Bailout My Ass, Better Get Ready for a Tough Summer & Fall

There is a joke floating around on the internet that explains how the “stimulus” program works.  It goes like this:

A Stimulus Story

It is the month of August; a resort town sits next to the shores of a lake. It is raining, and the little town looks totally deserted. It is tough times, everybody is in debt, and everybody lives on credit. Suddenly, a rich tourist comes to town. He enters the only hotel, lays a 100 dollar bill on the reception counter, and goes to inspect the rooms upstairs in order to pick one. The hotel proprietor takes the 100 dollar bill and runs to pay his debt to the butcher. The Butcher takes the 100 dollar bill, and runs to pay his debt to the pig raiser.
The pig raiser takes the 100 dollar bill, and runs to pay his debt to the supplier of his feed and fuel. The supplier of feed and fuel takes the 100 dollar bill and runs to pay his debt to the town’s prostitute that in these hard times, gave her “services” on credit. The hooker runs to the hotel, and pays off her debt with the 100 dollar bill to the hotel proprietor to pay for the rooms that she rented when she brought her clients there. The hotel proprietor then lays the 100 dollar bill back on the counter so that the rich tourist will not suspect anything. At that moment, the rich tourist comes down after inspecting the rooms, and takes his 100 dollar bill, after saying that he did not like any of the rooms, and leaves town. No one earned anything. However, the whole town is now without debt, and looks to the future with a lot of optimism. And that, ladies and gentlemen, is how the United States Government is doing business today and Canada as well.

Kinda funny and cute, huh?  Well it would be if it weren’t so damn true.  Remember, in the end of the story the rich guy leaves with his $100.  Worldwide, over $13 Trillion so far in “stimulus” money.  OK let’s see where that $13 Trillion has gone.  In the US it has primarily gone to banksters who have given it to their largest customers to do what??  Expand production, buy new equipment, hire more people?  NO.  It was given to them so they could pay back the loans they owe to the BANKSTERS.  Are you getting this.  Joe Schmuck who has lost his job, is losing his home and can’t feed his kids got zero zip natha.  What he got was a foreclosure notice, a notice from his credit card company that his limits have been lowered and his interest raised.  Then he got a notice from the unemployment office that his benefits have expired so they can conveniently remove him from the unemployment roles.  If this wasn’t real life, it would be hilarious.

G8 governments are also touting how they are investing in underdeveloped countries.  So let’s look at that.  World Bank, IMF is investing in those countries, but there is a catch, those countries can only use the money to repay their previous debt to guess who?  The BANKSTERS.  None of the money is flowing into the local economy, businesses, or infrastructure.  It’s a damn joke folks, but with the most serious of consequences.

By mid August, because there has been no real stimulation to the economy, we will see the second leg down on the markets, maybe as low as 4400 on the Dow.  The repercussions from this will be devastating.  So here is what a whack job like me sees for the summer schedule.

1). States will continue to shut down (Alaska, New York, and Nevada are in the worst shape, but 13 other states are in the boat in front that is sinking). This will mean the most exposed people (elderly, disabled, and poorest amoung us) will be totally cut off.  This will be really apparent in late August and September.  I think the Bankster have forgotten a little detail though.  Deperate people do desparate things, especially hungry people.  I think Somalia might be a case study they should examine.

2).  Then we have the situation related to food supply.  The number one thing that flips a “recession” into a “depression” is drought.  and sure enough guess what is happening worldwide.  Droughts everywhere.  India is being impacted the most, but most of the plain states and the SE of the US is also in that boat.  This will drive prices at the grocery store up at least by 30%.  Now I don’t think I have to explain how that is going to impact more than half the population that is barely making it now.  Look for your local national guard at the grocery store this fall.

3). By say October, the PTB will have no choice but to fall back to their number one move to “stimulate” the economy. WAR.  Israel has pulled the short straw on this one and gets to lead off with a Shock and Awe move on Iran.

4). This time, however, everyone is too hungry or broke to be feeling too patriotic.  By November, the banks will declare a “month long holiday” which really means “no you can’t get or have your money”.

OK, I have gone on record with what I think is going to happen.  So let’s see how nuts and paranoid I am.  But just in case I am even close to being on the money (no pun intended) I would recommend you have at least a month’s worth of cash on hand, enough food for three months at least, and it might not be a bad idea to stock up on some vegetable seeds for next spring.


Author: redhawk500

International business consultant, author, blogger, and student of life. After 35 years in business, trying to wake the world to a new reality. One of prosperity, abundance, and most importantly equal opportunity. it's time to redistribute wealth and power.

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