to suppress dissent for their Corporatist agenda

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Feinstein says that America is less safe than 2 years ago

http://huff.to/1cfErlz

America is less safe than it was two years ago because people like Feinstein, McCain and Mike Rogers remain in the Senate and haven't been removed. 

The NSA makes every American less safe because it wastes it's resources on spying on law abiding citizens instead of terrorist threats - see Boston. 

Keith Alexander has now admitted under oath to Congress that 12 years of Mass Surveillance haven't foiled a single terror plot. 
The best he could come up with some guy sending $8,000 to his tribe in Yemen. 

Ron Wyden also says that he has seen no evidence that Mass Surveillance has stopped anything. 

All Americans are less safe because of the drone warfare program, which recruits more Islamic Extremists than it kills - see Boston again. 
There are now over 200 million more people who now consider the American government their enemy than there were before the drone warfare program in 2006. 

100 million of those are in Pakistan alone. 
Then we have Libya, Egypt, Syria, Yemen, Somalia, Mali, Nigeria, Algeria, Europe .....
The list of countries is almost endless.
The drone warfare is a primary recruitment tool for the Islamists because of the high rate of innocent civilian casualties. 

America is less safe because of it's support for Israel's apartheid regime. 

America is less safe because it has over 900 military bases in over 130 countries, which antagonizes the locals, without helping America one iota. 
It also wastes $170bn a year supplying those foreign bases.

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The reality is that Obama's "recovery" is a financial asset bubble just like Bush's "recovery" was, but the fallout will be much worse

The Federal Reserve and Obama have created a financial asset bubble that is already 20 times larger than Bush's housing bubble.

The Federal Reserve is still inflating the bubble at the rate of $1tn a year.

Bubbles have now been created in :-
Sovereign (government) debt
Corporate debt
Junk bonds
Municipal debt
Stock markets
Housing
Student loans

When this bubble blows the fall out will be far greater than the so called "financial Armageddon" of 2008.
The bubble is much bigger and will burst in a far more fragile economic environment.

The long term, 200 year, average of the interest rate on U.S. government debt is 5 to 6%.
The current interest rate is 2.6%.
Eventually the market will revert back to mean (usually markets over correct for a while).
So we can expect U.S. 10 year notes to go above 6%.
The Fed and the CBO are planning on a gradual rise in interest rates to 5%.
But markets do not correct slowly after bubbles, the correction always happens very suddenly in a financial crash.

So why the Fed asks, have we not seen major price inflation with all this printing we have been doing?
The answer is very simple and very similar to why all the voodoo economists could not see the 2001 and 2008 crashes coming.

The answer is that the massive Fed printing has been counter balanced by other things.
Principally it has been counter balanced by a massive global over supply in cheap labor.
So we do not see any wage inflation pressure whatsoever.

In the run up to 2001 and 2007, globalization (principally China and India) exported price deflation to the West.
This counterbalanced the Fed's printing and we saw very low rates of Western price inflation.
But none of the voodoo economists were mentioning this in the run up to 2000 or 2007.

Globalization added 1 billion potential new workers to the global cheap labor supply, that could now do Western type jobs in manufacturing and servicing.
China still cannot create enough manufacturing jobs to satisfy the demand for migration from poor rural areas to the cities.
India is now getting into economic trouble.
There are very high levels of unemployment throughout Europe and in America itself.
China is now starting to use even cheaper African labor. They are building a massive factory complex that will eventually employ 10,000 people and manufacture $4bn worth a year of cheap shoes for export, in Ethiopia.
There are other under utilized cheap labor supplies in the rest of SE Asia, e.g. in Vietnam, Malaysia and Indonesia.

In the run up to the end of the 2000 and 2007 there were mal-investments and the misallocation of capital.

In 2000 it was the internet bubble where people put money into lots of worthless internet stocks and over inflated the price of stocks generally.
There was also a massive amount of IT hardware spending, to replace old equipment to resolve the Y2K problem. Spending that was merely brought forward from future years.

In the run up to 2007 there was a speculative bubble in housing, bank shares and government debt.
A lot of Southern European government debt but also elsewhere in Europe and America itself.

The bubble in housing was obvious to anyone with even a modicum of economic knowledge or financial history.

The bubble in Southern European debt was also obvious to anyone with a small amount of economic knowledge.
The free market interest rate on any sort of borrowings is NOT 2%.
The free market interest rate on loans that are considered "safe" is 5% to 6% see above chart.
If you go even farther back in history - safe loans were made in the Middle Ages at around 5% interest.

The fact that the Greek government were lying about the state of the government's finances (with the considerable assistance of Goldman Sachs).
http://ian56.blogspot.com/2012/02/greek-debt-crisis-root-causes.html
The massive Spanish housing bubble etc.

The Situation Today

The situation today is very similar to the Bush "recovery" from 2003 to 2007.
So similar in fact as to be an almost exact duplicate, except that the bubble is already 20 times larger than Bush's bubble and the overall economic conditions are now far worse.

Jobs and Unemployment
Bush's "recovery" saw the weakest job creation record of any President since World War 2.
https://en.wikipedia.org/wiki/Jobs_created_during_U.S._presidential_terms

Bush's record will probably be surpassed by Obama by the end of his term.
In addition most of the jobs created during Obama's term are minimum wage, low paid or part time.
While a lot of the jobs that have been lost were relatively well paid.
http://www.nytimes.com/2012/08/31/business/majority-of-new-jobs-pay-low-wages-study-finds.html?_r=1&

If we were able to compile a chart of TOTAL American wages by Presidential term, Obama's record would now be considerably worse than Bush (who would of been the previous holder as the worst President since WW2).
But such data is difficult to compile.
The Federal Reserve and the government do not collect it and don't want the public to be able to see it.  
It might cause a riot.

Meanwhile real unemployment is now much worse than it was under Bush.

Even the government's own
BLS (Bureau of Labor Statistics) says that unemployment is much worse than it was under Bush.
See the grey U6 unemployment line in the above chart.
The headline unemployment number (red line) merely reports the number of people that are claiming unemployment benefits NOT the actual number of unemployed or under employed people.
(If you work 1 hour a week, you are not unemployed - but that is hardly going to get you a livable income.)

Labor participation rates show no signs of recovery

 Malinvestment and QE 

The massive printing by the Federal Reserve is not helping the economy or job creation - quite the reverse.
With the appointment of Janet Yellen as the next Federal Reserve Chairman we can expect things to get much worse.
81.5% of all the currency printed in QE has gone straight to the banks balance sheets and nowhere else.
The big banks already have $1.7tn of excess reserves.
They could loan out another $17tn tomorrow, but with current economic policies nobody wants to borrow it.
$1tn of the Federal Reserve's currency printing has gone to partially bail out insolvent European banks.
About another $20tn will be required to bail out Europe.

The velocity of money has slowed to below the worst  levels seen in the Great Depression of the 1930's.

The excess of currency printing is being used for short term speculation and malinvestments - just like it was during Bush's tenure.
It is being used to further inflate bubbles, just as the excess printing was during Bush's term.

The currency being printed is not going into productive investments like Capex (Capital Expenditure) by Corporations, which would create well paying jobs.
Large Corporations are sitting on their $2tn cash pile and not spending it.
Economic conditions do not warrant gambling on increasing capacity.
The economy is contracting in real terms, not expanding and the average American has less money to spend every year.

How Federal Reserve policy is lowering future GDP growth and raising unemployment.
http://ian56.blogspot.com/2013/01/the-2tn-of-excess-bank-reserves-is.html

Paul Krugman admits that the Federal Reserve is damaging the US economy
http://ian56.blogspot.com/2013/07/paul-krugman-admits-that-china-has-been.html

How the Federal Reserve is expecting the American taxpayer to bail it out on it's multi trillion dollar future losses.
http://ian56.blogspot.com/2013/02/there-is-no-way-out-for-federal-reserve.html

America's economy is contracting, not expanding in real terms.
Everybody in America is becoming worse off in real terms, except for the speculators and the owners and boards of the crony Corporations.
Real inflation is between 6% and 9% not the 1.5% that is the official cpi rate.

The solutions to America's Problems

The solutions to America's problems are relatively easy.
But neither extremist party has any inclination to fix anything - it would hurt the profits of their large Corporate donors.

Cut Corporate Welfare by $1.3tn a year.
Cut taxes on the poorest workers - raise the income tax thresh hold to $45,000 from $8,500.
Cut the Corporate Tax rate to 25% (and close all the Corporate tax loopholes and crony tax breaks).
Make the first $100,000 of profits tax free to help small businesses (as Singapore does).
Reverse the payroll tax hike.
The above will reverse recent trends and get bottom up spending and recruitment going again.
The above tax cuts will only cost $650bn a year. What do you want to do with the other $650bn a year?

Stop the Federal Reserve from printing $1tn a year to bail out the big banks.
Break up the Corporate cartels that now operate in each major industry.

End the Federal Reserve and the IRS.
Reinstate the Constitution and the Bill of rights.
As two of America's top Generals have recently called for.
http://www.wnd.com/2013/11/u-s-generals-now-take-action-to-watch-obama/

Reinstate the Rule of Law on large Corporations and wealthy elites.
Punish wrong doing and fraud with deterrent penalties. 
Send the CEO's of the major banks to jail for 30 years and see how quickly Wall Street can be cleaned up.

More details on the solutions to America's problems are at the bottom of this, together with many more economic charts and  more details of Obama's policies :-
http://ian56.blogspot.com/2013/10/all-of-policies-of-federal-government.html

Debt Ceiling deal - winners and losers
http://ian56.blogspot.com/2013/10/debt-ceiling-deal-losers-and-winners.html

Scrap Obamacare and do some things to actually make Healthcare more affordable in America.
Obamacare is the worst scheme that anyone has come up with so far for providing Healthcare, anywhere in the world
http://ian56.blogspot.com/2013/11/obamacare-is-worst-scheme-that-anyone.html

 

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The Revisionist History of how the Iranian Nuclear Deal came about is already being written in America

The Iranian Nuclear Deal came about after :-

War Plans in Syria Were Forced Into Being Dropped

There was a massive public and Congressional outcry against bombing Syria in support of  Islamic Extremist terrorists funded by Saudi Arabia and Qatar
Thousands of phone calls were made by ordinary members of the public to members of Congress, demanding that the plans to bomb Syria be dropped.
The public was overwhelmingly against America starting another war in Syria - at least two thirds were against and possibly as high as 90%.
The British Parliament voted against military action in Syria
The Russians initiated a diplomatic deal to resolve the chemical weapons issue

These events forced Obama to drop his war plans in Syria which started with, but were definitely not limited to, a series of cruise missile strikes.
He could not get a vote approved in Congress and was extremely isolated.

The planned bombing of Syria had nothing whatsoever to do with the chemical weapons attack in Damascus on August 21st.

The Iran, Iraq, Syria gas pipeline and the Syrian conflict
http://ian56.blogspot.com/2013/09/the-iran-iraq-syria-gas-pipeline.html

The facts behind the Syrian conflict that Obama and John McCain do not want you to see
http://ian56.blogspot.com/2013/08/action-in-syria-what-would-it-achieve.html

Iran elected a less bellicose President 

After the American Syrian war plans collapsed, the new Iranian President started a diplomatic initiative to try and resolve the on-going dispute and sanctions with America, regarding Iran's nuclear activities.

Despite initial reluctance, America eventually accepted Iran's new dovish approaches and sat down to talks with the Iranians.

Iran has been developing a civil nuclear program, since the 1950's.
It's oil production is declining because of a lack of investment.
It does not have enough oil refinery capacity to meet it's domestic demands.

The Revisionist History of how the Iranian Nuclear Deal came about
None of the above actual facts, are even mentioned.
http://www.huffingtonpost.com/2013/11/24/iran-nuclear-deal_n_4332835.html

Appendices, References and Background

Iran wants to develop both it's oil and gas production, but sanctions have played a large part in preventing this.
In July 2013, Iran signed a deal with Iraq and Syria to build a major gas pipeline (see above link).

Iran is getting around of the worst of the U.S. oil sanctions by selling oil to China and India.
China and India are getting cheaper oil, while America, Europe and other oil consumers are paying more.

Iran has been using up the uranium it has so far enriched, in it's domestic nuclear program.
Ehud Barak admitted that Iran has recently used 30% of it's semi enriched uranium for civilian purposes.
http://www.telegraph.co.uk/news/worldnews/middleeast/iran/9643647/Israel-says-Iran-has-pulled-back-from-the-brink-of-nuclear-weapon-for-now.html

A timeline of Iran's nuclear activities
America helped Iran start it's civil nuclear energy program.
http://iranprimer.usip.org/resource/timeline-irans-nuclear-activities

Ex-Mossad Chief: ‘US-Iran nuclear deal is good for Israel’

In November 2011, Halvey was quoted saying: “The US-Iran war could effect not only Israel, but the entire region for 100 years”. He also added that the “Jewish extremism in Israel poses a bigger risk than Ahmadinejad“.

http://rehmat1.com/2013/11/14/ex-mossad-chief-us-iran-nuclear-deal-is-good-for-israel/

There is zero evidence that Iran is developing a nuclear weapons capability.
Even if Iran did develop a nuclear weapon, Israel already has 80+ nuclear weapons and has the materials to quickly build 120 more.
The mullahs in Tehran may be mad, but they are not suicidal.
If Iran did ever launch a nuclear weapon against anyone, Tehran and much of Iran would be annihilated by a swift and massive Israeli and Western response.

If Iran ever did develop a nuclear weapon, it would be a deterrent, not a first strike weapon.
It would be a deterrent against Israeli and American aggression.

N.B. Israel has issued repeated numerous warnings that Iran is within 6 months or a year of developing a nuclear weapon for past 20 years.
So where is it? Even Israel states that Iran does not have them.

The real reason for so much tension with Iran, is that Israel wants to remain the only nuclear weapon power in the Middle East.
Although Israel's ally in the region Saudi Arabia, is now attempting to start it's own nuclear program with America's help.

Saudi Arabia and Israel want to remain the largest regional powers in the Middle East.
Since America's invasion of Iraq and the removal of Saddam Hussein as a counter weight, Iran has become a much stronger regional power.

Iran is the leader of the Shia Muslims in the Middle East.
There is an on-going sectarian war going on between Shia's and Sunni's (similar to the European wars between Catholics and Protestants from the 1500's).
Saudi Arabia is the leading power for the Sunni's, with it's extremist Wahhabi sect.

The conflicts between Saudi Arabia and Iran are also about oil and gas.
There is a global surplus of carbon energy reserves at current prices.
There is a shortage in distribution and refinery infrastructure.

There is competition between Saudi Arabia and Iran to supply the major markets of Europe, China and Asia.
(There is competition with Russia for energy supplies as well.)

Bibi Netanyahu & Ehud Barak tried to hijack a war with Iran in 2010. IDF & Mossad chiefs disagreed with them

There were several articles in November 2012 about Bibi Natanyahu and Ehud Barak trying to start a war with Iran in 2010.
Both the Israeli Defense Chief and Mossad chief disagreed with them and prevented it.

http://www.jewishjournal.com/israel/article/report_netanyahu_barak_ordered_preparation_for_iran_strike_in_2010

http://www.telegraph.co.uk/news/worldnews/middleeast/israel/9655097/Israel-planned-Iran-attack-in-2010.html

http://www.bicom.org.uk/news-article/9869/

http://www.ibtimes.com/israel-considered-attacking-iran-2010-report-859796

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Keeping people poor and/or in massive debt means that they have less time to think

Less time to think about :- 

Government policies that are deliberately wiping out the middle class and creating more poor people. 

Federal Reserve policies that have deliberately created the greatest financial asset bubble in history, which when it bursts will cause the greatest depression in history. 

The fighting of wars, whose purpose is simply to create more enemies, in order to fight further wars.

The secret trade treaties that hand over National Sovereignty to Corporate profits. 

The media that dis-informs on a daily basis on all TV news channels and in all mainstream print publications. 

The Mass Surveillance programs that spy on everyone, whose only purpose can only be to harass and intimidate future domestic political dissenters. 

Government and Federal Reserve policies that are a deliberate redistribution of wealth. 
A redistribution of wealth from the middle class to the crony Corporatists in the top 1% 

The handover of global hegemony to Asia centered on China, by the American government.

http://ian56.blogspot.com/2013/10/all-of-policies-of-federal-government.html

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Obamacare is the worst scheme that anyone has come up with so far for providing Healthcare, anywhere in the world

It was specifically designed to increase the profits of large insurers and drugs companies by the Heritage Foundation.

It does this by reducing the competition in the marketplace.
Each State is becoming a de facto monopolistic Health Insurance cartel.
The insurers are and will take advantage of their monopolistic positions to hike their prices and profit margins.

There are a great many things that could be done to make Healthcare provision in America much cheaper.
Healthcare already costs double in America per capita, compared to every other developed country.
Obamacare is set to make this dire situation even worse.

The Federal government is still protecting the profits of the large drug companies through a series of protectionist laws on specific drugs.
Congress is forever passing another law to protect another drug.
Prescription drugs cost at least double in the U.S. than they do elsewhere.
Half the drugs companies are foreign owned.
How does protecting foreign companies help America? 

Just some of the ways that Healthcare provision could be dramatically improved are included at the bottom of this.
http://ian56.blogspot.com/2013/11/the-dems-on-huffy-post-are-incredibly.html

America will pay the price for making the least efficient system of Healthcare provision even less efficient.
And Obama knows it.
The effects of Obamacare will really only be felt when the business roll out begins.
Only 5% of people are affected by the private plan roll out.
Ten times as many people will be adversely affected when the business plans start rolling out.
Obama has just delayed the start of the business roll out by an additional month until after the mid-term elections in 2014. See this.

He knows that 3 weeks of non-stop reporting of the business plan roll out problems, premium/deductible hikes and the number of people losing employee coverage, would be absolutely devastating for the Democrat vote.

Most of the expected $400bn annual increase in Healthcare spending as a result of Obamacare will be paid for by middle earners - those earning between $40,000 and $100,000 a year.
(The subsidy limit is currently $45,000.)

Someone who earns $50,000 will pay as much as someone earning $250,000+, but relatively few people earn over $100,000.
Someone earning over $100,000 will probably get subsidized employee Healthcare coverage, the increased costs of which the company will pass on to it's customers - mostly the middle class.

Some of the extra $400bn cost will be paid for by the working young.
Those earning above around $27,000.
The way that Obamacare is set up, young are expected to subsidize the healthcare costs of older people.
The young (with decent jobs) are already struggling with massive student loan debts. 
There will be all sorts of negative indirect impacts of this policy.
These people will start fewer businesses, marry later and have fewer children because they simply cannot afford it.
These people are America's future, they and America, just got screwed big time by Obamacare.

Around $100bn a year of the government subsidies will be paid for by the rich.
There is an increase of 3.8% on the tax on investment income.

There are another well over $100bn a year of 19 other stealth taxes.
These will mostly be paid for by the middle class and middle class seniors.

Details of the Obamacare stealth taxes.
http://www.fireandreamitchell.com/2012/06/29/full-list-of-new-obamacare-tax-hikes-20-in-total/


Obamacare myths, facts and unknowns - cost $3.5tn+, 800,000 fewer jobs, lower GDP and higher unemployment (over the next 10 years)
http://ian56.blogspot.com/2013/10/obamacare-myths-facts-and-unknowns-cost.html

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America's coming financial disaster and it's Demographic time bomb

Federal spending is planned to rise to around $6tn by 2023 (from $3.6tn now).
Well over $2tn of this expected increase in spending is planned to come from the following 3 items (in almost equal amounts) :-

Debt interest payments
Social Security
Healthcare spending

The deficit in 2023 will be over $3tn.
The National Debt will be $40tn+ or 250% of GDP.

The Social Security trust fund does not have any real money in it.
It only has government IOU's.
IOU's that are set to lose more than half their value in the next few years.
The IOU's are called non tradeable US Treasuries.
http://www.pewresearch.org/fact-tank/2013/10/09/5-facts-about-the-national-debt-what-you-should-know/

I am not in favor of either the GOP or Obama's plans to render Social Security payments almost worthless over the next several years.

The way to sort out the government's pending financial disaster, Social Security and Medicare funding, is detailed at the bottom of this.
Start by cutting $1.3tn of annual Corporate Welfare.

http://ian56.blogspot.com/2013/10/all-of-policies-of-federal-government.html

Things will get much worse after 2023 - due to demographics.
There will be far fewer people of working age that will be paying into the SS fund to pay the large increase in the number of seniors.

The Demographic time bomb that is just starting to hit every developed country (and China) - the problem will get really severe after about 2020.
http://ian56.blogspot.com/2012/10/the-fall-of-rome-was-due-to-unfunded.html

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