Greg Dority Discusses the Economy | Eastern North Carolina Now

    Labor Day traditionally begins the mid-term election campaign season and is a good point to reflect on what will happen in some eight short weeks. That there will be a Republican landslide across this country and our state is not in doubt. What will surprise many people is the sheer magnitude of this event.

    I can recall using the term "GOP tsunami" to discuss this wave back in February in an attempt to alert our candidates, supporters and neighbors to the unique opportunity this year presents. Salisbury, Lexington, Greensboro, Wilson, Goldsboro, Durham, Washington, Greenville and countless other venues at GOP meetings and Tea Party events I shared the hows and whys of this historic development. Many of our candidates took heed and in Napoleonic parlance, "stole a march" on their lumbering Democratic opponents.

    Now the stretch run begins for the final sprint to the wire and it appears North Carolina Republicans will gain 15 seats in the State House, seven in the State Senate and pick up two congressional seats. If the wave begins to expand exponentially, these gains will increase another 50 percent.

    Why is this going to happen? How can we sit here eight weeks out and so clearly see the funtry and our state are in the throes of a global economic collapse that accelerates each week. The Democratic controlled congress and state legislature have failed to recognize the deflationary nature of this event and enable further deterioration by clinging to their Keynesian mentality of the past. This crisis cannot be solved with more stimulus, more spending and more debt. The Democratic party is lining up our children and grandchildren in front of an economic firing squad that will destroy their futures and create an economic wasteland for decades to come.

    There are no central bank tools to stop a deflationary cycle once it
begins. So-called quantitative easing merely keeps zombie banks on life
support as they borrow artificial "money" (created on a computer screen and transferred to accounts electronically) from the government at close to zero percent interest so the banks may buy government bonds yielding 2-3 percent. These monies are not used to make loans to small business or to create new jobs but instead are used as an accounting sleight of hand to prop up stock prices and ensure bonuses are paid to top executives.

    The banks are insolvent because their liabilities exceed their assets. In an honest system they would be liquidated at market value, debt would be expunged and the economic cycle would begin anew. The Democratic congress keeps the banks propped up with stimulus spending and bailout programs that ensure debt will increase and strangle future generations. In the process they will destroy the currency -- the current bubble in Treasuries will end badly -- and the economic nightmare will grow.

    Meanwhile the people starve as unemployment is through the roof and more than 40 million Americans need food stamps to survive. If the currency is destroyed the food stamps won't be good anymore and people will be in the streets. The situation is that dire, and the American people are not stupid -- they know the Democrats in Washington and Raleigh are executing the middle class.

    These Democratic economic policies are nothing more than official cover for a massive looting of the country as the wealth is being sucked out of the nation before a final collapse occurs. Every day there is a new congressional scandal as another Democratic congressman is investigated for putting taxpayer monies in his pocket. The smarter ones just help enable the wealth transfer by ensuring the new money created never reaches the people and, "by the way, will you be attending Congressman so and so's fundraiser in Georgetown tomorrow night?"

    The people are not stupid, they are not fools. That is why they are coming to the polls to vote out every Democratic incumbent they can find on the ballot. That is why they are making phone calls, canvassing and organizing allies to take back our nation. Their failure to act will ensure the final crash and they know it.

    A deflationary economic collapse is not a pretty sight. No one living today has witnessed what happens when the "modern" economy stops working and wages, prices, real estate and retirement savings fall in value relative to the currency -- and nobody has any money. Except, of course, for the looters, who are sitting pretty and can buy up the entire country for pennies on the dollar.

    The Democrats have gambled on the ignorance of the American people and are about to lose big time.

    Greg Dority is a security expert practicing his craft on the international stage. Currently, Greg is running for the United States Congress, 12th District.