Category Archives: inflation

Help Me Out Here On Obama’s Second Press Conference?

Clearly everything Geithner’s bailout programs are doing is intended to “fix the credit markets,” which is to increase lending/borrowing to businesses and consumers. Geithner/Obama’s programs are to increase mortgage lending, and consumer and small business borrowing. There are special programs to increase lending for new cars, and to securitize credit card receivables so that consumers can spend on new cars and every kind of credit card borrowing.

At the same time these programs create  trillions of government debt, truly massive debt, but that is OK because the purpose is to make credit more available. Doesn’t that boil down to getting businesses, consumers and the government deeper into debt?

Help me out here. Isn’t excessive borrowing and excessive debt what got us into this mess?

Is increasing consumer and business debt the way to cure the problem of excessive consumer, business and government borrowing? What am I missing?

Here is text from Obama’s second press conference, cut and pasted exactly, courtesy of Associated Press:

At the end of the day, the best way to bring our deficit down in the long run is not with a budget that continues the very same policies that have led us to a narrow prosperity and massive debt. It’s with a budget that leads to broad economic growth by moving from an era of borrow and spend to one where we save and invest.” BH Obama March 24, 2009.

Well, clearly all the government programs contradict the words of our President about “moving from an era of borrow and spend…”

Let us examine the last part where Obama says: “to one where we save and invest.”

Exactly how does Obama stimulate saving and investing? The interest that savers can earn from the banks or from investing in Treasury securities range from one quarter of one percent to two percent, the lowest in my lifetime. How does Obama encourage people to save when he artificially forces the return on savings down to nothing?  I feel like I am being punished for saving.

My interest income has been destroyed.

But Obama wants to raise my taxes on income from savings and investments. How is increasing taxes on income, and on capital gains from savings and investing going to increase savings and investing?

Then the hypocrite will take the tax fruits from punishing savings and investing, and give it to people who borrowed and spent. Isn’t that rewarding “borrow and spend” while punishing, disincentivizing “where we save and invest?”

Help me out here. How are Obama’s lying, false words “by moving from an era of borrow and spend to one where we save and invest” not an even meaner, more cruel  joke than “Change you can believe in?”

We must decide whether Obama truly has no idea about what he is reading from the teleprompter and is merely another brainless idiot President, even dumber than the one he replaced, or whether he is bipolar and his evil side wants to destroy America. Because that is exactly what his policies are doing.

Ten Obama Dollars for a Gallon of Gas

France is a socialist nation, but even they are complaining that Barack Obama is spending way too much in his insanely bloated stimulus package combined with his budget.

Even Communist Russia and Communist China are not fooled by Obama’s use of the word “investing” to misrepresent his “spending” to pay off all the interest groups of the Democratic Party Machinery that got him elected.

All the major nations of the world are uniting to demand a new currency to replace the Obama Dollar that everyone with half a brain realizes is about to become inflated and lose value dramatically.

The oil producing nations, led by Russia and Saudi Arabia, and yes, Hugo Chavez, do not want to accept Ten Worthless Obama Dollars for a gallon of their gas.

We had no idea that “Change you can believe in” meant that our currency was about to become an international joke because our welfare baby President was about to spend money as though he never had to work for a dollar in his life.

Oh! Come to think of it, he never did!

Nancy Pelosi Was So Precious At The State of The Union

Did you see Nancy Pelosi jump up in absolute ecstasy when Obama said corporate and bank executives could not just disappear in their private jets?

Did this psychotic bee-yatch actually forget that every weekend she disappears on a 200 seat jumbo jet to commute to her mansion in San Frangayda, and then back again, at a cost to us taxpayers of more than $100,000 each weekend round trip?

Her private government jet costs you and me more than $6,000,000 every year to commute between her Washington DC mansion and her San Frangayda mansion, but the Dems want Sarah Palin to pay back $7,000 for her daughters travel?

For those who are mathematically disadavantaged, Pelosi get $857 for every dollar our lovely Sarah gets!! This is wrong!!

Does the goverenment make Nancy Pelosi pay back the pro rata cost of her friends and family members who get free rides on Nancy’s jumbo jet paid by you and me?

Finally, did you watch Nancy’s facial expressions during the food stamp President’s speech? Nancy Pelosi has psychological problems!

Congress Just Keeps Getting Dumber

I just watched a Democrtic Congresswoman from New York on TV yapping away about how Barack Obama’s housing bill will stop home prices from falling.

Duh!

We got in this mess because government made too much credit available too cheap so every moron bought homes they could not afford under realistic circumstances and  HOME PRICES WERE DRIVEN TOO HIGH BY THE ARTIFICAL GOVERENMENT CREATED DEMAND, SO THAT NORMAL WORKING PEOPLE COULD NOT AFFORD A HOME

This moron Congresswoman is not alone. Everybody in Congress plus our Food Stamp President wants to lift up housing prices.

They just do not get it.

Government cannot mess with the free market without destroying everything.

At normal mortgage rates of seven percent, with a twenty percent down payment, there are no home buyers at today’s still too high prices.

The government manipulation of interest rates has screwed everyone who has savings. We cannot earn anything on our savings. Screw the food stamp a__holes! Reward the savers.

Kill the CRA Community Reinvestment Act that requires banks to make bad loans to unqualified buyers.

Home prices are too high and need to come down another twenty percent.

Obama, raise interest rates and require a twenty percent down payment to buy a house.

Obama, your policies are destroying any incentive for anyone to save, which means that every child in America gets further in debt to China.

HOME PRICES NEED TO COME DOWN ANOTHER TWENTY PERCENT, MORTGAGE RATES MUST BE SEVEN PERCENT, AND YOU MUST HAVE A TWENTY PERCENT CASH DOWN PAYMENT!

How to Cure the Recession

Absolutely timely report by The Reason Foundation www.reason.org on just why Keynesian economic practices do not work.

As I’ve articulated before, the United States is following the exact same mistakes Japan made throughout the 1990s, now infamously nicknamed “The Lost Decade.”  Housing bubbles, government intervention into the marketplace, and bailouts and stimulus (”shovel ready”) spending plans tried over and over and over again throughout both the 1990s and now the 2000s did nothing to solve the economic malaise Japan found itself in.

At no point did Japan actually consider free market principles, not unlike what we are doing today.

The Japanese government did not take a cue from the mistakes the US had made decades earlier in 1929–mistakes that turned a recession into a full blown depression lasting the entirety of the 1930s and continued on even after Europe began to experience sustained growth prior to the outbreak of WWII.

One of the great take-aways from this report is encapsulated in the following paragraph:

“The fact is that Congress lacks the expertise to run a bank or create viable business plans for any sector of the economy. Furthermore, lawmakers incentives are to serve their constituencies or better their own personal political careers. This potentially puts them directly at odds with the businesses they are trying to manage. The more the government is involved in directing business activity, the less likely those firms will succeed in maintaining long-term growth.”

The report accurately shows how government intervention got us here, but doesn’t quite capture the entire breadth of the adverse impact of public sector policies on the private sector.  If I may, it misses how both President Bush and Senator McCain tried to arrest the problems at Fannie Mae and Freddie Mac in 2002 and again in 2005.  More compelling to note is that the government’s intervention into the free commerce of free people’s in the following sectors are the true cause of the current global recession:

  • Energy production (resulted in tight supplies and record energy costs/prices)
  • Housing (Community Reinvestment Act and subsequent additions resulted in forcing banks and financials to issue toxic loans known as sub-prime mortgages; caused a demand bubble and an aberration in equity/capital; failure to issue loans to sub prime customers resulted in heavy government fines or litigation by “community organizers” such as ACORN)

Financial Institutions (Fannie Mae and Freddie Mac would bundle the toxic loans and sell them off all over the world; FNM/FDM would guarantee toxic loans made by banks and financials, further exacerbating the problem)We are now following in Japan’s footsteps, making the same exact mistakes and the result will be stagflation and low growth/recession for the entirety of the Obama years (hopefully only 4) and beyond unless and until:

  • Those policies that caused the problem to begin with are repealed
  • We start to adopt free market, pro-growth GDP principles and policies that will spur the investment/entrepreneurial class into to ventures, job growth, and wealth creation.

I have advocated before and continue to do so now.  If we adopt the following policies, the recession will end within 1 quarter of economic activity:

  • Make the Bush Tax Cuts permanent; they expire next year and all of us face the largest tax increase in history in one year’s time
  • Eliminate any and all barriers to trade; pass all pending free trade agreements (FTA).  FTAs open up foreign markets to our exports
  • Eliminate subsidies, they are an interference in the market and are an aberration to price.  US consumers pay more for goods and services thanks to subsidies
  • Eliminate all taxes on small businesses and corporate America.  This will provide more capital to those businesses
  • Change the tax code.  Let us move away from a Karl Marx proposed proportional tax rate to a free-market friendly flat tax; it will spur massive investment, savings, and help create wealth
  • Eliminate Excise and “sin” taxes; they represent a disparate impact on the poor who do not have the disposable income that many of means do. 
  • Eliminate Federal gas taxes.  The states should levy these taxes, not the Fed.  The Fed does nothing to produce oil and gas and they take almost twice the amount in taxation that the producers receive themselves (gas companies earn 9 cents on a gallon of gas; the Fed earns approximately 14 cents and produces nothing!).
  • Eliminate as many government regulations as is possible.  The private sector pays over $1 Trillion in compliance costs every year–now that’s a true stimulus!
  • Eliminate all barriers to energy production; this all started thanks to restrictive supplies to oil/gas.  We are beholden on imports for our energy, which is the largest element of our trade deficit
  • Repeal the Community Reinvestment Act
  • End Fannie Mae and Freddie Mac
  • Cut government spending.  Place a moratorium on all pork barrel spending until such time as the budget is balanced.  While the rest of the country is laying off or firing employees, Congress hasn’t laid off or eliminated not one single position.  The government grows while the private sector contracts.  Unbelievable!
  • Increase interest rates back to a respectable level, 5%.  Loosening the money supply only encourages more ill advised lending, time to tighten it up and bring value back to the dollar.  It may have been the only thing the Fed could do since Congress refused to pass tax cuts, but enough is indeed enough.  At this point low interest rates are counter productive.

Obama, the King of Looting City Governments, Admonishes Mayors Not To Loot His Stimulus Porkfest Or He Will Get Mad

Obama rose to prominence in Illinois after Obama the lawyer would write up the proposals for his crooked friends like Rezko to get hundreds of millions of City of Chicago Taxpayer Dollars to build public housing projects, all of which were substandard.

 Once Obama had proven him selve to Mayor Daley, the most corrupt politician in America, as being capable of looting gadzillions without attracting the FBI,  Obama became Mayor Daley’s darling. It was Mayor Daley’s brother William, Clinton’s Secretary of Commerce, who got Obama the speaking position in the 2004 Democratic convention.

The Daley machine corruption got Obama the Senate seat and then the Presidency.

So this incredible hypocrite passes the $787 billion 100 percent pure pork fest bill and has the “Audacity of Hope” to go on national television with a straight face and tell his fellow Democratic Mayors not to spend his pork as pork?

He thinks we are stupid enough to swallow this.

Obama’s stimulus package is all pork, and he must have fallen all over the floor doubled up with laughter after speaking the comedy that his Democratic supports should not sped his pork bill as if it were pork.

 

Hoo hoo, haa, haa, the joke is on the taxpayer

Call Your Congressman To Stop Obama Giving Billions to ACORN

Obama has used the 1,071 page size of the bailout outrage bill to hide his “Pay to Play” payoff to ACORN for all those three and four time voters that got us a totally inexperience President.

 

Buried in the bill under “Community Organizations” is a provisions that could give billions yes BILLIONS more to ACORN.

Call or write your Representatives and Senators now and say you want the billions to ACORN stripped out of the bill.

We do not want our children in debt for bribes to ACORN