A good economic analyst knows how to separate facts from ideology. That's not easy to do in an era that almost demands that the two fields collide. Last week, in the first part of a recent interview with globally respected economist Gerald Celente (pronounced suh-LEN-tee), he offered some insights on how a number of current economic issues affect Cedar Valley residents. Celente, a self-styled "political atheist," blames both major political parties for the current recession.

He brings forth more thoughts in the second part of the interview, which follows:

Q. What does the current health-care reform movement mean for small businesses? Large businesses?

A. It means more taxes, more burdens. It means taking more of the opportunities away from the entrepreneurial-minded Americans. The major reason Americans can't compete has more to do with tax and government policies than wages. Wages are a big issue, but taxes are bigger.

Here is a fact: There's not one element in the new health-care plan that's designed to improve people's health. It's only about transferring who's going to pay for what. It doesn't solve the problems. In fact, it worsens them.

Here's the reality: This is only going to help the same people who are being helped with our bailout money - the largest companies and biggest insurance companies and the biggest hospitals, and it's not going to help the smaller people.

Q: What will Congress do on those two controversial issues this year?

A: I think cap-and-trade will become reality, and so will some form of health care. They have the numbers to do it, and it's not going to do anything for health care; it's going to be redistribution of funds.

They're not taxing the rich; they're taxing the rising middle class. They're taxing growing companies and people who are moving up in the classes.

Q: What do others outside the region say when they see Iowa's unemployment rate 3 points or more lower than the national average? What lessons does Iowa have for other parts of the country along these lines?

A: Iowa has assets other parts of the county don't have. People in Iowa and the Midwest still live by the rules of Yankee frugality. They have not become over-the-top spendthrifts. I'd say if Iowa stays to its moral truth, they'll be able to survive better than anyone else.

Q: What is the likelihood of a second stimulus? What's your assessment of the efficacy of the first?

A: You never can tell. They come up with schemes on dreams and shove them down our throats. They say, 'We need a stimulus package because, if we don't, the financial world won't exist.' They'll be able to pull the wool over America's eyes. Look at how many people watched Michael Jackson's funeral.

Q: What's the best type of stimulus plan?

A: A new homestead act. Put people to work back on the farm. And we better starting putting our energy into saving the inner-city kids. Their minds are whacked out on drugs.

Q: What are the long-term effects of TARP?

A: There are long-term risks of printing phantom money out of thin air. It's going to create a bailout bubble that's going to crash the economy. They're devaluing the value of the U.S. dollar and America.

Q: Where are the credit markets headed? What about interest rates?

A: Interest rates are going to have to go higher. It could come into a serious situation if hyperinflation is created. We could go back to the Jimmy Carter-type interest rates. If there's a run on the dollar, they'rwe going to have to jack up interest rates.

Q: If the nation tends to vote with their pocketbooks, what will next year's off-year elections look like?

A: It will probably be more of the same. Republicans have no defense. Who are they going to put up as a spokesperson? Who do they have? We need a third party, which we call the Progressive Libertarian Party.