New World Order University Forum

The Sacramento Bee has a graphic showing the increase in California’s unemployment rate by county. California’s unemployment rate is now over 10 percent. Some California counties have unemployment rates over 20 percent. Of course the official statistics are juggled to make the unemployment rate seem smaller than it really is. The Bee also has a story on Moody’s downgrade of California’s general obligation debt rating. California’s state debt is now the lowest rated state debt of all the states. Moody’s cites California’s “dysfunctional governance system” and blames the two-thirds majority required to pass a state budget for limiting California’s flexibility in budgeting.

Let’s briefly review. Arnold Schwarzenegger ran as a Republican in a special election designed to remove Democratic Governor Gray Davis from office for his complicity in signing high-priced contracts with out-of-state energy suppliers. Schwarzenegger was elected as a Republican and campaigned on keeping taxes low. His initiatives for reform failed to pass, and he then switched sides to govern with the Democrats. Hmmm, is Schwarzenegger a Republican or a Democrat? Doesn’t matter, really, because Schwarzenegger’s impact on the state’s financial health has been zero. The state legislature was deadlocked for months on the new budget passed in February. The Democrats refused to cut state spending, and the Republicans refused to approve tax hikes. This stalemate lasted until 3 Republicans crossed over and voted with the Democrats to pass the budget. Bribed, really. California’s new budget features $14 billion in tax hikes to close its fiscal deficit. So much for Schwarzenegger’s promise to keep taxes low.

Callifornia’s government is a model for the new Democratic government of the United States. The Democrats refuse to cut spending programs in a recession. As the unemployment rate rises, tax revenues decrease. The federal government issues more Treasury debt. At the moment, the Fed is holding Treasury rates low by its control over short-term interest rates. Actually Treasury bond interest rates should be higher. As the risk of debt default increases, investors should be paid a higher interest rate for assuming increased risk. With the Democrats committed to greater spending of funds they don’t have, the Treasury issues more debt and risks a Treasury debt-quality downgrade. Economists are split over the future outcome of this untenable state of affairs. Some believe the dollar value must plunge, some believe the price of gold must increase dramatically, and a few believe the Federal Reserve might be able to flood the market with new debt today and call it back tomorrow, just in time. Nobody talks much about who is going to buy that debt and at what interest rate. The rest of the world is resisting buying new U.S. Treasury debt. This is a big problem.

Why do Democrats insist on maintaining their spending programs during recession? The political answer is, much of this state spending is targeted to assist illegal aliens. If California had not allowed illegal aliens free health services at emergency rooms and free education, California could have saved enough money to offer every college-age student a free college education at state colleges. But California Democrats cultivate illegal aliens through deficit spending and sanctuary cities. Why? Because an amnesty for these illegals would ensure a Democratic majority in California, and probably across the United States, for the foreseeable future.

Democrats spend other people’s money promiscuously. They never talk about the problem of deficits, and they never test their programs to see whether they are successful. The fatal flaw of socialism is, eventually the socialists run out of other people’s money to spend. Socialism produces nothing, it is entirely parasitical. California depended on bailout funds from the Democrats in Congress. This allowed them to maintain spending and raise taxes rather than paring the state budget down to match tax revenues.

Mexico’s economy is in shambles because of NAFTA. U.S. agricultural companies dump corn into Mexico, tariff-free, under the terms of the NAFTA trade agreement. This policy bankrupts Mexico’s farmers and sends them to the United States to become migrant workers. This policy only benefits big agriculture in the United States. Why won’t the Democrats support Mexican tariffs against imported grain, which would allow the Mexicans to return to Mexico, return to farming, and build up their own country? Because the Democrats are committed to a global free-trade model that forces low-paid workers to become migrant populations at the service of big corporations around the world.

If you are able to figure out that the Democrats’ attitude of “compassion” toward illegal aliens is not really compassion at all, you have gone a long way toward understanding the evil nature of the New World Order. The price for assistance to illegal aliens is high: higher taxes for everybody else, higher interest rates on state debt, job cuts at state bureaucracies and schools, wasteful government spending on programs that accomplish nothing, higher unemployment rates, colonization of migrant workers on big state farms, relatively open borders for drugs and terrorists, higher crime rates, and the corruption of governments at all levels. This is the model for the United States today under Democratic rule. Did you fall for the false rhetoric of “hope”?

Tags: Arnold Schwarzenegger, California debt downgraded, California unemployment rate, Gray Davis, illegal aliens

This entry was posted by Director on Sunday, March 22nd, 2009 at 4:43 pm and is filed under U.S. Economy. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.