Tag: Bailout

MONEY: The falling dollar hurts real people; an ebb tide lowers all boats

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http://www.mybudget360.com/us-standard-of-living-falling-us-dollar-impact-us-dollar-benefits/

Standard of living, meet falling US dollar – how a falling US dollar benefits banks at the expense of working Americans.

*** begin quote ***

There is certainly a cost to a falling US dollar. Many Americans are living the consequences of this multi-decade long trend. The Federal Reserve has only added fuel to this trend but many families are now realizing that there does come a cost to unrelenting debt based solutions to fiscal problems. Shopping at the local grocery store I’ve noticed that some items have doubled in the last few years. Fueling up is also more expensive. The issue with living on a low dollar policy is that eventually, you end up in a low wage capitalist system. The easy money slowly inflates away especially on global items. We are seeing this in the US in various arenas especially with higher education. The end result is that the standard of living for the vast majority of Americans has fallen dramatically in the last few decades.

*** end quote ***

The seems to be a basic stupidity in human beings as to the devastating impacts of “inflation” (i.e., counterfeiting by a central bank).

As an injineer, we can’t have a “standard” that varies. 

As a football fan, imagine if a yard was redefined each football season as 2% less. 35.28 inches. Easier to make a first down. Records would be meaningless. And, eventually, in 30 years, they’d play on a one inch field.

Absurd.

So why is it different for money?

In my lifetime, the “dollar”, whatever that is, has lost 99% of it’s value. Gasoline that was 30¢ per gallon was $3.75 last night. Has gasoline become more expensive? Those evil oil companies. No!!! Based on the price of silver, gas is actually ~30% cheaper. 

<<Those three silver dimes in 1960 bought a gallon of gas. Today those three dimes are worth about $6 (conservatively) to $10.50 (speculation). So either 28% cheaper or 65% depending upon your value of those dimes.>>

Why can’t “We, The Sheeple” see it?

And, in the general inflation (i.e., loss of value of the money), wages don’t go up. Those on fixed income are so screwed. And, the poor get poorer. Savings are a joke.

Also even the stock market gets “hurt”. Sure the stock prices go up, but never as much as the inflation rate. We’ve seen this in the Carter disaster. Then, stocks went up in the single digit %s, but the inflation was 25 or 30%. Hence the real value went down.

How does a tin foil hat view the world? Always price things in silver or gold. Makes it obvious.

A new men’s outfit in Rome was two ounces of gold. Today, you can buy a nice outfit for 3500$! Clothing has gotten “cheaper”.

A new car in the 60’s was 6 ounces of gold. (I know a bought a Chevy Nova brand new for 1200$). Today, 10,500$ won’t get you a new car. Cars have become more “expensive”. Gas we’ve already said has gotten “cheaper”.

What do you buy that’s changed?

Gooferment!!!

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POLITICAL: NO more bailouts … … for ANYONE!

Published on by reinkefjLeave a comment

Tuesday, January 18, 2011

Honorable Republican Representatives,

On behalf of roughly 45 million Americans who voted for you in the November 2nd Elections,

On behalf of the more than 10 million Tea Party Supporters and Sympathizers among them…whose votes gave you victory,

For the purposes of federal government and state government fiscal responsibility, solvency, and financial common sense,

We request that all 242 Republican Members of the U.S. House of Representatives pledge to actively oppose and vote against all federal government bailouts for state governments or local governments.

No Funding bailouts for state or local governments.

No Loans for state or local governments.

No Loan Guarantees for state or local governments.

No cash. No loans. No loan guarantees. No co-signing.

Not for California. Not for Massachusetts. Not for Illinois. Not for New York. Not for any state or local government.

They must live within their own means. They must reduce and remove fat and non-essential spending from their budgets. They must seek and find ways to accomplish their essential duties – with lower overhead and less money.

Just like private sector businesses.

You must not enable them to continue their reckless and irresponsible spending.

You must not enable state and local governments to postpone the day of financial reckoning.

They have behaved like spending junkies, like money drunks. Now they face detox. Some are begging for ‘just one more’ drink, ‘just one last dose’ of narcotics. Tomorrow they’ll get clean and sober…

That’s the addiction talking. Ignore it.

Once state and local officials realize that you will not bail them out, they will solve their own spending problems.

Once they come to terms with economic reality, they will seek and find cheaper, better, smarter ways to do their government’s essential tasks.

They will become more responsible and accountable stewards of government.

Because almost all of you 242 Republican Members of the U.S. House of Representatives ran campaigns promising to roll back federal overspending, to exercise fiscal restraint, and to end federal bailouts, we ask you to notify state governments and local governments that you will vote against bailing them out.

Together, your 242 Republican U.S. House votes against bailing out state and local governments give you a “Veto.”

Promising to exercise this Republican “Veto” – and using it, if the Senate or White House demands bailouts for state or local governments – will show Tea Party supporters, fiscal conservatives, libertarians, and independents that you keep your campaign pledges.

This may create momentum for your proposed federal spending cuts.

It may create momentum for 2012 Republican candidates for the U.S. House and Senate who promise to substantially cut federal government spending, borrowing, and taxing.

Perhaps even a like-minded Republican candidate for President.

It starts with you. Now.

Will you make this pledge?

We eagerly await hearing about and publicizing your No Bailouts Pledge. It will be a beacon of hope during these crucial months of budget negotiations.

Small government is beautiful,
Carla Howell & Michael Cloud

# # # # # posted 2011-01-27 19:29

GOVEROTRAGEOUS: Casino “subsidy” for farming; are you kidding me?

Published on by reinkefj1 Comment

http://abcnews.go.com/Blotter/mohegan-sun-casino-owners-received-54-million-stimulus/story?id=10889408

Mohegan Sun Casino Owners Received $54 Million In Stimulus Money
Indian Tribe That Runs Connecticut Casino Earning $1 Billion-Plus Per Year Got Government Check
By COULTER KING and MARIANNE DE PADUA
June 17, 2010

*** begin quote ***

With the support of Sen. Chris Dodd, D.-Conn., the federal government has awarded $54 million to Connecticut’s politically well-connected Mohegan Indian tribe, which operates one of the highest grossing casinos in the U.S.

*** end quote ***

“I’m shocked, shocked to find that gambling is going on in here!” Captain Renault in Casablanca

I’m shocked that we pretend there is farming going on there.

Argh cubed!

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LIBERTY: The Gooferment is in charge!

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http://www.breitbart.com/article.php?id=D98NEVL80&show_article=1

High court won’t block Chrysler sale
Jun 9 06:27 PM US/Eastern

*** begin quote ***

WASHINGTON (AP) – The Supreme Court has cleared the way for Chrysler’s sale to Fiat, turning down a last-ditch bid by opponents of the deal.

The court said late Tuesday it had rejected a plea to block the sale of most of Chrysler’s assets to the Italian automaker. Chrysler, Fiat and the Obama administration had warned that the high court’s intervention could have scuttled the sale.

A federal appeals court in New York had earlier approved the sale, but gave opponents until Monday afternoon to try to get the Supreme Court to intervene.

*** end quote ***

The bondholders really couldn’t expect “justice” from a gooferment court.

Talk about a stacked deck!

The President’s plan taken before the Government’s Court. And, you expected a different result.

Watch the bond markets now! Nothing is safe from gooferment manipulation.

Now what happens to the Indiana pensioners who just got screwed?

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POLITICAL: CA debt is a Federal problem?

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http://apnews.myway.com/article/20090527/D98EPK2O1.html  

Calif. wants federal government to back its loans
May 27, 3:52 PM (ET)
By JUDY LIN

*** begin quote ***

SACRAMENTO, Calif. (AP) – If AIG was too big to fail, how about the world’s eighth-largest economy?

In a move with only one modern-day precedent, California Gov. Arnold Schwarzenegger and Democratic lawmakers are pressing the Obama administration and members of Congress for federal loan guarantees to help the state out of a desperate, multibillion-dollar jam.

California is not asking for cash, like the tens of billions given to AIG, General Motors or Morgan Stanley. (MS) Instead, the state with the worst credit rating in the nation is asking that Washington act as a sort of co-signer on the state’s borrowing, to be backed up with money from the Troubled Asset Relief Program.

*** end quote ***

No!

The S&L crisis started with Federal guarantees.

And, why should the taxpayers be bailing out CA bond holdrs?

Sorry, that the breaks.

Maybe CA should elect some politicians with fiscal responsibility.

What happens when and if CA goes under?

Has it ever happened before?

Maybe CA should secede? Or the USA from it.

Like voting it off the continent?

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RANT: TARP Golden chute end run!

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http://www.propublica.org/ion/bailout/item/bailed-out-bank-tries-golden-parachute-loophole-526

Bailed-Out Bank Tries Golden Parachute Loophole
by Paul Kiel, ProPublica – May 26, 2009 2:34 pm EDT

*** begin quote ***

The agreement anticipates that the arrangement might not fly with government officials. According to the agreement [3] (see Page 6), if the Treasury Department or the bank’s regulators determine that it breaks the ban on golden parachutes, the bank will try to work something out – either by tempering the agreement to conform to compensation restrictions or getting a waiver to break them. If that doesn’t work, the agreement says Ms. Binder will just have to wait until the restrictions are changed or the bank pays back the TARP funds. Then she’ll get her money in a lump sum.

*** end quote ***

The taxpayers are such suckers!

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POLITICS: contempt for America’s newspapers

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http://ncc-1776.org/tle2009/tle512-20090329-02.html

No Bailout for America’s Newspapers!
by L. Neil Smith

From the page: “I have never had anything but contempt for America’s “greatest” newspapers.”

# – # – #

I agree. The “liberal” media has a political agenda that is at odds with the American spirit. They have driven us to where we are: “political correctness”, an “entitlement mentality”, a psuedo “drug war”, and a huge gooferment.

From the page: “I have never had anything but contempt for America’s “greatest” newspapers.” I agree. The “liberal” media has a political agenda that is at odds with the American spirit. They have driven us to where we are: “political correctness”, an “entitlement mentality”, a psuedo “drug war”, and a huge gooferment.

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RANT: A failure of leadership — O on GM!

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from The Wall Street Journal

*** begin quote ***

President Barack Obama blamed leadership failures in Washington, D.C., and Detroit as a key factor in the auto industry’s decline, as he called on General Motors and Chrysler to come up with better restructuring plans.

In prepared remarks Monday, Obama said, “The pain being felt in places that rely on our auto industry is not the fault of our workers… And it is not the fault of all the families and communities that supported manufacturing plants throughout the generations… Rather, it is a failure of leadership.”

The remarks came as Obama moved to impose hard-nosed, sweeping restructuring measures on GM and Chrysler, including the ouster of GM’s Wagoner.

*** end quote ***

So the money that was put into GM for the American Taxpayer went down a rathole.

And, Obama is going to run GM?

Levine on ABC has a great rant I’m going to try and find it.

Isn’t anyone upset that Obama is now running GM? Doesn’t it remind anyone of Hitler’s fascism? And, what bout the budget and spending. You youngsters are being robbed blind. And, who do they think is going to buy all this debt? It’s trillions and trillions of dollars. We’ll be in debt forever!

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GOVEROTRAGEOUS: Why won’t the FED tell us? They don’t have to. It’s a private club!

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http://www.lewrockwell.com/cummings/cummings60.html

Where Did the Money Go?
by Richard Cummings

*** begin quote ***

Fed Chairman Ben Bernanke has resisted calls from Congress that he release the names of the banks that were recipients of the bailout money the Fed gave to AIG to prevent it from collapsing. AIG insured its counterparties against losses from mortgage-backed derivatives. The Fed poured $85 billion into AIG, which paid out $37.3 billion of that money to counterparties that had purchased a certain type of derivative-based protection from AIG, called multi-sector credit default swaps.

*** end quote ***

Seems like a fair question.

So what rathole DID our money go down?

And, what rat got fat on it!

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MONEY: Where are we going to be in 20 years?

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http://insidecatholic.com/Joomla/index.php?option=com_content&task=view&id=5565&Itemid=48

The Money Meltdown: A Conversation with Thomas Woods Jr. by Brian Saint-Paul 3/11/09

*** begin quote ***  

Q: We’ve had bailouts and stimulus packages, and possibly more of both in the near future. If you were to look into a crystal ball, where are we going to be in 20 years? Where is all of this heading? Will we reach a point of total economic collapse? Or will we wind up as the newest Euro-style state?

It seems to me that the best-case scenario is a kind of European third-way stagnation: high unemployment, anemic growth (if any), and a whole bunch of people scratching their heads and wondering why this is happening. That could be our fate.

Of course, it could be worse. It may turn into something like what Japan endured in the 1990s and beyond — though at least Japan had some domestic savings as a cushion. Or there could well be a complete collapse of the system, with the dollar destroyed. This is all conditional, because it depends in large part on what the government does. Its cure is almost sure to be worse than the disease.

I’d love to think that if a collapse came, people would say, “Obviously, intervention doesn’t work, so let’s try what the Austrians have been suggesting.” But I think instead a demagogue would rise up to say — as usual — that the problem is not enough government involvement, and that he’s going to rescue us.

That’s the most likely outcome.

*** and ***

Thomas E. Woods Jr. is senior fellow in American history at the Ludwig von Mises Institute. He is the author of nine books, including two New York Times bestsellers: The Politically Incorrect Guide to American History and the just-released Meltdown: A Free-Market Look at Why the Stock Market Collapsed, the Economy Tanked, and Government Bailouts Will Make Things Worse, as well as the award-winning The Church and the Market: A Catholic Defense of the Free Economy. Visit his new Web site.

* end quote *

GOVEROTRAGEOUS: Rep. Barney Frank has chutzpah!

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http://finance.yahoo.com/news/Frank-assails-bonuses-paid-to-apf-14646988.html  

Frank assails bonuses paid to executives at AIG
House committee chairman rails against bonuses paid executives of financially-strapped AIG
Monday March 16, 2009, 8:24 am EDT

*** begin quote ***

WASHINGTON (AP) — Rep. Barney Frank charged Monday that a decision by financially strapped insurance giant AIG to pay millions in executive bonuses amounts to “rewarding incompetence.”

*** end quote ***

He should know incompetence. He’s part of the Fannie and Freddie mess. His hands aren’t clean by any means.

Aint congresscritters funny? If they were so dangerous to our liberties!

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INTERESTING: The time-honored and unchanging free-market principles needed

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http://corner.nationalreview.com/post/?q=YTkzMzllNmE3MDM3NDhmMjcxZjA5MTE0OTk5NDJkODQ=

NRO BLOG ROW – THE CORNER – Wednesday, March 11, 2009

*** begin quote ***

Accordingly, conservatism will return to prominence when it uses time-honored and unchanging free-market principles to address new problems, and when it finds advocates who both are adept at communication with non-traditional audiences (e.g., why it is in the interest of African-Americans to be skeptical of abortion on demand, why Hispanic small-business people need to be wary of intrusive regulations, why Asian-Americans should fear affirmative-action-driven de facto racial quotas at the University of California, why talented teachers should not have to join bureaucratic, ossified unions, why today’s young people should not have to pay off Obama’s annual $1.7 trillion deficits, etc.) and believe in their message’s resonance, without trimming[?] for the applause of the moment.

*** end quote ***

As “conservatism” seeks to return us to the “classical liberalism” of the First American Revolution, a little L libertarian like myself can agree that it’s a good first step.

Unfortunately, for as smart as I feel the DOWGs were, and they were far smarter than I, and more courageous as well, I don’t think we can rewind the clock.

We have to take those “classically liberal” principles and move forward applying them to today’s problems.

Just as the King was rightly opposed as tyrannical, so to must we oppose the new “king” — the overpower all-encompassing gooferment.

Empowering the individual to make their own choices and bear the consequences of bad choices.

So, we have to have miniscule government. Close to the people. With it’s only mission being to protect the rights of individuals.

Argh!

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MONEY: FDIC is not really insuring banks

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http://www.lewrockwell.com/blog/lewrw/archives/025671.html

March 04, 2009
Re: Bair (or Is That Bare?) Says FDIC Going Broke
Posted by Kathryn Muratore at March 4, 2009 05:11 PM

*** begin quote ***

Lew, the counter-intuitive response of government-sponsored bureaucracies like the FDIC make me laugh. So we already know that the FDIC is not really insuring banks in any meaningful sense, although they keep that “Insurance” word in the title. But, imagine what an actual above-board insurance company would do in an emergency – say a hurricane hitting a populated area. In the days before and after the hurricane, can you imagine State Farm sending a bill to all of its customers in the Southeast for an emergency premium hike to cover the payouts that it knows are imminent?

*** end quote ***

Yeah, like Social Security Insurance, which isn’t “insurance” either.

When this musical chairs game stops, who will be left standing?

Taxpayers, the old, those on fixed income.

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POLITICIAL: Ron Paul on Bill Mahr simple and direct!

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http://www.youtube.com/watch?v=M5lb0l3sYBo&eurl=http://www.lewrockwell.com/blog/lewrw/archives/025457.html&feature=player_embedded

Ron Paul rocks on Bill Mahr’s show!

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RANT: “Birth Control” is stimulus.

Published on by reinkefjLeave a comment

FROM THE DRUDGE REPORT

http://www.drudgereport.com/flashpbc.htm

PELOSI SAYS BIRTH CONTROL WILL HELP ECONOMY
Sun Jan 25 2009 22:13:43 ET

*** begin quote ***

Speaker of the House Nancy Pelosi boldly defended a move to add birth control funding to the new economic “stimulus” package, claiming “contraception will reduce costs to the states and to the federal government.”

*** and ***

PELOSI: Well, the family planning services reduce cost. They reduce cost. The states are in terrible fiscal budget crises now and part of what we do for children’s health, education and some of those elements are to help the states meet their financial needs. One of those – one of the initiatives you mentioned, the contraception, will reduce costs to the states and to the federal government.

*** end quote ***

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SOOOOOooooooo….

The “stimulus package” covers any social engineering that they want to do!

Get ready for more nonsense under that “cover”.

Here’s an insight into their “liberal” philosophy: “Humans are an expense”. Wonder when abortion, eugenics, and killing off the elderly come in? After all one way to control Medicare “costs” is to get rid of those expensive old “senior citizens”. But, oh year, they can vote. We need to pick on those that can’t!

Argh!

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FUN: Monkey Bailout Parable

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FROM LUDDITE, FORWARDING SOMETHING ON:

*** begin quote ***

Once upon a time a man appeared in a village and announced to the villagers that he would buy monkeys for $10 each.

The villagers, seeing that there were many monkeys around, went out to the forest and started catching them.

The man bought thousands at $10 and, as supply started to diminish, the villagers stopped their effort. He next announced that he would now buy monkeys at $20 each. This renewed the efforts of the villagers and they started catching monkeys again.

Soon the supply diminished even further and people started going back to their farms. The offer increased to $25 each and the supply of monkeys became so scarce it was an effort to even find a monkey, let alone catch it!

The man now announced that he would buy monkeys at $50 each! However, since he had to go to the city on some business, his assistant would buy on his behalf. In the absence of the man, the assistant told the villagers: “Look at all these monkeys in the big cage that the man has already collected. I will sell them to you at $35 and when the man returns from the city, you can sell them to him for $50 each.”

The villagers rounded up all their savings and bought all the monkeys for 700 billion dollars.

They never saw the man or his assistant again, only lots and lots of monkeys!

Now you have a better understanding of how the WALL STREET BAILOUT PLAN WILL WORK !!!!

It doesn’t get much clearer than this…………….

*** end quote ***

Funny. AND all to true!

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POLITICAL: “Government investment” is Orwellian

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http://mises.org/article.aspx?Id=1423

Repudiating the National Debt

Daily Article by Murray N. Rothbard | Posted on 1/16/2004 12:00:00 AM

*** begin quote ***

In reality, however, government spending only qualifies as “investment” in an Orwellian sense; government actually spends on behalf of the “consumer goods” and desires of bureaucrats, politicians, and their dependent client groups. Government spending, therefore, rather than being “investment,” is consumer spending of a peculiarly wasteful and unproductive sort, since it is indulged not by producers but by a parasitic class that is living off, and increasingly weakening, the productive private sector.

*** end quote ***

# – # – #

Here’s how to think about the bailouts and other “government spending”!

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RANT: See where bailouts take you? To absurdity and beyond!

Published on by reinkefjLeave a comment

http://www.usnews.com/articles/news/stimulus/2009/01/08/why-a-tiny-alabama-town-wants-a-375-million-chunk-of-the-stimulus.html

Why a Tiny Alabama Town Wants a $375 Million Chunk of the Stimulus
By Amanda Ruggeri
Posted January 8, 2009

*** begin quote ***

At first glance, the town of Edwardsville, Ala., with a population of 194 people, might raise a few eyebrows with its bid to receive $375 million from the economic stimulus package being assembled by Barack Obama and lawmakers in Congress.

The tiny town, located near the Georgia border and 26 miles from the nearest “big city” of Anniston (population: 24,276), added 33 proposals—about two thirds of them related to “green” energy—to the list of “ready- to- go” projects assembled by the U.S. Conference of Mayors. Total sum: $375,076,200.

*** end quote ***

http://www.breitbart.com/article.php?id=D95J4DV00&show_article=1

Obama warns of dire consequences without stimulus
Jan 8 01:29 PM US/Eastern
By JENNIFER LOVEN
AP White House Correspondent

*** begin quote ***

FAIRFAX, Va. (AP) – President-elect Barack Obama warned of dire and long-lasting consequences if Congress doesn’t pump unprecedented dollars into the national economy, making an urgent pitch Thursday for his mammoth spending proposal in his first speech since the election.

{Extraneous Deleted}

Obama laid out goals of doubling the production of alternative energy over three years, updating most federal buildings to improve energy efficiency, making medical records electronic, expanding broadband networks and updating schools and universities.

*** end quote ***

www.ajc.com/business/content/business/stories/2009/01/08/flynt_porn_bailout.html

*** begin quote ***

Jan 8, 2009 … In an announcement that launched a thousand unprintable puns, adult- entertainment moguls Larry Flynt and Joe Francis said Wednesday that …

*** end quote ***

There must be something in the air in the District of Corruption. The smell of the People’s money being available?

We really should thank Larry Flynt for pointing out the absurdity of the whole circus!

Have you contacted your congresscritter yet?

http://www.downsizedc.org/  

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Politics: The Gooferment is the Problem, imho!

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http://online.wsj.com/article/SB123033898448336541.html

There’s No Pain-Free Cure for Recession
Belt-tightening is required by all, including government.
By PETER SCHIFF
* OPINION * DECEMBER 27, 2008

*** begin quote ***

Governments cannot create but merely redirect. When the government spends, the money has to come from somewhere. If the government doesn’t have a surplus, then it must come from taxes. If taxes don’t go up, then it must come from increased borrowing. If lenders won’t lend, then it must come from the printing press, which is where all these bailouts are headed. But each additional dollar printed diminishes the value those already in circulation. Something cannot be effortlessly created from nothing.

*** end quote ***

When will folks recognize that GOVERNEMENT IS THE PROBLEM.

It starts from a flawed set of paradigms (i.e., perceptions) and memes (i.e., ideas).

One flawed paradigm / perception is that the “benefits bestowed” come like magic rainfall from the heavens. It’s a miracle. What we don’t see, or chose not to see, is the sausage being made. Money extracted by force (Who voluntarily pays the mob in gooferment?) to fund the “benefits”. Minus of course the huge “handling fee” to do the “extracting” and “bestowing”!

One flawed meme is that there is such a thing as “government”. In our minds, we create the Wizard of Oz illusion that there something, (or even more laughable, that we are part of something), bigger than ourselves. No, what I see are craven immoral human beings dress up in fancy clothes pretending to have power over us. To “govern” us.

In the beginnings of human civilization, there were Tyrants. Then, came Kings. Now, we have Politicians.

There are all just people. Give them no more defference than you would a street thug. Be careful they can hurt you. But, don’t kid yourself that the Politician is any different than the Mafia Don.

Keep your pitchfork and torch at hand. Their time is coming.

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POLITICAL: Gooferment bailouts mere prolong the inevitable

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http://www.lewrockwell.com/tucker/tucker115.html

The End of the US Piano Industry by Jeffrey A. Tucker

*** begin quote ***

Today government is even more arrogant and absurd, and it actually believes that by passing legislation it can save the US car industry. It can subsidize and pay for uneconomic activities, and pay ever more every year. The government can also pay millions of people to make mud pies because mud pies are deemed to be an essential industry. You can do this, but at what cost and what could possibly be the point? Eventually, even the government will have to accord itself to the reality that economics reminds us of on a daily basis.

*** end quote ***

It’s hard to envision a sadder time in American History.

The gooferment bailing out the UAW union.

That’s what this is all about.

The unions wield enormous political power.

And, like a parasite, they eventually kill their hosts.

Look at the Teacher’s Union and education. The ports with their union. The railroads with their union. Government workers and their unions.

And, don’t make the mistake that the Union is looking out for its members.

Sure, they do from time to time, but that’s to preserve the illusion.

Example, State of New Jersey hasn’t contributed to the pension plan for several administration. It’s under funded by 3T$. Think the Union has grabbed the politicians by their privates and insisted. No, they are all in bed together.

Example, UAW hasn’t insisted that Automakers align the executive’s interest with the worker’s. It’s a scandal that a CEO makes more than the line worker in salary. CEO’s shouldn’t make more than a 1$/year anytime. Give them stock options that vest in 5 year increments (i.e., 5, 10, 15, 20, 25, 30, …). Then stand out of the way as the thinking shifts to long term value.

Example, the Delta bankruptcy screwed all the retired pilots. Hear anything about that?

Unions are an institution that needs to be reinvented.

Where’s my “union” for bloggers?

Argh!

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PRODUCTIVITY: Leaders empower their people

Published on by reinkefjLeave a comment

http://execunet.blogspot.com/2008/12/best-email-of-day-award.html  

Tuesday, December 09, 2008
The Best Email of the Day Award

*** begin quote ***

…Goes to Peter Clayton, producer/host of Total Picture Radio. It needs no further commentary from me as it eloquently speaks for itself. Good on ‘ya Peter.

“Capital goes where it’s welcome and stays where it’s well treated.” Walter B. Wriston

Dear Dave,

When “The Citi Never Sleeps” ad campaign was first launched in 1978, Walter Wriston was running the place, and the motto had real meaning. Wriston was highly regarded, as was the institution he lead. Citibank / Citicorp was a cherished brand by its employees and a respected competitor in the financial services industry. Citibank had a unique, authentic, brand identity

*** and ***

According to David, “82% of shareholder value is intangible.” According to John, one-third of all shareholder value is attributed to “brand.
“So here’s an idea I’d like your help with: If we could find 24,000 Citibank employees willing to donate $10 each into a fund to “keep the trains running,” it might give the employees of this beleaguered institution something to be proud of, and smile about. I bet through Twitter, LinkedIn, Xing, and Facebook we could mobilize enough Citibankers to take up the cause. Next year, the Holiday Trains at Citigroup Center exhibit could be “In memory of Walter B. Wriston.” The fund could be set-up as an old-fashioned “Christmas Savings Account.”
*** end quote ***

Dave always finds the great challenging ideas. Worth every nickel of my free RSS subscription.
It is clear that the current crop of “leaders” isn’t worth the power to blow them over. Poof! They’re gone. Gone; absconding with the salary, bonus, options, perks, and benefits. (I laffed at the Ford guy taking a $1/year! If the Congress MYOBed and Ford had to do Chapter 11, he could wave “bye” to his stock and options.)
It’s sad that “leaders” are so dishonest.
The time of large corporations is so OVER!
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POLITICAL: NJ Menedez supports UAW bailout!

Published on by reinkefjLeave a comment

Dear Mr. Reinke:

Thank you for contacting me to express your views on the auto industry rescue plan. Your opinion is very important to me, and I appreciate the opportunity to respond to you on this vital issue.

Without a doubt, the American automotive industry has been a major pillar of our nation’s manufacturing success. Unfortunately, decades of poor business practices have been exacerbated by the recent credit market freeze pushing our nation’s auto industry to the brink of collapse. Such a massive failure would have dire consequences for a struggling economy that saw more than half a million jobs disappear in November alone. With one in ten American workers relying on the automobile industry, failure of this industry could result in the loss of more than 3 million jobs as the ripple effects reverberate throughout the entire economy. New Jersey alone would lose over 65,000 jobs.

There can be no denying that short-sighted management decisions have played a major role in the decline of the Big Three. However, simply letting these companies go bankrupt would cost millions of American workers their jobs – workers who were not part of that decision-making process.   As a member of the Senate Banking Committee, I have paid close attention to the proposals of the automotive industry. Initially, the heads of the Big Three testified before Congress and essentially asked for a blank check. Their plan included little transparency or oversight and provided few details on restructuring or financial solvency. This was simply unacceptable, so Congress demanded that they return with a comprehensive plan.

The plan they later presented on their second visit was much improved and contained a number of important concessions and safeguards. My primary concern with any taxpayer assistance for the Big Three is that there is proper oversight, and that we include safeguards to make sure these taxpayer loans are repaid. This is why we included provisions clamping down on executive compensation, requiring the automakers to issue stock warrants to the government, and prohibiting the companies from issuing dividends until they repaid their taxpayer loans. This legislation also included efforts to address the long-term competiveness of the auto industry. The Big Three have spent the last 20 years fighting fuel economy standards for their products, much to their own detriment. In the long-term, we will require automakers to adhere to strict standards in building cleaner, more energy efficient vehicles, which will benefit America’s national interest as well as the Big Three’s bottom line.

As you may know, the Senate failed, by a vote of 52 to 35, to even bring this issue to the floor for consideration. I voted in support of cloture because I believe this is a vitally important economic issue that, at the very least, warrants debate and consideration in the Senate.

Regardless of your views on this particular piece of legislation, I believe we can all agree that our economy is in a serious recession and more must be done to assist American families. Please rest assured that as your United States Senator, I will do everything in my power to protect jobs and restore our economy so the American Dream is attainable once again.

Thank you again for contacting me with your concerns. For additional information on this issue and my other legislative priorities, please visit my website: http://menendez.senate.gov. It is an honor to represent you in the United States Senate.

RANT: Guess who will vote for a bailout?

Published on by reinkefjLeave a comment

http://www.cbsnews.com/stories/2008/12/03/cbsnews_investigates/main4646424.shtml

Big Three Spending Millions On Lobbying
Auto Makers Drowning In Red, But Still Give Nearly 50 Million Dollars To Politicians
WASHINGTON, Dec. 3, 2008 | by Sharyl Attkisson

*** begin quote ***

The auto industry spent nearly $50 million lobbying Congress in the first nine months of this year.

And people tied to the auto industry gave another $15 million in campaign contributions, CBS News investigative correspondent Sharyl Attkisson reports.

*** end quote ***

So, the congresscritters have been bribed?

Argh!

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RANT: Don’t bailout the UAW!

Published on by reinkefjLeave a comment

http://www.lewrockwell.com/suprynowicz/suprynowicz106.html

Look! There’s Another Wolf! No, I Just Saw Him, Behind That Tree!
by Vin Suprynowicz

*** begin quote ***

Once Congress steps in and forestall the orderly, deliberative process of bankruptcy relief, we’ll likely end up with white elephant auto plants in Detroit that will never again compete on true cost and quality with free-market factories elsewhere, instead turning out “fuel-efficient, green” cars consumers don’t want, under management by a consortium of federal bureaucrats and the labor unions, abetted by a bunch of hollow public relations happy-talk.

*** end quote ***

And, that’s why we don’t want Congress to bailout the UAW!

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POLITICAL: My economic recovery plan

Published on by reinkefj1 Comment

http://www.lewrockwell.com/giles/giles30.html

Fallen Angel
by George Giles

*** begin quote ***

Our one party has two wings blue state socialists and red state fascists, they only disagree on minor conjectures like should we fleece the public fisc through the Federal Reserve, or the Internal Revenue service, or both?

*** and ***

If eternal vigilance is the price of liberty then Americans, as a culture, have been found wanting. The immense debt, the vanishing equity, and the struggling economic infrastructure are the waves upon which our ship of state sails.

*** end quote ***

Wonder if the sheeple will realize they have been had? If we have faith in the “American experiment”, then we can return to our roots of rugged individualism, cast out the socialists, and let the truly free market return us to prosperity. Enlightened individual self-interest is a powerful engine of prosperity. But, we have to be the “home of the free and land of the brave”.

(1) Let the bad actors in the marketplae fail. Citi, GM, NBC, or whomever has a problem; it’s just that. Their problem. Hard bitter medicine? Yes, but essential into correcting the “moral hazard” that our politicians have allowed to happen.

(2) Restore the “uptick rule” that prevents bear raids. FIre the genius at the Treasury, Fed, SEC that changed that one historical gem of an idea.

(3) Restore the marketplace in mortgages. Home ownership may not be for everyone. 20% down! Review every mortgage for criminal fraud. (Rumor hath it that Organized Crime went into the mortgage business.)

(4) End the “Drug Prohibition” policy. Sorry, but it’s nobody’s business what anyone puts in their own body. Pardon all non-violent drug offenders. Allow WalMart to battle the “illegal violent drug dealers”. (The cost of impure illicit drugs will dissolve overnight when Sam Walton’s children become “drug dealers”.) Clean safe drugs at everyday low prices will take all the profit and sexiness out of the drug culture. Hard to imagine a drug war over aspirin level prices. Pot, heroin, crack, and speed for $4 for a month’s supply? Maybe then as a society, we can focus on the medical problems that addicition represents. And, stop killing children both directly and indirectly. Eleimate all the drug agencies: DEA, FDA, and on and on. Consumers Reports, Underwriters Labratory, and “Drug Stores” like WalMart will do a far better job of keeping us safe.

(5) Downsize governemnt at all levels. Let’s conduct a raid on all these bloated kingdoms of waste. Let’s cut 5% per year. Every year.

(6) Let’s cut taxes. Business tax should be 0, but let’s start but cutting it to 10%. (Ireland is 11%!) We know that businesses don’t pay taxes; people do! Personal income tax ditto 10%. And, ONLY ONE ENTITY can collect our 10%. Either Federal, State, or Local gooferment. How they divide it up I care not, but no more than 10%. Property taxes should also be 0. Let the police, fire, and trash be supplied on a competitive basis.

(7) Let’s all MYOB. Marriage should be left to churches; not the gooferment.

How’s that for an economic recovery plan?

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RANT: We can’t afford ANY “bailouts”

Published on by reinkefj2 Comments

http://www.kuro5hin.org/story/2008/11/18/93514/227

Why the Big 3 Bailout is Bullshit: Cadillacs Made in China
By nostalgiphile in MLP
Wed Nov 19, 2008 at 05:02:40 AM EST

Tags: bankruptcy, automobiles, Japan, made in China, Detroit, YFI (all tags)

*** begin quote ***

First, they say that between 160,000 and 3 million manufacturing jobs are on the line, but then turn around and blame the unions (the organization that represents those workers). In fact, foreign (mainly Japanese) automakers employ almost as many Americans as the “Big 3” do (113,000). Helping GM, Ford, and Chrysler could actually hurt those American auto-workers at non-Big 3 factories.

*** end quote ***

These “bailouts” are wrong on so many levels it’s hard to find a positive reason FOR them.

My pocketbook can’t afford it. So, sorry Chapter 11.

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