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           If you believe George W. Bush and his neocons were arrogant during their first four years, wait until you see the second four years. There will be absolutely no checks and balances. Republicans solidly control Congress and the Supreme Court rubber-stamps neocon ideas. There are no checks and balances, this makes the next four years extremely dangerous. We see full steam ahead for Social Security reform or stock market investment of available funds that will increase our deficit by $250 billion a year. Energy reform is a major give-away to elitist oil interests. Tax reform could be constructive, we will see. We expect many more scandals, government, corporate and more from the securities and investment industry in general. George will watch the collapse of the American economy as debt devours our economy. When you have too big a majority in Washington, you have trouble, big trouble. Secrecy will be expanded far beyond anything seen in Nazi Germany or Soviet Russia. Spies will be everywhere. Iraq will become another Vietnam and chances are good that we will have a Selective Service draft. We will hear lots more about lack of patriotism and disloyalty to our leader who should be collecting garbage. Our journey will not be a pleasant one. Our President will continue to betray every constitutional principle he pretends to espouse. We believe the conservatives and liberals still just do not get it and they are still captive to elitist psywar.

            Our President has no idea how he will pay for his second term agenda as federal deficits run amok. There is no federal surplus of $5.6 billion like there was four years ago when he first took office. The President says he will see that the budget deficit is halved. Yet, the CBO says it now sees $2.3 trillion in accumulated deficits over the next ten years. We do not know about you, but we trust the veracity of the CBO. George is known for seldom telling the truth. That CBO estimated excludes the costs of wars in Iraq and Afghanistan and any more adventures that George and the neocons can dream up, such as nuclear war. Paying for all this is impossible. Next, we will have tax reforms, which will in fact be tax increases. George says he will impose spending discipline on Congress and spur economic growth to boast tax revenue. That will not work because if Congress cuts spending the economy will slow down. If Mr. Bush tries to borrow the money, it would be very detrimental to our already staggering deficit.

            Then, George wants to create Social Security Savings Accounts. There is no money in Social Security so he would have to take the funds from current cash tax flow. Analysts have estimated the ten-year price tag at $2 trillion.

            Bush then wants to make 2001and 2003 tax cuts permanent because they expire in ten years. That will cost another $1 trillion.

            The cost of the Iraq and Afghanistan wars this year is $100 billion. We do not even have figures on his domestic war against terrorism. All we know is, it is tens of billions of dollars and we have not caught one terrorist yet.

            There is a limit to which foreign investors will go with Bush’s profligacy and we believe that limit was reached last August. The foreign inflow of funds should continue to diminish and that means the Fed will have to buy and monetize debt, which is highly and immediately inflationary.

            The passage of Arizona’s Proposition 200, requires proof of citizenship when seeking public benefits or when requesting to vote. Government employees are required to report suspected illegal immigrants seeking public benefits or when registering to vote. Now maybe the state can force the Federal Government to remove these people from our country and send them home. The changes are already visible. In one federal Head-Start program two children showed up instead of the twenty registered. The Federal Government then informed the parents you do not have to be citizens in the Head-Start program and they returned to the school. A big battle is shaping up between Arizona and the Federal Government. The citizens of the state want the one million illegals sent home, but the Federal Government is the enemy of American citizens. They want to do everything possible to keep subsidizing these felons.

            Sometimes if you pray and wish hard enough, good things happen. The US is preparing to destroy Afghanistan’s opium poppy crop by air next spring. The program will be modeled from the program in Colombia. Hundreds of private security contractors and pilots will be hired to spray herbicides from low flying aircraft. Production of opium, as we reported some time ago, was up 64% last year. The program begins in February or March and includes targeting drug barons. The risk is that the eradication program could spark rural rebellion, increase support for the Taliban and damage the environment. It, of course, impoverishes the country.

            The Specter Amendment was passed in the $373 billion spending Bill, which allows religious minorities from Iran to enter the US. That includes Bahais, Christians, Zoroastrians and 25,000 Jews. Could it be that we are allowing these people refugee status because we are going to invade Iran? We do not know, but it is a reasonable assumption. These refugees will all be immediately put on welfare and federal handouts of all kinds. If elderly, they are financed to live happily ever- after off our taxes. We worked a lifetime for Social Security and these people waltz in and absorb the benefits. Since the Lautenberg Amendment was adapted fifteen years ago, 400,000 Jews from the former Soviet Union entered the country with the same overall benefits, plus many received funding to start businesses. Today, most of the recipients are non-Jews. A possible 1.4 million non-Jewish refugees could take advantage of the program.

The Dow is up because Wall Street believes they will be sucking in all that Social Security money. A government sanctioned give-away to Wall Street. It is not reality yet, and all Democrats and many Republicans vote against it. We are on record of opposing the idea. How will they make up the $250 billion a year they will lose in tax receipts? Where will the money come from? That is right, they will borrow it. Are we not in enough trouble already? How will government fund the $82 trillion in entitlement funds? This idea will push us straight into bankruptcy.