Good Morning Middle America, it’s Monday, and your King of Simple News is on the air.

It appears that the financial shocks will continue to shake our planet for some time to come. It also appears that our leadership (I use that term very loosely) will check out their lances again today for another entertaining week of sparing with windmills.

Over the years, I have made many future predictions that have looked well down the road; all of which unfortunately, have come true.

Some 14 years ago I wrote a column that stated, “If NAFTA becomes a benefit to the American people, I’ll eat a 50 pound crow on the courthouse steps and give you three days to draw a crowd.” So far, crow has not been on by bill of fare.

My current prediction is by far the most forward of my visions and dire of my predictions. I had to drag out the telescope to see this one coming. Even the most pessimistic of economists have dared not utter my latest declaration; the U.S. economy has topped out.

My studied opinion is that the U.S. economy has matured, as all living things do. It has grown to the allowable size of our environment. If I am correct, the U.S. will fail to increase REAL annual GDP (adjusted for inflation) above our current $14 trillion.

For a nation whose economy is pinned to the mathematically impossible premise of “infinite exponential growth,” this is not good news.

So how did I come to such a drastic conclusion? How could I possibly recognize the arrival of such a complex occurrence? Easy, I reduced it to Mikeronomics. First of all, the basis for our ongoing economy was never mathematically possible. Therefore, I didn’t have to determine “if” it would fail, only “when.”

Then I applied the following science: If you put a little goldfish in a little bowl, he will remain a little goldfish, adapting to his environment. If you put him in a bigger bowl, he will grow larger. If you put him in a pond, he will grow even larger. But, if you put him in the ocean, he won’t become a whale. There are natural limits to growth. Okay, he won’t like the salt water either.

If you put the little goldfish in a little bowl and then add more little goldfish on a regular basis, but not more water, what happens? The goldfish family quits growing all together. If you add enough additional fish, they get real skinny and pale and some of them start doing the inverted breast stoke.

The plan all along in the U.S. was to continue to add fish (people) to the bowl and we are reaching the “gettin’skinny and pale” part of the program.

Our leadership is confident that adding even more people to the mix will cure all of our ills, but it won’t. Instead it will result in each person living at a lower level of existence to the point of the inverted breast stroke act.

It is my opinion that we have reached the physical limits to growth for a false and unsustainable $14 Trillion economy. As we lose jobs in one sector, we may gain in another, but not enough. As, auto, airlines, housing, and the finance sector go down, where does it come up? Green energy jobs or government work programs? I think not.

Add to this the fact that emerging economies with billions of people are now competing for the remaining world resources and markets. . .and Leroy, we got us a problem.

If you believe our salvation is in accelerated growth and free trade with the most poverty stricken nations on earth, then you are probably a politician, an economist, or a Harvard MBA.

For the rest of us, I believe that we need to retrieve the $700 BILLION trade deficit that our business and political leadership has farmed out to the 3rd world and Communist China. We also need to make it illegal to be a lawyer or a Wall Street MBA.

Thirdly, we need to stop immigration immediately and stabilize our workforce and population to sustainable levels.

The other option is to go on believing “The Biggest Lie Ever Believed,” until you personally are practicing up for the inverted breast stroke.

Good Morning Middle America, your weekend addition of the King of Simple News is on the air.

As I attempt to give you a glimpse of the future, there are so many things spinning in my mind that it becomes difficult to pick a single subject.

I decided that gaining and retaining knowledge and perspective that focuses on the cause of our current demise is of the ultimate importance. We must be grounded in reality in order not to drift with the strong currents of television nonsense.

So then, a clear vision of the “cause” that brought us to this unfortunate juncture is necessary in order to find a solution. Therefore, I am re-running an article that I originally wrote nearly a year ago.

I have a 52 page booklet that I have read many times from cover to cover. The title is “The Chief Cause Of This And Other Depressions.” The author is Leonard P. Ayres, Vice President of the Cleveland Trust Company.

Mr. Ayres wrote the booklet at the request of Josiah W. Bailey, Senator, North Carolina.

The read is nothing less than astounding, the perspective, nothing less than amazing. I won’t bore you with the base content, as only deranged people like me enjoy the nuts and bolts of economics. I will however give you Mr. Ayres synopsis which states that certain guidelines should be adhered to, should the U.S. choose to avoid a repeat of 1929.

“Operating in a stable and predicable environment is the key to our economic woes”, Mr. Ayres stated. “That kind of fundamental stability is the product of the drab and un-dramatic exercise of national integrity and self-restraint.” In other words, we have already failed the first principal.

Following are the points that Mr. Ayers suggests would keep our economy on an even keel. He begins, “It involves persistent adherence to at least seven national policies.”

1. Peace, and the enduring prospect of peace.
2. A sound money in which both our citizens and those of other countries have full confidence.
3. Balanced national budgets.
4. A sound banking system, independent of political influence.
5. The limitation of bank credit to loans fully justified by the demonstrated earning power of the assets on which the loans are based.
6. The restriction of speculation financed by credit.
7. Such negative regulation of business operations as experience may have proved necessary to prevent abuses, dishonest competition, and exploitation, but with a minimum of positive regulation designed to control wage and price competition, or to favor special group interest.

Let’s grade our federal politicians on adherence to these seven policies. It seems that they have scored an F-, failing miserably in all seven policies and in fact, creating the exact opposites.

All of these polices suggested by Leonard Ayres are brilliant, but please go back and read number seven one more time.

What do you think of Mr. Ayres advice? Seems like he knows what he is talking about to me. It also seems that we wouldn’t be in this terrible predicament if we had followed his well thought principals.

Oh, did I tell you that Leonard Ayres wrote his book in 1935? Six years into the longest and most severe depression that this county has ever known.

So then is recession coming? Or is the “D” word rearing its ugly head? I’m going to assume that if you are one of the hundreds of thousands who have lost their jobs and homes in 2007 and 2008, that depression is already a fact of life.

When I originally wrote this piece, Ron Paul had thrown his hat into the ring along with the multitudes of others, to which I wrote, “Which of our candidates for President of the U.S. adheres to these policies? Which one suggests that we return to national integrity and self-restraint? Just one…Ron Paul. The others are still trying to figure out what went wrong in 1929.”

Amazin’ what a year can do for clarity isn’t it? I’ll leave you with the words of Dave Barry. “No matter what hurdles are placed in our way ─ somehow we always find a way, even in the darkest hour, to make things worse. It’s a miracle, really. You read about the events of one year and you think, ‘There is no possible way that human beings can get any stupider than that.’ Then you read what we did the next year, and darned if we didn’t pull it off!”

Good Morning Middle America, your King of Simple News is on the air.

It’s early Friday morning, it’s still dark outside, it’s late October, and in keeping with the Halloween theme, I’m going to continue to scare you to action.

It appears that world markets will continue to tumble as overnight futures are at maximum allowed lows. I won’t tell any additional unemployment or layoff stories this morning; we need to get past the symptoms and on to the root cause.

Exponential growth in a finite world is a mathematical impossibility.

That simple statement pretty much covers the entire reason that the global economy is melting down. It was never “if” we would reach a physical impenetrable barrier, it was always “when.”

When I wrote “The Biggest Lie Ever Believed,” I pointed out that genius had nothing to do with my blunt future predictions (which have now come to fruition), but in fact, 8th grade math and science had everything to do with the inevitable outcome.

You plainly can’t get five quarts out of a gallon container…unless you are an economist. Kenneth Boulding pointed out that anyone who believes that we can continue using finite resources forever without eventually running out, “is either a madman ─ or an economist.”

I believe that our economy has matured and that geometric growth is no longer an option. Oh sure, we’ll try to push water upstream, after all, the entire premise of our economic underpinnings are based on continual uninterrupted growth. But in the end, the second law of thermodynamics will have something to say about our fruitless efforts.

Ah yes, universal physical law; uninformed mans greatest nemesis. Sure we can make water flow uphill, generate electricity by burning coal, push a boulder back to the top of the mountain, but only by applying an equal or greater amount of energy than we produce. Daggone those physics anyway.

My vision of our economy peaking is very much like oil peaked; the new finds cannot outpace the diminishing production of existing recoverable resources. As entire segments of our economy fail, new sources will fail to create the necessary growth.

Our economy was designed around the impossible hypothesis of never ending growth. That is how we were going to finance our flamboyant lifestyles. That is what would pay for Medicare and Social Security fifty years from now. That is how Starbucks was going to continue to sell $5.00 per cup coffee. That is how we were going to pay for the brilliance of Wall Street and to support the millions upon millions required for their gambling habits.

A couple of days ago, Alan Greenspan, the world’s smartest financial mind said he was “shocked” when the system “broke down.” ” I still do not understand exactly how it happened,” he said.

Let’s question that last statement, Alan Greenspan had no idea that all of this was going to happen, and some dumb Indiana farm boy with a moniker like “The King of Simple,” not only did, but wrote it down two years in advance? That dog won’t hunt.

If you are a Middle Class American, our government has promised us the fifth quart of every gallon produced in the United States; as long as you pay taxes on it.

What happens to a nation and an economy when the very cornerstone of their future existence proves to be “The Biggest Lie Ever Believed?”

We will descend to the level of physical sustainability for our environment; a much higher level than mortal man’s mind will see to that.

So is there a way to lessen the blow? Of course, look reality right in the eye and don’t blink while we bring the $700 Billion trade imbalance back to America. Our leaders made a deal with the devil when they handed our livelihoods, our technology and our finances over to foreign interests and particularly to the communist Chinese.

Election Day is not far off. Unless an incumbent (at any level of government) has a staunch record for real reform, such as Ron Paul, vote them out. This is your final boarding call.

Good Morning Middle America, your King of Simple News is on the air.

Markets around the world continue to plummet as the whole ugly sham of exponential growth begins to reveal the growing cracks in the foundation.

European markets are following Asian markets lower, home foreclosures in the U.S. have spiked by 71% in the third quarter, unemployment benefits and medical benefits will soon run out for some 700,000 people and the layoffs are continuous.

Chrysler is closing another plant and laying off 1825 more workers and the news that the only thing worse than GM taking over Chrysler is GM not taking over Chrysler seems to be sound logic.

What I’m trying to say this morning is that we are in far more serious trouble than most of us would like to believe. Julian Robertson, the famed 76 year old investor, stated that we have entered what will be a 10 to 15 year recession. If you think Mr. Robertson has a bad outlook, James Kunstler, the celebrated author of “The Long Emergency,” believes that have entered permanent decline.

Alert reader, Billy b, sent me an article with the opinion of six Nobel Laureates as to their positions on the economic issues that we currently face. All of which recommend the immediate implementation of radical depression era tactics. Work projects, extended unemployment benefits, government immediately taking over healthcare and other radical government intervention into a problem that government leadership created.

The terrifying part of their academic suggestions was that while they are aware that the U.S. is in crisis, not one of them even suspicions the actual reasons why the U.S. is in crisis.

We are getting down to the fish or cut bait part of this program, so I may as well scare everyone to death with my darkest beliefs. I very much accept as true that our economy has reached zenith for the premise of exponential growth to continue. We have hit the proverbial wall.

If in fact I am correct and the physical system, which is finite, cannot be expanded beyond our current $14 Trillion consumption based economy. . .all future bets are off. “The Biggest Lie Ever Believed,” will have come home to roost.

All future assumptions that support the continuance of our entire economic underpinnings are predicated on exponential growth. Medicare, Social Security, government retirements, road construction and maintenance, etc. etc. etc….are all unfunded; counting instead on continual growth to provide the $TRILLIONS of forward booked debt

All things living reach maturity. We don’t say, “I was going to climb that mountain this year, but I think I’ll wait until I get younger.” Our economy is a living thing and I believe that it has matured. No other country in the world has ever reached the per-capita level of consumption of the U.S., as all have reached their physical limits prior to that point!

I am very much soliciting input on my theory, that no different than oil, our economy has peaked. That is not a good thing for a country who has literally bet the farm on the foundational belief that man’s gross ignorance could trump natural physics.

Let me hear what you have to say. If you agree, we have a lot of work to do. If you disagree and have a sound argument to support your counter position, you will make me one happy man.

Good Morning Middle America, your King of Simple News is on the air.

Finally some good news for stock holders in US pharmaceutical giant Pfizer Inc. as they reported third-quarter net profit that tripled from a year ago on strong international sales.

The Pfizer employee’s didn’t nearly as cheerful news as 11,000 of them received their walking papers. Pfizer has laid off 14,600 workers since January of 2007.

The drug company Merck, not to be outdone by the competition, says they will lay off 7200 folks that weren’t doing much of anything anyway. Yahoo announced yesterday that they will drop the hammer a full 10% of their workforce and Boeing reported that their profits are down some 38%.

Wachovia, the bankrupt bank that Wells Fargo and Citigroup were fighting over, (Fargo won but Citi is currently suing them) reported losing $29.9 Billion in the third quarter. Don’t worry about Wells Fargo, you are on the hook for the losses as government rushes to the rescue.

In the mean time, “Uncle Hank” Paulson promises to take strong action after already taking strong action with money that will be repaid by our great, great, great grandchildren. Our current deficit (shortfall for one year) will climb beyond a trillion dollars. Remember that in 1980, the entire National Debt was about $850 billion.

I continue to give the same advice, take major steps to get your house in order because the other shoe is about to fall. I remember a line from an old Western spoof when one Calvary trooper said to another, “Get down lower.” The other replied, “I can’t, my buttons are in the way. There was also the title from poet Roy MacSkimming, “Shoot low sheriff, they’re riding Shetland ponies.”

Take a low profile while you can do it under your own terms and that bring up a true story where hope to present the benefits of doing so. I was recently rereading a diary that was written by an old cattle rancher who ranched on the rugged Uncompahgre Plateau near my immediate area here in Western Colorado. His name was Oscar Huffington and he was born November 2, 1877.

As I read the diary each night, following the tough old cowboy through the early years, I realized that I was approaching the infamous year of 1929, the year of the stock market crash and the beginning of the Great Depression. I mentioned to my wife Cathy, that it would interesting to see what Oscar said about those terrible times.

When the diary suddenly ended some six years later on December 31, 1935, the word “depression” had never appeared in the text! The only indication that hard times were about, was the simple statement, “Cattle cheap this year.”

How could anyone possibly miss the Great Depression? The answer that I soon surmised from asking myself that question was that the Depression plainly didn’t affect him. His life was simple, his basic needs were self met, his debt was low, his grit was unrelenting, and he saw no reason to bring up something that he couldn’t do anything about.

I realize that this is not 1929 and that going to the mountains and ranching is not something that we are going to accomplish. However, I also realize that while Oscar Huffington saw no reason to even mention that the worst economic times ever to besiege this country were afoot; his fellow man in the cities were starving, standing in soup lines, and living on government handouts.

My friend Dave Mitchell recently noted that, “When times get really tough, we live on the resources that surround us.” He also added that, “Those who live on the 30th floor in New York City need to take a look around at their resources.”

In his book, “The Long Emergency,” James Howard Kunstler describes the unraveling of our current economy. It’s scary as hell. The worst part is that like my own book, it’s all coming to pass as the first part of this article demonstrates. Kunstler stated recently that he believes that we have less than 18 months before the collapse.

Is James Kunstler correct? I honestly don’t know, but it’s difficult to argue counter to the possibility that we have reached a mathematical impasse to grow this economy. We may well have reached maturity in that respect; as all things earthly do.

Live Simple, live well and live long. It’s your choice just as it was Oscar Huffingtons.

Good Morning Middle America, your King of Simple News is on the air.

I continue to point out that widening gap between those who promise that the bailouts are working and everything is hunky-dory and those who say we have just entered year one of a ten to fifteen year recession.

While my educated opinion agrees with the latter premise, the degree to which you are personally affected will be greatly influenced by your actions to prepare for one scenario or the other. Let’s look at an example.

If a hurricane is predicted to arrive by tomorrow afternoon and you leave the area today, the chances of the hurricane killing you are non-existent. If you determine that the hurricane may not pose a threat to you personally and hang around to see what happens….well, you get the picture. Could’a, would’a, should’a; but didn’t.

I’m intolerant of those who pretend that they have no control over their own lives, or their future, or their children, or their dog. The greatest freedom that we have in America is the ability to make personal changes. If you got yourself into a mess, get yourself out. Time’s a wastin’.

My motto (if you haven’t noticed) is to live simple and live well. If you are not already doing so, it is most probably because you are following convention. I contend that what most people really, really want is free time. Stress-free, free-time to be exact.

But the conventional lifestyle that is suggested on the TV ads does not add up to free time and darn sure not stress-free time. It adds up to buying happiness one purchase at a time by aquiring anything that we can get our hands on and paying for that happiness by means of compounding interest until we die. Bad plan.

Most people live with a false illusion that is propagated by incessant advertising that wails away every waking hour of our lives and promises that those who die with the most toys wins. BULL ROAR. Once a person buys into that concept, the true misery that accompanies such a preposterous belief is a self-fulfilling prophecy.

Buying things that you don’t need with money that you don’t have that is accompanied by compounding interest is a recipe for a life live poorly.

I once had a wise old gentleman ask me what I did for a living. I said, “Pretty much what ever I want to.” He smiled and said, “Keep right on doing that son, no man ever laid on his death bed and said, ‘I wish I had worked more.’”

It’s not what you make, it’s what you spend. Simplify your life while you can do it on your own terms. Make that hard right and exit the line of lemmings that are marching to the sea.

I predict that 100s of thousands of Americans will fail to make any changes whatsoever in their lives and will be caught up in this lengthy recession. What will they say? “There just wasn’t anything I could do about it. No one could have seen this coming.” A blind man on a fast horse could have seen this coming.

America in general doesn’t want to make any hard choices. We have lived “The Biggest Lie Ever Believed” for so long that we don’t question anything, but instead trust that transferring our individual obligations and choices, by giving government the ultimate authority over our lives, will make everything all better. “Better,” is not a word that comes to my mind as the final result.

Bought too much home or car? It isn’t our fault; government should have been there to protect us. Lived beyond our means and planned for the good life to continue for ever and ever? It isn’t’ our fault; government should have intervened. And, they will.

We haven’t begun to see intervention. Wait until unemployment skyrockets and the purposely induced ills of monetary inflation reach the hyper mode. We will see government intervention into our personal lives that few can imagine.

Step out of the lemming line now; take the dim path. Live Simple, Live Well, Live Free and Live Long. This is your final boarding call.

Good Morning Middle America, your King of Simple News is suited up for another exciting week in paradise.

I wrote an article a few days that described the reason that Americans don’t save. The short version is that inflation in the U.S. is greater than the savings interest rate. To compound the problem, the IRS does not take that fact into consideration and taxes you on the little interest that you do earn. Taken together, standard savings in the U.S. are effectively a net loss. The entire article “More Pain for the Middle Class,” can be viewed on the left sidebar of my blog site.

So then, if savings is a loss in the end, what’s a body to do in order to prepare for retirement and to save up for a purchase or down payment? The stock markets of course. By investing in the markets millions and millions of Americans have been able to participate in both the economic growth of the powerful U.S. economy and at the same time feel completely confident that their hard earned cash will eventually all be lost to white collar crime that is sanctioned by the best government that money can buy.

Those who lost their money in the 1929 stock market crash did so in nearly the exact same way that millions of people are losing their money today and that was by allowing habitual gamblers to use their money in a rigged game that is being regulated by habitual criminals (Congress).

The folks that determined in 1929 that the markets would come back were correct; they got back to even in 1952. If history repeats itself, those trusting individuals who are hanging tough can expect to be back in the chips by 2031.

The game is rigged folks; there is just no other way to do the math. To make matters worse, the same people who are running the crooked wheel have pitted the American Middle Class against the poorest people in the world in a contest best described as, “How low can you go?”

The same Congress that approves the one-sided foreign competition agreements also set the rules that control U.S. business. They tout the small business opportunities in the U.S. without explaining that our foreign competitors pay as little as $.35 (cents) per hour with little of no fringe benefits. This, while at the same time requiring Americans to follow entirely different rules.

In the U.S. we have Workers Comp, Social Security, unemployment insurance, wage and hour laws, OSHA, personal and product liability insurance, employee liability insurance, strict environmental laws, punitive accounting laws, paid vacation, paid sick leave, medical coverage, maternity leave, and taxes of so many varieties that I will not attempt to name them.

Millions upon millions of good American jobs have fled from this bogus trumped-up system that ties both of our hands behind our backs and then says, “American workers can compete with anyone in the world. We have the best, most skilled, most productive, most inventive workforce on the planet. . . other than having one leg tied to a tree.”

What is the “end game” to this whole mess? As our mathematically flawed system continues to deteriorate, ever desperate measures will be suggested by those that will benefit the most from attempting to prolong our day of reckoning with physical laws.

Here are just a few hints that we won’t have long to wait for those desperate measures to be announced:

“We will work to strengthen and modernize our nations’ financial systems so we can help ensure that this crisis doesn’t happen again.” ─ President George Bush

“We need a new global financial order. The European Union and the U.S. can make a difference together. This is a worldwide crisis that demands a worldwide solution.” ─ French President Nicolas Sarkozy

British Prime Minister Gordon Brown, who engineered a British bank bailout that inspired U.S. and European rescues, is proposing radical changes to the global capitalist system, including a cross-border mechanism to monitor the world’s 30 biggest financial institutions.

White House deputy press secretary Tony Fratto said in a telephone call with reporters that the president wants to make sure that reforms do not restrict trade, slow down trade liberalization or impede the flow of capital between nations.

Is this New World Order coming? If it looks like a duck, walks like a duck, and quacks like a duck . . . it’s most likely a duck. If it looks to you like there is no place in this plan for Middle America to survive, it’s because there isn’t.

Good Morning Middle Americans, your weekend addition of the King of Simple News is on the air.

I devoted quite a little ink to the subject of inflation when I wrote my book. America runs on oil and inflation, neither of which can last long term. America also operates on the belief that man can counter the cause and effects of physics, and in particular, the first and second laws of thermodynamics.

Putting all of this into a more scientific statement, “We’re all hosed.” The departure from reality that began in earnest in 1971 when the U.S. went off the gold standard has come home to roost. The very idea that we could inflate our way out of any problem is being shown for what it really was; moronic.

Ron Paul put it well in an interview yesterday when he said, “If inflation and printing money out of thin air can solve all of our problems, why not just print money and send it out for everyone to spend and no one will have to work?” That is in fact what the governments of the world are attempting to do.

My belief, and I’m gaining excellent company every day, is that the world monetary system is going to implode in the not so distant future. There are literally trillions and trillions of dollars or yen or kroner or deutsche marks around the world that are counting on collecting compounding interest each and every day. The word for that expectation is spelled, EXPONENTIAL GROWTH.

Now since exponential growth is also spelled INFLATION and more importantly spelled MATHEMATICALLY IMPOSSIBLE, then we can pretty much determine that something real bad is going to happen.

Of course, we could have determined that something real bad was going to happen in 1971 but, the overwhelming evidence that it wasn’t going to happen by 1972 made it a perfect plan for the “crisis management” discipline of our leadership both then and now.

Anything that can’t go on forever won’t. And it didn’t. I believe that we have passed the last exit and will run out of gas well before we reach the next possible jumping off place.

It’s easy to want to believe those who say, “Hang in there until after the election, it’s always like this in a big election year.” Why didn’t I think of that? I didn’t think of it and I don’t believe it because I’m semi-sane.

I’m going to point out a just a few of the minor items that will trouble the next few years of our new president whether it is Barrack Obama, John McCain or Mickey Mouse.

The first batch of the 78,000,000 baby boomers became eligible for Social Security this year. . . and there are 17 more years of them already lined up. In the next few years, all taxes being collected today will be required to fund Social Security and Medicare alone. The housing industry has totally collapsed; fewer homes were built this year than in 1945. The airlines for the most part are bankrupt. The banks for the most part are bankrupt. The auto industry for the most part is bankrupt. The Federal Government is for sure bankrupt. Eighty to eighty five percent of Americans are broke. The stock market and consequently our retirement funds are currently down some 40%. Our trade imbalance with the world is $700 BILLION per year and climbing. Americans have lost jobs each and every month for the past 9 months with no end in site, while some 100,000 immigrants enter the U.S. each and every month legally, looking for work. College educations have become so costly that the resulting employment can no longer justify the expenditure, while at the same time, many, if not most, of our highly educated jobs are being outsourced. We are fighting two wars and looking for more at a cost of American lives and $10 billion per month. And, we are running out of energy in a country where we are dependent on foreign nations for 70% of that use.

All of the former minor issues are the good news. The bad news is that man cannot and will not trump the laws of natural physics including the first two laws of thermodynamics by printing more money and growing our domestic population; which if you haven’t noticed, is the plan.

But, don’t let any of this worry you, it’s always like this in an important election year.

Good Morning Middle America, your King of Simple News is on the air.

Let’s see now, this is Friday and yesterday was pump day, so today is dump day for the gambling markets. Heck, there is nothing to this stock trading stuff.

As American’s everywhere are waking up to the very real fact that we have been in recession since last winter and that we will be in recession for the foreseeable future; our politicians are waking up to limousine service and a deluxe breakfast that you paid for.

As the Middle Class lose their jobs, their retirement, and their healthcare; politicians continue to collect their bloated pay, their sound retirements, and their first class healthcare benefits that you also pay for.

Many of those who read only the bought and paid for main stream news believe that all of this happened in the past eight years. They also believe that everything will miraculously straighten up after the election. They also hope to hear the “prancing and pawing of each little hoof,” when Santa Clause shows up.

We’ve got trouble folks, deep trouble. America will have to be totally reinvented should we ever hope to make it work properly again. To do so, we would have to throw out all of the politicians with the exception of the Ron Paul’s who remember how the whole thing is supposed to work.

The premier investor and financial mind, Julian Robertson, has called for an America who returns to our sound foundation of saving and thrift. I couldn’t agree more, there is simply no other way. But Mr. Robertson also said that government doesn’t want you to save, they want you to borrow. So if the only way to rebuild America is to save, how can we do that by borrowing?

The truth is that we can’t do either under our current or proposed system and leadership. It’s mathematically impossible and you know how I feel about the “exact science” of math. It’s not nice to fool Mother Nature or The King of Simple.

We know why we can’t continue to borrow, that’s how we arrived at the edge of this impending depression. But few tell us why we can’t save, so I’ll do the honors. To begin with, McCain and Obama promise tax cuts. Both are lying like a rug because both support continual bailouts by printing train loads of money that creates massive inflation.

Here is the definition of inflation from my book, “Monetary inflation is a kind of tax with which government - by expanding the money supply - transfers wealth from its people to itself. It also results in the transfer of enormous amounts of wealth from the hands of ordinary people to the hands of those speculators shrewd enough to take advantage of the price volatility inflation causes in the markets.” Any arguments with this definition at this point and time?

So then, both of the frontrunner candidates are going to backdoor us on taxes; big time.

So why is it mathematically impossible to save? The first minor drawback of inflation is the effect that it has on savings.

Americans are said to have the lowest savings rate of any industrialized nation in the world. The past four years have seen negative savings!!! The government pretends that they don’t know why this occurs, and blame the citizens for being fiscally irresponsible. In reality, they know exactly why Americans have low savings rates, because that is exactly how the system is designed.

Let me show you. I hate these complex math problems, so I’ve once more simplified the equation by applying my patented “Mikemathics.”

Say you put $1,200 in savings on January 1 of the current year, and let’s also say you have a better-than-average banker and are collecting a whopping 2% interest. At the end of one year, you will have amassed the unbelievable sum of $24.00 in interest, or a total of $1,224 in your savings account.

Let’s also say that government inflation figures show that inflation grew by 3% for the year (6% in reality, but then we don’t live in reality, we live in America, home of Fantasyland).

Taking the reported inflation into account, the purchasing power of your $1,224 would be reduced by 3%, or would be equal to $1,187.28. This is not the end of the good news. The I.R.S. realizes that you are benefiting from this exorbitant interest windfall, and, therefore, your bank is going to send you a statement indicating that you made $24.00 in interest, which must be added to your taxable income.

Just for grins, let’s say that you are in the lower tax bracket of 15% and have a state income tax of 5%, in which case your $24 would now be subject to a 20% tax, or $4.80. (When you make the big bucks, you gotta pay up).

The result is that the $1,200 that you originally invested in savings, after collecting interest, and now paying taxes, has $1,182.48 in after-inflation purchasing power, or $17.52 less than you started with! Now if that doesn’t make you want to save money, what would? The greatest fear of all government officials is that the majority of the voters will all wake up on the same morning.

The deck is stacked, it always has been. Wake up Middle America; this is your final boarding call, your future is leaving.

Good Morning Middle America, your King of Simple News is on the air.

Let’s see, yesterday was dump day for the markets, which means that this should be pump day. And, I see the bought-and-paid-for financial news is already reporting that inflation came in low as did the unemployment numbers. Hey, I think I just saw a pig fly by my window!

Why won’t the markets stay up? After all, aren’t the bailout looters operating in broad daylight where we can all see that they are creating…er, I mean, fixing the problems? I’m going take a wild guess and say that the more alert looters remember that we shipped our entire real economy to China, Korea, India and Japan. The last I remember, those countries haven’t returned the favor.

Some of you remember that deal when NAFTA and the WTO passed. American business, backed by the finest government that money can buy, really pulled one over on those dumb foreigners by trading our entire physical economy for a paper one. All we have to do in America is go to college and shuffle papers around while the remainder of the world has to go work. Wow, what a concept huh? Six figures and no heavy lifting!

No dirty factories, no hard farm labor, no boring technical schools, just sit back and enjoy the ride. Our government stole Greyhound’s thunder, sit back, enjoy the ride and leave the driving to us. We should have asked them why we were riding in a handbasket and why it was getting so hot.

Of course, there was one small problem, there is no such thing as an “information economy,” but don’t let a little item like that bother you. There’s no such thing as a $117 Trillion combined debt that can ever be paid and we have that too.

How do I know that there isn’t such a thing as an information economy? I have a whole stack of cookbooks that I carefully combed through and there wasn’t one recipe in there for preparing information. No nutritional values were provided for information, no daily requirement percentage for information, no mention of information at all.

Last week I did a radio program with Dr. Brian Czech, President of the Center for the Advancement of the Steady State Economy (CASSE). Dr. Czech has his Ph.D. in renewable natural resources and is a certified wildlife biologist. In other words, he decided to spend his life dealing with reality rather than say getting a degree in underwater basket weaving or political science.

Brian explained in very real terms that we traded off America for an economy that flatly doesn’t exist. Ya see, “an economy” would indicate that you could survive from the results of that activity. Check out your own cookbooks.

I can hear it now, “Mr. Chinaman, I have some information here that I would like to trade for a car and a 100 pounds of potatoes.” To which he answers, “Mr. Ignoramus, we got all the information we needed years ago. Take a long walk off a short pier.”

I have countless readers who have lost their jobs in tech, engineering, manufacturing, accounting, banking and the list goes on and on and on. Those jobs no longer exist in America. We have an information economy don’t ya know?

If we have no real basis for our economic underpinnings and if 80 to 85% of Americans are basically broke and if our industry has left this country and if we import some 70% of our energy and if our money has zero backing and if the FED is printing Trillions as we speak to bail out the rich and if 78,000,000 baby boomers are lined up to retire and expect Social Security and Medicare and if we are in a recession that is poised to last for 10 years. . . then why won’t the markets stay up? I just don’t see the problem; oh heck, I had my eyes closed and I’m in a comma.