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<DIV><SPAN class=quote><SPAN class=quote>The circumstance is open for the
development of a major third party that could knock out either the Republicans
or the Democrats as a second party. Over time, pocketbook issues tend to
dominate elections. If things are going well, if people are prosperous, they
ignore the corruption in political circles as being just part of the system. But
when they're hurting, they turn out the bastards and look to put in some change.
We sure need change. I can tell you that. It's not just one party. Both major
parties have an equal share of guilt in what's unfolding. Whichever one is in
power keeps making it worse...</SPAN></SPAN></DIV>
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<DIV><SPAN class=quote>Unemployment will be a lot worse than most people expect.
Housing will continue to suffer in terms of weak demand. But in this crazy,
almost perverse circumstance, the renewed weakness to a large extent will help
push us into higher inflation. Real estate tends to do better with higher
inflation, but it's not going to be a happy circumstance for anyone.<BR><BR>The
government is effectively bankrupt. Using GAAP accounting principles, the annual
deficit is running in the range of $4 trillion to $5 trillion. That's beyond
containment. The government can't cover it with taxes. They'd still be in
deficit if they took 100% of personal income and corporate profits. They'd also
still be in deficit if they cut every penny of government spending except for
Social Security and Medicare. Washington lacks the will to slash its social
programs severely, to change its approach to ever bigger government. The only
option left going forward is for the government eventually to print the money
for the obligations it cannot otherwise cover, which sets up a
hyperinflation...</SPAN></DIV>
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<DIV><SPAN class=quote><FONT size=2 face=Arial>Read more:</FONT></SPAN></DIV>
<DIV><SPAN class=quote><FONT size=2 face=Arial><A
href="http://www.theenergyreport.com/pub/na/7005">http://www.theenergyreport.com/pub/na/7005</A></FONT></SPAN></DIV>
<DIV><SPAN class=quote><SPAN class=quote>Again, putting aside election year
politics and such, the banking industry will need further bailout as solvency
issues come to a head again. The federal deficit is going to balloon. It's going
to blow up much worse than any formulas would give you, and Treasury funding
needs will explode....</SPAN></SPAN></DIV>
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