Greg outlines strategic faults in the president's economic plan. He fears a currency collapse is on the horizon unless a return to fiscal conservatism is implemented and interest rates are permitted to find their natural level -- without government manipulation.
Greg visits with former congressman JD Hayworth at the Capitol. Conservative Hayworth is expected to challenge moderate McCain in the Arizona senate primary later this year.
Why No Jobs?As I travel throughout our state discussing the accelerating economic collapse and the complete failure of the Democrats in the state and federal legislatures to act decisively to save our economy, I often hear, "Greg, what has happened and how are we going to get our jobs back?" The person asking is your neighbor, your relative, an acquaintance down the street. They have worked hard most of their lives but now are falling behind and can sense something is very wrong. The Democratic "leaders" in Congress and the General Assembly assure them things are fine. "The recession is over," they crow. "The president's plan has brought hundreds of thousands of new jobs," etc, etc, etc. Each statement a bigger lie than the one before. Meanwhile citizens of North Carolina can't find work and are struggling to survive. Increasingly it becomes more difficult to pay for food, utilities, the mortgage and needs for the kids. The debt bubble is strangling each of us in a tightening economic noose that drives free men and women to their knees. Our jobs have been sacrificed on an altar of globalization created and sustained by men like Price, Watt, Butterfield, and Kissell. Their answer always seems to be more stimulus, more spending -- and, of course, more debt. Meanwhile, working men and women are crushed as jobs flee the economic wasteland created by Democratic legislators at the state and federal level. Some five trillion dollars in debt must be financed/refinanced in 2010. This means close to 100 billion dollars a week in new borrowing must be completed. With the Chinese no longer buying our debt, in essence the government must create new monies from thin air to finance their own borrowing -- borrowing new money from themselves, to pay off old debt. Madness. Until this debt bubble is liquidated there will be no new jobs, except for government jobs. Small business -- the driver of all economic recoveries -- cannot continue to shoulder excessive tax burdens. The only real economic activity in the country is enabled by small business, yet this last functioning economic engine is taxed and regulated out of existence to bailout the big banks. Government must foreclose insolvent banks regardless of the campaign contributions they have made to entrenched incumbents. Zombie banks, that leverage artificial capital 20 to 30 times beyond their base in reckless speculation, have zero risk when they know the government will bail them out with taxpayer money. When their financial gambles fail, as is happening now, their irresponsible behavior threatens the entire country with systemic risk. As these gargantuan debts multiply exponentially, fed by endless new money creation, small and medium size businesses begin to fail as their conservative business models are destroyed by an elitist financial system run amok. It is in this environment our middle class jobs are destroyed. That is why decent hard-working people in Davidson, Edgecombe, Rowan, Wayne and the other 96 counties in North Carolina are losing their jobs. For money to function properly in society it must exist as a legitimate claim on production and labor -- not as an endless supply of paper used to prop up failing institutions. When the money supply is in balance with true economic output, then prosperity reigns. When legislators at the state and federal levels continue to spend money that does not exist but must be borrowed into existence -- thus distorting economic reality -- then economic chaos ensues until the debt bubble is deflated. Our jobs will return but not until the country and state work through a massive bankruptcy/debt renegotiation. This process cannot begin until the borrowing/spending cycle ceases. The only question remaining is whether the people will elect fiscal conservatives to Washington, DC and Raleigh in November or if the status quo continues and an economic collapse of a magnitude not seen since the 16th century results. Rest assured, without a change in course by the leadership our children and grandchildren will live a lifetime of poverty that will make today's Haiti seem like paradise. The first step in bringing our jobs back is to elect fiscal conservatives in November. If you don't know how to do that you had better start learning -- we have only one more electoral opportunity before it is too late. Greg |