Those who run the market will likely check for technical or programming glitches.  These might be a contributing factor.  But, it appears that the larger issue is simply FEAR.  Fear of what?  Fear that the problems of Greece will spread to Europe and to the rest of the world, including America.  Ultimately, it’s really a fear that welfare state socialism will lead to economic bankruptcy.  In my book, America’s Economic War, I say several times that socialism always leads to economic bankruptcy.

Greece has been spending way beyond its capacity to create new wealth.  Greece’s debt is a staggering 113% of its GDP!  According to a recent article in The Wall Street Journal, “Greece’s predicament – like New York’s and California’s – is signaling loud and clear that the spend-and-tax economic model has hit the wall.”

Plus, Greece’s entitlement mentality has led to riots in the streets and even deaths.  People expect their government to provide for their needs.  They don’t seem to realize someone has to pay the bill.  Greeks don’t want to face austerity and citizens in other countries are reluctant to bail them out.

Most likely, the market has crashed because investors realize the Greek economic crisis might spread to Europe and to the entire world.  They also probably realize that America might face the same type of crisis soon, if our government doesn’t stop spending beyond our means.  America needs to cut spending, cut borrowing, and cut taxes to create economic growth and to get our own economic house in order.

The stock market crash is sending up a big red flag.  Socialism doesn’t work.  America needs to stop its descent into socialism.

Rather than eliminate bailouts of companies that are “too big to fail,” the current bill being debated in the Senate gives vast new powers to the government to regulate whatever companies it chooses to regulate; to determine how to regulate those companies; to determine what companies to give bailouts to; to determine what companies to close down entirely; to determine what creditors to pay; and, to determine how to pay the favored creditors.  Talk about power!  Talk about control!

With the proposed, new Consumer Financial Protection Bureau, the government also would essentially gain control over credit allocation across the economy.  In effect, the government would control the terms and conditions of financial products and services.  It could also decide certain practices were “abusive” and shut them down.  That’s tremendous control.  That’s incredible power over companies and consumers.

Plus, if you are an entrepreneur attempting to create a new business or one of those “angels” who help start-up companies, you will find new company-killing and investment-killing regulations in your way.  It’s been estimated by the Angel Capital Association that this bill would disqualify about 77% of current accredited investors.  Remember that start-up companies account for most new jobs that are created.  Indeed, although start-up companies make up less than 1% of companies, they create 10% of all new jobs.  So, the government will also exercise considerable control over new business ventures.

It’s fair to say the financial overhaul bill being debated in the Senate gives the government vast new powers to control America’s financial sector.  Just as the health care bill essentially nationalizes the American health care industry, the financial overhaul bill essentially nationalizes the American financial sector.  This is one more battle in America’s Economic War, a war of ideas and economic philosophies.  Yet, a war that profounding and directly impacts our freedom, money and lives.

My recent book, America’s Economic War, continues to become more and more prophetic as each battle plays out.

Article 1 Section 7 of the Constitition clearly states the process for a Bill to become a Law:  “Every Bill which shall have passed the House of Representatives and the Senate, shall, before it become a Law, be presented to the President of the United States …”  In other words, both the House and Senate must PASS a Bill.  Some have suggested in the health care “reform” debate that it’s OK for the House to “deem” a Bill to have passed.  This appears to be clearly unconstitutional under Article 1 Section 7.

Article 1 Section 8 of the Constitution limits Congress and its abilities to create laws.  There is no reasonable way to interpret the Constitution as permitting Congress to dictate that an American join a mandatory health care program.  Also, health care “reform” can’t be considered a constitutionally-sanctioned tax either, because it does not uniformly apply to all citizens.  Once again, health care “reform” appears to be clearly unconstitutional under Article 1 Section 8.

The “Right to Privacy” Principle.  If you believe Roe v. Wade is constitutional based on its application of a “Right to Privacy” principle, certainly all the various medical procedures and therapies covered under a potential government-controlled health care system are also covered under a similar “Right to Privacy.”  After all, if the government can’t place an “undue burden” on obtaining an abortion, how can the government place an “under burden” on obtaining a virtual colonoscopy or any other medical procedure.

Indeed, it seems to me that progressive socialists are faced with a real dilemma with health care “reform” and Roe v. Wade.  If Roe v. Wade is constitutional, health care “reform” is not constitutional.  If health care “reform” could possibly (and remotely) be considered constitutional, then Roe v. Wade must be overturned … a victory for Pro-Life proponents.  Hence, health care “reform” is unconstitutional under the “Right to Privacy” principle.

Economic Freedom.  From the perspective of Economic Freedom, health care “reform” clearly limits our freedom.  Patients will have fewer choices in health care insurance policies, fewer choices in doctors and other health care providers, fewer choices in medical procedures and therapies, fewer choices in available prescriptions.  Patients will also have little or no ability to make economic decisions by “shopping” for the most cost-effective health care products and services.

Doctors will have fewer choices in treatment options and pricing models for their patients.  Health insurance companies will have fewer choices in the policies and benefits they can offer as well as the pricing models they can employ to meet consumer needs.  With $500B in cuts to Medicare, seniors will have fewer health care choices too.  All Americans can expect less Economic Freedom, health care shortages, and rationing of health care products and services.

To summarize, the so-called health care “reform” currently being debated across America is likely to be found unconstitutional.  It also will likely and substantially reduce each American’s Economic Freedom.

In my new book, “America’s Economic War – Your Freedom, Money and Life,” I address this question very directly.  The Battle against a Free Market in Health Care (one of 47 major battles and 3 special battles covered in the book) is crucial for all Americans to understand.

The battle boils down to a battle for health care freedom.  Will Americans have the freedom to seek and get in a timely manner the level of health care they desire?  Will they be denied critical health care services or treatments?  Will health care bureaucrats dictate to all Americans what services or treatments they are allowed to have (as is done in other countries living under government-dictated health care)?  According to one source, wait times in Canada for emergency heart surgeries can be five to six weeks!

With a free market in health care (as opposed to the over-regulated and burdened market we have now), both health care and health care insurance costs will likely decline, innovation will likely increase, health care quality will also probably improve significantly.  The answer to sky-rocketing health care costs is not more government regulations, interference and control.  It’s a free market in health care.  (For more detailed information, please read: “America’s Economic War.”)

The Battle for a Free Market in Health Care is a battle for health care freedom vs. so-called health care “reform.”  In “America’s Economic War,” your freedom, money and life are at risk.

New taxes represents “capital consumption” or the transfer of wealth away from the private sector to the government sector.  This tax money is money that could have been employed by the economy more efficiently and with a much higher economic multiplier, if spent by the private sector (individuals and businesses).  The dollars lost in the private sector (due to new taxes) will not be directly available for much needed “capital formation” necessary for creating new businesses and new jobs.

New taxes or new jobs?  It’s important for Amercians to make the right choice.  We all want greater prosperity.  We all can sense the pain and frustration of families without income, when a husband and wife are out of work.  The tax cuts of the early 1920’s (Harding-Coolidge), the 1960’s (JFK), and the 1980’s (Reagan tax cut) are clear examples of how lowering taxes increase economic growth and prosperity.  Raising taxes now will hurt America further.

The debate over more taxes vs. more jobs is one more battle in America’s Economic War.  You can read more about other battles in my recently released book, ”America’s Economic War – Your Freedom, Money and Life.” 

America it’s up to you – more taxes or more jobs?

One thing worth noting about my new book is that it also shows how religion/culture, politics and economics are all closely inter-related to form an economic system.  The book specifically introduces Lameiro’s First Law of Economics and Socialism’s Chain of Control. It also presents and explains Lameiro’s Architecture of American Capitalism as the reason for American Exceptionalism.

So, my new book is really like two books in one – a nonfiction book about America’s Economic War, its dangers, strategies and battles plus an easy-to-read, economics book for citizens that discusses American Capitalism and socialism and why American Capitalism with its religious freedom, political freedom and economic freedom is far superior to socialism.

“America’s Economic War – Your Freedom, Money and Life” launches tomorrow (Thursday, November 5, 2009) and is available on Amazon.com and from other booksellers.

I think this book is a potential classic and I think it will be read by thousands of citizens for years to come.