Monty Pelerin reviews his predictions.

Monty Pelerin has reviwed his predictions for 2012:

http://www.american thinker.com/2012/11/obamas_election_seals_our_fate.html

Of his 12 predictions, more than 1/2 has been fulfilled and the rest are pending. One of the pending predictions is the economic collapse of the United States within the next two years.

How can he do that, you might ax and why?

Here is why. The Country is inching toward European style spending patterns where the govt spends 40% of the GDP. I have already discussed the inefficiency this creates and will not review this again. Suffice to say that the current spending leaves the Country with deficits over a trillion dollars a year. Obama wants tyo close the gap by raising taxes. Part of the tax hike is already in the works by sunsetting the Bush tax cuts. This will result in a gargantuan rise in taxes. But, Obama wants even higher taxes. The  result of this will be a slipping into another recession and even greater deficits.The deficits will be covered by more money printing.

Can House Republicans block this? Not likely. The pressure is already building from the Media calling for Republicans to "compromise" (i.e. agree to tax increases).

So far, the FED avoided  a collapse by keeping the newly created money tied up in the banks as reserves. That does precious little to spur the economy. The continued government spending and freezing newly created money will further strain the economy untill the whole thing collapses. Obama then can use the Roosevelt model to keep people on govt dole and makework.