bush tax cuts (3)

President Obama’s latest dog and pony show, the highly ballyhooed Deficit Commission, today did everything possible to dramatically heighten public suspicion of government; and to increase business’ uncertainty in the country. In particular public dissatisfaction (with the idea that the home mortgage interest deduction on income taxes should be eliminated) will probably amount to open mutiny. More importantly, NO real mention of inciting a return to prosperity comes up in the revelations released today as “Chapter 1” of their proposed deficit-reduction package. Those two, prosperity and deficit cutting, MUST go hand in hand.

In a phrase, the Commission recommends gutting the Pentagon; raising taxes; and infuriating the business community and homeowners; oh, and clearly it won’t work! Let Rajjpuut remind you what does work:

1) Cut taxes. Extend all the Bush tax cuts for fifteen years and permanently establish the Bush Estate Tax as the law of the land.2) Establish a six-month income tax embargo on all business and personal income for 2011 to jump-start the economy.
3) Cut, nay SLASH, government spending 20% across the board and 25% for non-defense spending and hold that level of spending for as long as necessary until the current National debt is reduced and surplus is achieved.4) Require a balanced budget, by creating an amendment to the Constitution, and within that budget require a full new funding and gradual refunding of the lock boxes for Social Security, Medicare and both the state and federal branches of Medicaid.
5) Cut all federal salaries by 25%. Maintain those levels of government salaries and wages for fifteen years while cutting government employment by 10% in year one; 6% in year two; 5% in year three; 4% in year four; 3% in year five; 2% in year six; and 1% in year seven.6) Raise the retirement age for government workers to 68 years old immediately for all persons now aged 58 or younger.
7) Require all government workers to abide with retirement equal to social security levels. Any surpluses to be put in the social security lock-box.8) Raise the Retirement age for others to 67 years old for all persons now aged 55 and younger; and in 2019 for all persons then aged 55 and younger to 68 years old.
9) Repeal and/or defund Obamacare and start over for a real health care reform addressing costs in a realistic fashion.10) Create an intelligent bi-partisan commission without any academic personalities involved but solely made up of politicians, business people and health experts to discuss successfully cutting unfunded liabilities (Social Security, Medicare and both the state and federal side of Medicaid) with a reporting date of 2013.
11) Establish an “all of the above” energy policy and encourage the building of new refineries and nuclear power plants.12) Require all legal bills to reference the U.S. Constitution and prove the bill is justified as Constitutional.

13) Eliminate Federal Reserve Banking and make inflationary spending above 4% at any time illegal. To prevent inflation, abandon Bernanke’s evil idea of “quantitative easing” by the Fed; and abandon the artificially low interest rates Ben Bernanke has established as a means to continue the corrupt idea of “too big to fail” by which (0.25% rates) he has protected five irresponsible banks (J.P. Morgan, Bank of America, Citibank, Goldman Sachs, HSBC with an overall derivative exposure of roughly $210 Trillion; including $188 Trillion in interest-rate derivative exposure). Patriotism is not about protecting stupid banks but protecting the American citizens.

Ya’all live long, strong and ornery,


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Big Changes Coming to the Congress?

Time to put up or shut up! After their expected November gains, the TEA Party caucus within the Republican Party (headed by Minnesota’s Michele Bachmann with 52 other Republicans and so far no Democrats aligned with the fiscally- and Constitutionally-conservative TEA movement) expects to put into action an impressive war plan, how much the Republican Party goes for the TEA agenda remains to be seen. The TEA Party plan for the House has five steps. In keeping with the TEA = “Taxed Enough Already” or “Taken Enough Abuse” idea, expect:

1. Extending the Bush era Tax Cuts

2. Slashing government spending except Defense and Social Security by 40%

3. Repealing, or at least defunding, Obamacare

4. Creating a budget early on

5. Passing some package of legislation ultra-friendly to small- and medium-sized business to stimulate maximum jobs growth

Overall the effect of all this would cause a massive shrinking of the federal government from “the get-go.” YES SIR, YES SIR! As Ronald Reagan put it, “The federal government is not the answer to the problem; the Federal Government IS the problem . . . .”

Meanwhile, the fate of the Senate hangs in the balance with Republicans needing to win nine senate seats to take the majority there. South Carolina Republican senator Jim DeMint has received a lot of heat from non-TEA Republicans over his outspoken call to fully return the GOP to its conservative fiscal and Constitutional values. The numbers of TEA Partiers in the Senate is very small but they’re expected to wield a big influence upon the G.O.P. nevertheless.

But even before that happens, America might be in for a highly contentious lame duck session starting next week. If the Republicans make immense gains in the House and Senate and Governors’ mansions as predicted by the pollsters (+70 seats in the House; +8 senate seats; and +9 governorships), Nancy Pelosi and Harry Reid will come under great pressure from the Obama White House to “accomplish” some more of Obama’s pet projects such as Card Check for Unions; an illegal-immigration “reform” bill akin to the “Dream Bill; Gays in the military reform of Don’t Ask, Don’t Tell; etc., etc. Everything but a budget (which they’ve failed to even attempt to pass) could be the Dems last minute rejection of the American voters’ rejection of them and their policies. That’s a lot of “gotcha” and wrong-headed animosity being expressed in Washington over the next two and a half months in Rajjpuut’s opinion and the Republicans in Congress will need to stand firm.

This standing firm will be very important since the voters are expected in six days to use the ballot box as a negative referendum on all things Obama from 2009 to present. As for the new Congress beginning in mid-January, the word is that while the newly formed TEA Party caucus within (but outside of) the elected Republicans in both chambers of congress wants a 40% slashing of government spending on everything but Defense and Social Security; and all Republican electees, TEA Party or not, are committed to some level of spending cuts and full extension of the Bush tax cuts to all taxpayers . . . the real question is how long can they extend the Bush Cuts and how much can they slash without encountering Obama’s veto? So the best guess is that we’ll see something like a 30% slash in government spending on “discretionary matters” and a three-year extension of the Bush Tax Cuts.

However, politics being what politics is . . . expect the Republicans to push through an eight- or ten-year extension of those cuts for the president to veto and then after the veto, it’s anybody’s guess whether a four-year extension can get presidential approval. The other two likely early efforts by a new Republican majority in the House of Representatives would be first of all to DEFUND and REPEAL Obamacare; and then to pass some package of support for small and medium-sized business to get the economy sailing with a following wind. Overall, expect political fireworks of a positive kind for a change come January.

Ya’all live long, strong and ornery,


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It’s said “there are lies, damn lies and statistics . . .” Another little homily goes “Fool me once, shame on you. Fool me twice, shame on me.” President Obama is now predicting 9% unemployment next year and full employment by 2016 . . . how much faith should you place in those projections? You do remember the State of the Union Address and all the Obama administration hoopla in early February, don’t you? The very first economic projections that went along with the President’s glowing economic predictions back then are approaching their early August due date. It’s called the “Mid-Session Review.” Not surprisingly, according to Obama's own standards, virtually every economic indicator in the MSR is worse or even much worse than the administration’s own February budget projected. Federal deficits are expected to be $8.474 trillion over the next ten years. That figure is, thankfully, only $150 billion more than Obama anticipated in February’s budget . . . and that is the sum of the “good news.”

Our Federal Public Debt was $5.8 trillion in 2008 an enormous burden brought upon us by both political parties. However, MSR now after 18 full months of Obama’s devastating economic policies projects that debt will grow to roughly 2.33 times its present size in five years to $13.3 trillion and to 3.19 times the present level to $18.5 trillion in ten years. That would then amount to over 68% of GDP and $440 billion higher than they estimated in February. In 2020 the United States will be $26.6 trillion in arrears. Out of control Democratic spending is driving these deficits and this national debt. Republicans have opposed every idiotic proposal along the way, for all the good it did them or us. An overall 84% increase in non-defense discretionary spending by Mr. Obama makes his projection for 9% unemployment in 2011 and full employment by 2016, utterly laughable especially since they’re recently added $31 Billion in new proposals (for the next ten years that were NOT in the February version of the unofficial budget (the administration has NOT created an official budget yet.

Reality is a hard mistress who, if you don’t respect her, will surely make you life a living hell . . . so it with the MSR and ignorance of economic truth and history is no excuse . . . .

Item #1: The proximate cause for the financial debacle in late 2007 was the sub-prime lending crisis first mentioned as a future danger by James Stack of investech.com in November, 2003. The potential proximate causes of that disaster were linked to that meltdown potential in July, 2005, by the Bush administration which was unable to pass legislation undoing the five bad laws which brought us to the edge of danger – the first “bad-loan” mortgage guarantee law known as the Community Reinvestment Act of 1977 (CRA ’77**) and the four expansions of CRA ’77 (in ’92 expansion to also embrace the requirement for mortgage guarantees by Franny Mae and Freddy Mac; two more expansions of CRA ’77 in 1995; and the steroid version expansion of CRA ’77 in 1998. All driven by progressive elements in the Republican and especially Democratic Parties. Our president was actually an ACORN lawyer from ’95-97 shaking down financial institutions as ACORN forced them to live up to the absurd letter of these four bad laws. After Obama was gone other ACORN lawyers had an even easier time forcing bad loans when the ’98 expansion of CRA ’77 occurred. The net result is that even after creating our 2007-2008 financial Armageddon, those laws are 98% still on the books so the next version of ACORN can force loans to people without ID; people without jobs; people without rental history; people with horrific credit rating and even loans to illegal aliens. So not only is our financial crisis not over . . . not only is our president creating programs to bankrupt us well into the future . . . not only has spending increased 84% . . . but also the seeds of the last financial crisis have been nurtured and are ready to bloom again. Those are the facts.

Item #2: Mr. Obama is really a communist, but since 55% of Americans call him a “socialist,” let us be content to understate the case and say, Mr. Obama is a socialist . . . and therefore his allegiance is to the labor unions and he harbors immense animosity toward business and toward the wealthy entreprenuers who create businesses and expand businesses and create jobs. He has in his bailouts and buyouts, in his manipulation of the two auto bankruptcies, in his stimulus plan, in his Obamacare, in his new Financial law, etc. gone out of his way to benefit the labor unions at the expense of the American people, the business leaders and the wealthy. And what fact is being violated here? Americans getting $20.00 per hour on the assembly line of a union company canNOT compete with desperate, hard-working foreigners who are content to work for 68 cents an hour over a thirteen hour day with minimal benefits. In large part the unions have made us uncompetitive. Most American jobs nows are being created in the service area rather than the manufacturing area . . . count on it, that means they don’t pay beans compared to what old GM workers were earning even back in 1984. So where are the Obama jobs “created or saved?” The bulk of them are in government or teaching or semi-civil service positions like police and fire-fighting . . . jobs that produce exactly ZERO! Jobs that create exactly ZERO PROFIT. Are we starting to get the picture here, Mr.

Obama believes that government throwing money around creates jobs, real jobs in the real marketplace . . . Mr. Obama has his head deep, deep up inside his lower intestine. Mr. Obama is anti-profit and doesn’t understand the most simple facet of economics . . . wealth creates real jobs, real jobs create real wealth and left to its own devices this is the engine of prosperity. You’ll never see a fire-fighter, police officer, teacher, union official, union member, or service worker creating jobs . . . real jobs come from real wealth and the real basis of real wealth is not the service industry but real production of real goods. Ultimately it comes to that and Mr. Obama is doing everything 100% bass-ackward and instead of building our economy is seemingly determined to undermine it so it will never create a single job again. Right now he’s about to raise taxes on the rich again . . . surprise, they’ve got the power to take their ball and go home and leave you without an economy, Mr. Obama.

Item #3: Everything Mr. Obama and the unions have done in their history have made America and American workers completely unattractive to investment and even to those who’d loan us money. The American workplace with all its anti-business regulations has become the least attractive jobs environment the world has ever known. The movement of American corporations to other jobsites in the world was a natural result of that UGLY-Anti-AMERICAN, Anti-business climate and under Mr. Obama that trend has grown into a galloping reality. The only place non-government jobs are being created is in low-wage retail and service jobs.

Item #4: Mr. Obama is so out of touch that he is seeking to pass legislation “creating” five million green-tech jobs. If the Spanish green-tech job experience is any judge, that means he’s talking first about losing eleven million real jobs from the real economy to subsidize those green-tech jobs. Then only about 1/10 of those green jobs will prove permanent so at a cost of eleven million real jobs he will have created 500,000 permanent green-tech jobs . . . a 22/1 ratio which is why Spain went from 3% unemployment in 1997 to 21% unemployment today. Mr. Obama doesn’t understand economics and still believes in the tooth fairy version of Keynesian Economics that purports that governments can create real jobs. Thomas Edison invented the light bulb in 1879. We have not yet seen a similar breakthrough in solar energy, wind energy, geothermal energy or any electrical generation of energy more efficient than using fossil fuels such as coal, gas, natural gas, or even so-called “oil-shale.” We could abandon the rest and take the least advanced technologically of all these fossil-fuel industries (oil shale) and in ten years if government got completely out of its way, have America far better off than it is now energywise. We could, on the otherhand, subsidize solar, ethanol, wind and geothermal experiments for twenty years and most likely be not much further than we are now. There is a time, Mr. Obama, for every purpose under heaven and all your audacious hope won’t change that time one second.

Item #5: Barack Obama wrote the manual on how to lie with statistics, seemingly making up about 60% of those he spouts off in interviews. Certainly his “jobs created and/or saved” is total malarky. The number of people without jobs period is roughly 17.8% at present. The number of under-employed people with part-time work only is another 4.4%. The number of under-employed people with jobs paying far less than the jobs they lost is roughly 5.7%. The number of people still on the unemployment rolls is roughly only about 9.6% . . . . how do “jobs created or saved” fit in with those greater truths?

All the following are real, not Obama-generated, statistics and all of them were bad when he took office but have become much, much worse because of his hateful interference in the economy:

61 percent of Americans "always or usually" live paycheck to paycheck, which was up from 49 percent in 2008 almost a 25% jump under Obamanomics

36 percent of Americans say that they don't contribute anything to retirement savings.

24 percent of American workers over age 50, say that they have postponed their planned retirement age in the past year.

Over 1.4 million Americans filed for personal bankruptcy in 2009, a 32 percent increase over 2008.

For the first time in U.S. history, banks** own a greater share of residential housing net worth in the United States than all individual Americans put together.

In the United States, the average federal worker now earns 60% MORE than the average worker in the private sector. Unionized federal workers earn about 112% more. That means that a lot of money that might be stimulating the economy is being wasted on government.

In America today, the average time needed to find a job has risen to a record 35.2 weeks.

More than 40 percent of Americans who actually are employed are now working in service jobs, which are often very low paying.

For the first time in U.S. history, more than 40 million Americans are on food stamps, and the U.S. Department of Agriculture projects that number will go up to 43 million Americans in 2011.

This is what American workers now must compete against: in China a garment worker makes approximately 86 cents an hour and in Cambodia a garment worker makes approximately 22 cents an hour.

Thanks to Obama and union demands in this country, the rate of job outsourcing by major corporations, increased 18% in 2009.

Approximately 21 percent of all children in the United States are living below the poverty line in 2010 - the highest rate in 20 years.

As you look at what exactly Mr. Obama has done to you, here’s a good website to visit showing you what the brunt of your tax burden is in three scenarios:


for sure, one way or another tax increases are the #1 most likely scenario that Obamanomics has brought our way. $2.55 TRillion over the next ten years from “allowing the Bush tax cuts to expire” or “closing the loopholes in the tax code” or whatever spin they want to put on it. Life gets a bit harder.

Ya’all live long, strong and ornery,


** From 1946 - 1998, America boasted by far the highest home ownership in the world 62 - 65%. So the CRA ’77 was fixing a situation that wasn’t actually broken, but now it truly, truly is busted.

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