Equity

Jesus Christ Is Lord!
8 December 2010

Leaving the tax rates where they are leaves the economy where it is. The only thing different is adding to the deficits and debt by adding to what we are paying people to not work.

This is a display of the total loss of reality as it is seen through language not matching actions.

Obama knows this and can’t say it. He knows that if he points out how big of a net gain toward socialism and degrading of the wealth of the nation through further redistribution he will not be able use the false premise that has been created to his favor. The socialists can’t publicly say it either or they couldn’t continue to call for more.

The reality is no positive effect on the economy and a negative effect on business.

I believe it is worse than that and there is even more deception at play. They know it is going to get much worse and already is much worse than they will ever admit. Best case is no difference becomes apparent and they claim that we tried “tax cuts” and they didn’t work. Worst case and the more likely is that the collapse is admitted to and they claim the “tax cuts” pushed us over the edge.

There is no Constitutional or Christian moral authority for taking from one group to give to others. Charity cannot be forced.

There is no recovering the old system. There is only the question of who wins out in the reformation. The options are the restoration of the Constitution and Christian morality or some combined form of godlessness, socialism, Marxism, fascism or communism.

I want to give you my take on why there isn’t and won’t be a recovery and why it is impossible to provoke these through Keynesian economics. What we saw several years ago was a loss of about half of the worlds wealth. Most of that wealth was in some form of equity. The large infusion of cash into the financial system went mostly toward replacing lost equity.

Before this time most people had equity in their homes, much of it due to the government created bubble equity and it was ever increasing. People looked at home equity as a fall back source of liquidity in the way people use to look at a savings account. That equity went to a reversed position and any intelligent person is going to save instead of spend to replace fall back liquidity.

The Keynesians have only replaced equity at the institutional level. Until equity is rebuilt at the personal and small business level there will be no recovery. We have already gone beyond the tipping point where recovery is even possible.

The result of the debt created, and the diluting affects of the Fed creating money from nothing, a further reduction of personal equity and personal purchasing power. Less purchasing power means less demand and less demand produces lower prices and less equity. The result of this is the slow trickle of business closures and job losses in a never ending downward spiral.

There is a similarity and a difference between equity and profit. Profit is anything above the cost the seller paid for it. Equity is the difference between what you can sell for and the claims against it. Debt is a claim, a lien against property. The bad news is there is no equity on anything. The national debt and all future unfunded obligations say they own it all, or that should be US all. Welcome to Egypt Israel.

The end of down will only come with a different system and it is a shame that we have to admit that the different system is a capitalist free market economy, a Constitutionally restricted government and a Christian morally self restrain people.

Revelation 21 & 22, 2 Timothy, Psalms 119: 137 - 144

Tim D’Annunzio
In the name of
Jesus Christ My Lord
Thank You My Father