GOVEROTRAGEOUS: The Gooferment refuses to TARP repayment

   * APRIL 4, 2009

Obama Wants to Control the Banks
There’s a reason he refuses to accept repayment of TARP money.

*** begin quote ***

I must be naive. I really thought the administration would welcome the return of bank bailout money. Some $340 million in TARP cash flowed back this week from four small banks in Louisiana, New York, Indiana and California. This isn’t much when we routinely talk in trillions, but clearly that money has not been wasted or otherwise sunk down Wall Street’s black hole. So why no cheering as the cash comes back?

My answer: The government wants to control the banks, just as it now controls GM and Chrysler, and will surely control the health industry in the not-too-distant future. Keeping them TARP-stuffed is the key to control. And for this intensely political president, mere influence is not enough. The White House wants to tell ’em what to do. Control. Direct. Command.

It is not for nothing that rage has been turned on those wicked financiers. The banks are at the core of the administration’s thrust: By managing the money, government can steer the whole economy even more firmly down the left fork in the road.

{Extraneous Deleted}

*** end quote ***

It’s all about taking the county socialist. He was rated the 100% liberal senator. He has no other skill than manipulation.

We will never recover from this enormous debt he’s putting on our posterity.

Like Lincoln, Wilson, FDR, Johnson, and Clinton, he’s taking us where we can’t get back from.

The American Experiment has failed.

Where will the new Revolution arise from?

When do the People again take to the barricades to fight for Freedom and Liberty?

Obama made a joke or threat to the Bankers saying “I am the only think between you and the pitchforks.” I’d take care Mister Politician. When the People get out the pitchforks as few of us my come after the Politicians and not the Bankers.

Beware the Devil’s bargain. And, the gooferment is that devil.

# # # # #

MONEY: Fiat currency kills the American Dream

Dinosaur Economists and their Paper Currency
By The Mogambo Guru

*** begin quote ***

So the question is, “Is all that spending additive?” I mean, do you add 14% plus 7%? If so, then isn’t government spending 21% of Gross Domestic Product enough to kill the economy a dozen times over, which is what happens every other time in all of history when some brain-dead government of some idiotic country full of childishly-trusting morons allows their corrupt government to spend more than it takes in by creating as much fiat currency as it wants?

*** end quote ***

Amazing about the amount of “counterfeit money” the gooferment is going to push out.

Where does it end? Who winds up holding the bag? When does the “barbara streisand” hit the fan?

# # # # #

POLITICS: contempt for America’s newspapers

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.

# # # # #

RANT: A failure of leadership — O on GM!

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!

# # # # #

RANT: 90% taxes on employee bonuses

March 19, 2009

The House voted 328-93 to approve a bill imposing 90% taxes on employee bonuses from firms bailed out by taxpayers.

The bill would tax bonuses paid by firms that received more than $5 billion from the TARP. The Senate is working on its own plan to try to recoup bonuses.

The House bill is a response to the furor over millions in retention bonuses paid by AIG.

# – # – #

Can anyone say “Bill of Attainder”?

If these bozos would actually read what they vote on, then they wouldn’t have to have this pretend outrage!

Don’t forget all the Hollywood, Education, and Sports types?

# # # # #

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

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!

# # # # #

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

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!  

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!

# # # # #

LIBERTY: Hold the ‘Catastrophe’: Obama Says He’s ‘Highly Optimistic’ About Economy

Obama: Economic crisis ‘not as bad as we think’
Mar 12 05:49 PM US/Eastern
Associated Press Writer

Hold the ‘Catastrophe’: Obama Says He’s ‘Highly Optimistic’ About Economy

*** begin quote ***

WASHINGTON (AP) – Confronting misgivings, even in his own party, President Barack Obama mounted a stout defense of his blueprint to overhaul the economy Thursday, declaring the national crisis is “not as bad as we think” and his plans will speed recovery.

Challenged to provide encouragement as the nation’s “confidence builder in chief,” Obama said Americans shouldn’t be whipsawed by bursts of either bad or good news and he was “highly optimistic” about the long term.

The president’s proposals for major health care, energy and education changes in the midst of economic hard times faced skepticism from both Democrats and Republicans on Capitol Hill, as senators questioned his budget outlook and the deficits it envisions in the middle of the next decade.

But Obama, speaking to top executives of the Business Roundtable, expressed an optimistic vision and called for patience.

*** end quote ***

Well, “they” have passed the PORKULOUS bill and the various versions of TARP.

Guess they have always stampeded us into giving up more of our money and our liberty.

So much for “change”. Guess I’ll just have to “hope”.

So what are they going to repeal and cut.

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GOVEROTRAGEOUS: Cramer (a leftist) points out how O doesn’t get it!

Posted March 09, 2009
Cramer Takes on the White House, Frank Rich and Jon Stewart
By Jim Cramer

*** begin quote ***

Suddenly, bloggers, opinion people, columnists and, yes, pundits who haven’t paid attention to anything I have been saying or writing for the past 18 months are all over me. Suddenly, I find myself in the center of a firestorm over Obama’s economic policies, taking enfilading fire from the “liberal” media (from serious columnist Frank Rich to entertainer Jon Stewart) while being defended by Rush Limbaugh, the standard-bearer for the Republicans.

*** and ***

The answer lies in the way the two administrations handled criticism.

The Bush administration, I believed, simply chose to ignore my warnings, perhaps because of a brutal combination of ideology, fecklessness and complacency.

*** and ***

President Obama’s team, unlike Bush’s team, demonstrates a thinness of skin that shocks me. When I somewhat obviously and empirically judged that the populist Obama administration is exacerbating the crisis with its budget and policies, as evidenced by the incredible decline in the averages since his inauguration, I was met immediately with condescension and ridicule rather than constructive debate or even just benign dismissal.

*** and ***

The markets thought he could stop it; hence the giant relief rally when he was elected. But in fewer than 50 days of his ascendancy, the markets’ hopes were totally dashed and the averages are now forecasting the worst decline since the Great Depression. As someone who listens to what the averages are screaming, I think they are accurately predicting the future.

I welcome any serious exchange with the administration on the issues that are not beyond my ken: fixing house price depreciation, stopping the destruction of wealth as demonstrated by the stock market’s plunge, and solving the banking crisis before we nationalize every bank.

*** and ***

It’s time to get serious. It’s time to take the issue from the pundits and from the left and right, and put it where it belongs: serious non-ideological debate to put out the real firestorm, the collapse of the economy from Wall Street to Main Street and the ensuing Great Wealth Destruction for all.

But if it stays ad hominem, we will all be betrayed and the train wreck will become inevitable.

*** end quote ***

The inept politicians from both sides of the aisle have destroyed the investments of most people. And, all we get from them is “spend more” and “borrow more”.


You’re putting future generations in a hole they will never get out of.

Let the failures go bankrupt. Tough medicine.

We are training future generations NOT to invest.

I’ve had two conversations that are noteworthy.

A young woman has pulled out of her 401k because the losses have eaten into her employer’s contribution and hers. A doctor is moving from equities to bonds and his “financial advisor” at the brokerage house thought it was a good idea (i.e., he gets a commission on trades; not results).

The Market’s P/E ratio is either in or going into the single digits. (Last time that happened the market doubled in a year!) The “natural recovery” from a downturn has already begun. See the uptick in home sales as the “affordability” measure is it’s lowest in decades.

Note to O: (1) Reinstate the uptick rule. (2) Aim the corporate beggars to the bankruptcy courts. (3) Grab your various regulators and ask them to resign. (4) Eliminate Federal guarantees of ARMs, Interest only, and any mortgage that’s not 20% down 30 year fixed “conforming”. (4) Tell the FBI anf your Federal Prosecutors you want some FRAUD convictions for all the bad paper. (5) Tell the SBA that you want a plan to stimulate small business by the end of the day.

Cut the spending, cut the debt, cut the waste.


Like that’s ever going to happen!

# # # # #

POLITICAL: Poor Economy and the Gooferment

Wednesday, March 04, 2009

It’s not all media hype

*** begin quote ***

Twice this past weekend I found myself talking to two men – separate conversations – who believe that the “economic crisis” is mostly media hype. “They’ve got to sell papers”, is what one of them told me.

I didn’t know what to say. As someone who’s fairly well convinced that we’re heading down and fast I didn’t know where to start. I simply let each of them say what they had in mind and walked on. I was shocked. I have no idea what these men do for a living, but I hope to God they’re right. I’m sure they’re wrong, but I hope they’re right.

Today the news is full of the “mini-budget” or emergency budget or whatever you want to call it coming at the end of the month. I’m sure there’s a reasonable explanation for waiting a month – having been about 4 months late realizing how bad things are – but it’s lost to me. I can’t understand why they don’t just impose the tax hikes right now. What does the state gain from such a delay?

There’s a small part of me wondering if there isn’t something bigger being planned for the economy than 2c extra on the tax rates.

*** and ***


It’s bad, there’s no denying that – but there is an element of Chicken Littleism to the media reporting, the herd pack mentality running headlong off the cliff together. The media moves its focus in shifts, and now the hot story of the moment is the sky falling; you have to sift to get the nuance and balance that goes beyond the populist trend. So yeah, I’d agree that we aren’t getting a true picture of what is going on. The media is a populist beast.


*** end quote ***


Well, there is a measure of truth to the “hype” argument. If you extract the financial firms from the indexes, the numbers don’t look absolutely terrible. It’s the options and derivatives that are putting downward pressure on the market. Where everyone of the experts really “stepped in it” imho is the failure to use bankruptcy as “medicine”. If they (the gooferment) had said “Sorry, corporations can use the Chapter 11 or one of the other options.”, then there would have been some immediate pain, but it would have been over. Quick and clean. The gooferment could have properly provided the bankruptcy judge with transitional financing assistance to the debtors taking over.

Bet there would have been a lot more serious consideration of the corporation’s options. After all, hard to be an executive if there’s nothing to be an executive up. THe law and implications are well understood.

AND, the market would have formed of “carrior eaters” who would “feast” on the “bones”. A tranche of mortgages would have gotten a quick proctology exam to determine what was good and what was toxic. Various vultures would have bid on the “remains”. The results would have been well-known.

The real estate bubble would have been popped and, while traumatic, it wouldn’t be in “limbo”. That’s why the Street is reacting badly. Uncertainty.

And the gooferment acts like they could NOT find their own A Double Q in a dark closet with a flashlight. This is like the Great Depression in that the gooferment interference in the marketplace is making the problem worse.

My fear is we are going to have a gooferment induced “Lost Decade” for the next 20 years. Like Japan.


reinkefj 03.04.09 – 11:37 am

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POLITICAL: Eliminate the corporate income tax  

Economic Change We Can Believe In
To improve the economy, eliminate the corporate income tax
Jeffrey A. Miron | February 6, 2009

*** begin quote ***

President Barack Obama’s stimulus proposal entails an awkward tradeoff between spending and efficiency. Fiscal stimulation suggests large, rapid increases in spending, while efficiency means cautious, modest increases. Similarly, Obama’s plan favors tax cuts for low-income families, since they are most likely to spend rather than save, yet the drive for efficiency means cutting marginal tax rates on high-income consumers.

*** and ***

One policy change, however, can stimulate both the economy in the short-run and enhance efficiency in the long-run: repeal of the corporate income tax, which collects up to 35% of the difference between revenues and costs of incorporated businesses.

*** and ***

Corporate income taxation has other negatives. It requires a complicated set of rules and regulations, over and above the personal income tax system, generating compliance costs. Special interests ensure that corporate tax systems favor specific industries or activities, further distorting private investment decisions. Along those lines, corporation taxation reduces financial transparency, making it harder for investors to monitor corporate behavior.

So repeal of the corporate income tax is good policy independent of the state of the economy and would provide short-run stimulus.

*** end quote ***

Corporations don’t pay taxes; they hide them in the final price of goods sold!

Only people pay taxes!

# # # # #

RANT: About the pork fest “stimulus” bill

reinkefj has left a new comment on the post “Not as stimulating as we’d hopede“:

No? Tax cuts, when accompanied by spending cuts, don’t accomplish anything? Please explain how Kennedy’s “rising tide raises all boats” tax cut and Regan’s “government is the problem” tax cut ignited decades of prosperity. Guess it was just luck.

Personally, I’d like to see the congress critters ELIMINATE the corporate tax (corps don’t pay taxes they just pass them along to real people hidden in the prices), the death tax (grave robbers! destroy a person’s life’s work like the real family farm), and the regressive payroll tax (humorously referred to as the employee’s and employer’s share; like it all doesn’t come out of the employee’s pocket).

Of course, to pay for it, I’d close the Department of Agriculture (for rich psuedo farms), Commerce (for big business), HHS (meddling the State’s business and spend lots of money), … … did I pay for it yet? … … I’d end the psuedo-Drug War, pardon all non-violent drug offenders, shut down Selective Service, close Job Corps, Head Start, … … did I pay for it yet? … AMTRACK, Post Office, … … I must be close … … Repeal legal tender laws.

If we did that I’m SURE that there would be an economic boom that would rival any previous one.

I’d shut down the TSA, shut down welfare, and take the plastic bag off the Statue of Liberty. No illegal immigration problem if there are ZERO freebies. Everyone has to work. No free loaders in the life boat.

I’d task the FBI to review every fraudulent loan document and prosecute the fraudsters.

I think that would be a good first step! It’s easy once you get the country moving back towards Liberty!

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Posted by reinkefj to CHANNEL SURFING at 10:57 AM

JOBSEARCH: H1Bs benefit at the expense of American workers?

Senator Prods Microsoft On H-1B Visas After Layoff Plans Posted by Soulskill on Saturday January 24, @08:18AM

from the checking-their-priorities dept.

*** begin quote ***

CWmike writes “US Sen. Charles Grassley (R-Iowa) told Microsoft this week that US citizens should get priority over H-1B visa holders as the software vendor moves forward on its plan to cut 5,000 jobs. ‘These work visa programs were never intended to allow a company to retain foreign guest workers rather than similarly qualified American workers, when that company cuts jobs during an economic downturn,’ Grassley wrote in a letter sent Thursday to Microsoft CEO Steve Ballmer. The letter asked Microsoft to detail the types of jobs that will be eliminated and how those cuts will affect the company’s H-1B workers.”

Reader theodp adds, “On Friday, Microsoft coincidentally announced it would postpone construction of a planned $500 million data center in Grassley’s home state of Iowa, although work on data centers in Chicago and Dublin will continue.”

*** end quote ***

Sounds like the “barbara streisand” is going to hit the proverbial fan.

I’m no fan of gooferment action. But corporations are creations of the gooferment.

Sounds like INS should yank 5k of H1Bs serving Microsoft. Today!?!


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RANT: O versus L? The typical false choice.  

Are you with Obama or Rush?
1/29/09 8:00 PM EST
Updated: 1/30/09 4:37 AM EST

*** begin quote ***

Politico has learned that tomorrow Americans United for Change, a liberal group, will begin airing radio ads in three states Obama won — Ohio, Pennsylvania and Nevada — with a tough question aimed at the GOP senators there: Will you side with Obama or Rush Limbaugh?

“Every Republican member of the House chose to take Rush Limbaugh’s advice,” says the narrator after playing the conservative talk radio giant’s declaration that he hopes Obama “fails.”

“Every Republican voted with Limbaugh — and against creating 4 million new American jobs. We can understand why a extreme partisan like Rush Limbaugh wants President Obama’s Jobs program to fail — but the members of Congress elected to represent the citizens in their districts? That’s another matter. Now the Obama plan goes to the Senate, and the question is: Will our Senator”—here the ad is tailored by state to name George Voinovich in Ohio, Arlen Specter in Pennsylvania, and John Ensign in Nevada—”side with Rush Limbaugh too?”

Asked to respond, Limbaugh had a message for his party.

“Senate Republicans need to understand this is not about me,” he wrote in an email. “It is about them, about intimidating them, especially after the show of unity in House. It is about the 2010 and 2012 elections. This is an opportunity for Republicans to redefine themselves after a few years of wandering aimlessly looking for a ‘brand’ and identity.”

*** and ***

Senate Republicans acknowledge that they’ll lose some of their members on the first vote.

“We’re in a little different spot than the House in that we have a handful of Republicans who have all but committed to supporting the package,” said a Senate GOP aide.

The aide declined to say who, but speculation on both sides of the aisle is centered on a group of northeasterners — Senators Susan Collins and Olympia Snowe of Maine, Sen. Judd Gregg (NH) and Specter.

*** end quote ***

Everyone should be real clear. The “stimulus” bill is not about stimulus, jobs, or benefits for the “folks”.

It’s about socialism, pork spending, and making future voters for the democratic party.

Rahm told you that a crisis is a terrible thing to waste.

We’ve been hustled before — the Bush pre-rebate, the TARP, and now this!

And, the ad offers a false choice — O versus L?

I’m with neither.

The Republican Party NOW, when it’s out of power wants to “brand” itself as the party of smaller gooferment again. Where were they for eight years? We have the TSA, deficits, and out of control spending. All caused by a President who wouldn’t veto anything.

And, O wants to remake America on the basis of he “won” an election. Hey, guess what, more folks didn’t vote than voted. So you were elected by 28% to 24%. That should tell you that your plurality is very small.

More than half the Americans know they are getting screwed no matter which “side” won.

Not that there is much difference between EITHER “side”!

In this case, I am against the “gooferment enlargement” package.

You want to restart the economy. Shrink gooferment — Nuke the TSA, Kill whole gooferment department and agencies, stop the psuedo drug war, pardon all non-violent drug offenders, and return to normal. Cut the corporate tax to ZERO forever. It’s a sham; only real people pay taxes. Corporate taxes hide how much the gooferment is stealing from us.


# # # # #

RANT: Fixing a broken leg? Corporations receiving bailouts look overseas

Report: Over 8 in 10 corporations have tax havens
Jan 16, 6:28 PM (ET)

*** begin quote ***

WASHINGTON (AP) – Eighty-three of the nation’s 100 largest corporations, including Citigroup, Bank of America and News Corp. (NWSA), had subsidiaries in offshore tax havens in 2007, and some of the companies received federal bailout funding, a government watchdog said Friday.

The Government Accountability Office released a report that said Bank of America Inc., Citigroup Inc. (C) and Morgan Stanley (MS) all had more than 100 units in countries that maintain low or no taxes. The three financial institutions were included in the $700 billion financial bailout approved by Congress.

*** end quote ***

Corporations are a product of the gooferment. Why are we surprised when they take bailout money and setup tax shelters? I’m sure the congresscritters will “fix” this! (Fix in the sense of amputating the broken leg!)


# # # # #

LIBERTY: What will be foisted upon us now!

Tuesday, January 27, 2009
Thomas Sowell :: Columnist
What Are They Buying?
by Thomas Sowell

*** begin quote ***

What are the Beltway politicians buying with all the hundreds of billions of dollars they are spending? They are buying what politicians are most interested in– power.

In the name of protecting the taxpayers’ investment, they are buying the power to tell General Motors how to make cars, banks how to bank and, before it is all over with, all sorts of other people how to do the work they specialize in, and for which members of Congress have no competence, much less expertise.

This administration and Congress are now in a position to do what Franklin D. Roosevelt did during the Great Depression of the 1930s– use a crisis of the times to create new institutions that will last for generations.

To this day, we are still subsidizing millionaires in agriculture because farmers were having a tough time in the 1930s. We have the Federal National Mortgage Association (“Fannie Mae”) taking reckless chances in the housing market that have blown up in our faces today, because FDR decided to create a new federal housing agency in 1938.

Who knows what bright ideas this administration will turn into permanent institutions for our children and grandchildren to try to cope with?

*** end quote ***

It’s no doubt that politicians use crisis to consolidate and enlarge their power over us.

What will the serfs be saddled with now?

# # # # #

LIBERTY: Nationalization is one more step to the death camps

The Nationalization Debate Comes Out Of The Closet

*** begin quote ***

We’re finally beginning to remove the ideological blinders (socialism, socialism!) from our eyes and look at all possible ways to fix the liquidity crisis. This otherwise good NY Times article explores the pros & cons of nationalization but leaves out an important pro they’ve reported on in the past: it’s the most transparent, honest approach

*** end quote ***

Yeah, the gooferment is sooo honest. So good at everything they touch.

Sorry, it’s all about control.

Think Japanese Internment, the Civil War, and the Carter Inflation.

We’re all sheep. Being herded. Lucky if we just get sheared.

Government is dangerous.

Where’s my pitchfork and torch?

# # # # #

CORRUPTION: Barney Frank directing bailout funds

JANUARY 22, 2009, 2:45 P.M. ET
Political Interference Seen in Bank Bailout Decisions
Barney Frank Goes to Bat for Lender, and It Gets an Infusion

*** begin quote ***

Troubled OneUnited Bank in Boston didn’t look much like a candidate for aid from the Treasury Department’s bank bailout fund last fall.

The Treasury had said it would give money only to healthy banks, to jump-start lending. But OneUnited had seen most of its capital evaporate. Moreover, it was under attack from its regulators for allegations of poor lending practices and executive-pay abuses, including owning a Porsche for its executives’ use.

Nonetheless, in December OneUnited got a $12 million injection from the Treasury’s Troubled Asset Relief Program, or TARP. One apparent factor: the intercession of Rep. Barney Frank, the powerful head of the House Financial Services Committee.

Mr. Frank, by his own account, wrote into the TARP bill a provision specifically aimed at helping this particular home-state bank. And later, he acknowledges, he spoke to regulators urging that OneUnited be considered for a cash injection.

*** end quote ***

Maybe they will give you are ride in the “taxpayer’s” Porsche!

How do we have Barney Frank still in politics?

Gay prostitute. Community Reinvestment Act. Banking system abuse. Now this.

I don’t understand?

# # # # #   

POLITICAL: the only real way to economically “stimulate”

Collectivism’s Last Stand
by L. Neil Smith

*** begin quote ***

Politicians must be taught, in no uncertain terms, that the only real way to economically “stimulate” the Productive Class is to stop stealing their fucking money! If the government announced a total tax amnesty, as well as a complete, permanent end to individual and corporate taxes—repealing all unconstitutional economic regulations would help, too—this depression would be over by the end of the week.

*** end quote ***

You have to admire how LNS can “turn a phrase”!

Wonder if it would take all the way to the end of the week?

“Next day” might be a better estimate.

But, we don’t have to worry. It will never occur to the congress critters!

# # # # #

Politics: The Gooferment is the Problem, imho!

There’s No Pain-Free Cure for Recession
Belt-tightening is required by all, including government.

*** 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

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

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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.

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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?


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PRODUCTIVITY: Leaders empower their people  

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

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…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

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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.”
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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!

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: It is an honor to represent you in the United States Senate.