deficits - ACTION - Command Center

Should America Pay Detroit Bacon Bailout Demand For Obama Election Support

Posted by Kevin Fobbs on December 9, 2012 at 10:47am

Should America pay for Obama Bailout Bacon for Detroit $200 million deficit because of voter election support?

When President Obama visits the Detroit area Monday, December 10th, should he bring a plane fill of election bacon payback for loyal Detroit voters? City Councilwoman JoAnn Watson is demanding America give the city bailout bacon to erase Detroit’s $200 plus million deficit as a quid pro quo for Detroit’s overwhelming presidential election support of Obama. “Elections have consequences,” she believes. So should you prepare to heat up the frying pan and get that bacon ready for Detroiters at your pocketbook’s expense?

In a Tuesday, December 4th City Council Meeting, Councilwoman Watson reminded those in the council chambers that , “After the election of Jimmy Carter, the honorable Coleman Alexander, he went to Washington, D.C. and came home with some bacon,” she also emphasized, That’s what you do!”

Is that what this nation has come to, that cities can spend exorbitantly more than they take in on fat union retirement pensions, salaries and bonuses, and obligate their citizens and the children to a bleak monetary wasteland? The financial aftermath is then left to the state or the nation to be the financial cleanup crew because city officials refuse to demonstrate budgetary leadership?

As much as its Detroit officials claim they want to get their financial house in order, the city public unions demand more, the city cannot afford to tax more, and the citizens are left with escalating crime and deescalating essential city services.

It actually gets worse. Much worse!

If you are a Detroiter and you are in desperate need of a police officer to respond to a crime, or a fire fighter to address a raging fire nearby or at your home, your best response time is a guesstimate. Detroit residents that need rapid EMS services would be better off asking a neighbor or friend to drive them to the nearest emergency room, because EMS response time is totally abysmal according to a recent 2004 city audit.

In fact, the Detroit News suggests from that same study, that in addition to very substandard communication equipment, “Detroit is the only major American city that does not allow a firefighter or a police officer to aid a victim before the ambulance arrives.” If you are one of the fortunate Detroiters that do receive EMS assistance, two Detroit hospitals have shuttered their doors and EMS staffing has been slashed. Sorry, but good luck with that.

So where does that leave Detroiters and many other urban cities as well as states like California and Illinois with huge multi billion dollars bailouts and have informal requests into Washington for tax payer federal bailouts?

It leaves the nation grappling with the hard truth that former presidential candidate Mitt Romney attempted to highlight during the 2012 campaign. America’s mainstream media as well as liberal and many moderate Republicans skewered him for telling the truth about the quid pro quo that exists in this “You earned it and I want it nation.” This is the new political landscape that is strangulating America’s self initiative and individual responsibility.

Romney was clear and honest when he stressed, that Obama promised, “Gifts” to minorities, young voters, and women.” Everything is free and the Christmas tree and all that is under it are up for grabs in Obama’s new America.

Romney went on to affirm, “It’s a proven political strategy, which is give a bunch of money to a group and, guess what, they’ll vote for you,” So why was he vilified by the same liberals who have their free abortion pills, free government bacon, free illegal immigration rights hands stuck out?

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The CONSTITUTIONAL SUPPORT TAX (the CST) Will End Federal Deficit Spending - PERMANENTLY!

Posted by Cyrus J Mallinson on August 9, 2012 at 5:28pm

www. constitutionalsupporttax.net

The CONSTITUTONAL SUPPORT TAX (the CST)

A States-based system to pay for Federal

expenditures that ends the Federal Government’s

power to tax and borrow money

The States of the USA, and the People, have granted the U.S. Federal Government, through Congress, the power to tax, borrow and

create money. (Article I, Section 8, Paragraphs 1, 2, and 5 of the U.S. Constitution plus the 16^th Amendment. The "Big Four.") The Federal Government has monopoly control over its own financing. Has this monopoly control worked out well?

On December 31, 2000, the U.S. National Debt was $5.662 trillion. December 31, 2008, $10.700 trillion. December 31, 2011, $14.025 trillion. And, despite the November 2010 election results, $15.785 trillion on June 19, 2012. A 279% increase in less than eleven years, six months. ((Source: www. TreasuryDirect.gov Debt to the Penny (Daily History/Search.))

It can arguably be said that these taxation, borrowing and money creation powers, have been seriously and shamefully misused.

Changes need to be made to end this misuse. However, the needed changes go far beyond electing more responsible congressional and Presidential representation, as necessary as these steps may be.

The misuse, and potential for continued future misuse, will not be curtailed until the monopoly financing control created by the Big Four to pay for Federal expenditures is replaced by a States-based system. The CONSTITUTIONAL SUPPORT TAX (the CST, www. constitutionalsupporttax.net) should be that States-based system.

In summary the CST will do the following:

The power to lay and collect Taxes, Imposts and Excises will be repealed from Article I, Section 8, Paragraph 1 of the Constitution along with the 16^th Amendment. The power to lay and collect Duties will remain with Congress.
Article 1, Section 8, Paragraph 2, authorizing Congress’ power to borrow will also be repealed.
Once Congress sets the Federal Budget each year, the dollar amount of the Budget will be divided among the States by a formula that is fair to all States. This five-part formula is explained in the HOW IT WORKS section of the website.
It will then be up to the People of each State, and state and local officials, to decide how their State will pay its mandatory share of the Budget. This is similar to Article VIII of the Articles of Confederation.

With the power to raise money through taxation, borrowing in the credit markets and through the Federal Reserve ended, Congress will have a powerful incentive to prepare yearly budgets that are well within the bounds of what the Constitution will allow. The States and People will be very skeptical about paying for anything beyond providing for the "common defence" stated in the Preamble to the Constitution. The Founding Fathers intended such non-defense expenditures be handled and financed at the state or local levels. GSA Las Vegas outings and more should become closed history, never to return. Think about this fully, and you will correctly conclude that the CST is the only way to end the Federal overspending problem.

Please read the website. Give it some time to "mentally digest." If you like the CST, spread the word about it among the people you know. Questions can be submitted through the website or to me at the following contact information.

Thank you for your time and consideration.

Cy Mallinson 1311 Manor St. Kalamazoo, MI 49006-2143 269-342-0410 cmallinson @aol.com

CBO Estimates Obama's 2013 Budget Plan Would Hurt Economic Growth

Posted by J.R. on April 22, 2012 at 12:41am

CBO Estimates Obama's 2013 Budget Plan Would Hurt Economic Growth The nonpartisan Congressional Budget Office said Friday that President Obama’s 2013 budget will hurt the economy in the long term, arguing the larger deficits it would produce would reduce the amount of capital available to businesses.
After five years, the CBO says, the Obama proposals would reduce economic output by between 0.5 percent and 2.2 percent.
Larger deficits caused by the budget would cause the government to issue more bonds, sucking up private capital to finance its debts and thereby reducing the funds businesses could use to expand and hire, the CBO said. An increased tax on capital gains included in the president's plan would also tend to reduce private capital, it says.
The 2013 Obama budget proposes continuing the Bush tax rates for the middle class and enacting elements of a short-term Jobs Act stimulus. In the near term, actions such as these could increase growth by as much as 1.4 percent, CBO says.
The new CBO report complements a March estimate that Obama’s budget would add $3.5 trillion to deficits over 10 years compared to current law. That report did not try to capture any effects on economic growth.
The White House, using a different baseline than CBO, has claimed its budget would reduce deficits by $3.2 trillion over 10 years.
Taking economic effects into account, Obama’s budget could add as much as $3.9 trillion in deficits by 2022, CBO estimates. Slower economic growth tends to increase deficits by reducing tax collection and increasing spending on items like unemployment insurance.

Rajjpuut's Folly: A Suggested Herman Cain "Contract with America’s Voters"

Posted by Bob VanDeHey on October 13, 2011 at 3:47pm

For the last three months the two strongest and most consistent Republican candidate debate performances have come from businessman Herman Cain and former House Speaker Newt Gingrich. Rajjpuut’s preferred G.O.P. ticket is Cain-Gingrich. The current surge in Cain’s popularity shows that Republican voters as a whole are starting to honor TEA Party principles and repudiate the G.O.P.’s former ugly movement toward bigger, more irresponsible government during the G.W. Bush years. Rajjpuut suggests that Herman Cain needs to outline a "platform" and begin to accentuate his ties to the TEA Party’s Contract from America and to educate American voters upon that document’s principles. To that end . . . .

Rajjpuut’s Suggested Herman Cain

“Contract with America’s Voters”

Preamble:

Government is growing too fast, too much, too expensively, too expansively, and too destructively . . . crowding out cherished economic freedoms. This great country will never fulfill its long-run potential to prosper, create jobs and lead the world unless constitutional limits to government are restored. America’s greatness, exceptionalism and historical allure to the oppressed people of Planet Earth is tied to three founding documents the Magna Carta, the Declaration of Independence, and the United States Constitution (and most importantly: within the American Constitution the first ten Amendments known as the Bill of Rights). A Herman Cain presidency will return to these documents as the inspiration and playbook for America’s return to greatness and exceptionalism emphasizing Individual Liberty, Limited Government and Economic Freedom.

While critics of recent Constitutionalist movements (such as the TEA Party) have called these fine Americans “racists,” “haters,” “Nazis,” “devils” and other slurs without any actual evidence to back up their words, these well-behaved and thoughtful citizens have created a 10-point Contract from America which a Herman Cain presidency would be based upon. The first ten of the eleven main principles “PLANKS” of my presidency are based upon the TEA Party Contract from America.

#1 Protect the Constitution:

by requiring each bill to identify the specific provision of the Constitution that gives Congress the power to do what the bill does.

#2 Reject Cap and Trade and all overstepping by the EPA destroying businesses, jobs and incentives:

by stopping all costly new regulations and repealing old regulations that have increased unemployment, raised consumer prices, and weakened the nation’s global competitiveness with virtually no impact on global temperatures; and institute a sensible American energy independence policy.

#3 Pass a Balanced Budget and Citizen Tax Freedom

Amendment:

requiring a balanced budget and a pay-down of the debt and funding of heretofore UNFUNDED liabilities. To preserve balanced budgets for posterity require a 2/3 majority in both the U.S. House of Representatives and the U.S. Senate to pass tax increases or to run a temporary deficit; but only a simple majority in both chambers to reduce or eliminate taxes; or to eliminate a temporary deficit or to pay-down or eliminate national debt.

#4 Enact Fundamental Tax Reform:

by scrapping 100% of the present tax code and replacing it with a 0-0-9-9-9 tax plan. The 0-0-9-9-9 tax plan means that after the first $20,000 of personal income which is NOT taxed (0%); and all inheritance which is also not taxed (0%). . . institute a 9% personal income tax; a 9% corporate tax; and a 9% capital gains tax. To preserve tax freedom for posterity require a 2/3 majority in both the U.S. House of Representatives and the U.S. Senate to pass tax increases but only a simple majority in both chambers to reduce or eliminate taxes.

#5 Restore Fiscal Responsibility & Constitutionally-

Limited Government in Washington, D.C.:

by creating a Blue Ribbon taskforce that engages in a complete audit of federal agencies and programs, assessing their Constitutionality, and identifying FRAUD, MALFEASANCE, duplication, waste, ineffectiveness, and agencies and programs better left for the states or local authorities, or ripe for wholesale reform or elimination due to our efforts to restore limited government consistent with the US Constitution’s meaning.

#6 End Runaway Government Spending and eliminate

federal government-caused-inflation:

by pegging the price of Gold in America at $4,000 per ounce and imposing a statutory cap limiting the annual growth in total federal spending to the sum of 1/2 the rate of inflation until the budget is balanced all national debt is eliminated and all now UNFUNDED liabilities are paid for. Once our fiscal house is in complete order, federal spending can be raised by the yearly percent of population growth added to 1/2 the rate of inflation. (Note: by limiting federal budget increases to ½ the rate of inflation, lawmakers will mainly be hurting their ability to spend and not the populace by inflating the currency.)

#7 Defund, Repeal, & Replace Government-run Health

Care and the Dodd-Frank Financial Act:

Repeal the Dodd-Frank Financial Act. Defund, repeal and replace the recently passed government-run health care with a system that actually makes health care and insurance more affordable by enacting national tort reform and enabling a competitive, open, and transparent free-market health care and health insurance system that isn’t restricted by state boundaries.

#8 Pass an ‘All-of-the-Above” Energy Policy:

by authorizing exploration of proven energy reserves to reduce our dependence on foreign energy sources from unstable countries and reduce regulatory barriers to all other forms of energy creation, lowering prices and creating competition and jobs. Add a 1% tax upon all profits from energy resources which will be set aside for funding green-energy innovation. All green energy innovation grants will be under control of a blue-ribbon committee of responsible scientists and not bureaucrats. Remove the most burdensome of taxes upon; and 100% of subsidies to all energy businesses.

#9 Stop the Pork:

by asking my party to eliminate all earmarks until our nation’s fiscal house is 100% in order; by vetoing ANY bill which contains earmarks placed before me; and then passing a bill into law requiring a ¾ majority in both the Senate and House to pass any bill with earmarks for the future.

#10 Minimize Taxes:

because a revolt against uncontrolled government, uncontrolled spending and irresponsible attacks upon economic freedom has taken place since 1989. No intelligent person NOW trusts Washington and its bureaucracy to be good and responsible stewards of our money who put we citizens, voters and taxpayers first . . . a strong emphasis on constitutional limits and restraints on legislation, spending, taxing government interference and government control of the economy must replace business as usual in the Nation’s Capitol. We must restore and advance the Constitutional-restraint of government championed by Ronald Reagan who ended a debilitating recession and created 20 million jobs.

#11 Re-think and Refine our Foreign Policy:

because America has lost power and prestige around the world in recent times; because Defense and Foreign Aid are such drags upon our nation’s economy; because their appears to be no integrity to recent American actions around the globe . . . we must identify our enemies; identify our friends and allies; strengthen the economic and other bonds with friends; eliminate all foreign aid that is NOT in our national interest and create a new and coherent 21^st Century military and foreign policy.

Ya’ll live long, strong and ornery,

Rajjpuut

Rajjpuut's Folly: Is Obama-led American Economy Already at the Cliff's Edge?

Posted by Bob VanDeHey on April 25, 2011 at 11:30am

http://www.marketwatch.com/Story/story/print?guid=25965F12-6D1A-11E0-8CAB-00212804637C

Only government can take a perfectly useful commodity such as paper, print a few numbers on it and make it worthless . . .

American Economy Facing

Death by 10,000 Cuts

It's too early to calculate if the recent International Monetary Fund's projection (see link above) that the "Age of America" will end in five years when the Chinese Economy surpasses America's is accurate. However, you don’t have to be a gypsy fortune-teller to read-between-the-lines well enough to see that the American economy is dying the death by ten thousand cuts. Of course, many (if not most) of our fearless leaders in Congress and the White House are proclaiming an ongoing recovery. We’re not talking the Mississippi here, but de-Nile, deep, deep denial. Until we’re willing to face up to the truth, no solutions are possible. The progressive leadership in this country over the last forty-eight years (only Ronald Reagan is exempt among presidents and both chambers of every single congress has been guilty with the verdict still out on our present House of Representatives) have destroyed the greatest economic machinery the world has ever known and substantially weakened and corrupted the greatest and freest society ever known.

Except for producing reality TV series and useless TV networks, we almost don’t create or build anything any more . . . we certainly don’t create jobs. The American Dollar whose original symbol was a capital “U” with a capital “S” atop it has been led to a slow death. Thanks to our leaders we are almost literally drowning in debt: $14.3 TRillion officially; plus $115 TRillion in UNfunded liabilities (Social Security; Medicare; the federal side of Medicaid) or a total of almost $130 TRillion we purposefully ignore discussing; plus, oh yes, that Welfare State that just got Obamacare added onto it . . . .

www.prisonplanet.com/24-signs-of-economic-decline-in-america.html

In a recent article the Prison Planet website told a sad story . . . when we’re through examining their cataloging of the situation . . . besides some parenthetical comments you’ll see immediately after each item, Rajjpuut has three shocking insights to add to the picture, Prison Planet said . . . .

The Economic Collapse: 24 signs of economic decline in America

#1 Standard & Poor’s just altered its outlook on U.S. government debt from “stable” to “negative” and warned the U.S. that it could very soon lose its AAA rating (the last time this happened was during the three months following the December 7, 1941 surprise attack on Pearl Harbor).

#2 China has announced that they are going to reduce their holdings of U.S. dollars (China, Brazil, Russia, and several other countries have openly called for elimination of the dollar as the world’s reserve currency and China, Russia, Brazil and India have been moving out of Greenbacks into gold and silver).

#3 Hedge fund manager Dennis Gartman says that “panic dollar selling is setting in” and that the U.S. dollar could be in for a huge decline (the dollar has lost 24% of its value this last decade).

#4 The biggest bond fund in the world, PIMCO, is now short-selling U.S. government bonds.

#5 This cruel economy is causing “ghost towns” and “ghost neighborhoods” to appear all across the United States. There are quite a few counties across the nation that now have home vacancy rates of over 50% (Las Vegas, Nevada has one of the highest home vacancy rates in the nation . . . it’s so bad there that there’s a mini-construction “boom” going on . . . what? why? because rather than clients moving into the ghost neighborhoods for a bargain price they prefer to get into whole new sub-divisions with other people nearby rather than a seedy area over-run by kangaroo rats).

#6 There are now about 7.25 million fewer jobs in America than when the recession began back in October, 2007.

#7 The average American family is having a really tough time right now. Only 45.4% of Americans had a job during 2010. The last time the employment level was that low was back in 1983.

#8 Only 66.8% of American men had a job last year. That was the lowest level that has ever been recorded in all of U.S. history.

#9 The average large company’s CEO made 343 times more money than the average American worker did last year.

#10 Gas prices reached five dollars per gallon at a gas station in Washington, DC on April 19th, 2011. Could we see $6 gas soon?

#11 Over the past 12 months the average price of gasoline in the United States has gone up by about 30%.

#12 Due to rising fuel prices, American Airlines lost a staggering $436 million during the first quarter of 2011.

#13 U.S. households are now receiving more income from the U.S. government than they are paying to the government in taxes.

#14 Approximately one out of every four dollars that the U.S. government borrows goes to pay the interest on the national debt.

#15 Total home mortgage debt in the United States is now about 5 times larger than it was just 20 years ago.

#16 Total credit card debt in the United States is now more than 8 times larger than it was just 30 years ago.

#17 Average household debt in the United States has now reached a level of 136% of average household income. In China, average household debt is only 17% of average household income (1/8 as high a percentage on a lot less earnings).

#18 The average American now spends approximately 23 percent of his or her income on just two items food and gasoline (forty years ago that number was about 7%).

#19 In a recent survey conducted by Deloitte Consulting, 74 percent of Americans said that they planned to slow down their spending in coming months due to rising prices.

#20 Over 59 percent of all Americans now receive money from the federal government in one form or another.

#21 According to the U.S. Bureau of Labor Statistics, the average length of UNemployment in the U.S. is now an all-time record 39 weeks.

#22 As the economy continues to collapse, frustration among young people will continue to grow and we will see more seemingly “random acts of violence”. One shocking example of this happened on a Metropolitan Atlanta Mass Transit Area (MARTA) vehicle recently. The following is how a local Atlanta newspaper described the attack . . . .

Roughly two dozen teens, chanting the name of a well-known Atlanta gang, brought mob rule to
MARTA early Sunday morning, overwhelming nervous passengers and assaulting two Delta flight attendants.

#23 Some Americans have become so desperate for cash that they are literally popping the gold teeth right out of their mouths and selling them to pawn shops.

#24 As the economy has declined, the American people have been gobbling up larger and larger amounts of antidepressants and other prescription drugs. In fact, the American people spent 60 billion dollars more on prescription drugs in 2010 than they did in 2005.

To understand the full picture, consider this: Barack Obama’s puppet-master, George Soros (the “man who broke the Bank of England” and owner of some 52 progressive-foundations that have been working to undermine the U.S. economy for the last nine years as well as funding Barack Obama’s campaigns) is openly calling for the Chinese Yuan to replace the Dollar as the world’s reserve currency. Soros, who has been called responsible for the destruction of at least six other currencies, is now heavily invested in the Dollar’s destruction. Every day that we refuse to emulate the British and adopt severe austerity measures, the closer Mr. Soros gets to adding another few hundred billion dollars worth of profit to his net worth. However, it’s not likely that Barack Obama will cut his own strings and act for the good of the American people against George Soros.

Real money, such as gold or silver, does not change in value over time although because of supply and demand considerations and new inventions, etc. it may be used to buy more or buy less of certain commodities. Paper money which is NOT backed by gold or silver (fiat money) always becomes worth less over time and eventually worthless. Right now Americans are shocked that the dollar has officially lost 24% of its value in a decade . . . but that’s only the official figure. The Federal Reserve Bankers under Fed Chief Ben Bernanke have not so much been “printing money” but merely creating it electronically. If the official figures took into account all Mr. Bernanke’s shenanigans and the world valued the Dollar accordingly then the 2011 dollar would be worth between 3-4 pennies from the 2001 DOLLAR. Leave it to government to take a perfectly useful commodity such as paper, print a few numbers on it and make it absolutely worthless . . . by the way, gold prices have risen 45% in the last eighteen months; silver has risen 58% in the last four months as people and nations are abandoning paper currencies like the Dollar, Euro and Yen.

The combined U.S. National Debt and UNfunded liabilities and Welfare responsibilities of the American government right now is equal to about three and one-half times the Gross Domestic Product ($57 TRillion) of the entire world . . . and yet the highly visible film-maker Michael Moore, all the unions, and the Progressives in congress from both parties claim there is “plenty of money” and refuse to cut spending and are debating when and how and how much to increase the debt ceiling right now. They’re counting on higher taxes upon “the rich” (those married couples earning a combined $250,000 or more who create all our small business jobs) to solve all our problems while continuing to create higher deficits, the one thing NOT on their agenda: spending cutbacks.

Ya’all live long, strong and ornery,

Rajjpuut

Rajjpuut's Folly: Your Survival During Dollar Disintegration is NOT Obama's Concern

Posted by Bob VanDeHey on February 6, 2011 at 2:00pm

Saving Your Butt as Monetary System Collapses

Hopefully, the politicians will regain their senses in the next couple or three months and the survival information in this little blog will never have to be used . . . call the odds on that happening 200/1 since the tax and spend Democrats still control the senate and Barack Obama still wields the veto pen in the Oval Office. The last time an American President showed courage and wisdom in the face of a severe monetary crisis was 1921 (Harding slashed government spending 48%; taxes 49%; and paid down the National Debt 30% in turning the depression left him by Woodrow Wilson into the "Invisible Depression" within fifteen months). Unfortunately,Barack Obama won't join with the Republicans to save your butt; indeed he's still suggesting mad policies (in the State of the Union speech) that guarantee the grand-daddy of all fiscal meltdowns. Either kiss your butt goodbye, or take matters into your own hands because your survival in the coming meltdown depends upon you.

Rajjpuut began advising readers in early 2004 of the dangers represented by the sub-prime lending crisis to our economy and to their wealth. You know how that turned out . . . . Since roughly April, 2009, he’s been warning of a complete fiscal meltdown in America associated with the U.S. Dollar’s collapse (when the greenback is no longer accepted as the World’s Reserve Currency) and hyper-inflation attacks our way of life . . . since Fed Chairman Ben Bernanke has been busy at the money printing presses and electronically creating dollars as well, the 2011 dollar is technically worth 3.4 pennies of a late 2008 greenback. Our National Debt stands at 95% of our GDP even though Ben Bernanke put the figure at 64% in a National Press Club speech three days ago (he did not include the $4.6 TRillion we've stolen from Social Security and Medicare "lockboxes" which moves the debt from $9.5 TRillion to $14.1 TRillion). Our UNfunded liabilities stand at $113 TRillion. We will soon be able to tax every citizen 100% on their earnings and not be able to fund the profligate Obama budget. The nations of the world individually and the leaders of the world's monetary foundations are in agreement the American Dollar as the world's reserve currency is no longer acceptable; the system stands on the verge of disintegration and you are innocently sitting on the couch watching "reality TV" and playing video games?

To fight against this growing present threat, even more than gold, Rajjpuut has been advising readers to consider buying so-called “junk silver.” Junk silver needs a new name because purchase of a $100-face value bag of American silver coins (pre-1965 dimes, quarters, half-dollars with 90% silver content) now costs -- depending on the price of silver on a given day -- between $1,850 and $1,950 dollars. Few people realize that as an investment, silver has outperformed gold in the 21^st Century. Yes, yes, gold has risen roughly 300% (quadrupled in value since the original 100% is added in) but silver has risen 521% over the same period or gone up to 621% of its original value.

One other little thing: people don’t realize is that silver is now more rare than gold. While virtually every ounce of gold that’s ever been mined is still with us today; approximately 96% of all the silver that’s ever been mined is believed lost forever. Silver has a huge present day demand and has long dominated the industrial markets: it’s still used in photography; and is the preferred metal for electronics, pollution control, tableware and utensils; chemical catalysis; medical use; and in some countries it’s still used in coins . . . but let’s get back to the junk silver we were talking about, when silver reaches $33 per ounce, each silver dime will be worth $2.00. If hyper- inflation hits silver will be in far greater demand than that, for the price of a single silver dime, it’s likely that you’ll be able to buy enough to feed a person three-squares as merchants desperate to trade their wares for something of intrinsic/real value look to silver as their own best investment. These same merchants might NOT accept $4,000 paper dollars for the same food under the same circumstances.

Does that sound far-fetched? At the end of the Weimar Republic’s savage hyper-inflation, German citizens in late 1923 insisted upon being paid three times daily and having splurge-breaks to run off and buy anything just so their money wouldn’t lose all its value before they could spend it. Eric Maria Remarque, famous author of All Quiet on the Western Front, displayed these facts quite graphically in his stark novel The Black Obelisk as 26 TRillion Deutsch Marks traded for one American dollar. Rajjpuut’s stamp collection contains Weimar Republic German stamps with printed prices cancelled out and new prices overprinted . . . in short, hyper-inflation is a mess you’d prefer not to deal with, but one it’s best to prepare for . . . .

However, while silver coins are a great idea, there is one truly great investment that trumps virtually everything else imaginable: farmland. Yes, real hold-in-your-hand coins are absolutely necessary, but the best investment of all over the last 40 years has been American farmland which easily outpaced bonds; stocks; gold and even silver. Farmland was about twelve times more lucrative than the Standard and Poors stock index; and more than four times better than gold during those 40 years.

While the land appreciates in value, it can also be rented out or farmed by you in case of the utter end of civilization, and NO, farmland did not fall in price during even one quarter during our recent meltdown. Investments in the stock market in 1970 (adjusted for inflation) returned only 16% and the stock market can’t save your family in a serious crisis. Just as physical silver is a great idea, owning a farmable plot of land has its great attractions as well. If that’s impossible, you can invest in private Argentine farmland for about $7 an acre; the well-respected Stansberry Report even suggests buying Argentine farm property management via NASDAQ whenever such stocks sell for below book value. To get the full (it's a long presentation) picture, visit:

http://www.stansberryresearch.com/pro/1011PSISBBVD/EPSIM218/PRo=267094&s=269843&u=49822167&l=215636&r=Milo

Ya’all live long, strong and ornery,

Rajjpuut

Rajjpuut's Folly: Bernanke, Jobs, Housing, Debt and the Whole Sordid Mess

Posted by Bob VanDeHey on February 4, 2011 at 5:00pm

We now have FEWER people working in AMERICA than we've at any time had SINCE 1981 during the early days of the Reagan administration. We also have more people working for the government than at any time in history outside of war.

Bernanke Sobers Up, Comes Clean, Sort of

Ben Bernanke had a National Press Club audience laughing while doling out some super-serious information yesterday. For example, he reminded them that the country’s projected deficit and debt level are actually not only unsustainable but impossible . . . because the nation’s creditors at some point in the future would wise up and refuse to continue financing our country’s spending.

ALERT: Before going further with the blog itself . . . the nation’s latest jobless numbers came out earlier today: 9.0% unemployment sounds like an improvement over the recent 9.4% . . . unfortunately, the fact is that virtually all of the “drop” in unemployment can be traced to unemployed persons who have stopped reporting in to the nation’s Workforce Centers and therefore “fell off” the statistical data base. True unemployment now stands at just a tad below 20% if all the unemployed; and forcible part-time workers are included . . . not to mention all the grossly under-employed who lost better jobs and are working at stop-gap situations. Only 36,000 jobs were created last month, almost 110,000 short of the projected 145,000. 1.4 million people gave up looking for jobs through official channels last month: 1.4 million! We now have FEWER JOBS in AMERICA than we've seen at any time SINCE 1981 during the early days of the Reagan administration. The situation is getting so hopeless that more than half of the unemployed are no longer using the official Workforce procedures . . . these fictitious unemployment numbers just prove that when it comes to statistics, garbage in = garbage out. Now let’s get back to Ben Bernanke . . . .

“By definition, the unsustainable trajectories of deficits and debt (outlined by the Congressional Budget Office, CBO) cannot actually happen because creditors would never be willing to lend to a government whose debt . . . is rising without limit.” Currently the National Debt is stated at about 60% of the economy or Gross Domestic Product (GDP) officially; but in reality the figure is much closer to 95% than 60%. More on this soon . . . Bernanke said that the 90% threshold is projected by 2020 and debt would be 150% of GDP by 2030. But Bernanke’s citing of $9.5 trillion in national debt was sinfully inaccurate because it omitted the $4.6 trillion owed by the government to trust funds for things such as Social Security and Medicare, which have paid out cash to the Treasury in exchange for promissory notes. The full national debt – when both forms of debt are included is roughly $14.6 trillion.

Mr. Bernanke also failed to acknowledge the 180-ton blue whale splashing about in the Lincoln Memorial Reflecting Pool, the fact that not including all our welfare programs and barring deliberately infecting all our nation’s elders simultaneous with ebola . . . the federal government is already obligated for roughly $113 TRillion in services via Social Security, Medicare and the federal side of Medicaid. He also was less than forthcoming about the fact that Obamacare is now shifting a huge burden in Medicaid from the Feds onto the unwilling states which will presumably bankrupt every single state by 2026 (2023 in some less optimistic projections). To emphasize the point he was semi-obscuring, Bernanke quoted economist Herbert Stein, “If something can’t go on forever, it will stop” to exceedingly nervous Press Club laughter.

The Fed chairman strongly admonished Congress to act soon to cut spending or increase revenues (taxes), or some mix of the two, because otherwise the U.S. economy will suffer a severe correction. “One way or the other, fiscal adjustments sufficient to stabilize the federal budget must occur at some point,” he said. Bernanke avoided predicting when the U.S. might experience a debt crisis similar to what Greece and other European countries have experienced. Bernanke suggested lawmakers should forget politics and not use the debt and debt ceiling as “bargaining chips” or resort to playing political “chicken.” He also seemingly assured Republicans that their understanding was correct, “Under current law, if the debt limit is not extended, for a time, the Treasury has various resources that it can use to make payments on our national debt,” he said, “but beyond a certain point, (our federal government) would not have those resources and the United States could conceivably — I think this is very remote, but it’s not something you want to play around with — the United States would be forced into a position of defaulting on its debt,” he said. “And the implications of that for our financial system, for our fiscal policy, for our economy would be catastrophic.”

The twin drivers of this unsustainable national path toward debt (and he did not mention, but also toward UNfunded liabilities), according to Bernanke is the double barrel impact of rising health care costs and exploding baby boomer retirements on entitlement programs such as Medicare, Medicaid and Social Security. “Our ability to control health care costs, while still providing high-quality care to those who need it, will be critical for bringing the federal budget onto a more sustainable path.” He tempered pessimism with a slightly optimistic look at the overall economy citing “increased evidence that a self-sustaining recovery in consumer and business spending may be taking hold,” but immediately slipped back into pessimism saying the economy “does look to be growing more quickly, but is still in a deep hole, is still very far from where we’d like it to be.”

Coupled with Bernanke’s speech the Senate Budget Committee heard from numerous “experts” about the most serious threats facing the hoped for economic recovery: the housing crisis; state, local and federal budget shortfalls; unrest in Egypt and its possible effects on shipping via the Suez Canal and on the price of oil; and the continuing European debt crisis. Home prices are expected to fall another 5% this year and 14-17 million Americans are currently “underwater” on their homes (owing more than their homes are worth now, not to mention after a further 5% drop in prices). Overall this amounts to an expected total average home price drop of 35% between 2007 and the end of this year possibly igniting another round of the vicious cycle of default, foreclosure and greater downward pressure on home prices.

The pressure is not all at the federal level either. Ray Scheppach, executive director of the National Governor’s Association said that the Obamacare mandated explosion in Medicaid enrollment (coupled with other demands on the states shifted from the federal government) was the “700 pound gorilla” in the room as it increased costs to the states by 190 million by 2019. If the recession (which has been officially “ended” for over nineteen months now . . . you and I know better, any time home prices are down over 1/3 of their value in four years: that’s a recession!) continues, Rajjpuut concludes that the Obamacare-created meltdown of the states will happen sooner (2023) rather than later (2026). As far as bailouts, several of the witnesses at the senate hearing implied that there was no appetite for state bailouts. Going back to Bernanke, he failed to mention that the Federal Reserve Banks under his command had been busy printing paper money and creating electronic money for the better part of twenty-seven months and there was, believe it or not, some obscure chance that the nation’s major creditors (such as China, Russia, India, Brazil, Japan and others) might not only notice but also object to his willful policy of inflation. Since technically the math says that the current dollar is worth 3.4 pennies worth of the late 2008 dollar . . . this could also be a problem, eh?

In short, Mr. Bernanke seems to be sobering up, but he’s still not admitting his drunken money-creation, so overall the prognosis for the patient is very, very, bad.

Ya’all live long, strong and ornery,

Rajjpuut

PS remember this: We now have FEWER people working in AMERICA than we've known at any time SINCE 1981 during the early days of the Reagan administration. We also have more people working for the government than at any time in history outside of war. At a projected cost of 2 - 3.5 real jobs lost in the real economy for every government job created, is it any wonder?

Here's a chart of the eleven recessions the country's suffered through since World War II. Notice the "V" shape typical of recession recovery is not present now thanks to government interference . . . .

Rajjpuut's Folly: It's the TEA Party vs. Obama's Marxism

Posted by Bob VanDeHey on January 31, 2011 at 2:30am

TEA Party Continues Reagan Tradition

Time to Institute His Economic Bill of Rights

Just as Hall of Fame Denver quarterback John Elway became famous for a 98-yard drive through a snowstorm in the waning moments of a playoff game that won the game for his Broncos and came to be known as “The Drive,” so too in late 1964, Ronald Reagan gave a speech supporting Barry Goldwater’s presidential Bid. Goldwater’s famous book was called “The Conscience of a Conservative,” Reagan’s famous speech came to be known simply as “The Speech.”

During “The Speech” Reagan told the story of a Cuban refugee who had escaped Fidel Castro and that island’s communist tyranny. The refugee later became an American businessman and much later met two of Reagan's friends. Reagan described it this way in “The Speech” and considered even more powerful than Goldwater’s entire book.

“In the midst of his story my one friend turned to the other and said `we don't know how lucky we are' and the Cuban stopped and said `how lucky you are? . . . I had some place to escape to,' and in that sentence he told us the entire story,” Reagan continued, “If we lose freedom here there is no place to escape to. This is the last stand on earth. And this idea that government is beholden to the people that it has no source of power except the sovereign people is still the newest and most unique idea in all the long history of man's relationship to man.”

Six months ago Bill Wilson, President of Americans for Limited Government, said,

“As the federal government continues to expand beyond its constitutional boundaries here in the early part of the 21st century, Reagan's timeless warning against the grand designs of centralized planners deserves renewed attention. In his speech, the future president also suggested that a forceful response was needed to reclaim the principles of the founding period otherwise ‘history will record with the greatest astonishment that those who had the most to lose did the least to prevent its happening.’”

The TEA (Taxed Enough Already; or Taken Enough Abuse) Party movement coming one generation after Reagan’s first presidential election victory honors Reagan’s legacy and the legacy of our Founding Fathers. It’s no coincidence that TEA Party activism rose up shortly after our newest President passed his $787 BIllion stimulus program. Barack Obama’s progressivism (Marxism, actually) and the entire Obama agenda, seemingly all designed to rush the country down the path toward the abyss while spitting on the Constitution and all the principles that made this country great. The same principles that Reagan harkened to every day are the principles Barack Obama denigrates into oblivion.

In response to Obama’s nauseating socialism, Reagan nostalgia and Glenn Beck’s eye-opening revelations have created a whole new generation of Americans that Wilson said in the blog quoted above

“. . . are willing to take up Reagan's challenge and restore constitutional checks on federal power. The current administration's on-going efforts to “Europeanize” the American economy with new entitlement programs and coercive mandates has helped to focus public attention back onto the ideals of the founding period. Best seller lists are replete with references to the key figures responsible for the American Revolution.

“. . . on July 4, 1987, President Reagan delivered a radio address that discussed a series of proposed constitutional amendments aimed against deficit spending that would be folded into an “Economic Bill of Rights.” Reagan had discussed his plan at great length the day before during a ceremony held at the Jefferson Memorial. Although his comments were overlooked in the news media at that time, they are remarkably detailed and highly relevant to the fiscal challenges of 2010.

“It's about time we constitutionally mandate the Federal Government to do what every American family must do, and that is balance its budget,” Reagan said in his address. “That doesn't mean taking more out of your pocket by raising taxes. In fact, our Economic Bill of Rights suggests a balanced budget amendment should contain a provision requiring more than a mere majority vote in Congress -- which is all it takes now -- to raise your taxes.”

Voters, whether Republican, Independents, Democrats or Libertarians like Rajjpuut showed up en masse on Election Day, 2010, to express their outrage with tax and spend politicians . . . especially those with the gall to refuse to read and understand the expensive bills and entitlements they were passing. Rajjpuut’s suggests that the TEA Party and the Republican Party take this opportunity to revisit America’s Economic Bill of Rights which Ronald Reagan created out of his deep love for this country:

http://www.presidency.ucsb.edu/ws/index.php?pid=34513

America's Economic Bill of Rights

July 3, 1987

Preamble

The Founding Fathers of our country knew that without economic freedom there can be no political freedom. Their rallying cry of "No taxation without representation" reflects that fundamental precept. They knew that the right to earn your own keep and keep what you earn is central to America's understanding of what it means to be free. This country was built by people seeking to support themselves and their families by their own labor, people who treasured the right to work and dispose of their earnings as they saw fit, people who were willing to take economic risks.

Over the past 40 (now 64) years, however, the growth of government has left our citizens with less control over their economic lives. What America needs now is an Economic Bill of Rights that guarantees four fundamental freedoms:

• The freedom to work.

• The freedom to enjoy the fruits of one's labor.

• The freedom to own and control one's property.

• The freedom to participate in a free market.

To secure these freedoms, I propose the following initiatives:

The Freedom to Work: You have the right to pursue your livelihood in your own way, free from excessive government regulation and subsidized government competition.

1. To reduce subsidized government competition with private citizens, I will establish a bipartisan Presidential Commission on Privatization to identify government programs and activities that can be accomplished more effectively in the private sector. I will also instruct the executive branch to find additional ways for contracting outside the government to perform those tasks that belong in the private sector. As to those activities that should properly remain in the government, I have asked the President's Council on Management Improvement to accelerate its productivity improvement program by one year and to adopt private sector practices where they would promote efficiency.

2. To reduce the burden of government regulation, I have reconstituted the Task Force on Regulatory Relief, chaired by the Vice President, to root out unnecessary restrictions on the individual's pursuit of a livelihood.

The Freedom to Enjoy the Fruits of Your Labor: You have the right to keep what you earn, free from excessive government taxing, spending, and borrowing.

3. To protect you from over-borrowing by the government, I will ask the Congress to adopt a balanced budget amendment, a line item veto, and legislative changes that will restore integrity to the congressional budget process.

4. To protect you from over-taxing by the Government, I will propose as part of the balanced budget amendment submitted to Congress, a requirement for a supermajority vote by Congress before your taxes can be raised. This reform will help make permanent our recent progress in lowering your tax rates, broadening the tax base to ensure fairness, and indexing rates so that inflation cannot push taxes back up.

5. To protect you from excess spending by the Federal Government, I will propose Truth in Federal Spending

Legislation that will:

A. Require that every new program established by legislation increasing Federal spending be deficit-neutral by including equal amounts of offsets.

B. Require that every piece of legislation mandating an increase in private sector costs or imposing new regulations include a financial impact statement detailing:

—The impact on private costs;

—The impact on prices for the consumer;

—The effect on employment;

—The impact on the ability of U.S. industries to compete internationally.

C. Require that every piece of legislation forcing increased expenditures by State and local governments include an assessment of the spending impact, the likely source of funding, and the ability of these governments to fulfill the mandates of the legislation.

The Freedom to Own and Control Your Property: You have the right to keep and use your property, free from government control through coercive or confiscatory regulation.

6. To protect your right to own and use your property, my administration will pursue our successful efforts in the courts to restore your constitutional rights when the government at any level attempts to take your property through regulation or other means.

7. To protect intellectual property and to encourage creativity, I will urge that the Congress act on my proposals to provide adequate domestic and international protection to Americans who create new ideas and invent new goods and services.

Freedom to Participate in a Free Market: You have the right to contract freely for goods and services and to achieve your full potential without government limits on opportunity, economic independence, and growth.

8. To reform the present welfare system that promotes dependency and destroys families and communities, I have proposed a welfare reform initiative that will lift the least fortunate among us up from dependency by creating incentives for recipients to become independent of welfare as full participants in the American economy.

9. To prepare our youth for participation in today's economy, I will ask the Congress and the States to enact proposals that will protect the rights of parents to guide their children and select from a broad array of educational options that emphasize excellence, character, and values. I will also promote programs to assist problem students to complete their education and to encourage dropouts to return to school.

10. To arm American workers and businessmen for full participation in an increasingly complex world economy, I will press for the Congress to act on my trade, employment, and productivity proposals to:

—Increase job retraining and other initiatives which improve opportunity for the American worker.

—Encourage science and technology by increasing support for basic research and development.

—Enact antitrust, product liability, foreign corrupt practices, and other regulatory reforms that place American

enterprise on a level playing field with foreign competitors.

—Improve America's ability to secure free and fair trade without resorting to protectionist measures that destroy jobs and

harm the consumer.

Makes a lot of sense doesn’t it? Truth in spending by the Obama administration alone would be a wonderful thing but all of our presidents and far more importantly all of our congresses have been guilty of excess taxation and super-excess spending. This is where our present $14.1 TRillion National Debt and current $112 TRillion in Unfunded liabilities (not including welfare programs but only Social Security, Medicare and the federal side of Medicaid) come from . . . Truth in Spending; and requiring a “¾ super-majority” before any tax can be made law; or any present tax can be raised seems like simple, solid common sense. Rajjpuut would also insist that any tax can be cancelled and any old tax decreased by a simple majority. Reagan’s words bear repeating:

“We the people deserve to know that our jobs, paychecks, homes, and pensions are safe from the taxers and regulators of big government. Jefferson warned us of this threat 200 years ago,” he said. “Our Economic Bill of Rights is designed to protect the economic freedom of all Americans and to keep our country growing and prospering.” AMEN!

Ya’all live long, strong and ornery,

Rajjpuut

Rajjpuut's Folly: "Absolute Wretchedness Index" Gallops under Obama’s Whip

Posted by Bob VanDeHey on January 29, 2011 at 2:30am

State of Union Speech Shows Obama

Seeking Utter Dominance of AWI

In the good old days, the so-called “Misery Index” (MI) was achieved by adding the unemployment rate to the inflation rate. Notable, for example, was President Jimmy Carter inheriting Gerald Ford’s 13.45 misery index and then handing off a staggering 20.76 misery index to Reagan. The term “stagflation” was invented to describe the particular type of mess that Carter had generated with his big government policies. Reagan in turn handed off a relatively low 9.57 misery index to his former Vice President G.H.W. Bush. By the way, the only reason Carter got off so well is that the Democrats were keeping the stats and didn’t admit that inflation was 19% when he left office.

Rajjpuut would like to submit for contemplation, however, the far more sensitive and indicative AWI or “Absolute Wretchedness Index” created by adding the weekly interest on the REAL NATIONAL DEBT (RND) to the Misery Index. Currently the nation’s REAL NATIONAL DEBT based upon a National Debt of $14.1 TRillion and UNfunded liabilities (just in Social Security, Medicare and the federal side of Medicaid) amounting to $114.6 TRillion equals a grand total of . . . (Drum-roll, Maestro please . . . ) $128.7 TRillion. Welfare costs are another huge UNfunded outlay which the nation is obligated to cover, but the math gets too complicated so let’s stick with a current RND of $128.7 TRillion. That means the weekly interest on a Real National Debt would amount to $ 73 Billion or about $250 per week per American man, woman or child . . . not the debt itself, just the interest we pay on it . . . so with 9.5% unemployment and .4% inflation and $73 Billion weekly RND interest rates Mr. Obama’s current Absolute Wretchedness Index stands at 82.9 easily the worst in history. His predecessor George W. Bush’s highest AWI reading was 72.6. The closest thing we see to Obama’s 82.9 AWI is Carter’s at roughly 76.6.

For those who decry any measurement system which disparages the noble contributions of that stalwart statesman Barack Hussein Obama, perhaps a little deeper study is required. While we appreciate that it’s just not cool to talk about esoteric subjects like having revenues meet obligations, according to information found in a book recently written by a former Comptroller General of the United States (Comeback America: Turning the Country Around and Restoring Fiscal Responsibility by David M. Walker) at the time he wrote his book the National Debt was about 5.5 times our income (the revenues of the nation). So considering our UNfunded liabilities as well as the debt, our obligations are now more than fifty times our revenues. We have thus severely mortgaged the country’s future and our children’s, grandchildren’s and great grandchildren’s future all the while facing a markedly different world in which America no longer has a virtual monopoly on desired goods and services and technologies but every year faces more and more serious competition in the global marketplace. Current taxes are one thing, but if we don’t start reducing our debt and the interest on the debt, then deferred taxes will destroy the nation. Let’s be clear on this: future taxes could triple and we’d still have trouble paying off both the interest on the National Debt and our future now UNfunded liabilities. That is, unless we do something NOW, everyone in the future would be taxed 100% of earnings and we still could not pay off either debt interest or obligations . . . and, of course we would have zero dollars for Defense or any other budget item . . . and still would not be dealing with the debt itself (again, just the interest).

How far in the future are we talking about? Within 12 or 13 years the interest on the National Debt will be the single largest item in the nation’s budget unless current trends change dramatically. And you get absolutely nothing in return for it, all this interest we pay . . . hence we’ve named this measure of problematical agony: the Absolute Wretchedness Index or AWI. 50% of this money is owed to foreign governments with China being #1 and Japan #2 in holding our debt; a bloc of oil producing nations combined hold’s the #3 amount. This is a crucial factor. Why did we back Freddie Mac and Fannie Mae with $5 TRillion? Because foreign debtors demanded it, since they held so much of these U.S. debt instruments.

The problem has two components, but despite all our current “pain,” only one of them matters. In the short term due to the economy, our two wars, and unemployment things are going to be painful . . . but this is a small drop in a huge ocean. The main component is the long-term structural imbalance. The budget and the deficits and the debt and the interest payments on the debt which are NOT sustainable. Once the economy recovers we get out of the wars and finally see 5% unemployment again . . . things will be even worse because we’ll have continued on several more years increasing the debt; the interest on that new higher debt; and all our UNfunded liabilities as well. Huge unending deficits, year after year, as far as the eye can see will still loom ahead of us. It is this structural imbalance that threatens to destroy the country . . . hence our headline “State of Union Speech Shows Obama Seeking Utter Dominance of AWI.”

Mr. Obama has, in real terms not in CBO configurations, increased the federal budget 41% if Obamacare and his other initivatives are considered. Now he talks about freezing discretionary federal spending at this super-elevated level for three years. What utter nonsense that pretense of his amounts to. We must begin to slash spending immediately towards 2006 or even 2004 levels. If we don’t we will lose the confidence of foreign lenders and find ourselves floating down the proverbial open sewer lacking a paddle or other means of locomotion other than our own hands as the dollar drops precipitously, interest rates and inflation soar, and our mild recession becomes a real depression and we see truly scary unemployment. Walker in his book called Washington “a lagging indicator” meaning that the politicians in their ivory towers and the political class who adore them aren’t getting the picture nearly as rapidly or as clearly as the people now do.

It is the people, the voters, who are demanding something be done about these problems even if the solution is arduous and unpopular among politicians and their allies with a vested interest in the current unstainable structure. The current Obama administration and the Democratic majorities they had in Congress have called the TEA Party movement “astroturf” rather than a true grassroots movement; accused them of being merely a more rightwing version of the Republican Party; and shown them no respect at all. Many of the current Republicans, such as John McCain’s daughter, lightweight pundit and columnist for The Daily Beast Meghan McCain, are proving just as blind about the TEA (Taxed Enough Already or Taken Enough Abuse?) Party as the Democrats. Ms. McCain objected to the TEA Party’s Michelle Bachmann commenting on Obama’s State of the Union address in addition to the Republican response so ably handled by Rep. Paul Ryan, saying, Bachmann was “at best a poor man’s Sarah Palin.”

Ms. McCain, whose only accomplishment in life is being the daughter of a famous man, ought to show a little respect when she’s talking about her elders and about a woman of true accomplishment. As Walker’s book points out, the people are aroused now and Ms. Bachmann, Sen. Paul and Sen. DeMint recognize it even if she can’t.

Let’s give you a real blast from the past when Time Magazine which loved Jimmy Carter finally had to admit things were none too rosy in their March 24, 1980 edition . . . .

"As Jimmy Carter stepped before the television cameras in the East Room of the White House last Friday, his task was not just to proclaim another new anti-inflation program but to calm a national alarm that had begun to border on panic. Inflation and interest rates, both topping 18%, are so far beyond anything that Americans have experienced in peacetime—and so far beyond anything that U.S. financial markets are set up to handle—as to inspire a contagion of fear. Usually confident businessmen and bankers have begun talking of Latin American-style hyperinflation, financial collapse, major bankruptcies, a drastic drop in the American standard of living."

We’ve heard plenty of talk about Obama’s and Bernanke sooner or later handing us a hyper-inflation and moving America toward Banana Republic Status so it appears history if it’s not repeating itself is at least humming the same rhyming song. Knowing that lesson in absolutely wretched history, let us pray not repeat it. Instead let us be pro-active in the Reagan sense and severely constraining the parasitic government, let us unleash the free market by cutting debt**; cutting spending; cutting taxes; cutting regulation; and ultimately under-cutting unemployment.

Ya’all live long, strong and ornery,

Rajjpuut

** actually Reagan’s negative legacy is the mountain of debt he handed us because dominated by Democratic congresses the welfare state continued to expand even during his eight years.

Rajjpuut's Folly: MSR Data Shows Cretin Behind the Curtain for Certain . . . Obama

Posted by Bob VanDeHey on July 27, 2010 at 5:49pm

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:

http://mytaxburden.org/

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,

Rajjpuut

** 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.

Rajjpuut's Folly: Gallup Majority Now AGAINST Obama Re-election, Rasmussen Numbers Worsen

Posted by Bob VanDeHey on June 19, 2010 at 5:45pm

After a week in which the White House achieved a $20 Billion Gulf reparations fund and in which Obama blamed Republicans for the joblessness in America, the pollsters at Gallup show a firm majority of Americans right now oppose the 2012 re-election of Barack Obama. 51% of Americans think Mr. Obama should NOT be re-elected while only 46% say he should. Among Democrats 77% want to re-elect while 87% of Republicans oppose. Independents show 53% in opposition to re-election and 43% in favor. Today’s Rasmussen polls showed that among “probable voters” 45% strongly DISapprove of Mr. Obama’s job performance while only 25% strongly approve giving the president a -20 overall Presidential Index rating (Mr. Obama began with a +30 Presidential Index rating in January, 2009).

Overall in the Rasmussen poll, 42% of likely voters at least somewhat approve of Mr. Obama’s efforts and 57% at least somewhat DISapprove. The recent oval office speech by Obama about the Gulf oil debacle helped him slightly with Democrats. President Obama’s numbers have typically bounced following a national television event usually “up a little” (on only one occasion before they dropped slightly). 48% of Democrats now Strongly Approve. That’s up two points since the speech. 77% of Republicans Strongly DISapprove, also up two points since the speech. Among those NOT affiliated with either major party, 49% now Strongly DISapprove. That’s up five points since Tuesday’s speech. Here are some of the issues preying upon voters’ minds:

Most are pleased that $20 Billion has been set aside for Gulf damage claims but a slim majority are worried about a federal government takeover of the claims process; and to a lesser extent of the oil industry. The six-month moratorium on all offshore drilling is heavily criticized. So much involvement in the past nineteen months by the federal government taking over the car industry, banks and insurance companies, Freddie Mac and Fannie Mae, the health care industry, the student loan industry, etc. has three-fifths of the nation up in arms. Given the administration’s open revelation that the cap and trade legislation would “bankrupt the coal industry” and “necessarily skyrocket the price of electricity;” and the realization that major tax increases are coming on January 1, 2011 when the Bush era tax breaks are rescinded; and the huge tax increases tied to Obamacare which 62% of voters want repealed . . . voters are outraged by taxes and spending and debt and apparent big government incompetence (MMS was about to give BP a safety award when the explosion occurred and signing off on several safety$$ issues; and the lack of competent response to cleaning up the mess).

Raising taxes, dramatically raising spending and deficits and national debt, and endless government takeovers of the private sector are very unpopular. Virtually no voters believe that the almost $1 TRillion stimulus money spent has created or saved any jobs; most disagree that the White House was “engaged from Day One” of the Gulf disaster.

Recent revelations that federal government employees receive on average DOUBLE what their private sector counterparts earn ($120,000 when both wages and benefits are considered vs. $62,000) has also angered some. The only sector of the economy that’s grown under Barack Obama has been government jobs.

In Rajjpuut’s none-too humble opinion. There are only two hopes for Mr. Obama and his out-of-touch progressives: A) somehow achieving citizenship for 20 million illegal aliens and getting 80% of their votes, which is becoming more unlikely by the day, or . . . B) dictatorial takeover, so guess which one Mr. Obama will attempt to pull off in order to "fundamentally transform America?"

Ya’ll live long, strong and ornery,**

Rajjpuut

$$ The 1990 and 1994 safety requirements were both ignored. In particular ten (10) firebooms were required at the site and NONE were there.

** in answer to questions recently raised about Rajjpuut’s “sign-off” . . . saying that “long” life was totally understandable; “strong” life was a bit unique; but “ornery” was downright weird . . . . Look at it this way: it’s a hope for a re-balancing and a return to American virtues. Rajjpuut honestly believes that the big shift to the ultra-left by the media which has refused to cover stories contrary to that viewpoint for almost forty years now was begun first by the “hippie” movement and the environmental movement being commandeered by people who thought that living in communes (root word of “communism”) was a good thing. Rajjpuut earnestly hopes that his readers will indeed live long; and stay strong in body, mind and spirit and vote along those lines as well; and show an ornery, feisty streak to help win the country back for the traditional constitutional, fiscal and libertarian^^ values including respectful discourse in the public arena.

^^ Libertarian values are constitutionalism; strong national defense including of our borders; fiscal-conservatism; and a largely live-and-let-live social outlook (for example, protect gays and all Americans from violence and injustice; let the gays have their unions legitimized with all the rights accorded married couples EXCEPT adoption and palimony). Most important to Libertarians is the 10^th Amendment which allows Americans to “vote with their feet” and move from states with onerous tax burdens and ridiculous spending legislatures to states more in line with the original U.S. Constitution such as Texas (which still has a part-time legislature) rather than having all states become homogenized “departments” of a runaway federal government.

Rajjpuut's Folly: CBO Analysis: by 2020, Obama Budget Will Bankrupt Nation

Posted by Bob VanDeHey on March 30, 2010 at 9:02am

National Debt Will Grow to 90% of Gross Domestic Project by 2020

You can fool some of the people all of the time, all of the people some of the time and the Congressional Budget Office too much of the time. However, just as it’s not nice to fool Mama Nature, sooner or later the CBO usually does the job they’re paid to do and the fooling around stops. After showing the testicles of an emasculated amoeba and failing to stand up to the Obamacare budget projections last week, this week the CBO finally stopped squeaking liking mice and stood up like men and after projecting Obama’s budgets out into the future said:

http://www.cbo.gov/ftpdocs/112xx/doc11231/frontmatter.shtml

The CBO's preliminary analysis indicates the following:

If the President’s proposals were enacted, the federal government would record deficits of $1.5 trillion in 2010 and $1.3 trillion in 2011. Those deficits would amount to 10.3 percent and 8.9 percent of gross domestic product (GDP), respectively. By comparison, the deficit in 2009 totaled 9.9 percent of GDP.

Measured relative to the size of the economy, the deficit under the President’s proposals would fall to about 4 percent of GDP by 2014 but would rise steadily thereafter. Compared with CBO’s baseline projections, deficits under the proposals would be about 2 percentage points of GDP higher in fiscal years 2011 and 2012, 1.3 percentage points greater in 2013, and above baseline levels by growing amounts thereafter. By 2020, the deficit would reach 5.6 percent of GDP, compared with 3.0 percent under CBO’s baseline projections.

Under the President’s budget, debt held by the public would grow from $7.5 trillion (53 percent of GDP) at the end of 2009 to $20.3 trillion (90 percent of GDP) at the end of 2020. As a result, net interest would more than quadruple between 2010 and 2020 in nominal dollars (without an adjustment for inflation); it would expand from 1.4 percent of GDP in 2010 to 4.1 percent in 2020.

The yearly interest on the national debt as a budget entity by 2020 would prohibit virtually any semblance of normalcy. And that's NOT diminishing or paying down the debt, just paying interest upon it. As all truly aware citizens know, the reason for the upcoming drops in deficits shown by the CBO are that a series of new front-loaded taxes are about to be sprung upon the nation (great idea during a recession, eh?) to pay for Obamacare and all the projections for incredible benefits from Obamacare all the while cutting deficits is based upon the most optimistic possible scenarios for economic bounce-back.

Since the “jobs-president” rather than concentrating on jobs has been doing everything possible to annihilate jobs with his jobs-busting economic policies . . . it is very possible that the economic situation come 2020 may be considerably much worse than the CBO projects. Since the president has a whole deskload of initiatives like amnesty and citizenship for illegal aliens on his plate that are all very expensive GIBs and GSBs (Government Interference and Government Spending Boondoggles) . . . it is very possible that the economic situation come 2020 may be much, much worse than the CBO projects. Since Obama is looking to make many more “fundamental transformations” to this country . . . it is very possible that the economic situation come 2020 may be much, much, much worse than the CBO projects. It does NOT appear that Obama is through spending this year or ever.

Rajjpuut suggests three new Amendments to the U. S. Constitution (1. Obamacare and all its effects be immediately repealed 2. Federalism Amendment prevents country from passing laws that state governments must pay for such as Medicaid which is set to bankrupt every state by 2020 3. Federal spending be limited to 12.5% of the previous year’s GDP); that come November the voters reject all those who supported Obamacare; and that Obama be voted out for incompetence and operating contrary to his oath to “preserve, protect and defend the Constitution of the United States.”

http://www.politico.com/news/stories/0408/9610.html

http://www.politico.com/static/PPM41_eastafrica.html

Visit these two links. Read the words from Barak Hussein Obama, Sr., our president’s father, as he tells us the benefits of 100% taxes for Kenya. He didn't think mere socialism was good enough for Kenya, but that the country needed 100% taxes a.k.a. communism and his non-ending diatribes got him kicked out of government. His son devoted his first autobiography "Dreams from My Father" to that man but took great pains never to reveal his politics. As said and proven in these pages often before, President Barak Obama is a communist and his birth-father, mother and grandfather were all communists. The man is doing all he hoped to do, he is overthrowing the American way of life.

Ya’all live long, strong and ornery,

Rajjpuut

national debt CBO obama Obamacare deficits

deficits (12)

Should America Pay Detroit Bacon Bailout Demand For Obama Election Support

The CONSTITUTIONAL SUPPORT TAX (the CST) Will End Federal Deficit Spending - PERMANENTLY!

CBO Estimates Obama's 2013 Budget Plan Would Hurt Economic Growth

Rajjpuut's Folly: A Suggested Herman Cain "Contract with America’s Voters"

Rajjpuut's Folly: Is Obama-led American Economy Already at the Cliff's Edge?

Rajjpuut's Folly: Your Survival During Dollar Disintegration is NOT Obama's Concern

Rajjpuut's Folly: Bernanke, Jobs, Housing, Debt and the Whole Sordid Mess

Rajjpuut's Folly: It's the TEA Party vs. Obama's Marxism

Rajjpuut's Folly: "Absolute Wretchedness Index" Gallops under Obama’s Whip

Rajjpuut's Folly: MSR Data Shows Cretin Behind the Curtain for Certain . . . Obama

Rajjpuut's Folly: Gallup Majority Now AGAINST Obama Re-election, Rasmussen Numbers Worsen

Rajjpuut's Folly: CBO Analysis: by 2020, Obama Budget Will Bankrupt Nation

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