BEWARE OF COMPLACENCY

There seems to be a sense of complacency settling in on America.

Granted, there are a whole lot of us who are upset about what the government is doing with our money. The administration has responded with a barrage of tales about how everything is getting better and that massive campaign seems to be registering with a large segment of the population.

But, don't be fooled.

We've already been lied to so much since January that we realistically cannot believe a thing this administration is saying, except for some of the more audacious reports. Yes, terrorists now have Miranda rights. Yes, the government is paying some terrorists who are being relocated to other countries. Yes, the United States now provides free legal service to illegals who are caught, detained and lined up for deportation. Yes, we have now officially apologized to the world for 9/11. Yes, the government now owns and operates enterprises, banks, railroads, car manufacturing companies, and financial institutions. Yes, the Administration is demanding over $1.3 trillion for its new health care reform but, like Gitmo and TARP and endless other items... it has no plan.

But, everything is rosy, right?

What pushed this greatest economy in the world down the drain was a lot of misbehavior on the part of corporate America, assisted by the prodding and complacence of official Washington. But, the final push over the abyss was the sky-high cost of gas at the pumps that finally forced Americans to stay at home and quit spending.

Now that the economy has been ruined, gas prices are on the rise again and no one is paying attention to it. Prices in northern California have gone up 80 cents per gallon in the past seven weeks and are over $3.00 per gallon. The unemployed can't afford the gas at these prices to go and look for a job. In other words, another big push down the abyss is in the imminent making.

Quietly, more things are lining up against the country abroad as the new financial leaders of the world are coming to grips with the fact that America's great economy is in the toilet. Who wants to lend money to us when they are faced with the prospect that we will soon be in an inflationary trend as we print more money to try to meet our ongoing government expenses? Certainly, the prospect of lending us money that will only be repaid with new dollars worth half as much cannot be rationally considered.

All of this adds up to a renewed crisis that may have no end to it. And, when the market drops this time, it will probably hit the 5,000 level overnight.