This year when all is said and done will best be summed up as the great hoax. The hoax will be followed by a crash in 2011 that will lead
to the war of 2012. Since I don't have a crystal ball in my possession the timeline could of course be somewhat different when this goes from
being a theory to being history but there are some very powerful milestones that will dictate this timeline.
I've discussed on a few occasions the various factors that are contributing to the hoax of 2010 and will result in the crash of 2011. In summary we
have a known set of large tax increases set to kick in on Jan 1, 2011 to go along with the dwindling of government stimulus spending. Europe is
rushing to push through a series of spending cuts and tax increases that will undoubtably cause their economies to grind to a halt just as they
have begun to recover. England has just announced they will raise their VAT tax from 17.5% to 20% starting January 1, 2011. Just like here
in America the English economy will manufacture and purchase all they can in 2010 to avoid paying the increased VAT rate in 2011. That increased
economic output is the great hoax of a continuing recovery.
So all of Europe and the United States have announced they will raise income taxes on the portion of the population with the greatest spending power.
The English also plan to make the cost of goods considerably higher through an increased VAT rate. This is where the problem compounds itself. The
Europeans also plan to reduce government spending by primarily cutting the salaries or eliminating government employees. In Europe, the percentage of
people that work for the government ranges from high to off the charts insane(Greece). Having only had one course in economics I can still see that
a combination of higher income taxes, sales taxes and reduced salaries will result in a large drop in consumer spending.
Europe has come to the conclusion that the time has come to tackle the problem head on and let the system hit rock bottom. They are willing to
deal with the pain of the next few years knowing that once they get past it they have a good chance of a real recovery once their budget
deficits are brought under control. They are a number of years ahead of us in their understanding of the dangers of unsustainable government
Unfortunately our politicians don't understand the dangers of unsustainable government spending and believe the solution to our problems is even
more spending to bolster any part of the economy that is lagging. As the world economic superpower we have become used to being able to do what we
want without needing the approval of the rest of the world. That situation is about to change.
Until now the United States has been the best of the worst economically making us the safe haven for investors worldwide looking for a safe
place to invest their money. The European union nations now have a combined economy that is the equal of the US and for the first time in
history China is now ahead of us in total manufacturing. If Europe succeeds in getting their deficits under control and maintains political
stability they will become the safe haven along with China for worldwide investors.
Without the international flow of money pouring into the US who will be buying the trillions of dollars in new debt the treasury needs to sell?
The crash of 2011 will occur worldwide as government services are cut and the private sector is finally allowed to reach its natural bottom.
It will not occur overnight rather it will build as the year progresses along with public discontent. The war of 2012 will be setup
throughout 2011 as villains and scapegoats are created to deflect blame from the true culprits. It will said that it is not be the fault of failed
socialist government policies it is the obstruction of the opposition and the greed of the capitalists that is once again to blame.
The army of the socialists are being funded, organized and instructed as we speak. The international army of the international unions representing
the low wage workers and government employees will take to the streets protesting the spending cuts and demanding government takeovers of greedy
corporations. They have been practicing in the streets of Greece and France already over the minor cuts being proposed to stabilize those countries.
When the real crap hits the worldwide fan in 2011 the well oiled machine of SEIU will roll out the street war on private property rights. As
industry after industry is demonized will this administration react like Hugo Chavez with forced takeovers? Everything they have done up until
now indicates they will.
The big question that remains is what will the reaction of the American people be? The Europeans are used to continuous turmoil and turnover
in their systems of government along with wide swings in economic and personal freedom. Americans have centuries of freedom and political stability
engrained in our identity and I believe we will not be willing to accept an oppressive system being forced upon us. I can only hope that 2011 is
also the year that Americans wake up to our history and learn about the founding of our country and the principles of our constitution. If
that awakening occurs then we will be able to restore ourselves by restoring the constitution. If not we are on the road to a French revolution where
we will simply replace one dictator with another and possibly end up in a worse place than where we started.