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Please visit the ObamaCare page at this link to explore the latest debt generating monster, destined to wind up the way Hillary Clinton's 1993 plan was conceived, with: "maximum fines: $5,000 for refusing to join the government mandated health plan; $5,000 for failing to pay premiums on time; 15 years in prison for doctors who received ‘anything of value’ in exchange for helping patients short circuit bureaucracy; $10,000 a day for faulty physician paperwork; and $50,000 for unauthorized patient treatment. When told the plan could bankrupt small businesses, Mrs. Clinton said, 'I can’t be responsible for every under-capitalized small business in America'! - Tony Snow reporting on Hillary's health care plan"
Over 17 trillion dollars of U.S. debt has been run up over the last 40 years by the most selfish generation in U.S. history, and immorally laid upon the backs of our children and their children, through elected politicians being "generous" toward our own generation with money looted from future generations.
To preface any discussion about the U.S. National Debt, it's important to note that it cannot be serviced, when income taxes cannot be collected from people who are no longer employed. Regardless of the big lie you may hear parroted on TV, according to the Bureau of Labor Statistics numbers from the Census Bureau as reported on the St. Louis Federal Reserve's website, AS OF MAY 2014, the U.S. has the LOWEST PERCENTAGE (62.8%) OF EMPLOYED, able-bodied, non-military persons, that we have had IN OVER 35 YEARS.
The Administration's big lie through the "unemployment rate", that pretends jobs are up and unemployment is down - the exact opposite of the reality of it - is arrived at by ignoring and excluding from the number the "discouraged unemployed". Note how the "Civilian Labor Force Participation Rate" has IN FACT steadily SUNK LIKE A STONE over the last six years.
Copy and paste the following link to the St. Louis Fed for an updated chart:
"Civilian Labor Force": "All members of the population aged 16 or over in the United States who are not in the military or institutions such as prisons or mental hospitals and who are either employed or are unemployed and actively seeking and available for work. Every month the U.S. Department of Labor releases the unemployment rate, which is the percentage of the civilian labor force that is unemployed. In very bad economic times, the unemployment rate can be deceptive because it does not consider discouraged workers, those who are unemployed but have stopped actively seeking employment." ~ Barron's Business Dictionary
U.S. NATIONAL DEBT CHART
Debt numbers from treasury (copy and paste link): http://www.treasurydirect.gov/NP/BPDLogin?application=np
"Whenever destroyers appear among men, they start by destroying money, for money is men's protection and the base of a moral existence. Destroyers seize gold and leave to its owners a counterfeit pile of paper. This kills all objective standards and delivers men into the arbitrary power of an arbitrary setter of values. Gold was an objective value, an equivalent of wealth produced. Paper is a mortgage on wealth that does not exist, backed by a gun aimed at those who are expected to produce it. Paper is a check drawn by legal looters upon an account which is not theirs: upon the virtue of the victims. Watch for the day when it bounces, marked, 'Account overdrawn.'" - Ayn Rand - Atlas Shrugged
Between inauguration day on January 20, 2009 when total U.S. debt stood at $10,626,877,048,913.08, through election day Nov 6 2012, the national debt had increased to $16,214,358,823,745.30. In other words, during this single presidential term, the TOTAL OF ALL DEBT ACCUMULATED THROUGHOUT THE ENTIRE HISTORY OF OUR NATION, was INCREASED BY OVER 65%, adding over 5.5 trillion dollars to our nation's crushing debt burden!!!
As of October 2013 U.S. national debt stood at over $17.15 trillion. Based on 2010 numbers, there were only 84 million tax payers - because 41% of tax filers paid no income tax - while the total U.S. population stood at over 308 million. Though our population has increased, and the number of tax payers has decreased since then, based on those 2010 numbers the total accumulated national debt has reached over $204,000.00 PER TAX PAYER, while nearly 75% of the U.S. population, does not pay one red cent toward funding the cost of our bloated Federal Government. No skin in the game whatsoever. So is it any surprise that a majority of the most selfish generation in the history of the republic, that is so willing to stick future generations with the bill, votes for politicians that promise evermore government largesse and spending when it won't cost those voters a nickel?! The willingness of a majority of our citizens, to enslave a minority, will eventually result in Soviet style slavery for all. It is obviously sooo over, for this once-great Republic.
All government spending, that does not come from treasury abundance, is nothing more than theft of the property - and futures - of our children and their children. This increase in debt without the democrat led Senate having had a single budget over the same 3-1/2 years, while recently voting 99-0 against a budget presented by Obama.
[update 1-15-13] Speaker John Boehner was vilified by the Marxist media Obama shills for holding up a bill being passed under the pretense of hurricane Sandy relief, because it was larded with unrelated pork barrel spending, thanks largely to Chuck Schumer. Rather than railing against Schumer, RINO Republican Chris Christie became the darling of the Obama media for joining them in railing against Boehner's objections to the pork, offering yet another reason to dub Christie "Porky". His having been rewarded for his starring role, as cover-boy of Time magazine, says it all.
[update 7-18-13] How different might this picture have been without the billionaire-financed Charles Schumer a parasite recipient of the carried interest tax break for private-equity managers of hedge funds, that allows multi-billionaires to pay a 15% tax on what are effectively wages, while the rest of American wage earners pay up to 39.6%? Schumer only putting on the appearance of favoring repeal, when combined in a bill along with other potentially catastrophic capital gains and other tax rate increases, that doesn't stand a chance of passing.
FAR BEYOND ANY "TIPPING POINT"
DEBT INTEREST TIME BOMB
INTEREST EXPENSE on the United States debt is an unstoppable time bomb. In fiscal year 2011 annual debt interest set a new record totaling $454 billion dollars. This resulted from the government adding over 5 trillion more to our debt, over just 3-1/2 years, in a futile effort to keep their phony money - Keynesian scheme afloat. This all time record interest expense even though interest rates were at historically unprecedented low levels, with Fed Funds today at Zero, T-Bill rates at less that 1/10th of 1%, and even 5 year notes yielding just 3/4 of 1% interest.
[update 11-15-13] Even lower rates allowed a reduction in interest paid for the year 2012, but increased dramatically in fiscal 2013, in part from our rapidly increasing debt. With interest rates as low as they can go, the only way interest paid on our debt can go down from here, is for the Treasury to borrow over increasingly shorter periods, thus becoming even more vulnerable to when the Fed looses control and the marketplace raises rates to more realistic levels. This is the death rattle of the fraud of Keynesian economics.
Chart debt interest numbers from Treasury tables (copy and paste link):
In conjunction with the Civilian Labor Force Participation Rate being at it's lowest level in 35 years, the "hope and change" that Obama promised is actually manifest as hopeless change, with mushrooming debt as his crown. The false perception of an economy, purchased by the Federal government, is what we borrowed and squandered 7 trillion dollars on? It is painfully obvious that if the government weren't stealing from future generations, to pay people to stay home from work today, exactly what kind of state our economy would actually be in.
The next time someone suggests that jobs are on the rise, or that "stimulus" is working, you can check his empty claims against the Civilian Labor Force Participation Rate chart. Let alone that job growth in public employment, places an even greater debt burden on unborn generations, who have no say over the borrowing for which they will be stuck with repayment.
Next consider the anatomy of this so-called "recovery" according to Karl Denninger:
"4Q 2013 GDP was $17.081 trillion. One year ago it was $16.420 trillion. That is an increase of $661 billion, more or less, which doesn't sound so bad as it's right at 4% advancement annually.
However, The Federal Reserve added $1.112 trillion in credit (unbacked by anything) during the same period of time; that's a debasement of the units in which GDP is reported of 6.51%.
So the real change in the economy is in fact negative 2.51%.
We are factually in a recession."
"We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness."
"Prudence, indeed, will dictate that Governments long established should not be changed for light and transient causes; and accordingly all experience hath shewn that mankind are more disposed to suffer, while evils are sufferable than to right themselves by abolishing the forms to which they are accustomed. But when a long train of abuses and usurpations, pursuing invariably the same Object evinces a design to reduce them under absolute Despotism, it is their right, it is their duty, to throw off such Government, and to provide new Guards for their future security." - Declaration of Independence
This is the most current page on this site. Except as noted, most of the rest of this website hasn't undergone updating for 6-8 years, however most of the discussions remain germane to the current state of affairs, while matters unfold as forecast.
On immigration reform: Where are black community leaders weighing in on immigration so-called "reform" (aka amnesty), and the entry level jobs being filled by illegals, while black teens remain the group with the highest percentage of unemployed in the U.S.? Why should we consider allowing criminals that broke and continue to break the law, jump in line in front of immigrants that apply legally, that desire to come to the U.S. from other parts of the world?
America could resolve our illegal immigration problem in a couple of weeks without adding border fence if we:
1. Fine every entity that hires an illegal alien - including individuals hiring domestic help or contractors such as lawn services - unless the company or individual can demonstrate that they did their due diligence, and checked the SS number of the employee on a national database, and are employing them within the SS system and withholding taxes. A fine for the first offense or count of $3,000, $6,000 for the second incident, $12,000 for the third time offending employer, $24,000 for the fourth, and so on. For example if a yard service is caught with 3 illegals hired, their first fine would be $9,000.
Then offer the unemployed illegals a free bus ride back to the border from anywhere in the U.S.
How many legal U.S. residents, would continue to allow illegal relatives to crash on the couch, when they know there is no possible prospect for their employment?
2. Put notices on the borders that inform people that if they are caught entering the country illegally, they will be photographed, fingerprinted and put into a database that will prevent them from ever entering the U.S. legally FOR LIFE - even for a vacation - whether they have family in the U.S. or not.
If they get caught entering illegally again they are incarcerated (with the opportunity to work 8 hours a day for perks, and otherwise Spartan rations and no TV or other media or entertainment, other than books, just as all prisoners in the U.S. should receive).
3. While I don't believe it would be necessary if points 1 and 2 were enforced, landlords could also be required to have demonstrated that they investigated the citizenship status of tenants.
Needless to say this would also go a long way toward solving our government created unemployment "crisis". But then how can we expect unemployment to go down, when the government pays people for years, to stay home from work.
[update 11-15-12] (CNSNews.com) – "It’s Friday morning [Nov 9], and so far today, the Obama administration has posted 165 new regulations and notifications on its regulations.gov website. In the past 90 days, it has posted 6,125 regulations and notices – an average of 68 a day."
That'll really get the ole job market moving! If you are unemployed, get used to it. If you are presently employed, expect a cutback to 25 hours so your employer doesn't have to saddle himself with wading through Obama care. Hey, maybe that unemployed guy will get a job working your other 15 hours! Get ready for the chart above to accelerate even faster to the downside. [end update]
[update 11-7-12] All the manipulative drivel about jobs aside, an accurate measure of employment provided by the Federal Reserve Bank of St. Louis is the civilian labor participation rate which, as shown in the above chart, is at its lowest level in 30 years - and still sinking. It may also provide insight into the expansion of our welfare state.[end update]
The election is over and America will receive the governance she deserves. At least the younger generation that elected and reelected Obama and his Marxist cadre, will be the ones suck paying his bills, while handing their futures over to Chinese masters. "Fool me once shame on you, fool me twice, shame on me." It's just so sad they chose to put their unborn children on the hook too. Perhaps after they loose their homes to their Chinese creditors, they can immigrate to China and build railroads. A generation of young people that, while quite adept at manipulating electronic toys, remain so uninformed in regard to history they are clueless as to what life was like in the Soviet Union. A generation so uneducated in regard to governance and economics, they don't understand that the alternative to capitalism is totalitarian oppression and despair, in spite of the example of the Soviet Union as well as the abundance of other examples around the world today.
"From each according to his ability, to each according to his need" - Barack Obama. Errrr wait, that was Karl Marx.
As Obama put it in the last election cycle: "time to spread the wealth around". After all, it worked really well in the Soviet Union!
"To spread the wealth the communist's willing: He'll tax your pennies and keep his shilling."
A generation so mathematically challenged that they believe government can endlessly confiscate money from productive members of society, for the benefit of less productive members, without consequence. The immoral, unconstitutional, and Marxist income tax system did run for almost a century though, before finally reaching this inevitable conclusion, of a majority that pays no income tax voting for themselves government largesse at the expense of the minority. Nothing more than short-sighted, selfish, wishful thinking on their part, since it is their own children that will ultimately be paying the price.
"The average age of the world's greatest civilizations has been two hundred years. These nations have progressed through this sequence. From bondage to spiritual faith; from spiritual faith to great courage; from courage to liberty; from liberty to abundance, from abundance to complacency; from complacency to apathy, from apathy to dependence, from dependence back into bondage." - Professor Joseph Olson
The only moral taxes are also our constitutional taxes - consumption taxes like duty and sales tax. These taxes are also naturally and voluntarily progressive, with less well off people paying tax on hot dogs while someone with more disposable income is taxed on T-bone steaks. One is taxed on the purchase of a used Chevy while the other is taxed on a new Escalade.
"None are more hopelessly enslaved as those who falsely believe that they are free" - Johann W. Goethe
"We the people are the rightful master of both Congress and the courts, not to overthrow the Constitution but to overthrow the men who pervert the Constitution". - Abraham Lincoln
The bill as calculated by our statistician in chief (begins at the 30 second mark):
The U.S. is past the tipping point now that the majority of citizens who pay no income taxes, select politicians based on who promises them the most, from the confiscated fruit of the labor of the minority who pay all of the income taxes.
Now that Obama is in his final term, and no longer has a political reason to take an interest in the will of the people, we can expect a blizzard of executive orders from a dictator in chief. Early among them will be the effective opening of our southern border to a massive stream of potential welfare recipients, completing the conversion of the U.S. into a Soviet style, single political party, Marxist state. Also further homogenizing the North American Union of the Club of Rome.
Of course high up on the short list of requirements for every totalitarian regime is government control of speech. Expect the first assault through the back door by way of Pakistan sponsored U.N. so-called anti-blasphemy laws, that will essentially put Islamists in control of speech worldwide, without appeal or veto.
[edit add 11-27-12] Well that didn't take long. Google u.n. control internet
Now that Obama is back in the U.N. recognizes a liberal friendly they can do business with in their lust for control of the internet - control of speech worldwide. Besides advancing Marxism which requires a vacuum of truth to survive, the main purpose behind U.N. control of the internet is ultimately to eliminate any honest discussion regarding Islam, just as information must be controlled in Islamic countries today. Islam can only survive in a vacuum of truth as evidenced by the 53 countries around the world where the Gospel is banned or restricted.
Google u.n. control internet [end edit]
As the warm-up we already witnessed Barak and Hillary's willingness and willfulness, to turn a terrorist attack against an American embassy in Libya - and the murder of four great Americans - instead into their own attack on free speech in America by blaming a video produced by an American who acted perfectly within the law.
We can also expect acceleration of Obama's unilateral disarmament, and further elimination of our nuclear protection and deterrent, advancing the goals of the Soviet enemy of free people everywhere.
As tacitly confirmed by Obama's accidental open mic comments on the following video.
[end update 11-7-12]
[Edit addition 7-9-13] On the subject of warming up, compare David Barton's environmental policy sanity with Al Gore's big lie when Barton testified before a U.S. Senate hearing on Global Warming detailed on this web page.[end edit]
Encarta article: "Maturity of U.S. debt ranges from less than a year to over 20 years, with the average maturity about 3 years. More than half of the debt, however, is short term, maturing in less than a year."
Consider the debt interest chart above in light of this long term T-bill interest rate chart.
T-bill rate table - We haven't seen T-bill rates this low since the early 1940's. The lowest rates in 70 years!
Is it reasonable to expect our rates to remain at 70 year lows? How long will the Fed have the ability to keep the lid on these ridiculously low rates, and when will market forces take over, setting rates to levels that reflect an increasing perception that our nation will be unable to repay our Banana Republic style debt? That is when interest rates finally reflect the RISK of default?
[added 9-28-2012] A whopping 1 out of 8 people in the U.S. are on foodstamps - and no wonder in our entitlement based society! Following is a photo of a grocery receipt found in a parking lot, that was verified by the store management. It includes a case of diet Mountain Dew, 6 lobsters and 2 Porterhouse steaks - paid for, perfectly legally, with food stamps.
What did you have for dinner?
What are school students in the U.S. being brainwashed into? Click this Yahoo search for the answer. [end addition 9-28-12]
[update 10-5] The so-called "household" employment rate released today is measured by simply calling 50,000 households. A likely anomaly of 7.8%.
You can't fool the people that are hurting in light of the labor participation chart above, or in light of the broadest measure of unemployment and underemployment by the Bureau of Labor Statistics, the "U6", which has unemployment remaining stubbornly at 14.7%.
(Added 8-7-2012) The Administration puts forward the abysmal number of new jobs created, as if they deserve congratulations, even as they fail to mention the number of people that have quit looking for work. The Civilian Labor Force Participation Rate is at it's lowest level in 30 years. Far from "hope and change" what they gave us is more akin to "hopeless change". This is what we borrowed 6 trillion dollars for?
U.S. taxpayer bailout of General Motors converted G.M. into China Motors creating jobs - for the Chinese - at the expense of well managed car companies here in the states.
Some Chinese ministers have suggested they will conquer us through economics. With current U.S. national debt held by the Chinese totaling 5.1 trillion dollars I believe it's safe to suggest they already have. What will happen when they announce that they will not loan us any more money, even repatriating what they have loaned to us, as the notes mature? Who will be our lender then - Greece? All while the Fed feebly tries to head off a universal banking failure, and more importantly a money collapse, resulting from the unwinding of the phony money driven asset and real estate bubbles.
The spike in interest rates in the charts above is what happened the last time the democrats had complete control of our government under Jimmy Carter. What if T-bill rates went to the Jimmy Carter 15% levels today? How much will that increase the interest paid on our debt with half of our debt in instruments maturing in one year or less? Please consider the annual interest expense chart again.
"But the Emperor has nothing at all on!" Said a little child. "Listen to the voice of innocence!" exclaimed the father; and what the child had said was whispered from one to another. "But he has nothing on!" at last cried all the people. The Emperor was vexed, for he knew that the people were right; but he thought, "The procession must go on now!" And the lords of the bed-chamber took greater pains than ever to appear holding up a train, although, in reality, there was no train to hold. - Hans Christian Andersen
The little boy in the crowd has already pointed at the emperor and declared he has no clothes on. The crowd has been whispering the same ever since 2008. As soon as the Chinese announce they will no longer carry our debt, the crowd will point and shout in agreement and declare that he indeed has no clothes on, and the global collapse of Federal Reserve and Keynesian phony money will have begun. The end of money as it has been perceived for almost a century.
Nothing new under the sun: “Paper money eventually returns to its intrinsic value ZERO” - Voltaire 1729
Who's responsible for profligate spending that resulted in our nation's debt orgy?
Who makes the laws that result in spending? Who has the mainstream media and NEA championed, that has ruled our government virtually unopposed for the last 70 years, as a result? Who have effectively been the emperors of the United States over the last 70 years?
Chart Data Provided by the House and the Senate. If you have doubts, verify the charts for yourself by selecting random sessions from the government links provided.
It's about what the men are made of that we select to run our country.
(end update 5-17-2012)
Why should politicians care how deeply they drive our country into debt when they have no skin in the game? How do they loose when they squander the capital they confiscate from the private sector, as well as stealing the future wealth that our children are expected to create, on wasteful government spending?
It is my opinion that public sector pensions are illegal, and at a minimum immoral, contracts that bind on people who are not even born yet who never had an opportunity to be party to those contracts. There should be no such thing as public sector pensions. The same goes for Federal guarantees of private sector pensions. These agreements should remain strictly between the company, and the employee trusting in their integrity, and solvency.
What if a program were instituted to cut ALL Federal Government pensions, past, present and future by 5%, for each and every year the government failed to balance it's budget? How different might things be done in Washington? Then reward the bureaucrats with an increase of 5% in government pensions, in every year the government runs a surplus of 10% or more (not by phony congressional accounting, but INCLUDING INTEREST ON THE DEBT as the Treasury numbers reveal through the chart above).
We can thank Woodrow Wilson (Mandel House), the Federal Reserve, the Keynesians, and the early 20th century progressive movement, that Glenn Beck points out happens to be aptly represented by our current government. Perhaps that's where the buck should stop (pun intended!). Over 40 years ago my own father taught me how these things would unfold.
"Give me control over a nation's currency and I care not who makes it's laws." - Baron Meyer Amschel Bauer Rothschild
Is increasing taxes really the road to prosperity? We learn over and over that increasing taxes reduces incoming revenue, while reducing taxes increases revenue, by stimulating the economy. The only answer to our debt is reducing government and government spending. Like New Zealand did after they realized they were destroying their country with confiscation of the earnings of productive transferred to the unproductive.
When we see the Fed and global banking elite caught between the proverbial rock and hard place detailed above, do we have to wonder why the Fed is willing to cut interest rates, regardless of further rendering the U.S. dollar to the status of a banana republic currency?
Dollar Index monthly chart (Jan 29 2010) - click on chart for update
See National Debt Chart below to get an idea as to the trend. Review the home page for the reasons for it, and discussion of phony money. Gov numbers: http://www.treasurydirect.gov/NP/BPDLogin?application=np
What will happen when, in a moment in time, the whole world comes to understand that money ............. isn't?
Embrace and exploit cognitive dissonance.
"In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value." - Alan Greenspan - 1966
The Dark Years are Here - by Egon von Greyerz – Matterhorn Asset Management - Ludwig von Mises Institute
Some suggest our debt isn't serious because of it's relationship to what is alleged to be GDP, but the (formerly) ballooning GDP is more of an indication of the increase in phony money being blown into the system (inflation), than having any relationship to wealth being produced. Particularly in light of our nation's economic conversion from the manufacture of real goods - and real wealth creation - to one of "service". Particularly "financial service" or what is more properly called usury, or parasitism of the wealth that others create. On average M3 has grown at eight times the rate of industrial production over the last 50 years. Additionally, our GDP is far more than offset by just our gross national personal/private debt.
Perhaps it's appropriate that the party of Woodrow Wilson, who presided over the introduction of our phony money via the Federal Reserve, and presided over our Marxist system of income taxation, is in power to preside over the collapse of their failed Wilsonian - Keynesian economic scheme.
How much discussion was there FROM EITHER SIDE at election time in regard to REDUCING SPENDING as opposed to advancing socialism?
FRANZ PICK once fairly characterized elections as "advanced auctions of stolen property".
You are welcome to contact me at: babylon2burn (please add the @yahoo and .com yourself to help reduce spam).
"The average age of the world's greatest civilizations has been two hundred years. These nations have progressed through this sequence. From bondage to spiritual faith; from spiritual faith to great courage; from courage to liberty; from liberty to abundance, from abundance to complacency; from complacency to apathy, from apathy to dependence, from dependence back into bondage." - Professor Joseph Olson
We got yo money.
Gonna borrow mo money.
Gonna spend yo money.
Gonna print mo money.
"My friends, we live in the greatest nation in the history of the world. I hope you'll join with me as we try to change it." - Barack Obama
Update July 23 With Obama again giving voice to the bleeding heart liberal, always so willing to help the downtrodden - as long as it's with other people's money - as so aptly demonstrated through his own history of contributions to the poor - isn't it time to evaluate people by what they do, rather than what they say?
Do the wealthy pay their "fair share" of taxes? Here are the percentages of current tax confiscation in our present Marxist system of Wilsonian income taxation.
"From each according to his ability, to each according to his need." ~ Karl Marx (end update)
Private sector jobs create wealth while public sector jobs destroy created wealth as well as wealth creation.
"A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves largesse from the public treasury. From that moment on, the majority always votes for the candidates promising the most benefits from the public treasury, with the result that a democracy always collapses over loose fiscal policy, always followed by a dictatorship." - Alexander Tyler 1787 -
Tyler was a Scottish history professor that had that to say about 2000 years after "The Fall of the Athenian Republic" and about the time our original 13 states adopted their new constitution.
(update 8 21) It doesn't take a genius to understand that if health insurance companies are prevented from turning people away because of pre-existing conditions, then there would be absolutely no reason whatsoever, for anyone to buy health insurance, UNTIL one became sick.
(update 8-7) Recent poll says 25% (and sinking) are strongly in favor of Obama's health care plan. Should we really be surprised that 25% of our citizenry wants the other 75% to pay for their healthcare? Including those that can afford, but choose not to buy, insurance. (video) (end update)
(update 8-5) Obama proposes billions to develop batteries for hybrid cars? Someone should tell him that the electricity we produce, to put into those batteries, is generated from coal and diesel. (end update)
(update 8-1-09) Not that the CBO was formerly unaffected by politics, but there is no longer any pretense of being non-partisan since Obama invited the head to the White House and took him to the woodshed. CBO numbers went from 1 trillion covering about 1/3 of the us to 900 billion covering 90% of us. At least the generation that will be stuck with the bills is the same one that votef Obama in. (end update)
(update 7-31) Cash for clunkers = stealing money from future generations to destroy existing wealth in the form of cars = fewer used cars for charities and higher prices for folks that can't afford new cars. Liberals can't seem to pass up any opportunity to kill the poor. (end update)
3-21-09 The non-partisan OMB reported yesterday that the figure for future DEFICITS, based on Obama's proposed spending, will be 9.3 trillion dollars over the next 10 years. Little doubt their figures fail to fully appreciate the extent of collapse of revenue from income taxation. Even their conservative estimate would result in a near doubling of the debt, which would double the interest owed on it as well. Even at some of the lowest interest rates over the last 50 years, that would result in INTEREST ALONE, owed on our debt, amounting to nearly a trillion dollars ANNUALLY. Yet we couldn't even service 450 billion in annual interest, at a time when taxation on stock market and housing mania/bubble gains, poured revenue into the Treasury.
Some suggest that a trillion dollars of liquidity the Fed plans to inject into the system will result in inflation. They may be right, but it could be that all that will do is briefly restore the riverboat gambling mentality of the "investing" public. Based on current valuations (see below) expect the trillion dollars to wind up in "money heaven" with the other trillions that have migrated there from Wall Street through the market decline. The only lasting impact, then, would be the crushing debt left to successive generations to service, owed to an enemy that would love to own America. Chinese are already buying U.S. real estate at deep discounts. Expect your children, and their children, to be the future renters from, and domestic servants of, the Chinese. The irony is that all this squandered money, is for the benefit of the politicians generation, and at the expense of the generation that voted in the highest numbers, for democrats! (end update)
2-24-09 Hillary had to go to China - the last lender standing - to beg them for money - while stressing that we have no interest in their human rights abuses. One of the Chinese leaders actually expressed a hatred for America. How long before they become tired, of receiving virtually no interest for loaning us money, that they know will never be repaid? My bet is about as long as we buy enough of their stuff to make it worth their while. After that..... *end update
2-19-09 As expected Obama has chosen to reward the most reckless and greedy among us, at the direct expense of the children of those who chose not to throw money at a housing bubble, or buy more house than they could afford.
The tragedy is the framing of the money being squandered as "government" or "taxpayer" expense. I believe things would go very differently if it was framed more like:
"We democrats have decided to stick your children, and their children, with the expense of buying homes for people, who bought more house than they should have, at prices they never should have paid, on terms they never would have accepted, were it not for greed."
The reason it is called the "Public Debt" is because, while the government runs it up, it is American citizens that owe it. It is an impossibility that these bills will EVER be paid, let alone, by the generation that is generating them. Transparently fraudulent, the so-called "stimulus" plan only spends a small fraction of the funds this fiscal year. This bill should be dubbed The Communizing of America Bill. Once foreign lenders are finally convinced America will NEVER be able to repay the money we owe, expect interest rates to sky rocket to levels we experienced under Jimmy Carter and the last all Democrat administration. They will likely go even higher, to failed banana republic levels.
"We have decided to stick the children, and their children, of those that live in conservative states, with the bills of profligate spending states like Massachusetts, New York and California. This, even though California could pay all their bills if they helped our country become more energy independent, by exploiting offshore drilling, but a majority of their profligate government spenders choose not to, but instead prefer to accept welfare from the other 49 states." (end 2-19 update)*
2-26-09 Stunning even those who thought they knew how clueless the new government is, at a time when charities are hurting for donations, Obama decides to limit deductibility of charitable contributions. Perhaps Obama never read "Atlas Shrugged". He apparently doesn't understand that ALL those productive folks he is out to punish can simply move ALL their charitable contributions OFFSHORE and leave U.S. based charities hanging out to dry. After all, the overwhelming majority of folks that are recipients of that aid voted for Obama. Let him take care of them. The wealthy that he is out to get don't need this country either. They can live and spend their money, in countries that have open arms, which is what Obama has just invited them to do.
If that weren't absurd enough, at a time when a deflating housing market is reducing home sales, Obama decides to reduce home mortgage interest deductibility. One has to wonder if his isn't a continuing - increasingly overt - attempt, to shut down the American economy completely, and ultimately make us subservient to foreign/global powers.*end update
While most of the rest of this page was written pre-election fall of '08 (except for updates) most of the rest of this site has not been updated for two to five years (except a couple of charts), but the warnings about the events we are BEGINNING to experience today (fall '08), are still germane. Political commentary after May 1 can be found on it's own page by clicking here. (Former unadjusted clock click here. Takes a moment to load)
Not that long ago America elected an all democrat government presided over by a peanut farmer. The price was a Fed Funds rate over 18% with mortgage rates and interest rates over 22%. The U.S. under Carter was reduced to government inspired social experimentation like wage and price controls to try to mitigate the mess.
The PE on the S&P 500 went to 7 TIMES EARNINGS.
It was ugly. Expect a rerun.
1-9-09 Barak Obama said "expect trillion dollar deficits to be the reality for years to come". Unfortunately he wasn't predicting the inevitable result of this fiscal year's recession-caused reduction of revenue, but rather his promise to spend our way into them. Consider the charts above and below. We couldn't come within 500 billion dollars of a balanced budget before the global financial meltdown. With interest alone on our debt, of 450 billion dollars last year, what will the interest payments be that we are putting on our kids and grandchildren? Obama and his democrat congress have decided to convert the U.S. to the Union of Soviet Socialist Republics model. It should be obvious that this is about destroying our republic, not restoring it.
Obama also promised that those that live in fiscally conservative states will be forced to subsidize those liberal profligate spending states like New York, Mass and California, which will effectively end any kind of competition between states toward good governance, and end any reason to run any state with fiscal conservatism. This transfer from right to wrong is also very much within the USSR model, the productive Polish describing the Soviet Union as a big cow that ate in Poland but was milked in Russia.
Obama demonized corporations, by mentioning the greed of a few CEOs, but for some reason never mentioned the greed of American individuals who threw their money at a housing bubble, and continue to throw their money at a stock market that, still today, remains at stubbornly high bubble style valuations.*
12-2-08 Barak Obama believes that the reason last summer's stimulus package failed to produce results was that the $150 billion just wasn't enough. Even before taking office Obama has already proposed spending in the neighborhood of 5 trillion dollars on bailouts and "stimulus" (including the 800 billion congress already committed). It doesn't take rocket science to understand that an increase of 50% in all of the debt accumulated over the last century, will result in a 50% increase in the interest we pay IF interest rates remain low, which will not be likely if foreign lenders seriously consider our inability to repay our debt. Particularly since we couldn't even service the 450 billion dollar interest bill for '07, how are we to service a 675 billion dollar interest payment for fiscal '08, with shrinking revenues, from a sinking economy? Could this break the U.S. and make us dependents of the U.N. - global community? Is that the intent?*
11-11-08 In spite of congress having the lowest approval rating of any in the history of the Republic - as low as 9% approval - voters actually expanded the number of democrat seats held in the Senate by 5 and in the House by 7, moving that party back toward it's 75 year running, virtual lock, on our government. But then for over half a century it has been government by the media.
The democrats are now firmly in charge of the Executive, Legislative and Judicial branches, with virtually no checks and balances.
The result they produce will leave them without excuse.
The German people elected Hitler who ran on a message of "change", "hope", and peace.
The ONLY change articulated by Obama was exactly the Soviet Union model of socialism through redistribution of wealth, along with an all out Federal Government assault against the unborn.
America elected an all democrat government presided over by a peanut farmer once too. We can be confident that we will receive exactly the governance we deserve. Or do we deserve it?
Rather than foolishness this time it would seem America was seduced by Obama's masterful skill at "conversational hypnosis". An American Association of Physicians and Surgeons article recently suggested that Obama deliberately used techniques of neuro-linguistic programming - NLP a covert form of hypnosis. Very good PDF on the specifics of Obama's techniques.
Here's a brief YouTube on Obama's mind-control techniques:
11-17-08 Obama was elected through mind-control, and George Soros money. Soros invested 18 million dollars toward his future during the Gore campaign. Remains to be seen how much he invested with the low profile he maintained this time in the Obama campaign as Obama's Colonel Mandel House. He had already donated lavishly to Obama's Senatorial campaign.
Interesting video played backwards
"In mid-March George Soros wrote his latest broadside against the "Israel Lobby"-calling for the Democratic Party to "liberate" itself from the influence of the pro-Israel lobby and stating that America should be dealing with Hamas, the terror group that is now the governing authority of the Palestinians." Expect a Soros/Obama holocaust against the Israelis.*
2-19-09 At least the party of consummate evil wears it on it's sleeve for all to see:
"PROHIBITED USES OF FUNDS. - No funds awarded under this section may be used for - (C) modernization, renovation, or repair of facilities - (i) used for sectarian instruction, religious worship, or a school or department of divinity; or (ii) in which a substantial portion of the functions of the facilities are subsumed in a religious mission." Article*
The majority of voters got their Obamanation.
"The first thing I'd do as president is sign the Freedom of Choice Act. That's the first thing that I'd do."
Senator Barack Obama, speaking to the Planned Parenthood Action Fund, July 17, 2007
This will nationalize abortion and nullify virtually all federal and state limitations on abortion, restoring partial birth abortion. The blood will be on the hands of those who voted for any democrat as the term "pro-life" and "democrat" have become evermore oxymoronic, with only about 28 pro-life democrats remaining in congress as of 2004, with none in positions of power.
Click here for images of the whole procedure.
In Illinois Obama voted against a ban on "live birth abortion" meaning if a baby is born live during an abortion, it could then be killed - outside of the womb.
11-11-08 Wasting no time by announcing repeal of executive orders banning fetal stem cell research as an act to occur on the first day in office we can expect labs to be used as baby manufacturing and dismemberment chop-shops for trafficking in sales of baby body parts in a futile effort to repair folks like Michael J. Fox with embryonic stem cells. At least we know what's most important to Obama and those that support him.*
It is instructive to note the responsible parties of the sub-prime mortgage mess. Keep your mouse over the video pause/play button. This one moves pretty quickly.
"To spread the wealth the communist's willing: He'll tax your pennies and keep his shilling."
Under Obama's redistribution plan, as many as 44 million Americans will receive a check in the mail every January, of money transferred from "wealthy" people. Laughably, the theory is that confiscating the fruit produced by a productive individual who became prosperous, would also transfer prosperity, from those "wealthy" folks.
It doesn't take a rocket scientist to figure out what that "found money" will do for booze companies, and illegal drug dealers. Rather than transferring prosperity it will instead convert prosperity into someone else's misery through substance abuse and subsequent wife beating, job loss, etc.
11-11-08 Last week Nancy Pelosi got on board with Obama's "stimulus" characterizing the checks in the mail as "tax cuts". Problem with the language is that those getting the checks don't pay income taxes to cut. Interestingly the government squandered 150 billion in "stimulus" last summer and the only result was a severely sold off stock market and deepening housing crash. All that effectively happened was to send another 150 billion dollars worth of debt down the pipeline to our children's children to pay in the future. Do we really need more of that? It used to be illegal to purchase votes.*
A government big enough to give you everything you want, is strong enough to take everything you have. - Thomas Jefferson
Typical Obama supporter at Bank Atlantic Center - (Scroll to about 3/4 of the way through video): "It was the most memorable time of my life. I...it... was a touching moment. Because I never thought this day would happen. I won't have to worry about puttin' gas in my car. I won't have to worry about payin' my mortgage. You know, if I help him, he's gonna help me." So goes the way of a once great Republic.
11-17-08 Did the government need to bail out the steel industry in Pittsburgh? No. Is Pittsburgh better off for it? The residents of Pittsburgh would offer a resounding "yes". So why bail out the auto makers? Because it isn't a bail out of car companies. It is a direct transfer to unions, who are responsible for the problems to begin with.*
Is Barack Obama a natural born U.S. citizen as our constitution requires?
(Former Attorney General of Pennsylvania filed suit for Obama to produce a birth certificate.)
Why can we suppose it is that the Islamic community, both national and international, embraces Barack Obama rather than condemning him? The penalty for apostasy, or leaving Islam, even today in many countries is death. Why did Kadafi refer to Obama as his Muslim brother?
11-11-08 The most important enemy the new administration will recognize that it faces will be truth, as exposed by it's critics.
The only declared war of Soros/Obama is likely to remain only against the unborn and Israelis. Certainly not against those that consider the U.S. "that great satan".
The most important thing on the agenda will be control of speech. We have already seen, for example, that asking questions of Al Gore's global warming cult's view is characterized as "hate speech", equivalent to holocaust denial. Voices of dissension must be controlled because of this administrations immediate ambitions to turn United States sovereignty over to the United Nations. Obama has already supported a bill to transfer United States wealth to his home country of Kenya, and elsewhere, by making the U.S. subservient to U.N. international taxes under the guise of "relief".*
Perhaps it was poetic justice that McCain crashed and burned to a four million dollar TV infomercial slickster, as a direct result of his hand-holding with democrats in advancing George Soros styled campaign finance so-called reform, having been outspent by a factor of 4. Once again reinforcing that reaching a hand across the isle to the liberals only accomplishes getting it bitten off.
In Florida Barrack Obama said "vote early" - and thanks to Acorn - vote often. Likely the reason for telling people to vote early is that each day more people were catching on to the fact that you can't propose a trillion dollars in new spending and finance it with the 30 billion he proposed soaking the rich for. Last count taxes will increase for those making over $42,000.
Cuban Americans recognized the stunning similarity to the manic popularity that got Castro elected.
Obama got right in the spending groove though with his campaign burning 4 times as much cash as McCain's. Four million in a single TV infomercial that not surprisingly didn't explore how he plans to finance his promises. Would seem that George Soros preferred the background for this election. An obscene six hundred million squandered.
What might that money have done for someone like this little shaver.
Over the last 10 years the Biden's averaged just $369 annually, in deductible donations.
Over the 5 years of 2000 through 2004 Obama's averaged just 0.9% of income donated, but once in the political spotlight juiced it up a little in 2005 and 2006, bringing the 7 year average up to 2.18% of income.
No surprise that those that haven't given a relative two nickels worth of their own income to help the poor, can't imagine the poor being helped by other than government sponsored programs financed by theft of the property of others.
The chart below is from The Generosity Index, compiled by The Catalogue For Philanthropy. It is computed by taking each state’s average income and average charitable contribution, then subtracting the second rank from the first to get a single number for each state. No surprise which states rank at the top of the list as the most generous, and at the bottom as the least.
No surprise then that the democrats, as a party, understand philanthropy to be a function of government rather than a personal responsibility. As we look more closely at the table we find that the chart also perfectly describes the story of the "widow's mite", as we witness the poorest states being the most generous, with some of the most well off states being at the bottom of the list.
Over the last 2 years John McCain's deductible donations averaged 22% of his income.
Over the last 2 years the Palin's deductible donations averaged 2.5%. With a lower income than the Bidens they still gave over the last 2 years, more than the Bidens gave over the last 8 years.
The quote above describing the cycle of a republic, perfectly describes this, our final election season, as a Republic. With the bottom 50% of tax filers covering only 2.99% of the entire national tax burden, and with God removed from public view obscuring the immorality of income taxation, it should come as no surprise that we have reached the point where the majority would vote themselves largesse at the expense of the minority.
In the context of the above, what percentage of the current electorate is in favor of having the government confiscate income from fellow Americans, and having it transferred to themselves to pay for their health care?
Anyone who characterizes our current global recession as a failure of capitalism, is clueless. It is a global failure of Wilsonian - Keynesian - Federal Reserve - styled, phony money.
As we review the charts above and see economies in the U.S., Europe, Russia, China, South America, and the Pacific Rim, sink, it becomes obvious that anyone who characterizes our overall situation as a problem of recent history, or a purely national crisis, is either a liar or a fool.
Particularly since the banking problems in Europe are looking as though they may be worse than the U.S.
Even Iceland is suffering a stunning banking crisis. Indeed today's events have been baked in the cake since Woodrow Wilson presided over the start of the Federal Reserve System, and Maynard Keynes, who brought us Keynesian Economics.
The cruelest thing the government can do, is to try to keep people in houses that they paid too much money for at the housing bubble peak, particularly cruel as prices will likely continue to depreciate through 2010, with the - current - 11 month supply of unsold houses hanging over the housing market. Keeping these poor folks in their home benefits the bankers, while Wall Street takes home 56 billion dollars a year - in bonuses alone. Almost 100 years ago, Keynes critics correctly predicted the catastrophic long run of Keynesian economics, ending in our present-day crisis. Keynes retorted "In the long run we're all dead".
2Timothy 3:13 But evil men and seducers shall wax worse and worse, deceiving, and being deceived.
"From each according to his ability, to each according to his need" - Barack Obama. Errrr wait, that was Karl Marx.
Obama puts it: "time to spread the wealth around". After all, it worked really well in the Soviet Union!
"To spread the wealth the communist's willing: He'll tax your pennies and keep his shilling."
Obama wants to "spread the wealth". Put simply, Marxist confiscation and redistribution.
Obama was endorsed by the head of the Iranian Parliament
Obama was endorsed by Louis Farrakhan
The Democrat party benefits from voter fraud.
The Democrat party benefits from abortion.
The Democrat party is supported by Hollywood.
The Democrat party is supported by the liberal media elite.
The Democrat party is the party that instituted Marxist income taxes less than 100 years ago.
The Democrat party is supported by the terrorist organization Hamas.
The Democrat party is supported by all those who want the Jews driven out of Israel and into the sea.
The Democrat party is supported by Islam.
Two successive liaisons to the Muslim community from Obama's campaign have been fired for ties to Hamas and Islamic terrorist organizations.
The Democrat party is supported by our enemies around the world.
The Democrat party is supported by Fidel Castro.
The Democrat party is the natural party home of atheists and agnostics.
The Democrat party launched an assault on free speech disguised in "hate crimes" legislation. Expect the end of any speech that disagrees with them, labeled as "hate".
Hey, but what's wrong with Islamic sharia law?
A woman's testimony in court is worth 1/2 that of a man's.
A woman's inheritance is 1/2 that of her brother's.
England has already allowed sharia law arbiters into their legal system. A case has already been allowed to be settled in England where the female received 1/2 as much inheritance as her male sibling.
Obama's already proposed 160 billion in new spending right out of the gate. Has that been our problem? Not enough government spending?
"The Great Depression--a failure of government intervention--was called a failure of capitalism, and was used to justify even more government intervention. We are seeing this same process repeat itself today." Dr. Yaron Brook
Catching Wild Pigs
A chemistry professor in a large college had some exchange
students in the class. One day while the class was in the lab the Professor
noticed one young man (exchange student) who kept rubbing his back, and
stretching as if his back hurt.
The professor asked the young man what was the matter. The
student told him he had a bullet lodged in his back. He had been shot while
fighting communists in his native country who were trying to
overthrow his country's government and install a new communist government.
In the midst of his story he looked at the professor and
asked a strange question. He asked, 'Do you know how to catch wild
The professor thought it was a joke and asked for the punch
line. The young man said this was no joke. 'You catch wild pigs by
finding a suitable place in the woods and putting corn on the ground. The pigs find
it and begin to come everyday to eat the free corn. When they are used to
coming every day, you put a fence down one side of the place where they are
used to coming. When they get used to the fence, they begin to eat the corn
again and you put up another side of the fence. They get used to that and
start to eat again. You continue until you have all four sides of the
fence up with a gate in The last side. The pigs, who are used to the free
corn, start to come through the gate to eat, you slam the gate on them and
catch the whole herd. Suddenly the wild pigs have lost their freedom. They run
around and around inside the fence, but they are caught. Soon they go back to
eating the free corn. They are so used to it that they have forgotten how
to forage in the woods for themselves, so they accept their captivity.
The young man then told the professor that is exactly what
he sees happening to America . The government keeps pushing us toward
socialism and keeps spreading the free corn out in the form of programs such as
supplemental income, tax credit for unearned income, tobacco subsidies,
dairy subsidies, payments not to plant crops (CRP), welfare, medicine,
drugs, etc.. While we continually lose our freedoms -- just a little at a time.
If there were a clock like the above for M3, or phony money production, it would be running at an even faster rate then the debt clock above.
All of a sudden it's criminal to expose a company's stinky balance sheet and tell folks to sell it, but it's still not criminal to tell people a company is good and they should buy it, even though the average PE of the S&P is stubbornly stuck at a whopping 25, even as the global economy shrinks and companies earnings follow suit? (update PE of the S&P looks more like 11 to 15 now as we BEGIN the fall earnings surprises).
Has anyone in favor of the 700 billion dollar spending package proposed a dollar by dollar public accounting for the funds? No. The reason being that they stuffed it full of pork. Congress is stealing your children's money and throwing it at the those that should be the last recipients of it. The money will go the way of the 150 billion dollar "stimulus package" - down a black hole. The AIG bailout financed a $440,000 luxury trip to a California retreat for top execs. Look for LOTS MORE of the same.
(Update market close 10-9-08 after the 678 point sell-off today closing at Dow 8579, it is suggested that the PE of the S&P 500 is now at 12, though projections are that once earnings come in it will be at 15 times earnings, which is the historical average. The historical lows are, of course at 6 times earnings. With corporate earnings chasing the PE south, it could require a lot more blood letting from here.)*
What about those that blame it on Wall Street greed? If it weren't for the greed of deluded so-called "investors" throwing money at a market that sits at historically high valuations, there would be no such thing as Wall Street greed. But then I suppose that would require accepting personal responsibility for their gambling. A lot of folks perhaps don't even stop to consider that if they loose half of what they invest in the stock market, that they will then have to make a profit of 100% on what's left, just to get back to even. How long would it take in T-bills paying 1-1/2% interest annually?
We have read that there is a ton of cash sitting on the sidelines. Today 94% of mortgages are being paid on time. Why not let houses be foreclosed on, deflating prices to more affordable levels, to allow purchase by those that were more prudent than to throw their money at an unaffordable bubble-priced house? Why not reward those that were more prudent than to borrow long term with short term ARM instruments. In the late 80's and early 90's that is exactly how the prices readjusted. IN THE MARKET. Houses in the southeast lost maybe 1/4 to 1/3 of their value and houses in Texas 50% and much more in the collapse of the oil industry that resulted from oil going back down to $10 per barrel (also ending any economic sense in alternative energy solutions). Some contractors that built on spec went belly-up. It all adjusted and those involved learned valuable lessons about greed as well as patience and prudence.
Was the taxpayer responsible for speculators that chose to put their money into pets.com at the peak of the greatest stock market bubble/mania in the history of the Republic? Was it the taxpayer's fault that folks threw their money at the biggest housing bubble/mania in our nation's history? Is it the taxpayers fault that some still choose to continue to throw their money at an extremely overvalued stock market? Then why is the taxpayer - particularly those who chose not to take those kind of risks - being asked to make the gamblers whole?
Massachusetts is filing for part of the 700 billion dollar bail-out money because they bankrupted their state by instituting on the state level, the very same kind of health care system that Obama is proposing to enact, at the federal level. Another liberal big spending state California was first in line with their request.
Should we be surprised that early voting in Ohio has began Sept 30 and someone could go in, register to vote, pick up an absentee ballot, and vote all in one stop. Dig this. You didn't even need an ID. They allowed registration and voting with just the presentation of a utility bill. Reports from students are that they voted multiple times. Why not? All they would need is to collect utility bills to vote again and again. Of course the Obama campaign was right out front promoting it.
The above video doesn't even expose the relationship with ACORN (the Association of Community Organizations for Reform Now).
"As it stands, if the bailout proposal goes through with the counter-proposals from Sen. Chris Dodd (D-Del.), ACORN would receive 20% of 700 billion dollars of the bailout money." link to source This is a corrupt socialist organization with leaders that have been indicted for record breaking voter fraud, and embezzlement. They were the recipients of the "community organizing".
More videos. George Soros aspires to be his Col. Edward Mandell House - his alter ego - since he can't run for president himself as a foreign born citizen.
Acorn and Voter Fraud
SOME Americans decided to gamble their savings in a stock market, that has been overvalued for decades, knowing that risk is proportionate to reward. Now that they see their retirement BEGIN to disappear they feel foolish for having gambled their future in such a cavalier fashion. But THEY WERE THE ONES who decided that 2% T-bill interest just wouldn't do it for them. THEY WERE THE ONES WHO BET THEIR FUTURE IN THE MARKET. If they lost money in Vegas would they look to the casino operator to make them whole or take personal responsibility for their actions? Yet those who didn't gamble with their savings, are expected to make New York City, two million dollar apartment dwellers, whole. It used to be that stock market downturns were a lesson to greedy speculators and vindication for those that didn't gamble with their hard earned money.
Stunningly the price to earnings ratio on the S&P 500 has stubbornly remained at 25 times earnings, in spite of recent corrections. That means that VALUATIONS ARE STILL IN HISTORICALLY HIGH BUBBLE TERRITORY, even as those "investors" weep over their retirement losses. Yet many remain "all in" for "the long haul". Does anyone expect them to look in their mirrors when they play the blame game? You can see from the chart that the PE ratio of the S&P 500, at the depths of the bear markets in the mid-70's and early 80's, was around 6 times earnings. Business Week's headline read "Death of Equities". Unwillingness to allow the risk-takers their due will continue to make the future adjustment evermore painful and catastrophic.
The government announces it's willingness to squander taxpayer money to bail out irresponsible insolvent institutions, and the market surges with those hoping to claim their share of this new infusion of "money" that is being extorted from the taxpayer (actually foreign central bank lenders and ultimately our children).
Fannie Freddie - whose responsible?
You have to wonder why the democrats would build a ticket with Obama, the #1 most liberal Senator and Biden the #3 most liberal Senator, in government. Does it really require any thought or effort to sign every bill that calls for more spending? That is except for those related to our national defense.
Joe Biden condescendingly suggests that those making over $250 should feel more generous and "patriotic" enough to pay more. But what is Biden's personal record for helping the poor and downtrodden? Over the last 10 years he averaged just $369 per year in charitable contributions. Yahoo it. In the mold of Al Gore's nearly identical charitable contribution record. Are people really duped that easily by vacant words spoken by hypocrites? Is that different than Gore's annual utility bill of $30,000 (including heating his pool in the winter time) while he beats the drum for energy conservation - that is - for those other than himself?
"To spread the wealth the communist's willing: He'll tax your pennies and keep his shilling."
The "compassionate" liberals. Great paper on this subject by Taylor Caldwell: "Mr. and Mrs. Buttons"
Barack Obama's big idea is to confiscate more from each according to his ability to pay, and transfer the spoils to each according to his need. He calls this change. Those of us that are apparently a little more well read than Obama understand it as MARXISM. The former Soviet Union should have provided a sufficient example of the end result.
This is the result of the immorality of income taxation which America has suffered under for less than 100 years. This is why our country was founded on consumption taxes, with freedom for citizens, not imprisonment for simply failing to produce income tax paperwork for the government.
Here's who currently pays:
Source: Internal Revenue Service
For Tax Year 2006
Top 1% - Adjusted Gross Income (AGI) Threshold on Percentiles $388,806 - 39.89% Percentage of Federal Personal Income Tax Paid
Top 5% - AGI $153,542 - 60.14% of the taxes paid
Top 10% - AGI $108,904 - 70.79%
Top 25% - AGI $64,702 - 86.27%
Top 50% - AGI $31,987 - 97.01%
Bottom 50% - AGI <$31,987 - 2.99% of the total tax burden, is paid by the bottom 50% of tax payers.
While Obama believes the rich aren't paying their fair share, he hasn't breathed a word in regard to spending reductions, rather only spending increases. He's getting a lot of practice at squandering money with his campaign having - by far - the highest cash burn rate of any political machine in the history of the Republic.
Detroit Michigan is another example of shrinking revenue resulting from ever increasing taxation. Yet discussion this political season has revolved mostly around what to do in terms of taxation. McCain and Palin are the only ones that talked about reducing spending, both having histories of voting for reductions in spending, exercising veto power, and both experienced in reducing pork.
Global Warming and U.N. Mind Control
Maynard Keynes on Lenin: "Lenin is said to have declared that the best way to destroy the Capitalist System was to debauch the currency. By a continuing process of inflation, government can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily; and while the process impoverishes many, it actually enriches some. – As the inflation proceeds and the real value of the currency fluctuates wildly from month to month, all permanent relations between debtors and creditors, which form the ultimate foundation of capitalism, become so utterly disordered as to be almost meaningless; and the process of wealth-getting degenerates into a gamble and a lottery."
Higher taxes reduce incoming revenue. The former Soviet Union is an excellent example of the end result of income confiscation and redistribution. The instituted, failed, and then repealed, "luxury tax" here in the U.S. was another classic example of capital confiscation shrinking markets, causing job layoffs and business failures, that reduced the incoming revenue stream rather than increasing it as intended.
Not since the Republicans abandoned their "contract with America" in 1994 have we heard the promise. Sadly, the polls showed that the American people were solidly behind that "contract", particularly through the government shut-down, but the wimps caved in to the media's constant drumbeat, in spite of the shut-down's popularity with the American public, and fiscal responsibility demonstrated.
Change, change, chaaaaaange, change of....
Well we haven't had a domestic terror attack since 9-11, so it's time to change that.
We are having some success in winning freedom and self-determination for the Iraqi people. Time to change that too.
Freedom of speech has served this country for 200 years, but it's time to change that too.
Our government apparently hasn't been confiscating and redistributing enough hard earned money so it's time to change that.
Congress is at a historically low 15% approval rating, but do you think the American people will change that? Not a chance.
Change, change, chaaaaaange, change of....
Obama's Missouri Prosecutors and Sheriff Truth Squad
An Obama Presidency
Can you believe the chutzpah of Alan Greenspan! One would have thought he would have skulked off into the shadows hoping never to be noticed again, but instead he writes a book and points his finger.
In the 1960's he was a gold-backed sound-money champion and Ayn Rand groupie. But by the turn of the century, as chairman of the so-called Federal Reserve - a private banking institution with nothing Federal about it - the Creature From Jekyll Island - Greenspan presided over the creation of the largest amount of phony money of any currency in the history of the world. HE BECAME everything he had earlier condemned in his 1960's paper "Gold and Economic Freedom", perhaps confirming the quote by Lord Acton, the British historian, who said: "All power tends to corrupt; absolute power corrupts absolutely."
Woodrow Wilson and Maynard Keynes' phony money chickens, comin' home to roost. The era of Keynesian economics is coming to a close. Maynard Keynes detractors predicted events of today almost 100 years ago.
"Faith that paper money itself was of any lasting value would have struck our forebears as patently absurd." - Christopher Mayer - writing for the Ludwig Von Mises Institute.
The Federal Reserve was given control of mortgages in 1994. So who is surprised by the outcome?
Who would have thought that it would be the emperor that wound up pointing at himself! In mid-March the Fed announced that they were standing by with however much money was required, to keep their Keynesian scheme afloat. In other words, the supply of "money" available to them is infinite. Perhaps it will need to be considering a 70 trillion dollar derivative liability in the markets.
Imagine how different the world would be if, in a single day, everyone in the world came to realize that the "money" of all of the nations of the world ..... isn't! Watts of '65, Detroit of '67, on a global basis.
(Note on 9-29-08. Market down 777 points. Blame is placed on the bill being voted down. It's pretty apparent that the powers that be are intent on sending our children the bill for keeping their parent's generation's stock market speculation accounts from loosing value. What do young people starting their lives out, that have been making prudent personal financial decisions, think about this?
The problem is that so many drank the Wall Street cool-aide. They came to believe in the promise of a free lunch.)
(Note 9-30-08. Market up 485 points. How come nobody blames the up market on the bill being voted down?
Indeed more likely the market was witness to the panic buying of shorts getting killed, and having to buy ever higher, to close positions.)
THE POLITICS OF IT
Young people you've been had by "the man" again.
Housing "rescue" bill = Marxist redistribution = taxpayer destruction. Didn't we learn anything from the Soviet Union and Cuba?
Politicians have been talking about whether those mean nasty U.S. oil companies would or would not adjust the price of gas, in light of a tax, that is or is not imposed on them, and such. How can they be so ignorant considering the high offices they occupy or are running for? The price of gas is set by the GLOBAL buyers and sellers in the commodity market - every day - not at the whim of some U.S. oil company exec sitting with his feet up on a desk. Here is a link to a weekly chart of unleaded gas at the New York Mercantile Exchange. This price is largely determined by the price of crude which is bought and sold the same way, and in the same place.
Buyers and sellers include producers, end product wholesales, and speculators. Without the added liquidity that speculators provide the market couldn't function nearly as efficiently as it does. The market works the same for oil, corn, livestock, cocoa, gold, or any other commodity.
Anyone who wants to join in the "profits" of these evil, nasty, greedy speculators, of whom about 80% LOOSE money in the commodity markets, is welcome to risk their retirement money into a contract at the CBOT or CME or New York Merc Exchange, or if money is more limited than the margins required, then an Exchange Traded Fund that tracks the price of oil, like the United States Oil Fund.
Oil companies that retail gas in the U.S. are in extremely close competition. If they weren't you would likely be driving to their competitor's gas pump. Perhaps you already shop for the cheapest. Some stations depend almost solely on profits from beer and Twinkies, with high volume gas at break-even prices, just to get you into their station store.
If the government merely announced approval to drill in ANWR, and offshore like our neighbors do, crude oil prices would begin a precipitous decline, perhaps back to the $10 that they declined to last time such a perception arrived. What most folks who don't bother to inform themselves don't understand is that the proposed drilling in ANWR would only require a 6 acre footprint. That's likely smaller than your closest neighborhood park.
But the hippies and liberals have won that debate in their effort to transfer U.S. wealth to Hugh Chavez, Iran, Russia and Saudi-Arabia.
But then the liberals may accomplish $10 a barrel oil yet again - but through deflationary depression.
Liberals and hippies prevented drilling ANWR.
Prevented developing offshore oil.
Prevented developing shale oil, a domestic resource larger than Middle East oil.
Prevented increasing our nuclear derived power from the measly 20% obtained that way today, with France at 80% for example.
Ted Kennedy and his cronies are fighting against wind energy generation. Expect plenty more of that with one-party control of government.
Liberals complain about a non-existent energy policy, that they fought tooth and nail, while stunningly pushing for more electric vehicles, to tax an already fragile electric grid. All while suggesting that all we have to do is rely on energy sources that are 50 years away from development.
No surprise then that enemies of freedom around the world like Hugh Chavez, Fidel Castro and terrorist organizations like Hamas and Hezbollah voice support of the liberals. Yet amazingly the electorate can't seem to draw the connection. If raising taxes and increasing regulation and government paved the road to prosperity then the Soviet Union would have been the most dynamic economy in the world today.
Is it then a surprise that they receive the adoration of France, Germany, England and the rest of Europe? Hardly.
America has managed to remain slightly less socialist that Europe, which has allowed us to maintain a slight competitive advantage. Liberals in control across the board in government, with the promises they have made just to date, will invert that advantage in a New York minute. We'll wind up importing more goods from Europe having lost our competitive edge around the entire world. Europe is licking their chops for it. So are terrorists.
Consider the debt clock above. How much of the debt is represented by increased energy expense borne directly by the government, with over half of our working population directly or indirectly in government employ?
When I use the term hippie I refer to those that cut their hair, but failed to mature beyond that.
One thing is for sure. This November our nation will receive exactly the governance it deserves. The House already passed, and pending Senate approval, is a bill that will criminalize truth as hate speech. We have already heard voices seeking reason in the environmental debate, characterized as "hate speech" and equivalent to "holocaust denial".
Poor people and the elderly on fixed income can thank the liberals for electricity and gas taking an ever greater share of their already thin disposable income. Next time you are having to choose between medicine and electricity, thank the liberals for skyrocketing energy costs resulting from diminishing domestic production and their backwards, archaic, 1970's styled anti-nuclear buffoons.
Here is a cute little nuclear reactor, the size of an average household water heater, for a remote Alaskan town.
France is much more densely populated than the U.S. yet 80% of their power comes from nuclear reactors compared to 20% in the U.S.
How many more poor and elderly people are we willing to continue to sacrifice on the alter of pseudo science, under the spurious guise of "correcting" climate change?
The caribou love the Alaska pipeline.
As an aside, nature produces 29 times the CO2 of all fossil fuel burning and forest prescribed burning. Termites alone, produce 10 times the CO2 of all fossil fuel burning. So who owns the environmental movement? Is this "environmental movement" simply about mind control?
MORE ON MONEY
And now with "helicopter" Ben Bernake repeatedly lowering rates to the further destruction of our phony dollar we can see how this tightrope act would seem to be reaching a conclusion. The rock and the hard place.
With a grossly overvalued stock market shaving a few points, and a little of the fluff gone from the housing bubble/mania, the financial pundits are all screaming for the Fed to lower rates, and the Fed has accommodated apparently not getting that Japan's rates were around 1/2 of a percent (even to 0% I believe) for much of the 20 consecutive years of deflation. And they began their depression with one of the world's strongest currencies, and as the world's leading creditor nation, and with one of the world's highest savings rates. None-the-less Japan lost 80-90% of the value of their real estate market during that deflation. Lower rates didn't do it for them, and all it is doing for us is further destruction of our "dollar". Why borrow money when you know that whatever you do with it will be worth less the longer you hold it?
"History does not deal kindly with the aftermath of protracted periods of low risk premiums," "Such an increase in market value is too often viewed by market participants as structural and permanent." Alan Greenspan, 2005
Why not lower the rates to 0%? I'm sure the world would then be really eager to finance our debt with no interest return on their money, in a currency that will likely depreciate at 10% or so per year, relative to their own. Oh well. I guess that's what we should expect when values are set by non-productive and arbitrary setters of value, in a Keynesian financial system dependent on them.
To top it off, some politicians answer is raising capital gains tax to 25%, rather than cutting spending! This means that after selling an asset, an investor would only have 3/4 of the gain left. Then in order to justify reinvestment of that money into another asset/business, it would have to realize a 33% profit on that amount - in the first moment of acquisition - in order to return the investor only back to a zero position. Starting with a weak economy, it would put the economy into a deep freeze.
Here's a fun U-tube on debt as money. While a good discussion about money, the conclusions and repair suggestions are liberal and unrealistic. If history is any guide, the only "fix" for phony money begins with economic collapse, followed by a collective interest in returning to sound money.
So why would anyone loan our government money at 4% interest, when the Fed has depreciated our currency by 15% over the last year alone? And by 36% over the last 5 years. Could it be that the world's central bankers understand how fully they are involved in a game of musical chairs - marching in a circle with their paper hats on - in which they also understand there are no chairs whatsoever?
Some in Congress even had the nerve to launch a charade putting oil executives in the hot-seat for the price of gas going up, while it is our ability to purchase it with U.S. dollars that has been being destroyed. This even though crude oil is traded, and the price set, on the world market.
Any politician that blames the executive branch, or the presidency, for the Fed's blizzard of fake money housing bubble and bust, in it's near-century-old Keynesian scheme, should automatically be disqualified from serving in public office, purely on the basis of sheer stupidity.
Monthly chart of the U.S. Dollar Index as of 3-19-08 below.
Click on chart for current weekly chart.
"Helicopter" Ben Bernake will now commence with an even greater blizzard of cash financing a chicken in every pot. Politicians from both sides fell all over each other to promise a few hundred bucks to voters in another wealth redistribution scheme. But who pays the bills after the so-called stimulus drunken binge is over? At least to Greenspan's credit, when faced with a slow-down, he suggested that a broad-based, middle class tax cut, was the worst possible thing that Congress could do, and that permanently eliminating capital gains tax, would be the best form of stimulus.
Here is what the Marxists in Congress will do to "fix" the problem.
1) They will make whole stock market speculators and the greedy people who had no savings, and still bought larger homes than they should have, or those without savings who shouldn't have bought in the first place.
2) A blizzard of money will destroy the value of the savings of those who worked hard all their lives and maintained their finances conservatively.
3) The stimulus will be financed on the backs of hard working conservative people who live within their means, bought homes they could afford, and saved for a rainy day.
The result will, of course, be a further collapsing dollar, and continuing skyrocketing debt, the interest alone on which we paid over 429 billion dollars last year.
Here's the funny part. All of the stimulus will be geared toward increasing consumption of exactly those who are already living above their means, as evidenced by a negative savings rate.
"Encouragement of consumption is no benefit to commerce, for the difficulty lies in supplying the means, not in stimulating the desire of consumption: and we have seen that production alone furnishes those means. Thus, it is the aim of good government to stimulate production, of bad government to encourage consumption." - Jean-Baptiste Say - "A Treatise on Political Economy", 1803
Oh well, I guess representative republics were only meant to last until Marxism replaces morality, and an ignorant majority believes it can gain materially, by voting itself largesse at the expense of the prudent minority.
Woodrow Wilson is responsible for our phony money via the Federal Reserve. But who is historically responsible for our evermore exponential debt? It's congress that controls the spending.
We can see from the chart that prior to 1994 Democrats held overwhelming control of the House for nearly the entirety of the prior 60 years, beginning in 1933. In fact ALL of the tiny portions of Republican control since then have included extremely narrow majorities by comparison. Recent years of historically unprecedented Democrat filibusters of Republican judicial appointments aptly demonstrated that the Republican's majority margin was too thin to offer any congressional power whatsoever.
The few moments of Republican SHARED control, throughout the last 74 years were saddled with spending that was already in the pipeline - increasing since Roosevelt.
In '06 America decided to put the party back into power, that's been historically overwhelmingly responsible for the profligate spending expressed on this page, and our nation's obvious inability to finance it. But then it has been government by the media. But the republican congress has shown no restraint either, since abandoning their "Contract with America", in the early 90's. Bush Sr.'s "Points of Light" and the two Bush's profligate spending piled on. Particularly via the Medicare Prescription Drug Benefit.
During the 60 years prior to 1994 Democrats also held nearly complete, and usually overwhelming, majority control of the senate, with the exception of 6 years under Reagan during which the Senate Republicans had to contend with an obstructionist Democrat majority in the House.
"Don't gamble. Take all your savings and buy some good stock and hold it til it goes up then sell it. If it don't go up, don't buy it." - Will Rogers
The author of the U.S. DEBT CLOCK also has a crime clock listed under "politically incorrect" that can be accessed on his site at hhulen.com. Note the figures for "defensive gun use by law abiding citizens" and then ask yourself why so many of our masters in congress want to take away our ability to defend ourselves. Here is a link to the home page of TopTips.com.
ON SHORT SELLING
I was stunned when the English banned short-selling in a fanciful effort to make their stock market go up. But NOTHING lifts a market more rapidly, or hysterically, than short seller pain resulting in a subsequent manic buying panic to cover their position.
In the days following 9-11 when nitwits declared it "immoral" or "unpatriotic" to short sell, nobody took short positions. Predictably the market dropped day after day as "patriotic" longs piled in, and then as the buying dried up, could only exit in pain, leaving the market lower with each successive wave of buying and running away.
Without shorts buying to cover, rocketing the markets higher - particularly from the stinkiest bottoms - there would have been no end to the successive waves lower. After several days of that they announced that everybody - including shorts - were welcome back into the market. That morning it opened and as I remember was up 300 or 500 points in the first 20 minutes, on the backs of the short-sellers that had jumped in, and then were each required to cover at their own individual threshold of pain. The market never looked back. The negativity of 9-11 proved the perfect catalyst to rocket the market higher on fear, that had been dropping steadily long before 9-11.
So what's the brilliant solution by government nitwits and wall street regulators when shorts and their negativity could be the perfect advantage? In their effort to keep an S&P afloat (with a stunning PE of 25, keeping it still in the bubble stratosphere)?
Their bright idea is to ban short selling! Their folly will be found out in very few market days.
Don't drink the Kool-Aid
Updates move here:
S&P PE updates:
12-2-08 Sadly, corporate earnings are sinking so much faster than the markets can adjust, that the PE of the S&P 500 is actually rocketing UPWARD as a result, making the price of stocks near historical HIGHS. In other words, today the market is priced higher than at any time in stock market history, except for a couple of mania peaks. From about a PE of 17 last year first quarter, to a PE of 25 at the end of the third quarter '08 (Chart BillandBearWise.com):*
2-19-09 The P/E ratio for the fourth quarter SKY ROCKETED EVEN HIGHER to about 33 times earnings. By this measure, based on the second historical chart, we can see that since 1946, the S&P was only SLIGHTLY more expensive than it is today, on ONE other occasion - AT THE BUBBLE PEAK IN 1999.
3-7-09 As it happened, the younger someone was, the more likely it is that they voted for Obama and democrats. So fortunately, the people who put this government in office will be the ones whose children, and children's children, will be stuck paying Obama's bills. Perhaps while renting from, and serving as domestics for, the Chicoms that are busily buying up American assets. The ironic thing is that all this squandered money is for the benefit of the politicians generation, and at the expense of the generation that voted for him the most!
But I guess it was inevitable that the U.S. eventually fall to communism.