The New Not Normal

The good news is people are starting to wake up to the math and question it.....WDC, LLC and it's one-termer are under new intense scrutiny.

The bad news:
1) Tax receipts are 20 to 40% below forecast and falling. State (billions) and federal (trillions)budgets are now out of control and panic is setting in.....spending is about to be cut dramatically...they will have no choice.
2) Tax increases will not bridge the delta's...they never have and never will.
3) The US Dollar has begun its decline....from dilution (monetizing) and expected poor relative performance of the US Economy. Especially poor fiscal policy.
4) Golds relative strength is confirming 1-3.
5) Oils relative strength demonstrates scarcity value....the future..i.e. higher prices for everything.
6) Treasury bonds are now the worst performing asset class in the world year to date. Also as predicted down some 25%. The bubble has burst and the cost of "capital" is about to scream higher.....a MAJOR negative for the amateurs and their budgets.
7) Defense spending is about to plummet. America will be simply less safe. Budget cuts will effect national security. The rookie is about to get a big lesson in foreign policy.....the rising global tensions are just beginning.
8) Angry young minorities are now allowed to interpret our constitutional law...the country was not supposed to be run this way.
9) There are no checks and balances in the system today...political power is being abused like never before.
10) Smart well run public and private companies are pulling in the growth capital expenditures because of 1-9. They will not hire for the balance of 2009....and are very concerned about 2010.
11) Laying debt over yet more debt never has worked and never will. Keynesian economics never have worked.
12) The day of reckoning is coming soon to the federal budget.....a failed auction or unacceptably higher interest rates will slow the spending and recklessness...just like the private equity and hedge funds as well as the commercial banks were stopped in their tracks two years ago.....
13) Pension funds across the country are about to be restructured....they are underfunded.
14) Commodities? India the world's largest sugar consumer- is set to shift this year from being a sugar exporter to a net importer. The future.....government intervention only slows efficiency and productivity...

Has the math moved beyond the average America's ability to grasp the enormity of the current situation? Has America reached the point of dis-economy of scale?

Psychologists call this inattention blindness- instances when we don't see something because it's not what we are looking for.

Danny Boy seen here starting to enjoy the summer.