Don't watch the ball,watch the quarterbacks eyes.This is standard practice for a good defensive safety.It needs to be for Obama politics as well.He is diverting our attention to his claim that he will reduce the budget deficit to $533 billion by the end of his first term.That in itself is no claim to fame as that amount would qualify as the largest deficit in history,present year excluded.
What he's not promoting,however,is the effect on the accumulated Federal debt.By his number projections,he estimates the total gross Federal debt at the end of 2012 to be $16.193 trillion.That's an increase of $6.207 trillion dollars in just his first term!An average of $1.55 trillion per year!
Obama,of course,will claim credit for his inherited deficit.OK,we'll give him a credit of $1.19 trillion for the CBO projected deficit for 2009.That still leaves Obama 100% responsible for $5.017 trillion.Care to go out 10 years?The debt will climb to $23.140 trillion dollars.I'm not sure Parker Brothers could print that much Monopoly money.Even if they could,imagine the save the planet crowd with that many trees killed.
One more X factor is his claim on accounting for the stimulus.He only claims 33% of the amount on stimulus or bailout spending expecting a 2/3 return on the investment.If this is true that he's only using 1/3 of the amount spent for accounting purposes,would it be unreasonable to state that the true amount spent is 2/3 higher?Transparency at it's finest!More to come...
Thursday, February 26, 2009
Why?
Stressing out about the economy?Concerned if your Government can save the country from collapse?Still not sure if you made the right choice in the voting booth?The solution is simple.Be a cynic!
Give it a try,it really works!I practice it daily and spend my time tip-toeing thru the tulips!Why,you may ask?Even if you didn't ask,I'll tell you why.
Don't you just marvel at the media debating the merits of Obama's actions so far?They spend countless hours breaking down his bills,executive orders,policies,etc.The inevitable comparisons to previous administrations and alternative styles of Government are rampant.It's all for naught.The basic premise is flawed thus prohibiting any rational conclusions.I'll explain.
People wonder if the stimulus will work.If it's large enough,small enough,has enough tax cuts,enough spending on the right things,too much pork,too much debt,etc.You can debate the merits for eternity,yet it won't change the simple fact that fixing the economy was never the intent.The intent is the Liberal social agenda and securing a larger voting block for the future.This is why you can't reach a reasonable conclusion.The things he is doing don't seem to logically address the economy because they aren't meant to.
There are many different layers of conspiracy theorists ranging from the simple Big Brother is watching to the Illuminati wiping out 80% of the population and enacting the New World Order.I don't know enough factual information to draw conclusive proof of any of them.I just prefer being a simple skeptic and always questioning why.I don't have to stress out about my party being in or out of power and the resulting issues.
We all know politicians lie and cheat.I could never extend trust to someone I don't personally know.I have no use for speeches,only results and actions matter.The laundry list of questions surrounding Obama and his background and qualifications should suffice to deter anyone from electing him.I contend that if he were not African-American,he would never have been elected.Most people celebrate the fact we finally got over the hump and elected a President despite the color of his skin.I say the opposite is true.He got elected because of the color of his skin.All the rhetoric about hope and change are fine,but any of the old guard white politicians could have tried that and not won.Wasn't McCain the proven maverick?
When someone is elected for superficial reasons,people's judgement is skewed.Lately,all you hear is that Obama must be more positive,less gloom and doom.That's simply a political strategy to get policy enacted.People base judgement on irrelevant factors such as style,delivery,tone,expressions,etc.The people down on their luck need the promises and compassion to give them hope because they lack the means to save themselves.This could be willpower,financial,education,etc.Fear is an effective means of compliance with people in this state.
So,I think much time and energy is being expended searching for the thinking process of Obama in trying to solve the economic crisis.If people would be more cynical,you can more clearly see issues in black and white.As great a document our Constitution is,it can't wholly account for the shortcomings of man.Lust for greed,power and money is just too intoxicating for many people.Politicians are just people and those weaknesses rise up when the carrot is dangled.Of course,if we were all good Christians living the life the Lord intended,we wouldn't need a Constitution.More to come...
Give it a try,it really works!I practice it daily and spend my time tip-toeing thru the tulips!Why,you may ask?Even if you didn't ask,I'll tell you why.
Don't you just marvel at the media debating the merits of Obama's actions so far?They spend countless hours breaking down his bills,executive orders,policies,etc.The inevitable comparisons to previous administrations and alternative styles of Government are rampant.It's all for naught.The basic premise is flawed thus prohibiting any rational conclusions.I'll explain.
People wonder if the stimulus will work.If it's large enough,small enough,has enough tax cuts,enough spending on the right things,too much pork,too much debt,etc.You can debate the merits for eternity,yet it won't change the simple fact that fixing the economy was never the intent.The intent is the Liberal social agenda and securing a larger voting block for the future.This is why you can't reach a reasonable conclusion.The things he is doing don't seem to logically address the economy because they aren't meant to.
There are many different layers of conspiracy theorists ranging from the simple Big Brother is watching to the Illuminati wiping out 80% of the population and enacting the New World Order.I don't know enough factual information to draw conclusive proof of any of them.I just prefer being a simple skeptic and always questioning why.I don't have to stress out about my party being in or out of power and the resulting issues.
We all know politicians lie and cheat.I could never extend trust to someone I don't personally know.I have no use for speeches,only results and actions matter.The laundry list of questions surrounding Obama and his background and qualifications should suffice to deter anyone from electing him.I contend that if he were not African-American,he would never have been elected.Most people celebrate the fact we finally got over the hump and elected a President despite the color of his skin.I say the opposite is true.He got elected because of the color of his skin.All the rhetoric about hope and change are fine,but any of the old guard white politicians could have tried that and not won.Wasn't McCain the proven maverick?
When someone is elected for superficial reasons,people's judgement is skewed.Lately,all you hear is that Obama must be more positive,less gloom and doom.That's simply a political strategy to get policy enacted.People base judgement on irrelevant factors such as style,delivery,tone,expressions,etc.The people down on their luck need the promises and compassion to give them hope because they lack the means to save themselves.This could be willpower,financial,education,etc.Fear is an effective means of compliance with people in this state.
So,I think much time and energy is being expended searching for the thinking process of Obama in trying to solve the economic crisis.If people would be more cynical,you can more clearly see issues in black and white.As great a document our Constitution is,it can't wholly account for the shortcomings of man.Lust for greed,power and money is just too intoxicating for many people.Politicians are just people and those weaknesses rise up when the carrot is dangled.Of course,if we were all good Christians living the life the Lord intended,we wouldn't need a Constitution.More to come...
Tuesday, February 24, 2009
Marketing 101
Doesn't it sound wonderful?Reduce the deficit in half by the end of his first term?Real progress and a likely 2nd term.I wonder...
When you go to the store and see 50% off,2 for the price of 1,buy one get one free.They all sound good and they are all exactly the same.Eye of the beholder.Except that the discount is off the suggested retail price,or worse yet,the suggested list price,which nobody ever pays.
HELLO!Is anybody watching here?Reducing the deficit to $533 billion as Obama is claiming is still higher than any deficit in history!This will be success?Change?No more 8 years of failed Bush policies?
It sounds insane and no common sense thinking person would buy it.This is why it's virtually guaranteed to be a success if he pulls it off(which I don't think he can,by the way).The sheep will love it and praise Obama.Lower the bar so low that any reduction is seen as a positive.
Still need another analogy?Ever try to trade in your car for a new one?The price of the new car is $25,000 if you walk in and pay cash.However,the dealer is going to help you out and pay you twice what your old clunker is worth on trade.Your piece of junk was only really worth $600,but the dealer gave you $1200.You make the deal feeling like you pulled one over on the dealer.Until you read the details and found out you paid $2,000 more for the car than you thought.
Watch the liberal polls after Obamas speech tonight.They will love it as the money keeps falling out of the hole in their pocket.More to come...
When you go to the store and see 50% off,2 for the price of 1,buy one get one free.They all sound good and they are all exactly the same.Eye of the beholder.Except that the discount is off the suggested retail price,or worse yet,the suggested list price,which nobody ever pays.
HELLO!Is anybody watching here?Reducing the deficit to $533 billion as Obama is claiming is still higher than any deficit in history!This will be success?Change?No more 8 years of failed Bush policies?
It sounds insane and no common sense thinking person would buy it.This is why it's virtually guaranteed to be a success if he pulls it off(which I don't think he can,by the way).The sheep will love it and praise Obama.Lower the bar so low that any reduction is seen as a positive.
Still need another analogy?Ever try to trade in your car for a new one?The price of the new car is $25,000 if you walk in and pay cash.However,the dealer is going to help you out and pay you twice what your old clunker is worth on trade.Your piece of junk was only really worth $600,but the dealer gave you $1200.You make the deal feeling like you pulled one over on the dealer.Until you read the details and found out you paid $2,000 more for the car than you thought.
Watch the liberal polls after Obamas speech tonight.They will love it as the money keeps falling out of the hole in their pocket.More to come...
Monday, February 23, 2009
Oxy-MORONS!
Hypocrisy is running wild even for beltway politics.Usually politicians try to deflect,shift or somehow deceive you from what is really going on.Today the status quo appears to be simply to do the total opposite.Obama just increased the deficit $800 billion with his stimulus.Now he wants to cut spending about $800 billion.He runs the self proclaimed most transparent administration in history yet no one has any idea where the backdoor TARP money went,if Obama is a legal citizen,whether lobbyists are allowed in the cabinet,whether or not candidates should accept campaign contributions,whether or not you should pay your taxes,etc.It's just like the kiss of death for a sports coach when the owner gives them the vote of confidence.You know they'll be fired soon.So I guess that's the most accurate way to read this administration so far.
Do you think we should allow China to participate in any Congressional spending debates?Since they are picking up the tab,shouldn't they have some say in the process?
I wonder where the outrage is on SS?Remember,it's in dire straits and will run out of money soon yet we are using the SS payroll tax receipts to fund the tax cuts.
The only hopeful scenario I can see is that once America experiences the full effect of the Obama travesty,maybe they will finally step out in frustration and vote both Democrat and Republican political hacks out.The conspiracy theorists tell us to fear the New World Order.Could it be worse than the order in place?More to come...
Do you think we should allow China to participate in any Congressional spending debates?Since they are picking up the tab,shouldn't they have some say in the process?
I wonder where the outrage is on SS?Remember,it's in dire straits and will run out of money soon yet we are using the SS payroll tax receipts to fund the tax cuts.
The only hopeful scenario I can see is that once America experiences the full effect of the Obama travesty,maybe they will finally step out in frustration and vote both Democrat and Republican political hacks out.The conspiracy theorists tell us to fear the New World Order.Could it be worse than the order in place?More to come...
Sunday, February 22, 2009
Jenny says I'll take it!
Our lovely Governor here in Michigan is salivating.Several states are planning on rejecting stimulus funds which would force state unemployment law changes permanently even after the Federal funds are gone.No shame here as the good Governor needs a bailout big time regardless of any long term fallout.Let the next Governor deal with that.She will be the first in line at the handout counter to help save her budget that she can't manage herself.
In a normal failing enterprise,the people in charge would do everything possible to keep someone like this hidden away with her horrific track record.Not the Liberals.They put here front and center as an example of pity needing the good taxpayers help.8 years of failed Bush policies have forced the woeful status of Michigan according to the left,no fault of the Governors.
It appears that the good citizens of Michigan agree as they voted her in for another term.As I have stated here previously and others point out as well,the fault lies with the public.The voters are to blame.They keep getting what they ask for and nothing will change until they vote out the entire gang of bums.Just switching back and forth between only slightly different Republicans and democrats will get you the same results.More to come...
In a normal failing enterprise,the people in charge would do everything possible to keep someone like this hidden away with her horrific track record.Not the Liberals.They put here front and center as an example of pity needing the good taxpayers help.8 years of failed Bush policies have forced the woeful status of Michigan according to the left,no fault of the Governors.
It appears that the good citizens of Michigan agree as they voted her in for another term.As I have stated here previously and others point out as well,the fault lies with the public.The voters are to blame.They keep getting what they ask for and nothing will change until they vote out the entire gang of bums.Just switching back and forth between only slightly different Republicans and democrats will get you the same results.More to come...
Friday, February 20, 2009
$11,027.77 per second wasted!
This is what we spend every second 24/7/365 on Federal debt interest.It works out to about $325 billion annually since 1988 based on U.S. Treasury statistics.We get absolutely nothing in return for this.At least the wasteful stimulus bill provides some infrastructure.Yet at the same time the stimulus contributes to this interest dilemma as well.
We are bailing out all sorts of industries with reckless deficit spending and social program expansions not related to economic growth.Yet the problem of the Federal debt and it's interest is discarded as a problem for another day,another generation to solve.That strategy is running out of gas.
The actual debt is apparently based on your point of view.The debt categorized as public debt is agreed upon as fact.It is approximately $6.5 trillion today.This is debt owed to private investors,corporations,Governments,etc.Yes,this includes China,Russia,Japan,Saudi Arabia,etc.The other category is intragovernmental holdings which is a gray area.The current total is about $4.3 trillion.This is debt owed to other Government agencies.Some refer to this as a simple accounting trick by shifting funds around.However,if you do include it as legitimate,the $2.6 trillion owed to the SS and Medicare trust funds are not included and should be.This makes the total $13.4 trillion overall.This doesn't include any of the bailout spending currently happening.
We spent $131 billion in the first quarter of this year on Federal debt interest,a pace of $524 billion for 2009.Add in the $271 billion we spent last year and guess what?The $795 billion wasted in just these 2 years would have paid for the hotly debated stimulus bill.Think about that for a minute.We have seen all of the examples trying to put in perspective how large the $789 billion dollar stimulus is,and that very amount is going down the toilet without a word said.Those that continue to say the debt and the interest don't matter should shut their pie holes.
Have you been watching the evening news?Governments around the world are in trouble and many in far worse shape than us.The day is coming very soon when these Governments stop financing our debt spending due to their own internal problems.That will leave the Federal Reserve itself as the only buyer left for financing our debt.Talk about accounting tricks.There really are limits to Government spending.President Obama,are you listening?The fallout will be dramatic.More to come...
We are bailing out all sorts of industries with reckless deficit spending and social program expansions not related to economic growth.Yet the problem of the Federal debt and it's interest is discarded as a problem for another day,another generation to solve.That strategy is running out of gas.
The actual debt is apparently based on your point of view.The debt categorized as public debt is agreed upon as fact.It is approximately $6.5 trillion today.This is debt owed to private investors,corporations,Governments,etc.Yes,this includes China,Russia,Japan,Saudi Arabia,etc.The other category is intragovernmental holdings which is a gray area.The current total is about $4.3 trillion.This is debt owed to other Government agencies.Some refer to this as a simple accounting trick by shifting funds around.However,if you do include it as legitimate,the $2.6 trillion owed to the SS and Medicare trust funds are not included and should be.This makes the total $13.4 trillion overall.This doesn't include any of the bailout spending currently happening.
We spent $131 billion in the first quarter of this year on Federal debt interest,a pace of $524 billion for 2009.Add in the $271 billion we spent last year and guess what?The $795 billion wasted in just these 2 years would have paid for the hotly debated stimulus bill.Think about that for a minute.We have seen all of the examples trying to put in perspective how large the $789 billion dollar stimulus is,and that very amount is going down the toilet without a word said.Those that continue to say the debt and the interest don't matter should shut their pie holes.
Have you been watching the evening news?Governments around the world are in trouble and many in far worse shape than us.The day is coming very soon when these Governments stop financing our debt spending due to their own internal problems.That will leave the Federal Reserve itself as the only buyer left for financing our debt.Talk about accounting tricks.There really are limits to Government spending.President Obama,are you listening?The fallout will be dramatic.More to come...
Thursday, February 19, 2009
Wishful thinking
Wish List
-require federal debt ceiling limit increases to be on a stand-alone bill requiring a 3/4 majority vote in both houses.
-establish a Federal Constitutional Review Board which must sign off on all Federal Legislation prior to it becoming law to insure no provisions of the Constitution are violated.This Board should be comprised of 12 members,6 from the House and 6 from the Senate divided equally between the majority and minority parties.Members will be appointed by each parties leaders in their respective House of Congress prior to the start of each new session of Congress.The equal number provision is intentional to require at least 1 crossover vote to prevent partisan party line voting.
-a balanced budget Amendment
These would be impossibly difficult to get enacted due to the power being stripped from members of Congress.But they would do wonders for reining in our out of control Congress.More to come...
-require federal debt ceiling limit increases to be on a stand-alone bill requiring a 3/4 majority vote in both houses.
-establish a Federal Constitutional Review Board which must sign off on all Federal Legislation prior to it becoming law to insure no provisions of the Constitution are violated.This Board should be comprised of 12 members,6 from the House and 6 from the Senate divided equally between the majority and minority parties.Members will be appointed by each parties leaders in their respective House of Congress prior to the start of each new session of Congress.The equal number provision is intentional to require at least 1 crossover vote to prevent partisan party line voting.
-a balanced budget Amendment
These would be impossibly difficult to get enacted due to the power being stripped from members of Congress.But they would do wonders for reining in our out of control Congress.More to come...
Tuesday, February 17, 2009
IMF stepping up plans?
Fear.Do you feel it?Everyone seems to sense it.But who to fear?If you're on the right,you fear the left implementing their Socialist agenda.If you're on the left,you fear the right Bible belt policies taking over your life.If you're a conspiracy theorist,you fear the Illuminati taking over the globe.Isn't it always the case that the truth lies in the middle?
It seems prudent to take a little bit of each and combine them for a more accurate view.One of the detriments to politics today is the all or nothing sales pitch.Obama feels empowered with his victory to implement a wholesale shift in policies which drives the right nuts.He only received 52.7%.He is now embarking on reversing 8 years of Bush to pacify his party.Vica-versa when the right takes over after having been out for awhile.Virtually half the country is unhappy with the current administration at any one time.Bi-partisanship is always touted as the goal by any new administration but people don't seem to really want this as it's translates into constant bickering.You either want debate on issues or you don't.The more accurate view of bi-partisan today means the other side caving in so we can make progress.For example,the dire emergency of the stimulus and TARP bailouts.
The New World Order people are really coming to life now with detainment camps,martial law and more right around the corner.They claim that the 13 families who own all banks globally are using the economic crisis to implement the next stage of the global reorganizing plan.Some say what's the big deal?Does it really matter who is at the top of the food chain pulling the strings?Obviously,money is power.The common man never has enough to make a difference.Whether it's a Government or bankers manipulating world events,many feel it doesn't affect their daily life anyway.Certainly the ultimate fear would be just a few people controlling the globe with all freedom gone.
I haven't come to any conclusions yet on what the endgame is.If the IMF is looking to establish one world currency and strip all Governments of power as claimed,why don't they just do it today?If all monies worldwide can be traced back to 13 families,haven't they already got control?
Couldn't they easily devalue the dollar or any commodity and create the anarchy they require to re-align the world?Why wait?Do they think it can be done in a more orderly fashion?We do hear the call everywhere that we need Government to bail us out.That only Government can step in now to solve problems on this scale.Does anyone really think people will willingly just fall in line?By force would seem to be the only way.Too much for this little peon to figure out.
Devaluing monies seems to contradict anyway.If controlling the money gives them their power,then why devalue it willingly and strip your own power?Wouldn't they need to control a strong money supply to control a military necessary to control the world?Can't find the answers to this stuff on Wikipedia!It's kind of like trying to get your mind around the size of the universe that seemingly never ends.I get a brain cramp whenever I try to imagine the really big picture.If there really is a global takeover underway,I don't see where grabbing every gun in existence is going to stop it because they control the really big ones.
Seems much easier to leave the big picture to whatever God you worship.And if you don't believe in one and think we all came about by accident,I don't know who you leave it to.In the meantime,we can only do what we can control.Maybe the Constitution is old,but it's still the bedrock of this country.I believe you must uphold it if you wish to benefit from the freedom it delivered.Changing the game as you go never works.10,20,50 years from now,we would never recognize the country from it's origins if we don't uphold the basic principles it was founded on.Certainly seems as worthy a goal as possible in these times.More to come...
It seems prudent to take a little bit of each and combine them for a more accurate view.One of the detriments to politics today is the all or nothing sales pitch.Obama feels empowered with his victory to implement a wholesale shift in policies which drives the right nuts.He only received 52.7%.He is now embarking on reversing 8 years of Bush to pacify his party.Vica-versa when the right takes over after having been out for awhile.Virtually half the country is unhappy with the current administration at any one time.Bi-partisanship is always touted as the goal by any new administration but people don't seem to really want this as it's translates into constant bickering.You either want debate on issues or you don't.The more accurate view of bi-partisan today means the other side caving in so we can make progress.For example,the dire emergency of the stimulus and TARP bailouts.
The New World Order people are really coming to life now with detainment camps,martial law and more right around the corner.They claim that the 13 families who own all banks globally are using the economic crisis to implement the next stage of the global reorganizing plan.Some say what's the big deal?Does it really matter who is at the top of the food chain pulling the strings?Obviously,money is power.The common man never has enough to make a difference.Whether it's a Government or bankers manipulating world events,many feel it doesn't affect their daily life anyway.Certainly the ultimate fear would be just a few people controlling the globe with all freedom gone.
I haven't come to any conclusions yet on what the endgame is.If the IMF is looking to establish one world currency and strip all Governments of power as claimed,why don't they just do it today?If all monies worldwide can be traced back to 13 families,haven't they already got control?
Couldn't they easily devalue the dollar or any commodity and create the anarchy they require to re-align the world?Why wait?Do they think it can be done in a more orderly fashion?We do hear the call everywhere that we need Government to bail us out.That only Government can step in now to solve problems on this scale.Does anyone really think people will willingly just fall in line?By force would seem to be the only way.Too much for this little peon to figure out.
Devaluing monies seems to contradict anyway.If controlling the money gives them their power,then why devalue it willingly and strip your own power?Wouldn't they need to control a strong money supply to control a military necessary to control the world?Can't find the answers to this stuff on Wikipedia!It's kind of like trying to get your mind around the size of the universe that seemingly never ends.I get a brain cramp whenever I try to imagine the really big picture.If there really is a global takeover underway,I don't see where grabbing every gun in existence is going to stop it because they control the really big ones.
Seems much easier to leave the big picture to whatever God you worship.And if you don't believe in one and think we all came about by accident,I don't know who you leave it to.In the meantime,we can only do what we can control.Maybe the Constitution is old,but it's still the bedrock of this country.I believe you must uphold it if you wish to benefit from the freedom it delivered.Changing the game as you go never works.10,20,50 years from now,we would never recognize the country from it's origins if we don't uphold the basic principles it was founded on.Certainly seems as worthy a goal as possible in these times.More to come...
Sunday, February 15, 2009
The economy simplified
The definition of economics seems to need clarifying.Too many confusing terms,acronyms and formulas for the common man to wrap their arms around.When you listen to panels and pundits hashing it out,both sides can generally make a decent case for their side so you left as confused as when you started.If you're hard-core left or right,it doesn't matter,you're not changing your mind anyway.
I try to look at it very simply.An economy has two sides,suppliers and consumers,that's it!Suppliers are the manufacturers,distributors,sales,producers,providers,etc.Anyone involved in making a good or providing a service.We know the total value of this side of the economy by the GDP,or gross domestic product,which is the total value of all goods and services.
The consumers are obviously anyone who uses,buys or in some method consumes the suppliers goods or services.Eating,reading,listening,watching,wearing,driving,living in,etc. are all examples of consuming.
You can imagine the two sides in a circle with consumers demands being met by the suppliers.The more you demand,the more that is supplied,and the economy grows.If demand drops,the supply drops and the economy shrinks.
Every aspect of our economy fits into one of these two sides and interacts with the other.It really is that easy.The population of the world is constantly expanding which means demand is always increasing and the economy grows along with it.
The question of the day is obviously how does a stimulus package boost the economy?Well,it can't based on physics.The theory is to spend money to artificially create demand.If we create social programs,then these require employees and materials such as money for welfare or unemployment or maybe food or clothing or housing.This has to be provided by manufacturers,growers,builders,etc.Infrastructure projects are the same requiring workers and materials to complete them.Any of the spending provisions included in the stimulus will fall into these categories as they will require people or money or goods or services to deliver them.
The problem is the demand was created artificially not by the addition of more consumers.Since the Government has no money,it must spend it's only source of income to pay for this,taxpayers money.We are already over the budget this year so there is no taxpayer money available.This means the Government must sell debt instead.Treasury securities are sold on the open market to individuals,corporations,Government agencies,foreign Governments,etc. to generate the money to pay for the stimulus.The taxpayers are the ones responsible to repay this debt.
As a consumer,you can either buy or trade for the goods and services you use.The debt we accrued from the stimulus limits what we have available to use to buy.This is why you hear that we need jobs that create wealth to stimulate the economy.Obamas stimulus plan simply shifts the same money around without generating anything new.The people who received anything under the stimulus are being paid for by other taxpayers reducing what they can buy.It's like taking a bucket of water from one side of the pool and dumping it in the other side.There was no overall gain.
Any raise in the economy by the stimulus is offset by the debt increase.That's what I mean by physics.If you didn't add population to increase demand and you didn't inject goods or services from an outside source such as foreign investment,the overall balance cannot change.Even though you may have used foreign money to buy the debt used to finance the stimulus,it must be paid back which negates it.Actually it more than offsets it,because you must pay interest on it.For this reason you may hear that in the long run a stimulus is actually a negative because of the interest.
The only way to raise the water level in the pool is by adding more water.It doesn't matter if the water is in the form of more consumers creating more demand or more suppliers providing more goods and services,it must be a new,outside source injecting it.The end result of all this is that the Obama stimulus cannot possibly grow the economy due to physics and,in fact,will shrink the economy in the long run due to the debt interest.
The other argument is how to stimulate the economy that has become bogged down without any long term negative effects.This is exactly the problem we have today.We still have the same total amount of goods and services in the system.We still have the same amount of consumer demand.However,the supply and demand wheel has slowed down otherwise known as a recession.The cost of goods and services rose which decreased the money people had available to make their house payment.When they foreclosed,the derivative markets collapsed and the credit crunch took hold.Obviously,there are many complicated details to this,but that's it in a nutshell.
When your available spending decreases because the cost of goods and services increased faster,your demand drops which leads to suppliers output decreasing.It's the pool effect again.To stimulate the economy,you must either reduce the cost of goods and services or increase the available spending we have.Either one affects the other which makes the supply and demand wheel spin again.It's the speed of the wheel that determines whether or not the economy,or GDP,is decreasing (receding),increasing (growing),or in neutral (no growth or recession).
It doesn't matter what confusing terms and economic factors you hear discussed,they all boil down to simple supply and demand by suppliers and consumers.Every aspect of economics fits somewhere into this simple two part economy.
Obama wants to spend more to stimulate.This increases your debt limiting what you have available to spend.This lowers demand which lowers supply requirements and slows growth overall.Easy.
If you cut taxes,you increase the money you have available to spend.Your demand goes up which increases supply requirements which increases growth overall.Easy.
The loser in this scenario is Government and that's what this is all about.Government is the middleman in the supply and demand scenario.To provide all of the programs they must take from some taxpayers and give to others.Wealth redistribution.Socialism.Robin Hood.All that good stuff applies as it's the only way they can operate since they have no money.The cost of operating Government can be looked at as a drag on the supply and demand economic growth wheel.The more you expand Government the greater the braking effect on the wheel.
Proponents of bigger Government know that controlling the brake gives them power to control the wheel.We must have a Government,of course.We need an infrastructure and certain,basic programs for it to function such as a National Defense.However,it's limits are strictly defined in the Constitution for good reason,to limit the power and thus the braking effect as well.That's why the simple concept of smaller,limited Government is better.
All of the costs due to Government regulation in all of it's many forms put a drag on the economy.Anything that costs business money or time reduces it's efficiency and thus it's ability to productively provide goods and services.Productivity is the main goal of business.Not job creation.That is a good effect of an efficient,productive business.To simply create jobs to put people to work without increasing productivity decreases the overall business output.The pool effect again.
Obama wants to create jobs by increasing the debt thru the stimulus.These jobs won't increase the overall productivity output,so thru the pool effect,you didn't increase the economy.There just simply is no free lunch.If you take from here,than over there pays for it.
Choose the Republican plan to cut taxes and just get the wheel unstuck and spinning again without the debt offsetting it.Even though this doesn't grow the economy either,it gets the supply and demand wheel spinning without the long term debt and growth of Government dragging it down.It becomes very clear why the Obama stimulus is bad news when you simplify things!
When you hear Obama state the point of a stimulus is spending,you can see that this is wrong.The point of a stimulus is get the wheel spinning without costs,that's all.You can do this in many ways but growing Government thru the Obama stimulus package is only designed for a Socialist agenda to be enacted.It's physics!More to come...
I try to look at it very simply.An economy has two sides,suppliers and consumers,that's it!Suppliers are the manufacturers,distributors,sales,producers,providers,etc.Anyone involved in making a good or providing a service.We know the total value of this side of the economy by the GDP,or gross domestic product,which is the total value of all goods and services.
The consumers are obviously anyone who uses,buys or in some method consumes the suppliers goods or services.Eating,reading,listening,watching,wearing,driving,living in,etc. are all examples of consuming.
You can imagine the two sides in a circle with consumers demands being met by the suppliers.The more you demand,the more that is supplied,and the economy grows.If demand drops,the supply drops and the economy shrinks.
Every aspect of our economy fits into one of these two sides and interacts with the other.It really is that easy.The population of the world is constantly expanding which means demand is always increasing and the economy grows along with it.
The question of the day is obviously how does a stimulus package boost the economy?Well,it can't based on physics.The theory is to spend money to artificially create demand.If we create social programs,then these require employees and materials such as money for welfare or unemployment or maybe food or clothing or housing.This has to be provided by manufacturers,growers,builders,etc.Infrastructure projects are the same requiring workers and materials to complete them.Any of the spending provisions included in the stimulus will fall into these categories as they will require people or money or goods or services to deliver them.
The problem is the demand was created artificially not by the addition of more consumers.Since the Government has no money,it must spend it's only source of income to pay for this,taxpayers money.We are already over the budget this year so there is no taxpayer money available.This means the Government must sell debt instead.Treasury securities are sold on the open market to individuals,corporations,Government agencies,foreign Governments,etc. to generate the money to pay for the stimulus.The taxpayers are the ones responsible to repay this debt.
As a consumer,you can either buy or trade for the goods and services you use.The debt we accrued from the stimulus limits what we have available to use to buy.This is why you hear that we need jobs that create wealth to stimulate the economy.Obamas stimulus plan simply shifts the same money around without generating anything new.The people who received anything under the stimulus are being paid for by other taxpayers reducing what they can buy.It's like taking a bucket of water from one side of the pool and dumping it in the other side.There was no overall gain.
Any raise in the economy by the stimulus is offset by the debt increase.That's what I mean by physics.If you didn't add population to increase demand and you didn't inject goods or services from an outside source such as foreign investment,the overall balance cannot change.Even though you may have used foreign money to buy the debt used to finance the stimulus,it must be paid back which negates it.Actually it more than offsets it,because you must pay interest on it.For this reason you may hear that in the long run a stimulus is actually a negative because of the interest.
The only way to raise the water level in the pool is by adding more water.It doesn't matter if the water is in the form of more consumers creating more demand or more suppliers providing more goods and services,it must be a new,outside source injecting it.The end result of all this is that the Obama stimulus cannot possibly grow the economy due to physics and,in fact,will shrink the economy in the long run due to the debt interest.
The other argument is how to stimulate the economy that has become bogged down without any long term negative effects.This is exactly the problem we have today.We still have the same total amount of goods and services in the system.We still have the same amount of consumer demand.However,the supply and demand wheel has slowed down otherwise known as a recession.The cost of goods and services rose which decreased the money people had available to make their house payment.When they foreclosed,the derivative markets collapsed and the credit crunch took hold.Obviously,there are many complicated details to this,but that's it in a nutshell.
When your available spending decreases because the cost of goods and services increased faster,your demand drops which leads to suppliers output decreasing.It's the pool effect again.To stimulate the economy,you must either reduce the cost of goods and services or increase the available spending we have.Either one affects the other which makes the supply and demand wheel spin again.It's the speed of the wheel that determines whether or not the economy,or GDP,is decreasing (receding),increasing (growing),or in neutral (no growth or recession).
It doesn't matter what confusing terms and economic factors you hear discussed,they all boil down to simple supply and demand by suppliers and consumers.Every aspect of economics fits somewhere into this simple two part economy.
Obama wants to spend more to stimulate.This increases your debt limiting what you have available to spend.This lowers demand which lowers supply requirements and slows growth overall.Easy.
If you cut taxes,you increase the money you have available to spend.Your demand goes up which increases supply requirements which increases growth overall.Easy.
The loser in this scenario is Government and that's what this is all about.Government is the middleman in the supply and demand scenario.To provide all of the programs they must take from some taxpayers and give to others.Wealth redistribution.Socialism.Robin Hood.All that good stuff applies as it's the only way they can operate since they have no money.The cost of operating Government can be looked at as a drag on the supply and demand economic growth wheel.The more you expand Government the greater the braking effect on the wheel.
Proponents of bigger Government know that controlling the brake gives them power to control the wheel.We must have a Government,of course.We need an infrastructure and certain,basic programs for it to function such as a National Defense.However,it's limits are strictly defined in the Constitution for good reason,to limit the power and thus the braking effect as well.That's why the simple concept of smaller,limited Government is better.
All of the costs due to Government regulation in all of it's many forms put a drag on the economy.Anything that costs business money or time reduces it's efficiency and thus it's ability to productively provide goods and services.Productivity is the main goal of business.Not job creation.That is a good effect of an efficient,productive business.To simply create jobs to put people to work without increasing productivity decreases the overall business output.The pool effect again.
Obama wants to create jobs by increasing the debt thru the stimulus.These jobs won't increase the overall productivity output,so thru the pool effect,you didn't increase the economy.There just simply is no free lunch.If you take from here,than over there pays for it.
Choose the Republican plan to cut taxes and just get the wheel unstuck and spinning again without the debt offsetting it.Even though this doesn't grow the economy either,it gets the supply and demand wheel spinning without the long term debt and growth of Government dragging it down.It becomes very clear why the Obama stimulus is bad news when you simplify things!
When you hear Obama state the point of a stimulus is spending,you can see that this is wrong.The point of a stimulus is get the wheel spinning without costs,that's all.You can do this in many ways but growing Government thru the Obama stimulus package is only designed for a Socialist agenda to be enacted.It's physics!More to come...
Friday, February 13, 2009
You'll have to listen eventually
I do get some level of satisfaction listening to the Conservative media make some of my points even though they refuse to mention my e-mails on the air.I assume that this is ego in some cases as they don't want to be upstaged.Whatever their reasons,it's good to see the points discussed.
Some continue to refuse me.For example,I've been making this point for quite some time.The stimulus is discussed endlessly and the question will usually arise as to whether or not Obama understands what he's doing to the economy with all this spending.I contend that Obama is not factoring this into his decision one iota.Stimulus 1.0 is simply about the Liberal agenda and nothing else.Any tax cut talk is just a distraction to feed the public.You can debate the amount and the merits all you want,it's a moot point.I hear the question of what's the rush to pass this,yet not many realize the answer.
A 2nd point previously posted is the priorities of many American voters.The Conservatives still trumpet the reckless spending,tax cheats,conflicts of interest,etc.They assume when the average person is presented with these points,they will discount Obama.They even make the examples of voters voting for Obama for silly,frivolous reasons but don't connect the dots.You can't change the mind of a voter with reason when they have voted simply based on emotion.In fact,I really like this statement and will use it often from now on.All of their efforts will be well served in solidifying the base voters with the benefits of fiscal and social conservatism.But they must send a modified,targeted message to swing voters that don't factor this into their thought process.
Try it yourself.Find one of these Obama lovers.Tick off the huge list of reasons why the Liberal message is wrong,why spending doesn't work,your liberty is disappearing,etc.They will still respond with something along the lines of who is going to help me or do something for me.The ends really do justify the means for these people.
Just listen as time progresses and you will begin to hear these topics brought up.Eventually,they'll have to address these issues as the Liberals enact their agenda and they'll see things slipping furthur away.More to come...
Some continue to refuse me.For example,I've been making this point for quite some time.The stimulus is discussed endlessly and the question will usually arise as to whether or not Obama understands what he's doing to the economy with all this spending.I contend that Obama is not factoring this into his decision one iota.Stimulus 1.0 is simply about the Liberal agenda and nothing else.Any tax cut talk is just a distraction to feed the public.You can debate the amount and the merits all you want,it's a moot point.I hear the question of what's the rush to pass this,yet not many realize the answer.
A 2nd point previously posted is the priorities of many American voters.The Conservatives still trumpet the reckless spending,tax cheats,conflicts of interest,etc.They assume when the average person is presented with these points,they will discount Obama.They even make the examples of voters voting for Obama for silly,frivolous reasons but don't connect the dots.You can't change the mind of a voter with reason when they have voted simply based on emotion.In fact,I really like this statement and will use it often from now on.All of their efforts will be well served in solidifying the base voters with the benefits of fiscal and social conservatism.But they must send a modified,targeted message to swing voters that don't factor this into their thought process.
Try it yourself.Find one of these Obama lovers.Tick off the huge list of reasons why the Liberal message is wrong,why spending doesn't work,your liberty is disappearing,etc.They will still respond with something along the lines of who is going to help me or do something for me.The ends really do justify the means for these people.
Just listen as time progresses and you will begin to hear these topics brought up.Eventually,they'll have to address these issues as the Liberals enact their agenda and they'll see things slipping furthur away.More to come...
Thursday, February 12, 2009
Change in strategy necessary
As predicted,the stimulus has been passed against the wishes of the majority of Americans.Many will say that there is nothing else we can do and move on.I disagree.1/3 of this money is directed to the states to use for their fiscal issues.Obama has repeatedly stated that there are no earmarks in this bill meaning not directed at specific projects.We know this is not true,but let's call him on it for the sake of argument.
No earmark means the states can use this money as they see fit.I say let's put the pressure on the Governors and state legislatures to use this money where it will actually benefit the economy.They can no longer hide behind the reasoning that this bill had to be enacted right away thus eliminating any meaningful debate.It's passed and the money will slowly be doled out over the next several years.How about using the money for state income tax reductions?Other state tax burdens inhibiting the free market?Remember,no earmarks so the money doesn't have to be used for the intended purpose of the Liberal agenda.
Of course,any blue state will comply with Obama and use it accordingly.But if you're in a red state,hold your GOP Governors and Legislators to the fire and demand they use the money for a legitimate economic stimulus purpose.If they do and Pelosi threatens to withhold funding for non-compliant states,all the better as we didn't want this money spent in this manner to begin with.It's a win-win.If the money must be spent,then do it as productively as possible.If Pelosi revolts and goes nuts,that would be great as well.
The point is don't just lay down and take it.Keep up the pressure constantly.Don't let the Liberals get into a comfort zone.On a secondary note,we should see about a petition to make Maine secede from the Union since they have 2 Liberal Senators pretending to be Republicans.The Senate now effectively has a filibuster proof majority for the next 2 years.More to come...
No earmark means the states can use this money as they see fit.I say let's put the pressure on the Governors and state legislatures to use this money where it will actually benefit the economy.They can no longer hide behind the reasoning that this bill had to be enacted right away thus eliminating any meaningful debate.It's passed and the money will slowly be doled out over the next several years.How about using the money for state income tax reductions?Other state tax burdens inhibiting the free market?Remember,no earmarks so the money doesn't have to be used for the intended purpose of the Liberal agenda.
Of course,any blue state will comply with Obama and use it accordingly.But if you're in a red state,hold your GOP Governors and Legislators to the fire and demand they use the money for a legitimate economic stimulus purpose.If they do and Pelosi threatens to withhold funding for non-compliant states,all the better as we didn't want this money spent in this manner to begin with.It's a win-win.If the money must be spent,then do it as productively as possible.If Pelosi revolts and goes nuts,that would be great as well.
The point is don't just lay down and take it.Keep up the pressure constantly.Don't let the Liberals get into a comfort zone.On a secondary note,we should see about a petition to make Maine secede from the Union since they have 2 Liberal Senators pretending to be Republicans.The Senate now effectively has a filibuster proof majority for the next 2 years.More to come...
Tuesday, February 10, 2009
Can you believe Obama's press conference?
Transcript from the Presidents press conference:
Mr. President,we've had lots of others recessions that recovered on their own without a stimulus,doesn't that make this a bad idea?
This recession is unique due to the bad policies of the previous administration and must be dealt with quickly and aggressively to prevent catastrophe.
Mr. President,several members of your cabinet have tax paying issues,do you support this?
This just goes to show that we're all too busy with life everyday and don't have time to be thorough on these matters.That's why I'm announcing a new program expanding the IRS to do everyones taxes for them to insure accuracy.
Mr. President,doesn't reducing our nuclear stockpile,negotiating without pre-conditions and closing Gitmo weaken our security?
Until we show through our actions that we are committed to peace and are willing to consider the viewpoint of all countries and cultures,we can't change the environment of fear we live in that requires these security measures.
Mr. President,your VP has stated it's patriotic to pay taxes,yet you claim 95% of all Americans will receive a tax cut.Isn't this a contradiction?
The American people have spoken by electing me and they want their Government to provide basic services to them and insure that every American has healthcare,education,a job and access to housing.As the greatest country in the world,we need to lead the way in raising the quality of life for all.This will require all of us to do more and for some,this will mean paying more taxes.
Mr. President,you dropped the charges against the USS Cole bomber and are closing Gitmo.Are terrorists rights more important than ours?
I believe every person throughout the world deserves equal rights and protection under the law.If we don't,we aren't fulfilling the vision laid out by the founding fathers in the Constitution.Whether it's a mother's right to choose,a person accused of a crime or a religious viewpoint,I believe we must equally support them all to fulfill this vision.
Did you see this press conference?Of course you didn't,because I made it up.However,this exercise shows how easy it is for Obama to twist a legitimate question and make it appear he's doing the right thing.His rhetoric is very predictable and easy to see thru if you're looking.But many Americans would accept answers like these as gospel because it's from the Messiah.The battle ahead will be brutal.More to come...
Mr. President,we've had lots of others recessions that recovered on their own without a stimulus,doesn't that make this a bad idea?
This recession is unique due to the bad policies of the previous administration and must be dealt with quickly and aggressively to prevent catastrophe.
Mr. President,several members of your cabinet have tax paying issues,do you support this?
This just goes to show that we're all too busy with life everyday and don't have time to be thorough on these matters.That's why I'm announcing a new program expanding the IRS to do everyones taxes for them to insure accuracy.
Mr. President,doesn't reducing our nuclear stockpile,negotiating without pre-conditions and closing Gitmo weaken our security?
Until we show through our actions that we are committed to peace and are willing to consider the viewpoint of all countries and cultures,we can't change the environment of fear we live in that requires these security measures.
Mr. President,your VP has stated it's patriotic to pay taxes,yet you claim 95% of all Americans will receive a tax cut.Isn't this a contradiction?
The American people have spoken by electing me and they want their Government to provide basic services to them and insure that every American has healthcare,education,a job and access to housing.As the greatest country in the world,we need to lead the way in raising the quality of life for all.This will require all of us to do more and for some,this will mean paying more taxes.
Mr. President,you dropped the charges against the USS Cole bomber and are closing Gitmo.Are terrorists rights more important than ours?
I believe every person throughout the world deserves equal rights and protection under the law.If we don't,we aren't fulfilling the vision laid out by the founding fathers in the Constitution.Whether it's a mother's right to choose,a person accused of a crime or a religious viewpoint,I believe we must equally support them all to fulfill this vision.
Did you see this press conference?Of course you didn't,because I made it up.However,this exercise shows how easy it is for Obama to twist a legitimate question and make it appear he's doing the right thing.His rhetoric is very predictable and easy to see thru if you're looking.But many Americans would accept answers like these as gospel because it's from the Messiah.The battle ahead will be brutal.More to come...
We're being punk'd!
Do you think Obama and his team are burning the midnight oil crunching numbers trying to find a way out of this economic crisis?Calling in economic experts from around the globe to devise a can't miss strategy?Uh,no.I guarantee he's not losing a moments sleep while he checks out cool stuff in the White House like the batphone.
It only makes sense.Since this isn't an economic stimulus package,why would it fix the economy?No,just payoffs for the party and the pent-up liberals who have been waiting for years to have a crisis pop-up giving them the opening they've been waiting for to enact their agenda.
Tarp 3 will be his attempt at fixing the credit crisis.The left loves the Central Bank style system of controlling the economy,playing with interest rates,fractional reserve banking,etc.The size of TARP 3.0 will be much larger than the first two $350 billion attempts.
Also,be aware that we are being prepped for the bad news to come in a year or two.That's when the tax increase will be implemented to pay for today's social agenda stimulus spending.The false appearance of bi-partisanship is a disclaimer requirement to spread the blame as he won't have a free pass as with this stimulus.More to come...
It only makes sense.Since this isn't an economic stimulus package,why would it fix the economy?No,just payoffs for the party and the pent-up liberals who have been waiting for years to have a crisis pop-up giving them the opening they've been waiting for to enact their agenda.
Tarp 3 will be his attempt at fixing the credit crisis.The left loves the Central Bank style system of controlling the economy,playing with interest rates,fractional reserve banking,etc.The size of TARP 3.0 will be much larger than the first two $350 billion attempts.
Also,be aware that we are being prepped for the bad news to come in a year or two.That's when the tax increase will be implemented to pay for today's social agenda stimulus spending.The false appearance of bi-partisanship is a disclaimer requirement to spread the blame as he won't have a free pass as with this stimulus.More to come...
Saturday, February 7, 2009
We need education even more than jobs
We may be witnessing the deepest fall from grace in memory.As Obama digs his hole deeper each day,it's stunning to see how quickly people are jumping ship.He's stuck in campaign mode with his rhetoric and even the left is embarassed.His critics are growing with decisions such as dropping charges against the U.S.S. Cole terrorists.Those who didn't drink the kool-aid knew he would move left,but so quickly?
One of the major talking points against him was nobody really knew what he stood for.The reason now becomes obvious.He doesn't have principles.He's not a leader.He allowed Pelosi to destroy the stimulus bill.He relied on Moodys economists for his economic platform.His social agenda is molded by a collection of radicals like Ayers and Wright.His cabinet is full of Clinton retreads while he boasts of change and hope.He trumpets fear to those that oppose him and categorizes debate as tired old political tricks.He is weakening our National Defense in fast forward.
These things were predicted and expected by his opponents to no avail.His career is marked by good luck and timing.Opponents dropping out of races against him.The housing bubble bursting and credit crunch came at just the right time.The color of his skin was a bonus as it all came together.It's like getting on a roller coaster before you realize they didn't finish the whole track yet.You bought your ticket and there's no refund available.It's little solace to those of us who knew and didn't vote for him,because we still stand together under the ash cloud falling down.
I pledged in an earlier post that I would try to be more positive this year,but I just can't get there watching the train wreck happening right in front of us.Ron Paul is spot on when he writes that education is the only cure.It won't happen fast,but it's the only way to prevent future political hacks like Obama from destroying America.More to come...
One of the major talking points against him was nobody really knew what he stood for.The reason now becomes obvious.He doesn't have principles.He's not a leader.He allowed Pelosi to destroy the stimulus bill.He relied on Moodys economists for his economic platform.His social agenda is molded by a collection of radicals like Ayers and Wright.His cabinet is full of Clinton retreads while he boasts of change and hope.He trumpets fear to those that oppose him and categorizes debate as tired old political tricks.He is weakening our National Defense in fast forward.
These things were predicted and expected by his opponents to no avail.His career is marked by good luck and timing.Opponents dropping out of races against him.The housing bubble bursting and credit crunch came at just the right time.The color of his skin was a bonus as it all came together.It's like getting on a roller coaster before you realize they didn't finish the whole track yet.You bought your ticket and there's no refund available.It's little solace to those of us who knew and didn't vote for him,because we still stand together under the ash cloud falling down.
I pledged in an earlier post that I would try to be more positive this year,but I just can't get there watching the train wreck happening right in front of us.Ron Paul is spot on when he writes that education is the only cure.It won't happen fast,but it's the only way to prevent future political hacks like Obama from destroying America.More to come...
Friday, February 6, 2009
Obama can win - here's how!
You hear it everywhere.The stimulus won't work.It's just spending or pork.It's taxpayer funded Government temp jobs.It's deficit spending.You need wealth creating private sector jobs.All true.But here's a way Obama can still claim a victory.
The GDP is the total value of all goods and services of our economy.Approx. $13 trillion today.When you have a recession,then the GDP is actually shrinking.To reverse it,you must expand the value of either goods or services or both.The stimulus will create taxpayer funded Government jobs which will increase the Federal debt.However,the Federal debt is not factored into the GDP.It's a separate calculation known as the debt as a percentage of GDP.Theoretically,you could expand the GDP by spending this way.Those Government workers will spend their incomes increasing the value of goods and services thereby increasing the GDP.In this manner,you can reverse a recession and claim the spending stimulus was successful.
The difference is you have increased the Federal debt to finance the stimulus.If you increased the GDP thru normal free market capital growth,you wouldn't have the debt increase.Yet,the debt is fictional to most Americans.We pay no principal,only interest.It's a huge $10.6 trillion number that people can't imagine.So increasing this number doesn't seem to matter to people because they can't understand it's implications.The goal must be stated to people that we need GDP growth without debt growth.
However,the loophole is created to allow Obama to say the stimulus reversed the recession and he can claim victory!Watch for it.You heard it here first!More to come...
The GDP is the total value of all goods and services of our economy.Approx. $13 trillion today.When you have a recession,then the GDP is actually shrinking.To reverse it,you must expand the value of either goods or services or both.The stimulus will create taxpayer funded Government jobs which will increase the Federal debt.However,the Federal debt is not factored into the GDP.It's a separate calculation known as the debt as a percentage of GDP.Theoretically,you could expand the GDP by spending this way.Those Government workers will spend their incomes increasing the value of goods and services thereby increasing the GDP.In this manner,you can reverse a recession and claim the spending stimulus was successful.
The difference is you have increased the Federal debt to finance the stimulus.If you increased the GDP thru normal free market capital growth,you wouldn't have the debt increase.Yet,the debt is fictional to most Americans.We pay no principal,only interest.It's a huge $10.6 trillion number that people can't imagine.So increasing this number doesn't seem to matter to people because they can't understand it's implications.The goal must be stated to people that we need GDP growth without debt growth.
However,the loophole is created to allow Obama to say the stimulus reversed the recession and he can claim victory!Watch for it.You heard it here first!More to come...
Thursday, February 5, 2009
Obama voters-you suck!
The urgency Obama is displaying is quite amusing and at the same time frightening.With support for the stimulus collapsing with each passing minute,the left is ramping up the rhetoric that we must act TODAY or the economy will never recover.Apparently,the window for enacting Socialism is small.The left knows they have the 3 branches of Government locked up.The court of public opinion isn't locked in with an election win however.Never waste a good crisis has always been the motto when trying to enact policy the public really doesn't want.
Do you on the left really need to fear?With the policies Obama is putting in place,he should have no fear.They won't resurrect the economy.The Fed is heading for insolvency.The cost of the stimulus will amplify the crisis.The TARP is going to expand greatly.Everything is falling into place nicely to insure a long term period of crisis that will allow the left to enact Socialism.Obama believes he has that mandate with his election.Read his Washington Post op-ed.He states that you don't want tax cuts and he rejects them.Are you one of the fools that voted this idiot in?As always,the voters are to blame for the nations problems because they voted for them.More to come...
Do you on the left really need to fear?With the policies Obama is putting in place,he should have no fear.They won't resurrect the economy.The Fed is heading for insolvency.The cost of the stimulus will amplify the crisis.The TARP is going to expand greatly.Everything is falling into place nicely to insure a long term period of crisis that will allow the left to enact Socialism.Obama believes he has that mandate with his election.Read his Washington Post op-ed.He states that you don't want tax cuts and he rejects them.Are you one of the fools that voted this idiot in?As always,the voters are to blame for the nations problems because they voted for them.More to come...
Wednesday, February 4, 2009
Non-believers everywhere!
The good news is I continue to see supporting info being reported upholding my theory that the Conservatives can't get the swing vote just by sticking to their principles.The bad news is the same reason.
Another survey out that 9 out of 10 don't think the stimulus will work.Yet 35% still want it to pass.Huh?Just goes to show you the mentality you're up against.The Conservative message of accountability and responsibility doesn't sell to the younger voters.Sure you get the base vote.But if you want to prevent a long-term run of Democratic power,you need those voters.It's a mix.You have the entitlement generation which you can't reach.These same people are the type that love the $149 car payment,but don't care that the car costs $20,000 that they don't have.They love the no documentation home loans.They send in every credit card sent in the mail.They couldn't find fiscal responsibility anywhere in the dictionary.And they all seem to have a cause.And they crave being accepted by their peers yet on the other hand do crazy things to stand out from the crowd.You saw them dancing in the streets praising Obama and glad that won't have to pay their mortgage anymore.
This growing segment of the population that you can't profile into any one category are you're swing voters.And they see more benefit in the Dems message.When you talk about Federal debt and interest,deficit spending and all the other bad things associated with bailouts and stimulus,there is a disconnect.They can't feel that pain.Can't touch or see it.How can it be a bad thing to want to save the planet,re-build the infrastructure,provide healthcare to everyone,etc.?They never learned to balance a checkbook in school,so it doesn't translate.
Mark my words,this is the battleground of the future to decide the balance of power.If the Conservatives don't get the GOP back in line and re-package their platform,they will continue to lose.When the stimulus fails,which it will whether it's slimmed down or not,the left will be in an even better position to enact their agenda.It won't matter who gets the blame,desperate people will want help and the Dems will be right there to take advantage.No way can you sell people into taking their medicine to properly fix things.I'm listening to the MRN right now as they say the opposite.They think this rough time currently is enough to get people to change their ways long term.Won't happen.Sorry,but you'll see I'm right.More to come...
Another survey out that 9 out of 10 don't think the stimulus will work.Yet 35% still want it to pass.Huh?Just goes to show you the mentality you're up against.The Conservative message of accountability and responsibility doesn't sell to the younger voters.Sure you get the base vote.But if you want to prevent a long-term run of Democratic power,you need those voters.It's a mix.You have the entitlement generation which you can't reach.These same people are the type that love the $149 car payment,but don't care that the car costs $20,000 that they don't have.They love the no documentation home loans.They send in every credit card sent in the mail.They couldn't find fiscal responsibility anywhere in the dictionary.And they all seem to have a cause.And they crave being accepted by their peers yet on the other hand do crazy things to stand out from the crowd.You saw them dancing in the streets praising Obama and glad that won't have to pay their mortgage anymore.
This growing segment of the population that you can't profile into any one category are you're swing voters.And they see more benefit in the Dems message.When you talk about Federal debt and interest,deficit spending and all the other bad things associated with bailouts and stimulus,there is a disconnect.They can't feel that pain.Can't touch or see it.How can it be a bad thing to want to save the planet,re-build the infrastructure,provide healthcare to everyone,etc.?They never learned to balance a checkbook in school,so it doesn't translate.
Mark my words,this is the battleground of the future to decide the balance of power.If the Conservatives don't get the GOP back in line and re-package their platform,they will continue to lose.When the stimulus fails,which it will whether it's slimmed down or not,the left will be in an even better position to enact their agenda.It won't matter who gets the blame,desperate people will want help and the Dems will be right there to take advantage.No way can you sell people into taking their medicine to properly fix things.I'm listening to the MRN right now as they say the opposite.They think this rough time currently is enough to get people to change their ways long term.Won't happen.Sorry,but you'll see I'm right.More to come...
Sunday, February 1, 2009
Now what?
The stimulus will finally be approved by next week in some fashion.You can't stop it.The GOP can hope to alter it,but it's guaranteed to be implemented.The Dems control far too much to drop it and start over from scratch.
The bigger question is what will we do then?The massive expansion of Government will slowly take place over the next several years thanks to the stimulus.The TARP money will be expanded and doled out although this may take some time.At that point maybe we can finally address the problem.The left will be happy with their social programs greatly expanded.The banks will have their hedge funds in place.We will then need to actually address the recession once the political payoffs are out of the way.
You still have the problems of the Federal Reserve.In fact,there will be a push to incorporate a global institution magnifying the problem.We still have the Federal debt and the huge interest payments,SS and Medicare/Medicaid funding,the rising unemployment rate,housing,etc.We still have the 2nd highest corporate tax rate in the world.Capital gains are too high.The trade imbalance.The wars.
Just amazing with the vast array of serious problems we have to deal with that it still simple left vs. right politics that takes center stage.Obviously,I'm no fan of Obama.But we will have to wait a couple of years at least to see which direction he will go.If you judge him prior to that,he will clearly be a failure because of all of the paybacks and enacting of the left agenda is taking priority.They have waited too long for this opportunity and won't delay it.He will have compounded his problem by playing politics and delaying addressing the real issues.At that time,we will find out what he's capable of.More to come...
The bigger question is what will we do then?The massive expansion of Government will slowly take place over the next several years thanks to the stimulus.The TARP money will be expanded and doled out although this may take some time.At that point maybe we can finally address the problem.The left will be happy with their social programs greatly expanded.The banks will have their hedge funds in place.We will then need to actually address the recession once the political payoffs are out of the way.
You still have the problems of the Federal Reserve.In fact,there will be a push to incorporate a global institution magnifying the problem.We still have the Federal debt and the huge interest payments,SS and Medicare/Medicaid funding,the rising unemployment rate,housing,etc.We still have the 2nd highest corporate tax rate in the world.Capital gains are too high.The trade imbalance.The wars.
Just amazing with the vast array of serious problems we have to deal with that it still simple left vs. right politics that takes center stage.Obviously,I'm no fan of Obama.But we will have to wait a couple of years at least to see which direction he will go.If you judge him prior to that,he will clearly be a failure because of all of the paybacks and enacting of the left agenda is taking priority.They have waited too long for this opportunity and won't delay it.He will have compounded his problem by playing politics and delaying addressing the real issues.At that time,we will find out what he's capable of.More to come...
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