Budget D-Day on Friday, May 14

Gov. Arnold’s May revision of his budget looks to be less fictional than his January offering. Is Arnold giving up the fiscal fantasies that have consumed him lo these past five years, and gone back to the near-realism of his first two years in office? We’ll find out Friday.

It may be that Arnold, who maintains ties to his European faterland, is well aware of the fiscal tsunami that is washing over Europa, and soon will wash over America. It’s going to be nasty, folks. The Bush Depression is not over yet, but is picking up speed as the Bush-Obama Depression.

The “recovery” we supposedly are “enjoying” now is because Obama and the Federal Reserve Board are flooding the country with made-up money. That’s why the price of gold keeps going up — meaning the value of the dollar is going down. To prevent a Weimar– or Zimbabwe-style hyperinflation, the Fed will have to stop printing so much money and raise its artificially low interest rates. Doing so will crash the economy hard, as happened back in 1980-81.

The key thing to look for in Arnold’s May Revise is what he says U.S. economic growth will be the next year. Anything above 0.00 percent is a fantasy. There’s no real growth now. And there won’t be for a year or, probably, several years.

Instead of the federal goverment’s made-up numbers, check the real GDP and unemployment and inflation figures at Shadowstats.com.

— John Seiler