Saturday, January 31, 2009

It can't be that simple,can it?

Most of the focus floating around the stimulus seems to try to simplify it down to the right wanting tax cuts vs. the left trying to spend our way out of the recession.I don't see it that way.I don't think the left has any conviction to spending as a viable recovery option.It simply is a way to enact their agenda of expanding their voting base.This isn't a battle of Austrian economics vs. Keynesian economics as so many contend.By expanding the lower class,they hope to lock in a larger block of guaranteed voters that's all.Let's call it the dependent class vs. the supplier class.The rich support the poor.Nothing complicated here.

Clearly,when you study the details of the stimulus bill,you won't find anything related to an economic solution.So the question becomes not whether the left solution is superior to the rights,rather can the left sell a Socialist agenda as an economic package at all.If the left can just get past this little irritation of reviving the economy,they can focus on their entire agenda of saving planets and rights and the various causes they latch onto.As always in politics,the show that's seems to be on the main stage is really just the sideshow.

By the way,I've loved watching Ron Paul hit the circuit hard lately on all outlets making his case on monetary policy.The befuddled looks of the interviewers as they try to comprehend what he's saying is quite funny.The MSNBC panel was just dazed and confused trying to absorb it.

Should be a real gut check for the GOP this week.Will the Senators keep up the hard line with the House and vote party lines?Will a few cross over and save Obama's bi-partisan pledge?It will really determine the direction of the party for the near future.With the election of Michael Steele who was the most moderate choice as chairman,you'd tend to lean towards compromise.If they embarass Obama now,will they be shut out totally?They have failed for years now to have the convictions of Conservatives and you see the separation.The challenge has been made by the Conservatives to get on board with them or try to pander to Obama to be relevant for the next 4 years.They already caved in once on the TARP bill after making their stance,so this would seem to follow that trend.

It all boils down to a battle for votes,that's all.The stimulus debate is really just about securing a larger base for the left.I have already posted that the right is missing the target on their message.The Conservatives believe they just need to stand on principle and the stars will align.Whoever can tie the state of the economy to the fault of the other side better will prevail.More to come...

Thursday, January 29, 2009

How to increase your budget without money!

I'm jealous to say the least.It's tax time so I'm doing the usual annual review of appropriate financial issues.I wish I could do what Obama is doing.He's increasing the annual Federal budget by at least 1/3 without any additional income.We had approx. a $3 trillion annual budget.With the stimulus getting rammed thru Congress,he's tacking on another trillion.Welcome to the $4 trillion dollar annual budget because the social programs will be permanent and require annual funding.So yes,the taxes are guaranteed to skyrocket because you can be certain spending won't be cut.

I'm well aware that nothing will stop the stimulus from passing and that no matter how much information is exposed to the public,they won't stop it.I'm now thoroughly convinced that the right doesn't get it.I constantly hear them say they just need to stick to the Conservative message and not compromise any longer.This will win elections again.They are reading the public wrong.Sure,you'll get the Conservative base with that strategy and a good candidate.But just study the demographics of our expanding population and where the youth vote is going.They buy into the Liberal sales pitch.They have agendas early on with causes and social consciousness.The school system is controlled by Liberals and the curriculum has been progressively altered over the years to reflect this.If you're not reading your kids textbooks,you better start to see what revisionist history looks like.

They now have the White House,own Congress and will tilt the judicial system in the years to come.Obama has several trump cards to play including his race and it's historical implications,the war in Iraq,the conveniently timed economic meltdown,etc.This will give him carte blanche to enact the entire Liberal agenda under the guise of saving us.

I don't think you can just lay out the Conservative message and get the majority to agree it's the best option.They want their freedom of choice.They are empowered to question everything.They fell they are entitled to everything.They feel the need to protect everything.They don't believe a 232 year old document reflects today's society.Pragmatism rules today.

You don't hear anyone saying this.Someday you will when they realize they can't win with the old game plan.They will have to show why capitalism is superior to Government control.If you don't hold that view,it's not as clear as you think to the unwashed.And the task will only become more difficult as reliance on Government is going to increasingly higher levels.More to come...

Tuesday, January 27, 2009

Double vision

Which is real and which is Memorex?Bush stated he had to violate his free market principles to save capitalism.Huh?The global warmers,I'm sorry now they're the climate change crowd,say that the severely cold winter is proof that global warming is happening.Huh?Obama issued his directive not allowing lobbyists in his administration and then issued a waiver the very next day.Huh?When Congress doesn't raise taxes as much as they said they would even though it's still a tax increase,the Liberals call it a tax cut.Huh?Increasing the Federal debt to fund social programs and more Government jobs is called an economic stimulus package.Huh?Obama has promised the most transparent administration ever and won't even release his birth certificate.Huh?

It's a full-time job reading between the lines and separating fact from fiction.But that is the intent,isn't it?Keep everything fuzzy enough to get agenda's rammed thru.Pay close attention those of you jumping in head first with the Obama "believers".His true agenda won't jump up and smack you,you'll have to really uses your senses to see it.More to come...

Monday, January 26, 2009

Barack Obama-Hood

The only question is how closely related to Robin Hood he will be.The lovers say look,he's bringing in Republicans for his cabinet.The haters say look at his voting record,his personal radical associations and who he has to work with in Congress.I say Socialist-duh-since that's what people voted for.Many don't realize they prefer Socialism.You might hear somebody accuse the IRS of wealth redistribution,but that's it.Hello,virtually all outlays from the Government are wealth redistribution since Congress redirects receipts to what it decides.The buzz on earmarks is silly.Whether they specifically put it in the bill language-an earmark-or discreetly designate it thru various other methods,what's the diff?It's still pork.Even dedicated payroll tax deductions like SS and FICA have their surpluses dumped into the general fund where they can be spent on anything.So stop already and call it for what it is.

I find it quite sad to watch the American public get sold this bill of goods under the guises of stimulus or bailout.Nationalizing the sectors of our economy little by little.I won't get on board with the New World Order crowd in that it's a secretive concerted effort by the Illuminati to take over the world by controlling the money.I just think the Socialists have some common ideology and methods with make it appear so.Most contributors to advancing Socialism aren't acutely aware that this is occurring.I don't see all the "bad" liberals meeting in back rooms discussing how to take over the world.It just coincides with their agendas.

Just look at Obamas paybacks to his supporters so far.His first priorities have been Gitmo,gay marriage,emissions standards.In the next weeks we're certain to see much more of the Liberals social agenda being addressed.The welfare/debt package,some call it stimulus,is a slam dunk.Bank bailouts?Much,much more headed down that hole.With willing suckers seemingly limitless,he has the free pass to enact whatever he wants.It will be a long time before Americans come to realize what fools they were.They will be firmly entrenched in their Government dependency by then.The Liberals are masters at convincing people that this is a good thing and should hold power for a long time.More to come...

Saturday, January 24, 2009

The American voter is 100% at fault for all of it!

Yes,it's you.You are to blame for everything that's wrong with this country.President Garfield called you out over 100 years ago.Research it.He stated that what happens in Congress is representative of what you are and what you want.It's true.They are you're elected "representatives" voting on legislation as you have directed them to.Because if they weren't,you wouldn't re-elect them.Right?

Just as any addict must come to grips with the fact that they need help,you as a voter must accept that you are responsible for the current mess and only you can change it.Sounds silly maybe,but so many voters,or worse,non-voters that just complain,throw up their hands at the actions of politicians.Most likely,you have aligned yourself with your party of choice and just vote the party line.Most voters do this.So this is how Congress votes.A good bill may come up for vote loaded with earmarks,but it gets passed because the initial idea was good.You vote this way,so why shouldn't they?

The party hardliners will tell you to stand on principle and vote this way.Any Republican is better than any Democrat and visa-versa.Or maybe you're the worst of all.You're ignorant.You vote for good looks or a good speaker or sounds honest or some other ridiculous premise.

I've heard it proposed that we should have a voter eligibility test to see if you're intelligent enough to cast a vote.Nice idea,but we can't go there.The right to vote for all Americans is too important to go down this road.

I see it as the establishment failing.Talk radio,investigative journalists,editorials,bloggers,etc.Take your pick.Your message isn't connecting.We are reforming into a 2 class society.The upper supports the lower.Simple fact.The Democrats have been more successful in their quest to establish the permanent,Government dependent lower class that will keep them in power for as long as this holds true.When you examine the stimulus in detail,the social programs that will benefit will strengthen this stance.

Add-in the dividing Republican party.The Conservatives are separating themselves very publicly.Yet,they can't and don't want to divorce.Then everyone loses.I think their premise is flawed.They believe if they stand firm on Conservative principles,the masses will come back.I disagree.Do you really think that an entire segment of society that will be dependent on Government programs to survive would be willing to give them up to become accountable and self-reliant filled with pride?Silly talk.

This problem is entrenched from the liberal run education system up.You will have to address this from the ground up and it won't be quick.A bad economy only makes it worse as Government can more easily sell compassion and the myriad of social programs designed to enslave people.When you layout the alternative of Conservative principles,this will require eliminating the very programs they rely on.

If you were planning a society,it would be easy up front to see why Conservative principles and a free market economy make more sense.Limited Government.Less involvement in your life.The greatest amount of freedom possible.Who wouldn't choose this scenario?But we aren't in the planning stages.And getting back to square one is not so easy.

We just witnessed once again that attacking the Democrats on character doesn't work.Obama was elected anyway.And the parade continues with his appointments with not just character issues,but criminal activities exposed.They get confirmed anyway.It's not a hard concept.Ask an unemployed guy if he's wants a free lunch or can work today for the same thing.I'm sorry,but the majority will take the easy road.And that speaks volumes about where our country is today.

You must fix the education system and family values to make self-pride rise up.This country was founded on the Constitution and Christian family values.We need a society much more reliant on churches and charities to remove Government as the crutch.People have to realize from the own ingrained values that they don't want Government to be the central figure in their lives.If you don't have that set of beliefs,it's far too easy to buy into the sales pitch the Liberals spew.The road will be long and hard,but well worth the effort.Get to work!More to come...

Obama OK's murder of children and the economy

As expected,Obama has signed off on Government sponsored,and paid for,murder of unborn children.I know,if you're an abortion supporter,I certainly won't change your mind.I wouldn't expect to influence someone without morals or values.If you are undecided,you may think both sides are extremist in their views.I would just ask that you study up on the exact procedure involved in partial birth abortions,which Obama also favors.If you support that,you and I are so far apart it's not worth discussing.

Pay attention to what the Treasury is up to.They post some information on their website,not all the juicy details of course.Their balance sheet is reflecting the huge differential in 1 year that commercial paper is now backing their assets.This commercial paper is the same volatile,risky debt such as consumer credit cards and car loans that has brought down the biggies on Wall St. recently.This may not affect Joe Blow on the street right now,but your day is coming.If this trend continues,we are increasing reliant on China,Japan and Saudi Arabia to buy our debt and furnish the bailout and stimulus spending sprees.Keep in mind,they are currently doing this only receiving an average 2-3% yield on their Treasury securities.This is the Federal debt interest we pay.Should their own economies slow enough that financing our debt no longer looks attractive,they will stop spending.Normally,when their Treasury securities expire,they simply roll them over.If they stop buying and start cashing these in to claim the principal,this will trigger the endgame.Our Fed will have to make the Treasury print money to buy these securities and devalue the dollar worldwide.You may still have the same amount of greenbacks in your wallet and bank,but they will not be worth as much due to reduced buying power.This will start the snowball down the hill with no good solution to stop it.

Iceland became the first Government to fail due to the credit crunch.More are certain to follow.Think the Fed is too big to fail like we've heard so much lately on Wall St.?Better wake-up because you're not paying attention.More to come...

Thursday, January 22, 2009

Slackerism-the New Deal 2.0

The winds of change have whipped up into tropical storm strength.The forecast is for further strenghtening into a hurricane.The giddiness of the left is really unnerving.To see the masses flocking to Obama's message of Government as the savior is tough to watch.One of the great virtues of America is of course our freedom of choice.I'd like to see that amended to freedom of "informed" choice.I'd like to believe if the playing field were equal,if the media were neutral,if the message received by all Americans was exactly the same from each candidate,than the cream would rise to the top and people would decide differently.

Is this realistic?If everyone had the agendas of Conservatism vs. Liberalism laid out unbiased,how would they choose?That's such an easy choice for myself.Accordingly,I have to discount myself as biased.I suppose you would need a young,untarnished mind or an unexposed foreigner to test this.Are we overestimating the resolve of self pride and accountability?Perhaps we need this litmus test of Socialism to play itself out so that people have a base for comparison.Reading about the negative effects may not be enough to connect.

This message has never been as available as today.Talk radio is teeming with it.The internet makes so much available,maybe too much to absorb.The school of thought seems to be if properly presented with both views,the majority would choose Conservatism.With the entitlement generation on deck to make policy for years to come,I don't think that holds water anymore.It simply fits in better with their ideology of everything is owed to me just because I exist.

This is where I think Limbaugh and the other messengers are missing out.I think many are listening to Colin Powell.The message of what's wrong with Government at the center of the universe is not enough.De-emphasizing the Constitution for all these years in our education and value systems is apparently working.The message just on it's merits is not enough anymore.

The time is here where the package must be overhauled because it's not selling.Even if competing products were laid out next to each other without the fancy packaging,the consumer may not buy the "correct" one.The current call to arms is to just return to Conservative roots and stick to principle and everything will work out great.I don't buy it.More to come...

Priority #1?Terrorist rights!

Day 1 in the books.The most pressing issue on Obama's agenda apparently was insuring terrorists have rights by closing Gitmo.Or was it gay marriage?Or staffer pay raises?By the way,were they already up for pay raises on day 1?

I see alot of print on when the honeymoon will end for Obama.Much ado about nothing.The far left doesn't care what he does,he's golden.The middle of the road voters that swung the election are in it for superficial reasons.Rockstar,Messiah,Chosen One,lesser of 2 evils,anyone is better than Bush,1st black.Take your pick but what you don't see is agenda issues very often.

When,not if,Obama fails,it won't be on him.Blame it on Bush.Blame it on the housing bubble.Blame it on the Republicans.How about global warming?Or solar flares?Trust me,they will find a reason to keep on lovin'.More to come...

Wednesday, January 21, 2009

Spending is hip!

There certainly isn't any doubt that the Obama administration intends to spend their way out of the economic crisis.In fact,Larry Summers,who is an Obama staffer,stated exactly that,that their focus right now is on spending.

The guessing game now begins on how to pay for it.Raising taxes on the rich is a gimme.I would expect to see niche taxes rise across the board as they don't affect everyone.If you have a vice like alcohol,cigarettes,use silly things like gas,emit carbon dioxide,etc.,watch out.The global warmers love to focus on these for their funding.

Those are really small potatoes though.Can't touch SS or Medicare/Medicaid for the political suicide aspect.Obama is certain to dabble in it to show his concern,but what tweaking he will accomplish is unknown.

Can't touch the Federal debt interest as that's counter-productive to increased spending.The only thing left on the table is the Dems favorite,defense.Look for it to be slashed with a "comprehensive review of National Security needs" to be followed by cutting all sorts of high tech programs.

Other than taxing the rich and cutting defense,Obama doesn't have much available.Maybe Geithner will get creative with the Fed and do some fancy number crunching to address the debt interest.If the debt continues to expand at it's current projections,the wall will be hit soon.There really is a ceiling on how high we can exceed our debt to GDP ratio before the Treasury security lovers will even quit buying.At that point the Fed will have to start buying it's own debt to keep the spending machine alive.Projections are that 2009 is the tipping point year for SS surpluses.Even though 2018 is the projection year for surpluses to stop entirely,the slowdown starts this year.Medicare is on a faster slope and will surpass SS in the next decade in payouts.This is when the smoke and mirrors of today will stop.The clock is ticking.More to come...

Tuesday, January 20, 2009

Stimulus total up 1,550%!!!

If anyone can remember back last summer,Obama told us we needed $50 billion in stimulus to fix the economy.He's raised it a tad to $825 billion with more sure to come.Don't forget,we have been in a recession since December of 2007.The toxic debt,housing bubble,derivatives,etc. have all been widely acknowledged since at least the summer of 2007.

I would like to see a much more forward thinking administration to solve problems.That's what you get,however,when the proposed solution is a stimulus.Short sighted thinking with no long term vision.That's why the numbers fluctuate daily on how much to spend.They are reacting not being proactive.More to come...

Monday, January 19, 2009

The Free Market has died!

It's official now anyway even if they've been tearing it down for years.America no longer operates under a free market capital system.Not when you remove the option to fail.This is vital to weeding out the hackers and keeping the overall market strong.If companies are "too big to fail" as we hear so often these days,than we have turned the corner to Socialism.Deny it if you like lefties,but the facts bear this out.

Rewrite the textbooks.Sorry,Tony Robbins,you're out of a job.Why put forth the effort towards excellence when you can't fail?Only those with self-pride will strive for it now.As for the rest,take your number and have a seat.When your called,you'll receive your reward for failure.

What a shame.Obama has the ability to inspire the whole country,in fact the whole world.Yet,this is the anchor that he must now be burdened with.He cannot live up to the promise to everyone.No one of this world can.When you try to play centrist and straddle the fence,you only succeed in disappointing everyone.And the bill is going to come due for these misguided policies.More to come...

Sunday, January 18, 2009

Get involved soon

Obama missed his first chance at change.Imagine all of the wasted resources and god forbid,carbon footprint,of his little party Tuesday.With the worst of everything possible known to mankind happening right now thanks to Bush,at least if you listen to Pelosi and Reid,how could you in good conscience spend and pollute this much?

How could you in good conscience spend trillions of taxpayer dollars on pork?Oh,that was the key word,wasn't it.Conscience.Sure helps to not have one.I'm as guilty as anyone about constantly ranting about the Government wasting your money and taking your freedom.But I really think it will all be understated with this go around.

I believe that at the end of the day,Americans will come thru and take back their country from those that threaten it.We have the tools now that were never available in the past.Namely,the internet.The ability to spread the word of the abuse occurring will reach everyone interested in listening.Do your part and spread it as well.More to come...

Pelosi most divisive leader ever?

Nancy on a rant again.She's a busy girl these days.Working hard to spend as much of taxpayers money as possible.Working hard to shut out the Republicans from having any input in this session of Congress.Working hard to prosecute Bush administration officials.

I think no one is surprised by her power grab.In a way,I think the Republicans may be hopeful.They knew she couldn't resist the chance and may be overreaching.Like the criminal she is,they get greedy with each success and then you can't stop the train.

If I were a Republican,you could easily the groundwork for the 2010 campaign right now.It won't be hard to predict where she and the usual gang can't contain themselves.With the failure of the upcoming stimulus certain,you have a wide open door to gain back many seats in 2010.

She can't be too happy that Obama is not like her and ready to attempt total control.I may not agree with Obama's policies,but I don't see him as the drooling at the mouth,wide eyed power tripper that she is.I think she has already shown she will take the bait and pitfalls await.More to come...

Economics 101

Rule #1-Government cannot create wealth.
Rule #2-Printing more money simply decreases the value of existing money.
Rule #3-Always refer back to Rule #1.

Our Government attempts to run as a business.It cannot.The old saying that you must spend money to make money applies in business,not Government.Government is in place to serve it's master-it's citizens.It provides essential services.It runs off from taxes collected and redistributed to the programs which provide these services.That's it.When Government officials attempt to do more,you get what we have today.Massive debt and over-regulation.

Keep it simple.Remember that for every dollar in circulation,for it to have value it must be backed up by a dollars worth of goods or services.That's why you can't simply print more money to fix it.You only water down the existing money supply and decrease the value of each existing dollar.You didn't add any goods or services.This is why Government cannot create wealth.

This is also why any stimulus package is guaranteed to fail.The Government has no money.To spend $825 billion that isn't in the budget,it must put the taxpayers into debt to provide this money.So they have essentially printed off another $825 billion without adding any goods or services to back it up.They have effectively shrunk the economy overall because someday you have to pay the debt and the interest.

Obama and many others who try these schemes are just smoke and mirrors.It really is wealth re-distribution because that's what the IRS does.By taking your taxpayer dollars and shuffling them around to fund Government created jobs and programs.Didn't add 1 cent of wealth to our economy,only burdened us with more debt.

What if our entire economy was worth $100.00 and we had 100 bushels of corn and one farmer to grow them.If I printed off another $100.00 and didn't add any more bushels of corn or any more farmers to grow them,I simply made my original $100.00 worth half as much.I now have $200.00 still backed up by 100 bushels of corn and one farmer.This simple concept in a nutshell is the same for Government.It can't create wealth because it can't print more money without decreasing the value of the existing money.It can't add more bushels of corn or farmers to back up the new money,only private industry can do this.

Government must reduce it's spending to the amount of tax dollars received.A balanced budget.Simple.Get out of the way of private enterprise by eliminating excessive regulations that make it more difficult for businesses to make a profit.Private businesses making profits results in job creation and the economy growing and both businesses and workers paying taxes.This circle just grows with more business,more workers,more growth,more taxes paid.That's how you
collect more taxes to pay for more public services and infrastructure.Not by increasing the debt.Dummies.More to come...

Friday, January 16, 2009

Still no beating the system

Do that many believe regulation and manipulation are preferable to free market supply and demand?The beltway crowd love it of course and will spout off many stats of progress since the Great Depression.

With the TARP failure,I have to wonder which is best.Even industries themselves participate.Take the oil industry.They are storing crude in supertankers around the globe to wait for a better price.Obviously taking supply off the market should artificially increase demand.Good business move?Why pay to pump it and store it for later?Why not just leave it in the ground until the price increases?If it were the auto industry building capacity,they would be chided for the overhead costs of huge lots of cars they can't sell.

The Fed gave GMAC a few billion at 8% interest and they turn around and offer 0% financing.Is this wise when financing is their profit tool?It's not selling cars.

AIG,Citigroup,BofA.Those and more are being thrown money and then coming back for the re-tap.Obama and Pelosi have it right in the stimulus bill that $825 billion is likely not enough and just a starting point.Banks are hoarding their bailout funds for a rainy day fund.Geithner is coming in and hasn't mastered a calculator yet,at least at tax time.He's going to fix it?

Americans need to trust their gut more often.The vast majority were against the TARP money and got the attention of Congress for a minute until the smell of bacon overwhelmed them.When you see nobody attempting to fix the cause,you realize the political machine is extremely hard to knock off the rails.I still go back to getting what you ask for.Keep voting in these same fools and enjoy the dog and pony show because you're getting what you paid for.More to come...

Thursday, January 15, 2009

The audacity of transparency!

Let's see,Geithner is in charge of the IRS now but couldn't do his taxes properly.By the way,he had to manipulate the numbers if he filed electronically because the interview process wouldn't have allowed what he did.But Obama says it was an honest mistake that everyone makes.Keep that statement handy at your next audit interview when you've made a mistake.

Holder thinks waterboarding is torture.The same guy that backed up William Ayers,the Pentagon bomber.

Clinton has no conflict of interest despite hundreds of millions received from foreign donors to the Clinton library.Now she will be negotiating foreign policy for the U.S. with these same people.

Bill Richardson dropped out to avoid a scandal.

Blago was selling Obama's Senate seat.

And don't forget Raines,Rezko,Jeremiah Wright,citizenship,Emanuel,etc.

Do we see a pattern?More to come...

Wednesday, January 14, 2009

Update the repair manual!

This economy has been great for experts.So much to debate about on the proper way to fix things.However,unconventional economic issues cause them to throw out the normal models of solutions.For example,the debate over monetary or fiscal stimulus.Those who normally argue for the Fed to step in because they work quick and politically unhindered have an X factor.This type of policy is targeted for consumers and other end of the line users.Yet,the banks are using the low interest rates for their own benefit and not passing it on as usual negating it's effect.

The market that is thriving is re-finance which doesn't address the people in foreclosure,only good credit homeowners improving their rate.These types of results are ruining the theory of just throwing money at a problem until it goes away.They may have to actually solve it.Lame issues of high Federal debt and the interest,consumer debt and no savings,and reducing taxes without the accompanying spending reductions are boring,I guess.Just think of all the bloggers,expert opinions,editorials,etc. that would become irrelevant if they economy just hummed along smoothly.Drama is much better!More to come...

Why the mortgage fixes haven't worked

Congress is apparently going to revisit the mortgage issue.Gee,maybe they should have issued Paulson a tighter leash the first time around.

Personally,I think everyone is underestimating the American homeowner.There has been wide publication of the bailouts and that Obama the Messiah is coming.I think people are simply positioning themselves right in front of the heavenly gates.They know that you must be in foreclosure or at a minimum behind on your payments to be eligible for handouts.Reference the chick on YouTube lauding Obama for paying for her gas and making her mortgage payments.So,to receive communion from the anointed one,they need to stay on the fence of being in trouble without actually losing their house.

I wonder how many in foreclosure voted for Obama?This would make my case.It's the "what are you going to do for me" crowd that loves the Dems,so this fits in nicely.They don't want a bone such as a lower interest rate or a foreclosure moratorium.They want a bailout!They want Obama to make their house payment!More to come...

Debt questions

Love to read all of the experts take on whether or not to pay off the Federal debt and how to do it.I am in no shape or form an expert and make no claim to be.They all do their number crunching relating the pros and cons related to the GDP.However,I never see them weight the enormous debt service (interest) very heavily.Or compute the drag on their formula.They always stick to principal.If we spend half a trillion on debt service as we are on pace for in fiscal 2009,don't you need to account for that wasted revenue as well as the investment potential of it?In other words,if we didn't make the interest payment,we just saved $500 billion in the 2009 budget.But the X factor is what we also could have done with that revenue and what that may have generated.For example,using the money to subsidize a corporate tax reduction as part of the stimulus.This would likely result in businesses expanding and hiring which creates wealth and a GDP boost.This in turn boosts tax revenue further inflating the value.It's kind of like paying back your student loan if you're employed in a different field.You're paying off a loan providing no value to you.You not only have the credit on your budget,you've lost the investment potential of it as well,so it could be a much larger number.Seems to me the cancer of this interest on the Federal budget needs to be of vital interest.More to come...

Tuesday, January 13, 2009

The Federal debt is relevant

There is a tremendous amount of interest lately in the Federal debt,roughly $10.7 trillion to date.I have read many opinions that we should not worry about it.Every time we attempt to pay it down,inflation leads to a recession and it fails.Some disregard the argument that we are leaving this debt to our children using the logic that they will just do what we do and keep passing it on.Some say as a percentage of our GDP,it's still quite low relatively speaking and not harmful to the economy.Some say write it off.Some say China is now losing interest in buying debt because of economic problems at home.Some say who cares,the Fed will just keep buying the debt and in essence print money.

It's tough to wrap your arms around a problem you can't comprehend and doesn't seem to affect your daily life.But it really does affect you because of the drag of the monthly interest the Treasury pays.When the various Treasury securities come due,they are exchanged for new ones with different interest rates assuming the holders don't just cash out.This is why the interest rates vary so much.It's dependent on the interest rates tied to the securities being traded for the new rates and we pay the difference out of the general fund.That's real money even if the trading of the securities is just paper.

I studied the numbers from the Treasury dept. and just since 1988 thru 2008,we paid out $6,989,635,034,714.74 trillion dollars in interest,about $325 billion per year.Already in the 1st quarter of 2009,we paid out $134 billion.This just the last 20 years.We've been running a Federal debt since 1789.Granted,the numbers were minuscule for the majority of the last 230 years and this why I would weight recent years as relevant.The point is the trillions of dollars spent of taxpayer dollars for interest only.What could we have done with all that money?We could re-pave and rename every road in America Obama Avenue.Or give members of Congress a much deserved pay raise.Seriously,maybe we could have invested it in securing our liberty and promising a better future to our youth.More to come...

Sunday, January 11, 2009

More stimulus,please!

Obama finally released his stimulus plan overview so we have something other than speculation to review. It seems to be filled with disclaimers about uncertainty and margins of error.

He plans to create 3,675,000 jobs by the end of 2010. Make sure you read the fine print that uses increased working hours and productivity from already employed workers in the jobs created formula. He also predicts an unemployment rate of 7% at the end of 2010. It's 7.2% today nationally. So .2% is an economy saving, job creating stimulus package?

He also predicts the unemployment rate to be the SAME at the end of 2013 whether there is a stimulus package or not, still 7%. How is this a long term job creation program? These are his numbers, not mine. I'm sure we'll hear more than anyone would ever want to about this stimulus package and the details. I just think it can't work very well if it doesn't address the problem.

Obama is using Moody's Corp. as his numbers cruncher to plan his stimulus package. By the way, Warren Buffet owns 20% of Moody's. I wonder who he endorsed? Moody's provides credit ratings for about 40% of the world. I thought we had a problem with global credit and companies investing in the risky mortgage derivative market. A little fishy? Regardless, I don't think I would use them as part of the solution.

The bottom line is we need businesses receiving the help because they will be the job providers and investing in expansion and growing the economy. Reducing corporate tax rates and capital gains taxes are the keys to long term growth, not these short term attempts at fixing it that just increase the taxpayer debt. Is $500 per worker really going to help? Especially if the rumor of just reducing your income tax withholding by a few dollars is true.

Obama gets to spend the remaining $350 billion of the bailout money. The Congressional Budget Office already predicts a $1.19 trillion dollar deficit this year. Obama's stimulus package will tack on at least $775 billion more this year and possibly the next several according to Obama. That's money people can't even comprehend. And all for a stimulus package that will provide the same unemployment in 5 years with or without it? Sorry, not good enough.More to come...

Friday, January 9, 2009

My tax cuts vs. Obama's

In 2007,corporate tax receipts were $370.2 billion dollars and capital gains revenue was approx. $134 billion.Together about $504 billion dollars.Speculation is for Obama to spend twice that on the 2009 stimulus package.This to create infrastructure projects and Government funded jobs for the most part.While the infrastructure work is needed,it won't create wealth for the economy.Nor will Government created jobs which will instead draw down the economy as they are taxpayer funded.

I have to wonder if we eliminated the corporate and capital gains taxes completely for this year what effect that would have on the economy.Imagine no corporate income taxes.Do you think companies may invest attempting to maximize profits they won't be taxed on?Possibly hire some people to support these investments?Don't forget,corporations pay capital gains as well so they get the double dip.Permanent reductions would be the key for businesses to invest long-term.

I think this would unleash an economic gold rush.People would benefit with wealth creating private sector jobs necessary to expand business.Personally,they would also benefit from the capital gains suspension and buy and sell assets freely.Just imagine for a moment the potential of this.

This would put people to work immediately.Construction would increase.Foreign investment would boom.Expanding companies also demand support from manufacturing and industry thus you get the trickle down effect when everybody is using more products and services which results in various other tax revenues increasing.

People getting jobs.Companies making more profits.Government tax revenues increasing in all other areas.Win,win,win!Still want to jump in with Obama's plan?More to come...

Thursday, January 8, 2009

Recession reasons detailed

The reasons why our economy is in recession goes back years,not a short term issue caused by the housing bubble.

The 1st factor is debt.Years of easy credit for consumers,businesses and Government have led to a high debt to earnings ratio for all 3 segments.A side effect is far too little savings.This dangerous scenario of depending on credit for daily life is a ticking time bomb.

The 2nd factor was high prices in 2 key areas,oil and corn.The ethanol mandate from Bush created an artificial supply problem which dramatically increased demand.Oil demand from expanding Asian countries along with other commodities such as gas,steel and building supplies led to a quick run-up of retail prices.We all found out how integrated these 2 products are in our daily life in so many different products.

The 3rd factor was the derivative market.The chain scenario of re-selling mortgages works fine until the homeowner stops making the payment.Banks,insurance companies and investment groups were all caught investing in these high risk markets.

The quick increase in prices in 2008 coupled with the high debt/low reserves of consumers forced the foreclosure rate to explode leading to the derivative market collapse.The companies most affected stopped extending credit and we had our credit crisis.This has spread globally.

The reasons aren't hard to figure out.The cure really isn't either,however,politicians aren't interested in this.Not if it cripples their power structure.Government now is trying to sell the idea that only they can fix this.Get in line,suckers.More to come...

Today was a good day 174 years ago

January 8,1835.The President was Andrew Jackson.Why is this date important in American history?It's the last time the national debt was at ZERO!Today the debt limit is $11.315 trillion with Obama promising a potential 2 trillion more in 2009.

It's the cancer that will cause Thomas Jefferson to be a prophet with a revolution brewing.It's inevitable with the internet information available today.What form it will take is anybody's guess,but at a minimum it should clean out the riff-raff on the Hill.More to come...

Wednesday, January 7, 2009

Obama advisors?Counselors?Huh?

Photo op day at the White House.All the living Presidents together for the 1st time since 1981.Lots of nice comments and praise.Obama thanked all for allowing him to receive advice from a quarter century of Presidents.

How about saying thanks but no thanks?You were looking at $7.7 trillion dollars in national debt!Yes,that's what Carter,Clinton and the Bushes have rung up.Give or take a few billion until Bush Jr. gets his final tally.

Did you know that from 1776 to 1974,a period of 198 years,we had 37 Presidents.And that all combined they only rang up $493 billion in debt.

Now we have Obama trumpeting change who will show all how to really play ball.Combining Congressional Budget Office numbers with Obamas proposed stimulus equates to $2 trillion large in just one year.Change has come to America!Huh?

$1.19 trillion-how much could it buy?

The Congressional Budget Office has announced the 2009 Federal budget is projected to be $1.19 trillion over budget.Just a projection.The actual numbers are usually worse like last years $455 billion.Let's take a look at how much this really is.

Have you seen the new Ford Fusion that gets 41 mpg?We could buy about 60 million of those.That's a new car for over 50% of the households in the entire country.

The average earnings of a U.S. household member?About $26,000 a year.That's roughly 45 million annual salaries.Obama is only creating 3 million jobs?Lame!

Want to go bigger?In my great state of Michigan the average price of a home is now down to about $120,000.That's 10 million brand new homes.As bad as 2008 was,there were only about 1 million foreclosures in the U.S..We could have bought 10 times that many houses just this year!

Cars,jobs and homes are all serious comparisons as we all need them.Might need a little spending cash as well.How about $3,900 bucks for every U.S. citizen?Obama is only coughing up $500 per worker with his tax rebate,not every single person!

Obama,Pelosi and Reid tell us we might have to spend " a little " to stimulate the economy.My little is a lot different than theirs.And this is just the budget overrun for one single year!And this doesn't include any of the proposed $775 billion stimulus package!The numbers are staggering,but not nearly as scary as the politicians who tell us we can spend our way out of this mess.Bush already tried this with a $131 billion stimulus and about 80% of people
just saved the money.Permanent low taxes,balanced budget,reducing spending,irresistible incentives for business.These are long term,sustainable ways to grow the economy.Keeping power hungry politicians out of our checkbooks is the Holy Grail.Better pray hard!More to come...

Be careful what you wish for!

Obama received such a nice gift when the economy tanked at just the right time and got him elected.Now,maybe it wasn't so great.The slowdown has been so bad that it's forcing him to temporarily abandon his liberal agenda.This is ticking off the Dems.

When the economy slows down too much,even the tax and spend crowd realize they must spread the tax cuts across the board to really stimulate the economy.Since the top 5% of earners pay almost 60% of the Federal tax burden,they must be included.Robin Hood is not happy.

The Blago farce is really comical.The stern looks from Harry Reid and his crowd over the corruption in Chicago is the ideal pot calling the kettle black.The level of corruption in Congress 110 and soon to include 111 is criminal,yet nobody wants to talk about that.More to come...

Tuesday, January 6, 2009

Today's lesson:Failure is good!

Why are you trying so hard?Working long hours?2nd or 3rd job?Saving money instead of taking vacations?Making sacrifices everyday to get ahead?STOP!

Where is the incentive anymore?It's encouraged to fail these days.Can't keep up on your house payments?Just foreclose and line up for your handout.Business not making a profit?Doesn't matter,Obama will let you write off 5 years of losses.Can't find a job?Why look when unemployment benefits will be extended?

I can't keep up.Bailout,handout,bridge loan,spread the wealth,wealth redistribution,tax cut,re-investment,stimulus,welfare,social security,Medicare,Medicaid,nationalized health care,tuition assistance,foreclosure assistance,infrastructure,capital injection,AHHHHHHHHH!!!!!!!!!!!!

The sad fact is it appears our Government is the end all for everything.All focus is on propping up anything that is failing,so unless you have loads of pride and integrity,why bother?

By the way,Rollins was just barred from the Senate.Where are the racial cries?A black man is being shut out by Reid the white man.Normally,Jesse Jackson would be howling.Obama has no comment because there can only be one President at a time.Unless he wants to talk about his stimulus package and you can't shut him up.

Panetta for the CIA?We succeeded in running the Bush's out of town,but the Clinton's live on.

I will make a most difficult resolution to try a post more positive posts.With the treasure trove of easy marks for corruption,this will not be easy.More to come...

Monday, January 5, 2009

Robin Hood to the rescue!

In the good old days,wealth redistribution was just rich people supporting poor people thru the IRS welfare program.Low income earners could receive tax credits even if they didn't pay in effectively creating a negative income tax system.

Today,Obama is ready to jump right back in with another windfall for these same people even though research has shown 80% of last years recipients didn't spend the money.But that's not enough,he's also creating the same welfare structure for businesses.They have always been left out of these spread the wealth schemes until now.They can write off losses for the previous 5 years and be eligible for various credits as well.

So,is $500 a worker going to reverse the economic slide?Will the 80% that saved it last time spend it this time?I believe I read we lost $6 trillion in stock value in 2008.If 50% of the people spent all of it,would $150 billion reverse a loss 40 times that large?Playing with numbers is fun,but it doesn't translate into a fix.

Nothing new here.Raise taxes on the rich,give money to the poor,spend more taxpayer money on schemes and entitlements,raise the debt.Shifting money between the rich and poor depending on which political party is in power is fine.It's that little spending detail that raises the debt that both parties like to engage in with reckless abandon and why none of these repair jobs will work.More to come...

Biggest scam going?Plenty to pick from!

Bernie Madoff?He'd get plenty of votes due to the amount and name recognition of those duped.

Global warming?Should be more votes due to the number of suckers involved.

Blago?Just standard Chicago politics.

Caroline Kennedy?Lots of other unqualified candidates have been elected (Obama for example?).

Al Franken?The court battle still has to play out,so who knows where this ends up.

My vote hands down is social security.Biggest ponzi scheme by far.The amount will be trillions and it's still on-going with the vast majority of Americans clueless.

Obama's spending spree to come?Just normal tax and spend politics,maybe on a larger scale,but nothing new.More to come...

Harry says Me!Me!Me!

It appears our illustrious Leader of the Senate subscribes to the revisionist history books.Spouting off about the Constitution giving him authority to decide who gets to play in his sandbox,he must be reading that liberal revised version again.The copy I have clearly states that the American people decide who is elected to the Senate.Gov. Blago,while clearly not playing by the Dems rules,absolutely has the authority and duty to appoint the successor to guarantee the citizens of Illinois have representation in the Senate.

Lets remember that as of now the disgraced Gov. has only been charged and not convicted.The Illinois Senate passed on their chance to oust him,so he remains in power for now and appointing the successor is the duty of his office.

As far as seating the Senator that he chooses,he is performing his duty for the American people.Thus the American voter effectively has submitted him.The Constitution has clearly provided a way to remove a sitting Senator by a 2/3 vote,so Sen. Reid can reject him in that manner.There is also precedent for this method as well.

Over reaching power hungry politicians continue to disgust.Their own agenda's override their responsibility to the voters that elected them.We see this over and over and the verdict is clear.The American voter is to blame because we continue to re-elect these fools.I don't want leaders in my elected offices.I want followers who will vote the wishes of their constituents.The way it's supposed to be guaranteed by the Constitution.Majority rules and that's how they should vote.More to come...

Sunday, January 4, 2009

Is America's decline such a bad thing?

Reflection allows you the opportunity to both review history and chart your future path at the same time.The unparalleled rise of the U.S. for the last 232+ years is both a marvel and at times a tradegy when the inevitable mistakes were made to accomplish such growth.We have been witness to fantastic technological achievements such as space exploration, medicines, life expectancy and even broad wealth gains.One can only sit back and admire when the National Geographic documentaries roll.

I suppose you could equate it to a hurricane as you watch it strengthen and grow on the radar.But eventually it makes landfall or hits colder water and the fuel runs out.We seem to be reaching that colder water now.I wouldn't predict any imminent demise of America.Just a gradual pull back of it's power and influence around the globe.I,for one,don't see this as bad.When you're anointed as the lone superpower and the worlds policeman,you run the risk of believing your own headlines too much.Mankind's built-in weaknesses for greed and power can too easily snowball.

Today,you see Israel stepping out from under the shadow of America and taking matters into their own hands.This is likely to become more prevalent around the globe with other allies as well.We are seeing the limits of our economic engine.The ebb and flow of political parties power tends to stunt any further expansion globally as the checks and balances prevent dictatorial style ambitions.Countless other regimes have these ambitions,but have never had the massive economic power behind them as the U.S. has enjoyed.

The responsibilities of the U.S. position comes with great cost both economically and socially.We are all weary of endless conflicts over land and commodities.Religious differences have led to more death and destruction than can be counted.Whether it's foreign aid,military support or political influence,it consumes vast resources to be numero uno in the world.With domestic problems growing,the pressure is rising to take care of the home front and leave the rest of the world to themselves.Scholars,politicians and others will state the case that we must maintain our influence globally or face future ruin.

I've always liked the notion job seekers use that "I was looking for a job when I found this one".In other words,life goes on.The world was functioning when the U.S. was born and will go on after we have passed.Every great empire expires eventually as will we.I just think the notion of sitting back and taking care of ourselves has alot of appeal right now.A little less stress.Trying to solve all the worlds problems is tiring.

We still have our ace in the hole with our nuke stockpile to prevent any takeover.Reagan proved the viability of deterrence as the best weapon.Certainly,no one likes the idea of rogue nations obtaining nukes,but you can't even use the things because the following escalation guarantees the planet is obliterated.Didn't gain much there,did you?So,why not focus all of our resources on getting our own house in order?Let the neighbors beat each other up.I believe if there was truly a focused effort,the time frame would not be as long as one might think.America has achieved great things when dedicated to it.It's like winning the lotto.It's that first million I need to change my life.Anything beyond that is just gravy.Maybe we're better off long term just being really good instead of great.More to come...

Saturday, January 3, 2009

Easy budget 101 solution

Interesting reading when surfing thru the endless solutions to our economy and debt.I would conclude that there is nothing that can't be fixed policy wise.Forcing politicians to adhere to standard accounting practices required to do so is the nightmare.

Just a few steps are required.Medicare/Medicaid must join the USPS and SS as off-budget.Whether or not the USPS should stay off-budget is another argument.The catch is taking them completely off so that dedicated taxes only go to these programs and surpluses can't be used by the general fund.No IOU's and no borrowing from the general fund either.If deficit spending is occurring in a particular program,only those direct taxes involved would be raised.

A payroll tax must be instituted for the Federal debt and the interest off-budget as well.It obviously must be paid and needs to be separate so as not to saddle the yearly budget with it.This would take the 3 largest obligations,SS-Medicare/Medicaid-Federal Debt/Interest,off the budget and make them their own separate entities that can't be borrowed from nor supported from the budget each year.They can then be adjusted as required individually throughout the years and be absent from normal politics of earmarks and other deficit spending.

The Balanced Budget Amendment is the other requirement to insure no further deficit spending occurs to worsen the problem.This still allows politicians the latitude to make their campaign promises as the budget is dynamic every year.They can increase the budget,raise or lower taxes or spending or both to accomplish this to the extent that voters will elect them.However,as long as no variance is allowed from the Balanced Budget,our future is not compromised and the other 3 major payroll tax funded entities won't blurry the picture.Easy and I'm no accountant.I'm also not a salesman which is required to get America to sign on.More to come...

The time to repudiate has come!

In essence,the time is here for the Federal Government to file Chapter 7.Why not now?
Fact:the Federal Government is technically bankrupt right now.
Fact:the Treasury has no wealth,it simply redistributes funding,
Fact:currently,the Treasury spends more than it takes in thus the $10 trillion+ debt.
Fact:SS and Medicare trust funds have no real money,only IOU's from the Treasury.
Fact:this occurs because both funds currently run surpluses each year which is then used for
other purposes thus the IOU's are issued.
Fact:when you take the current debt and add-in the projected expenditures for entitlement
programs for the next 75 years,the total is over $50 trillion and counting.
Fact:unless taxes are substantially increased or spending dramatically cut,eventually all
incoming money to the Treasury will be spent on SS,Medicare and the debt interest.
Fact:this means no money left for any other programs including defense without changes.

I won't review the dollar details as they are available all over the web.However,the facts are undeniable.The Government is broke because we have a debt.It's getting worse because we annually have a deficit.Future SS and Medicare obligations will exceed funding coming in causing the Treasury to use General Fund monies to make up the difference.The interest on the debt will continue to accelerate.

If foreign investment were to stop or even slow substantially,the camels back would break.There are simply not enough domestic public investors or other Government Funds with investment capital available to support our massive deficit spending.We must have foreign investors.

Reviewing history shows that tax cuts can actually create a budget surplus due to corporate investment.However,can you imagine Congress keeping their hands off this money to dedicate it to paying down the debt?No more than imagining reduced spending to accomplish the same goal.So if we can't save the money or raise it to pay off the debt,what is left?Repudiation.

It's not at all without precedent.Just not on this scale.When you watch current trends in rapid debt growth,increased spending on infrastructure,defense,interest,etc.Add in the limitless wish list of global warming,cradle to grave entitlements and countless other special interests,no one can predict the limit to the debt.Can't pay it off,can't stop it from growing.Repudiation.

Of course,this amazingly complex scenario would require global cooperation of unprecedented scale.A wholesale change in fundamentals would have to occur at the same time to prevent re-occurrence.Balanced budget,massive Government program reductions and/or state takeovers of these programs,and re-writing the rules on Congressional Appropriations.Lawyer Heaven!

But it is unavoidable someday.Partisan squabbling guarantees it.No way does everybody get on the same page and stay there long enough to repair it without simply writing off the entire debt.More to come...

Friday, January 2, 2009

New Year! Is "change" here? No, I fear!

Just a suggestion as the new year is underway.If you're not visiting Legistorm,please make use of it.It's a great reference tool for tracking where politicians spend taxpayer money.As they say,it's never been more important than right now to keep close tabs on our Government.It should be every individuals responsibility as an American to hold their elected officials to account.People need to take a more active role in educating themselves.That doesn't mean everyone has to be an activist and march on Washington,just be aware of the process.Politicians certainly are aware of how much they can get away with due to apathy and ignorance.People just want everything to be OK and let someone else worry about it.Or they think they can't do anything about it.I haven't been around long enough to know for sure,but I don't think it's ever been that way.It's just a slow slide of greed that erodes liberty over time.But the tipping point will occur.Can we reverse it and keep it in check?More to come...