Star One Smart Blog's

As in, we're living on the edge of a financial crisis that's getting ready to blow.

Our economy is so stressed there's nothing the U.S. Government can do to fix it.

No more wiggle room on interest rates. They've been lowered to combat the mortgage crisis, and to fight the specter of a recession.

Because we can't raise interest rates, inflation is roaring, riding the back of fuel costs that drive up...every other cost. Food, clothing, shelter, the basics of survival, all of these are directly affected by oil prices.

Federal Reserve Chairman Ben Bernanke...

Bernanke warned that the U.S. economy faces "numerous difficulties," that the outlook for inflation is unclear and that "financial markets and institutions remain under considerable stress."

President Bush...

"The president doesn't have a magic wand." He was answering a question about soaring fuel prices but his remarks seemed to sum up the government's overall predicament.

Budget deficits, skyrocketing. Stocks, down, and jittery. Freddie Mac and Fannie Mae (holding or guaranteeing 50% of our home mortgages) stocks are down 80%, and investors aren't selling bonds to finance new mortgages. That's not good news.

IndyMac failed last week. Police were called yesterday to tell people lined up outside a branch (since 1:00 Monday morning) to keep calm or their asses would be jailed. Bush, yesterday, on calmness...

"I happened to witness a bank run in Midland, Texas, one time. I'll never forget the guy standing in the bank lobby saying, your deposits are good. We got you insured. You don't have to worry about it if you got less than $100,000 in the bank. The problem was, people didn't hear. And there's a ... nervousness. My hope is, is that people take a deep breath and realize that their deposits are protected by our government."

Of $19 billion in IndyMac deposits, $1 billion won't be covered under FDIC guarantees. People should've paid more attention to the $100K ceiling that the FDIC imposes. Tough luck.

Bernanke...

"Financial stability is critical to economic stability."

Really, Bernanke? Who knew?

So into this mess steps the Democrats, ready to pick up the pieces and MoveOn.

Move. On. To what?

To what the leftists desire, of course. Move on to a more socialist sort of nation. With newly nationalized welfare (sorry, 'volunteer') programs, costly and unaffordable universal health care, and as-yet unannounced (but we know they're out there) programs and bailouts: amounting to a costly New O! Deal. We hear Baracky on the stump: a drumbeat of socialism, populism, and ever-flipping salesmanship.

Nothing new, but in today's troubled economic times, nearly everyone is ripe for populist picking. Democrats have always used the carrot of socialism to attract easy votes. Always. We are raising a generation of kids who believe the government exists only to respond to their 'needs'. They want not just a seldom-used safety net, but a permanent cradle and a warm blanket, forget any responsibility, just give 'em an easy life.

"And young Americans seem readier than older Americans to turn to government for the solution. Eighty-six percent say more government programs should help those struggling under the current economic conditions."

The Democrat's use of socialism to attract minority voters is working...

"Ninety-six percent of African-Americans and 88 percent of Latinos believe the economy is on the wrong track. Congress is not the only political institution that gets a share of the blame:. Almost 80 percent of African-Americans say the president is hindering their pursuit of economic security."

So, to pay for these excesses, we'll tax more of the 'rich'.

Make no mistake about it: Obama’s plan to raise taxes on households making more than $250,000 will raise taxes on most small-business profits in America.

What type of tax rate are we talking about? Currently, S corporations face a top tax rate of 35 percent, while sole proprietors and general partners face a tax rate of 37.9 percent (since they’re responsible for paying both income tax and the Medicare component of the payroll tax).

Under Obama’s plan to let the scheduled 2011 tax rate hikes occur, and his plan to raise the self-employment tax on those making more than $250,000, the S corporation rate would rise from 35 percent to 39.6 percent. The sole proprietor and partner rate would rise from 37.9 percent all the way up to a staggering 50.3 percent. Many Democrats in Congress have proposed making all small businesses (including S corporations) pay this 50-plus percent rate. A small business tax rate that high would be the highest marginal rate faced by them in nearly a quarter-century.

We'll see plenty of good businesses fail, and the incentives to start a new business..well, who wants to work anyways?

Just let someone else pay your way.

It's the New O! Deal.