An Intro to ‘The Unsustainable Trajectory of America’s Economy’


Intro By John R. Houk

Original post by Justin O. Smith

Intro © February 19, 2020

 

As a Conservative in 2016 I was a Cruzer (Ted Cruz). After Cruz’s mathematical elimination from winning the GOP nomination, only then did I support Donald Trump.

 

In my mind Trump did not fit my image of a guy that supported Christian causes such as Christian religious freedom, Pro-Life, Pro-Israel, Pro-Originalist Judges and Anti-LGBTQ (who desire the destruction of Christian morals in America. Trump early got on board with Conservative thoughts on illegal immigration and the craziness of importing American-Culture-hating Muslim refugees. That got my attention.

 

I’m a limited government, Balance the Budget, Bring down deficit spending guy too; but the above issues I listed are more important to me. Trump has delivered or at least worked hard in the face of Dem obstruction to deliver on my primary list of concerns (although Trump seems a bit wishy-washy on LGBTQ morality). Lately President is even vocally lining up behind pro-2nd Amendment issues.

 

For Conservatives that economics is a primacy, President Trump’s economic actions pertaining to Budget issues should be a huge waving red flag. Trump’s centrist perspective could produce big problems for America after a Trump second term in Office (YUP, I’m still voting Trump). Justin Smith effectively goes over those budget red flags.

JRH 2/19/20

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The Unsustainable Trajectory of America’s Economy

 

By Justin O. Smith

Sent 2/14/2020 10:38 PM

 

“The suspicions that the system is rigged in favor of the largest banks and their elites, so they play by their own set of rules to the disfavor of the taxpayers who fund their bailout, are true. It really happened. These suspicions are valid.” ~ Neil Barofsky, TARP Inspector General [Wikipedia info]

 

America is witnessing President Trump’s “I’ve abandoned free market principles to save the free market system”” moment, similar to former President George Bush on November 16th 2008 and the high-speed implementation employed by former President Obama in 2009, as Trump presented his 2021 Budget and a $4.8 trillion spending plan to the press on February 10th. It is a farce of a “budget”, since it doesn’t even balance until 2035, according to the Wall Street Journal, and it sells America a load of economic crap, that includes the same old out-of-control socialist spending, now adopted by the Republican Party too, minus the taxes, and certain to harm America; given the socialist trends in the ranks of the Millennials, the Democrats are certain to hold the White House during a few of these years and take full advantage of Trump’s lapse in judgement on this issue.

 

On January 18th 2020, the Washington Post reported: “To those who criticized his spending and the growth of the national debt, Trump said: ‘Who the hell cares about the budget? We’re going to have a country.’

 

For most of President Barack Obama’s time in office, Republicans seemed to care very much about the budget, making fears around the national debt and deficit their top talking point. They’ve backed off those concerns under Trump.”

 

President Trump’s proposal will run a near trillion dollar, $996 billion [Blog Editor: I couldn’t locate “$996 billion” figure nonetheless there are a plethora of sources predicting a near or over a Trillion dollar deficit for 2020; e.g.: fxstreet.com, MarketWatch.com, baynews9.com, cbo.gov and more], deficit next year, just as he did in the previous years of his administration, that is close to fifty-percent higher than the $666 billion deficit Trump inherited from President Obama in 2017. Federal spending will accelerate from $4.6 trillion next year to more than $6.5 trillion in 2030, and the proposed cuts to be made by Congress in this year’s budget are not significant enough to offset the recent spending increases Trump has approved since taking office.

 

And all of this with our national debt at over $23 trillion, rapidly on its way to $24 trillion.

 

Has America so soon forgotten the worse economic recession since the 1930s — the 2008 economic collapse and the collapse of fifty percent of the stock market — and the terrible risks banks and businesses took that created it? Not much has changed, because many of the financial markets proceeded, from the first day of the bailout, that followed, to the present, with the same exact risky practices. They know the government, essentially the U.S. taxpayer — the American people, will bail them out again, that is if there’s any money or credit line available for a bailout, which is going to be unlikely.

 

Midway of 2008, the United States’ national debt was approximately $9.4 trillion and right at 65 percent of the Gross Domestic Product. Consumer debt stood at $2.7 trillion, while the total credit market debt had peaked at $54 trillion. And mortgage debt was a massive $14.8 trillion, as the Federal Reserve balance sheet remained below $900 billion as it had for years.

 

Most logical minded Americans believed then and now that there is not any such thing as “too big to fail”, and they thought the regular bankruptcy laws could have handled the situation and allowed the crisis to settle itself. People understood that liquidating bad debt and expunging it from the system would reset the economy forcing corporations and consumers to live within their means and act conservatively, using debt wisely for real needs, and most of us saw that as the best road to take for America’s future.

 

AIG, Lehman Brothers, Goldman Sachs, Citicorp, Bank of America and several other “too big to fail” banks were bankrupt by September of 2008. They should have been liquidated through existing bankruptcy law, and their assets should have been sold to still reputable banks that had not undertaken fraudulent risks, that hit their investors with devastating consequences.

 

Nobody in 2007 would have ever forecast that the national debt would climb to over $23 trillion during the past twelve years, or that the national debt would be 105 percent of GDP, with consumer debt exceeding $4 trillion. The ruling class “elite” of both parties have had their propaganda machines operating at warp speed to convince Americans that somehow $1 trillion annual deficits are normal and sustainable.

 

Never underestimate the ability of this president, or any president, or any Congress and the Federal Reserve to take outrageous and reckless steps to convince America that the abnormal is really normal. One should always keep in mind the egregious $700 billion TARP bailout and the lies and threats Hank Paulson perpetrated in order to protect his billionaire pals, whenever one gives scrutiny to today’s events.

 

[Blog Editor: Articles examining Hank Paulson:

 

 

 

 

 

President Donald Trump promised to eliminate the national debt in eight years, and although I thought it was an impossible task at the time, I did think Trump might reduce spending quite a bit, along with reducing annual deficits. He was constantly haranguing the Federal Reserve’s moves to keep interest rates at an unsafe level, which created a stock market bubble and contributed to the exorbitant rise in debt; and, one would have thought that after experiencing one Federal Reserve induced market crash after another, the American people would have realized this gross rise in debt since the 1990s had to end.

 

But Trump’s relationship with the Truth is something far less than stellar, and for him, it is something to manipulate at the drop of a dime and to shift in content depending on the President’s immediate need and desired effect. And over the years, he has used this manipulation to bend Fed puppet, Jerome Powell, to do his bidding, after finding the Fed’s 2.25 percent rate increase too much to handle.

 

In July 2019, President Trump stated: “The U.S. economy would grow more quickly if monetary policy were eased. If we had a Fed that would lower interest rates, we would be like a rocket ship. We don’t have a Fed that knows what they’re doing. Our most difficult problem is not our competitors, it is the Federal Reserve. The Fed raised rates too soon, too often, and doesn’t have a clue!”

 

That’s quite contrary to what Candidate Trump was saying on the campaign trail in September 2016, when he stated: “They’re keeping the rates down so that everything else doesn’t go down. We have a very false economy (J. Smith: something I’ve stated for years now). At some point the rates are going to have to change. The only thing that is strong is the artificial stock market. The U.S. economy is in a big, fat, ugly bubble. I will get rid of the nation’s more than $19 trillion national debt over a period of eight years. I’m renegotiating all of our deals, the big trade deals that we’re doing so badly on. (J. Smith: And still are, i.e. USMCA)

 

Will the Real Donald Trump please stand up? It’s almost as though we have a president with multiple personalities, at least two at conflict with one another.

 

Trump’s proposed $4.4 trillion cuts to domestic spending, including $2 trillion in promised savings from entitlement programs, with some $844 billion cuts to Medicaid and $750 billion to Medicare spread over the next decade. With Congress unlikely to cooperate on this and Trump unwilling to spend too much political capital on it, this will probably fall by the wayside. After calling for fairly large domestic spending cuts in 2018, Trump still signed a deal in 2019 that added $320 billion in spending and demolished previous spending caps.

 

And even when Republicans controlled both the House and the Senate, they still agreed to a bipartisan budget that increased domestic discretionary spending in all government departments, especially the Pentagon. They essentially refused to cut the State Department’s and the Environmental Protection Agency’s budgets, so whether they follow through with cutting the EPA by 26 percent in this budget is anyone’s guess.

 

Ironically, on February 4th, when Pres. Trump was practicing his State of the Union Speech for twenty Republican supporters, former Congressional deficit hawk, Mick Mulvaney, head of the Office of Management and Budget, argued there wasn’t any need to mention the growing deficit, because :nobody cares” about it. That’s a one-hundred and eighty degree turnaround since he campaigned to earn his spot over the OMB and a time he made deficit reduction his “central policy concern.” Mulvaney’s change of heart seems to have coincided with the Republican Tax Cuts and Jobs Act.

 

And, on February 7th 2020, Vice-President Mike Pence told MSNBC’s audience that deficits can help boost economic growth, which proves beyond a shadow of a doubt that the Republican Party, or at least Trump’s Republican Party, has now seeming embraced socialist and Keynesian economics and notions on spending. This same argument used by Leftists across America used to drive Republicans to some great degree of anger, whenever it was stated by Obama and his staff.

 

[Blog Editor: Economics theory hurts my brain. Simplistically, choice in supply and demand good. Being told what, when, or able to buy – bad. To those of you who like to hurt your brain, here are some Mises Institute economics critical of Keynesian economics (article, audio, pdf-book & video):

 

 

 

  • The Critics of KEYNESIAN ECONOMICS; Edited with an Introduction and new Preface by HENRY HAZLITT; Published by The Foundation for Economic Education, Inc. – 439 page pdf on Mises Institute; ©1995 – Originally published 1960 by D. Van Nostrand Company, Inc.

 

 

 

Posted by misesmedia

88.4K subscribers – Jul 30, 2019

 

Recorded at the Mises Institute in Auburn, Alabama, on 18 July 2019.

 

Mises University is the world’s leading instructional program in the Austrian school of economics. Mises.org/MU19]

 

 

The federal subsidies are still flowing to the Repurchasing Markets at $100 billion a day, as they have since October, so corporations can buy back billions of their own stock, resulting in the artificially high stock market, the highest valuations since 2000. And in the meantime, the military is getting anything and everything it wants, as America continues to act as the World’s Policeman and our entitlement payouts are constant and on an unsustainable trajectory, as President Donald John Trump and all the feckless Congressmen in Washington, D.C. pretend all is well.

 

Despite boasts of the “Greatest Economy Ever”, record corporate profits, stock market the highest ever, lowest unemployment in history and the Federal Reserve balance sheet at $750 billion, approximately $150 billion lower than normal, and interest rates still at emergency levels, somehow the Federal Reserve feels compelled to cut rates and restart Quantitative Easing, although they are not using that terminology. Powell is taking Trump’s orders and acting in a way that is only ever seen during a recession or a financial crisis.

 

Several successive administrations have used every debt based solution for this debt based crisis in their attempt to avoid another 1930s style Depression, but essentially, they have merely ensured that the next collapse is going to be exponentially much worse than it has to be. And the angst and divisions in our society are only compounding the situation through a whispered promise of impending catastrophe that sweeps the existing social order away in a chaotic cataclysm of death and destruction and all-out war.

 

America’s future is being stolen and sold. The future of America’s children is being stolen and sold. America is being sold down the river, pillaged and raped, by the few at the top, the “elite” ruling class, at the expense of the American people, in an egregious manner that harms all society and America during the long journey ahead towards our eventual rise from the ashes of the coming economic chaos.

 

By Justin O. Smith

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BLOG EDITOR: I’ve apparently been placed in restricted Facebook Jail! The restriction was relegated after criticizing Democrats for supporting abortion in one post and criticizing Virginia Dems for gun-grabbing legislation and levying protester restrictions. Rather than capitulate to Facebook censorship by abandoning the platform, I choose to post and share until the Leftist censors ban me completely. Conservatives are a huge portion of Facebook. If more or all Conservatives are banned, it will affect the Facebook advertising revenue paradigm. SO FIGHT CENSORSHIP BY SHARE – SHARE – SHARE!!! Facebook notified me in pop-up on 1/20/20: “You’re temporarily restricted from joining and posting to groups that you do not manage until April 18 at 7:04 PM.”

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Edited by John R. Houk

Text embraced by brackets and source links are by the Editor.

 

© Justin O. Smith

 

No more RINO POTUS Nominations


RINO Alert

John R. Houk
© December 17, 2014
 
The Republican Establishment is beginning to slowly suggest their preferred candidates for the nomination of President for the November 2016 cycle. Honestly (and probably to the chagrin of Lefties) the only news I watch on TV is Fox News. And that network’s subliminal suggestions have been Mitt Romney and Jeb Bush. Both former Governors but both with long elements of Left Wing compromises.
 
I was extremely dissatisfied with the GOP nominating Romney for 2012. I did vote for him; however it was a between a rock-and-a-hard-place vote. I was any person but Obama voter. Romney has been indicating some stealth hints considering a 2016 run. God Forbid!
 
If the Republican Establishment succeeds in re-nominating for the 2016 election cycle, I am NOT voting for him. Neither will I vote for any Democrat. I will be voting for a Third Party candidate even if it is a wasted vote. The idiocy of the GOP Establishment of business as usual and the Dems Left Wing agenda are no choices for a fiscal and social Conservative.
 
Since I have experienced the idiocy of supporting Establishment candidates in 2008 and 2012, if the GOP nominates another alternative to Romney but with the same RINO credentials, I will not be voting for that person either. It is my opinion that Jeb Bush’s Conservative bona fides are suspect to be pro-RINO.
 
Now Jeb may not be as much as a RINO as Romney but he is probably enough of a RINO to perpetuate some of Obama’s America transformation. He would more than likely have a Dem-like immigration policy doctored up to fool voters, keep funneling money to Planned Parenthood funding abortion, abandon Christian morality in not fighting to reverse the courts mandate to allow same-sex marriage, remove everything Christian from taxpayer supported institutions, forcing Christians to do business with Biblically ungodly homosexuals under threat of a civil suit, increasing the deficit, keeping Obamacare rather than more Free Market medical reforms and on and on.
 
I’d have to do some more exploring into Jeb Bush to pin down some exact criticism rather than suspicions. Michelle Malkin has a good start toward a Jeb examination. Ironically I found this Malkin opinion piece in GOP USA. Perhaps that is an indication that GOP USA is not an Establishment dominated tool of the Republican Party.
 
JRH 12/17/14

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Jeb Bush: The U.S. Chamber of Commerce’s Waterboy
 
By Michelle Malkin
December 17, 2014 6:55 am
 
Allow me to unite America’s left, right and center in just three words: No, Jeb, No.
 
Former GOP Florida governor Jeb Bush made the obvious official this week when he announced on Facebook that he’s “actively exploring” a 2016 White House run. Of course, he’s running. That’s what inveterate politicians do.
 
Well, I hate to break it to Jeb Inc. There’s no popular groundswell for Bush Part III. None, zip, nada. Independents, progressives and conservatives are all weary of the entrenched bipartisan dynasties that rule Washington and ruin America. Only in the hallowed bubble of D.C. and New York City elites does a Jeb Bush presidential bid make any sense.
 
Jeb’s indulgent (and ultimately doomed) enterprise has three privileged constituencies: Big Business, Big Government and Big Media. This iron triumvirate explains how the failed campaigns of so-called “pragmatic,” “thoughtful” and “moooooderate” liberal Republican candidates such as John McCain, Jon Huntsman and Bob Dole ever got off the ground. The “Reasonable Republican,” anointed and enabled by the statist Big Three, serves as a useful tool for bashing conservatives and marginalizing conservatism.
 
For Republicans who argue that Jeb is the most “electable” choice, I ask: What planet are you on? After two disastrous terms of Barack Obama’s Hope and Change Theater, the last thing the Republican Party needs is an establishment poster child for Washington business as usual. I mean, really? A third Bush who’s been working for his dad, his dad’s friends or the government since 1980?
 
A Beltway-ensconced scion so chummy with the Clinton family that he awarded close family friend — and potential 2016 nemesis — Hillary a “Liberty Medal” last year as chairman of the National Constitution Center?
 
That’s the GOP donor bigwigs’ “fresh idea” for “American Renewal?”
 
To blunt criticism from the grassroots base on the right, Jeb’s cheerleaders at the Wall Street Journal cite his “conservative” gubernatorial record of cutting taxes and privatizing jobs. So we’re supposed to swoon when a GOP governor acts like he’s supposed to act on standard, bread-and-butter GOP issues? Whoop-de-doo.
 
One thing Jeb’s promoters won’t be emphasizing: Over the course of his eight years in the Florida governor’s mansion, government spending skyrocketed. The libertarian Cato Institute notes that Florida general fund spending “increased from $18.0 billion to $28.2 billion during those eight years, or 57 percent” and that “(t)otal state spending increased from $45.6 billion to $66.1 billion, or 45 percent.”
 
Like big-spending father, like big-spending big brother, like big-spending second son and lil’ brother.
 
I have another interpretation of Bush’s “conservative” Florida years: It’s called biding his time. Yes, Jeb put in his obligatorily GOP service on taxes and the Second Amendment. Not because he was wedded to deep-rooted principles, mind you. But because the “conservative” facade will come in handy during the primaries when he has to defend radical, divisive positions on his two defining national policy issues: Education and immigration.
 
Jeb Bush’s agenda is neither left nor right. His agenda is the agenda of the D.C. headquarters of the U.S. Chamber of Commerce. Remember: The chamber is a politically entrenched synod of bipartisan special interests. As I’ve said before, these fat cats do not represent the best interests of American entrepreneurs, American workers, American parents and students or Americans of any race, class or age who believe in low taxes and limited government.
 
The chamber’s business is the big business of the Beltway, not the business of mainstream America. And so is Jeb Bush’s.
 
The Chamber supports mass amnesty for cheap, illegal alien workers. Jeb Bush supports mass legalization of cheap, illegal alien workers and accuses those of us who oppose it on constitutional, sovereignty, security and fairness grounds of lacking “compassion.”
 
The Chamber supports the top-down, privacy-undermining, local autonomy-sabotaging Common Core racket. Jeb Bush spearheaded and profited from Common Core — and accuses those of us who oppose it of opposing academic excellence for our own children. Jeb’s problem isn’t just Common Core. It’s that he has no core. Instead of retreating from the costly federalized scheme that has alienated teachers, administrators and parents of all backgrounds, Bush has doubled down with his Fed Ed control freak allies and corporate donors.
 
The reign of Obama ushered in massive cronyism, corporate favoritism and Boomtown boondoggles galore. We’ve lived too long already under the boot of arrogant D.C. bureaucrats who’ve exploited their power to serve their friends.
 
No more business as usual: Stop Jeb Bush.
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No more RINO POTUS Nominations
John R. Houk
© December 17, 2014
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Jeb Bush: The U.S. Chamber of Commerce’s Waterboy
 
Michelle Malkin is the author of “Culture of Corruption: Obama and his Team of Tax Cheats, Crooks and Cronies” (Regnery 2010). Her email address is malkinblog@gmail.com.
 
COPYRIGHT 2014 CREATORS.COM
 
 

That Which Makes America Good is Dissipating


Lady Liberty Drowning in Decay

John R. Houk

© February 27, 2014

 

Governor Jan Brewer of Arizona vetoed SB 1062 designed to keep people of faith – particularly Biblical faith – from being sued by exercising their First Amendment Right to Religious especially against the abomination of the practice of homosexual specifically condemned by the Word of God in both the Old and New Testament.

 

Why?

 

Homosexual Activists have essentially been successful in convincing Americans that homosexuality must be accepted even though God Almighty forbids it. This tells me that Secular Humanism has become so pervasive in our society that a majority of Americans are convinced that human desires are better to be satisfied than the will of the Creator that gave His only begotten Son – God emptied of Divine prerogatives to become the only sinless man – to Redeem humanity back to the path of Oneness with God that Adam experienced before he separated himself from God’s Presence by believing and allying with the Deceiver – Satan – by eating the forbidden fruit of the Tree of Knowledge of Good and Evil.

 

Sins deemed by humanity to be harmless matters of choice is basically the worship of creation rather than worship of the Creator. Hence as in the days of Noah, humanity has no fear of any consequences by openly disregarding the statutes of the Creator.

 

Jan Brewer had good reasons to veto SB 1062. NONE of those reasons had anything to do with the direction and guidance of God Almighty. Rather here are a few of the obvious reasons dispensed by intense human pressure:

 

The marketing revenue that would flow in Arizona was threatened by both Major League Baseball (MLB), National Basketball Association (NBA) and the National Football League (NFL).

 

  MLB:

 

 “As the sport of Jackie Robinson, Major League Baseball and its 30 Clubs stand united behind the principles of respect, inclusion and acceptance. Those values are fundamental to our game’s diverse players, employees and fans. We welcome individuals of different sexual orientations, races, religions, genders and national origins.

 

“MLB has a zero-tolerance policy for harassment or discrimination based on sexual orientation, as reflected by our collective bargaining agreement with the MLB Players Association. Accordingly, MLB will neither support nor tolerate any words, attitudes or actions that imperil the inclusive communities that we have strived to foster within our game.”

 

The Seattle Mariners issued an individual statement prior to the veto too, and it had an ever stronger call to action than MLB’s:

 

“The Seattle Mariners have enjoyed 37 years of spring training in Arizona. Our fans flock to Peoria for baseball in March, and have always been made to feel welcome by the businesses and good people of Arizona. This should apply to all of our fans. The Mariners respect and value diversity. We welcome fans of all races, colors, religious beliefs, nationalities, ages, and sexual orientations. We believe that intolerance has no place in our game or society. Unfortunately, Senate Bill 1062 sends a message that not everyone is welcome. We hope Governor Brewer will reject that message.”

 

NFL:

 

While no overt threat was made to yank the Super Bowl, it was clear the NFL was watching Brewer.

 

“Our policies emphasize tolerance and inclusiveness and prohibit discrimination based on age, gender, race, religion, sexual orientation or any other improper standard,” NFL spokesman Greg Aiello said in a statement before the decision.

 

“We are following the issue in Arizona and will continue to do so.”

 

NBA:

 

Both of Arizona’s professional basketball teams [the NBA’s Phoenix Suns and the WNBA’s Phoenix Mercury] publicly called for a veto.

Large Corporations Pressure Governor Brewer

 

JP Morgan Chase

 

Go Daddy Group

 

Apple Computers

 

PetSmart

 

American Airlines

 

Southwest Airlines

 

Delta Airlines

 

Intel Corp

 

This list does not include large Arizona businesses and large business associations AND since the above article was written yesterday probably more Corporations were added.

 

Republicans in Name Only (RINO) and Establishment Republicans:

 

o   Senator Jeff Flake (R-AZ)

 

o   Senator John McCain (R-AZ)

 

o   Mitt Romney (R- President Nominee 2012)

 

o   Steve Schmidt, former John McCain Senior Campaign Advisor

 

o   Matthew Dowd, Former George W Bush Campaign Strategist

 

o   Mike Murphy, GOP Political Consultant

 

o   Bob Worsley (R – State Senator initially voted for SB 1062)

 

o   Adam Driggs (R – State Senator initially voted for SB 1062)

 

o   Steve Pierce (R – State Senator initially voted for SB 1062)

 

The Power of Homosexual Activism

 

Peter LaBarbera of Americans for Truth About Homosexuality (AFTAH) provides insights of the kind of Homosexual power/mafia-style oppressive measures by Homosexual Activism that is involved in pressuring Governor Brewer:

 

o   Which Will Triumph in Arizona (and the USA): Freedom or ‘Gay’ Tyranny?AFTAH; 2/26/14

 

o   ‘GAY’ POWER VS. RELIGIOUS LIBERTY;” WND.com; 11/29/13

 

 

Everything to do with power and influencing Americans from the Media, Political Power and Left Wing Secular Humanism such as Homosexual Activism; has SILENCED Christian morality in America. We live in a day that the very evilness that took over and essentially condemned the people of Canaanite heritage become displaced by Divine Ordinance that enabled the fruition of God’s Promise to Abraham for a family heritage that Believers’ in the Bible call the Promised Land, the Holy Land, the Land of Israel and so on (by the way NOT Palestine).

 

Don’t believe the fullness of the times of the Gentiles has completely arrived yet or the Pax Americana will have begun its collapse. I don’t know, maybe Americans are at the beginning of that collapse and is just awaiting the history books or the Return of Christ to record the end of the USA.

 

AND I haven’t touched on America’s Left Wing activist judiciary that has recently (again) affirmed the homosexual debauchery as normal in Adam and Steve or Adriana and Eve marriages.

 

JRH 2/27/14

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Blog Editor: Here are some related articles that may be of interest at the end of this post on SlantRight 2.0.