If Sequestration is Repealed, Will America Become the Next Weimar Republic?

February 24, 2013 in Abuse of Power, Debt Crisis, Debt Limit, Economic Deception, Economy, Fiscal Cliff, President Obama, Sequestration

hyperinflation1The Weimar Republic is the name given to the federal republic and parliamentary representative democracy established in 1919 in Germany to replace its pre-WWI imperial form of government. It was named after Weimar, the city where the constitutional assembly took place. The Weimar‘s Constitution was signed on August 11, 1919 and was deposed by Hitler’s Third Reich ascendency in February/March 1933. During its fourteen year existence the Weimar Republic was burdened by hefty reparations imposed by the victors of WWI, political extremist from both the Left and Right as well as rampant hyperinflation that permitted Hitler to seize power  and dissolve the Constitution.  The caption below the above photo of a one Hundred Million Mark note[A mark was equivalent to our $1-dollar bill] reads:  In 1923, a German housewife burned mark notes in her kitchen stove since it was cheaper to burn marks than to buy firewood.

 

 

weimar-wheelbarrow-1-loaf-breadThe vision most vividly embedded into the minds of  school children studying the era is one of a wheelbarrow filled with thousands or millions of marks  to purchase a single loaf of bread! The photo at left taken during this period, depicts that scenario.

When Barack Hussein Obama came into office, our FY2009  Budget stood at $3.1Trillion. Today the FY2013 Budget is at $3.8Trillion. Sequestration, which is a program devised by President Obama, cuts $85B across-the-board from THE RATE OF INCREASE of theFY2012 budge of 3.72Trillion. It DOES NOT DECREASE  the FY2013 total budget amount from that of FY2012. Of the phantom $85B in cuts, half isslated to be  removed from Defense Spending  and half from Entitlement Spending. The $85B in phantom cuts represents measly 2.2% of our $3.8T Budget.

The FY2013 Budget consists of 60% Mandatory Spending and 40% Discretionary Spending. Mandatory spending is spending that is required under existing law. In passing, it needs to be noted that while Defense spending represents 19% of the FY2012 Budget, it is slated for 50% of the FY2013 Sequestration cuts.

Last Fall, Jim Rogers, the founder of Rogers International Commodity Index and economic guru,” predicted that America is headed to a “Financial Armageddon”. Rogers stated  that he was absolutely convinced that the economy would burst soon after the election. He  also stated that he has never been a supporter of the policy of quantitative easing.[ The Federal Reserve can just create dollars out of thin air by buying up assets like long-term Treasuries or mortgage-backed securities from commercial banks and other institutions. These “thin air” dollars created by the Federal Reserve flow into the banks, and in turn are pumped into the U.S. economy and ultimately reduce our long-term interest rates. The theory is that when long-term interest rates go down, investors  have a greater incentive to spend their money.] Jim Rogers is also quite certain that our Government needs to cut spending in order to reduce our burgeoning debt. Rogers also stated that German Chancellor Angela Marker and Obama were promoting policies which were just another disguise for hiding the real state of their economies.

www.usgovernmentpending.com is estimating that the US debt to GDP will exceed 100% for 2012.  Two American economists, Carmen Reinhardt and Ken Rogoff, argue that growth slows sharply in countries where the ratio of debt to GDP exceeds 90 percent.

So there you have it. Barack Hussein Obama is jawboning Congress about Sequestration, seeking even  more deficit spending that will most certainly result in even slower growth, less jobs and further US credit rating downgrades.  Are you going to push back on the President and his propaganda squads and support a strong America, or are you going to sit idly by and watch our economy and country slide further into the abyss?