Federal Reserve:Printing Money-Buying MBS's

As we continue to hear the political drival coming out of politicians mouths about the economy coming around and prepared to grow, we get this great article from the Kansas City Federal Reserve President.

We are in serious trouble and it is going to be painful to get out of it! These little stories get buried because politicians don't want to hear (or tell) the truth. Politicians understand that "confidence" will get the economy moving. Unfortunately, politicians don't care if it is real confidence or false confidence. This article talks about the 'real' confidence...

Crony Capitalism

Government involvement in free enterprise is nothing new. At my most recent position within the ethanol industry, the entire industry is beholden to Washington policy.

This story by John Stossel sums up the real problems with Washington. Politicians are picking winners and losers and they shouldn't be...

Watch it here.

Lets Spend More Money!

Quick. Who would most likely say the following?

"The only way we are going to get out of this recession [that was created by spending money we didn't have] is to spend more money."

A Democrat? or a Republican.

I know. It is a dumb question. But here is the answer.

Bringing Reason, Logic and Common Sense to Government

I often think about running for Congress and I wonder what slogan I would want to summarize why I am running. Some people think you run on smaller government, lower taxes and eventually a slogan appears--such as, "It's time" was for John Thune's run against Tom Daschle.

But a slogan can help build momentum as well, and I have now come up with a slogan for my upcoming run for the US Congress.

"Bringing Reason, Logic and Common Sense back to Government"

What inspired me is watching this video by John Stossel regarding Anne Rayndes book Atlas Shrugged. He interviewed a bank president who ran his bank with the principles of self reliance and "selfishness." that is espoused in the book.

Watch the video here.

Now think about some of the businesses in South Dakota and see if they match the classic definition of a "win-win" and "lose-lose" scenarios involving businesses and customers. There are numerous businesses in South Dakota who don't subscribe to these scenarios. They really believe that if the customers lose, the businesses will win. I will name names at another time.

The ag community in SD needs to sharpen their opposition to cap and trade. The SD Corngrowers Association, at their annual Stephanie Herseth Sandlin Promotion Convention positively declared that they don't oppose cap and trade. Big mistake.

This is a good article here.

Republicans Must Propose Solutions

I have recently become frightened by professional Republicans. It was just yesterday I had the overwhelming feeling the Republicans were only capitalizing on the Democrat overreaching and not proposing any solutions to real problems our country is facing.

Now I read Peggy Noonan today and she feels the same way.

Don't get me wrong, to defeat health care and cap and trade would be major victories--and Republicans had a hand in their defeat. But I am concerned about the lack of ideas coming from Republicans--proactive ideas that identify and solve problems. I am concerned about the lack of proposals to significantly and immediately reduce the size of the budget deficit.

I am also concerned about a lack of understanding about the peril of our economy. I think Beltway staffers really believe the government reports that the economy is at the bottom and ready to rebound. Nothing could be further from the truth.

We are not at the bottom. We are not at the proverbial crossroads. Our country is teetering on the abyss, and one false move and we don't just lose some jobs, we lose our position in the world as a superpower, a leader, and the moral compass for those that dream of freedom.

In order to return from the abyss, we must act boldly and confidently. We must reduce the size and scope of government, and we must return to fundamentals. Now is not the time to talk about tax cuts. It is a time to oppose tax increases. Now is not the time to spend more money. Now is the time to freeze spending.

In a phrase, now is the time to reduce volatility in the marketplace. Set in place a tax code that will not change, which people can count on. This will encourage investment much more than promises of lower taxes. Set in place a comprehensive energy policy that encourages all forms of energy, including coal, nuclear and drilling. The next ten years isn't going to destroy the environment, but it could destroy the American place in the world.

Finally, Republicans must act with urgency and foresight. We can not afford to react in a crisis. We must be proactive and confident in our positions. We must promise to reduce the size of the deficits immediately--through the use of across the board cuts. This must be the law of the land until we have the courage to debate where we can agree to cut.

Washington DC is broken!

In the "if I said it once..." column...

This is a great article on how Washington actually "works" [sic]. Lobbyists (and staffers) have way too much power, and politicians have way too little understanding of what is going on...

Islamic Terrorists vs. Wasting money

This is not a picture of "invasion of privacy" and has nothing to do with "innocent until proven guilty." Right.

It is, however, an invasion of privacy to simply recognize the terrorist threat is brought to us courtesy of Islamic terrorists from Saudi Arabia, Yemen and other Muslim nations with names such as Mohummed, Akmed, and Muhommed. 

We are spending $8 billion per year, much of it in a misguided attempt to take the clothes off of innocent people, while bending over backwards to appeal to the constitutional rights of people hell bent to blow themselves up to kill us...

This is war, and it is time to take the gloves off, not our pants!

US is broke and China knows it

I suppose every former superpower thought they were the richest country in the world long after they weren't. I suppose they kept spending money like they actually had it to spend. 

We have heard how Reagan and America outspent the Soviets and won the cold war by bankrupting their controlled economic system. Capitalism was declared the victor over communism and invincibility was instilled in a generation of Americans. 

Unfortunately, the fabric of capitalism began to wear and become unravelled. The modern threads of unbridled consumerism and radical progressive change became separated from the old, time honored conservative threads of family, work ethic and thrift. 

So it makes sense that America will lose it's freedom during a time when so many believed we were being led by the Messiah, President Obama. Just one day after President unveiled a plan to spend $100 billion per year to solve global climate issues, the Chinese government warned that your American dollars don't have any value, and as your banker (or read slave owner), we think you should control your spending.

Imagine getting lessons on spending and economic theory from the Communist Chinese. So this is how are story begins to end. Our politicians will continue to spend money we don't have, but our creditors will reign us back in. Who would have thought that Communists would have the last word?

Quick Poll

If government takes money from me, and gives it to another person, would it be appropriate to ask the person receiving the gift to refrain from gambling, smoking, drinking, or any other activity that gets in the way of working a couple extra hours per week to not take my money?

Here are my list of expenses I would cut before I went without health care insurance...

1. Eating out/Going out

2. Cable tv

3. Cell phone

4. Movies

5. Any new clothes or accessories

6. Any subscriptions

7. Any travel

Further, I would lower these expenses...

1. Sell my home, or take in renters

2. Sell my car, and buy a cheaper one

3. Tear up my credit cards

Finally, I would take on extra work, look to move to a cheaper location or better job opportunity and/or lower my pride and work until I had things under control. Only then would I go without health insurance.

The reason I go through this little exercise is that I am tired of paying for people with different priorities. If I prioritize my life to work harder, longer and save more, invest in my future, I am not opposed to help other people, but I am not interested in paying for people who skate by and are "hangin ten." You dig?

So if you don't fit into this category, don't get all bent out of shape. But if you do, I am coming after you...You are not a victim. You are an indolent, dependent slug. 

I want to make it illegal to receive money from the government and then waste money. If you make a decision to become a ward of the state, the state then has the right to control your life...

Recession is over!!

It is true. The economy grew by 3.5% in the third quarter of this year. And I am not the only one who doesn't think you should buy that bottle of bubbly just yet.

See the real truth behind a sham GDP number here...

Democrat Strategy

I usually don't like to clog this space with Democrat drivel, but this was an interesting strategy piece from Obama's Organizing America website. Any Republican candidate should understand the magnitude of organization from the left..

Uniting the middle class is key. Dems will win much bigger in a progressive than in a liberal/conservative dialectic.

Dems need a strong progressive platform--and must prevent the GOP from driving lib/con wedges to divide and splinter it. It can do this be keeping up a relentless focus on economic and security issues.

ECONOMIC and SECURITY ISSUES:

1. TERRORISM DEFENSE PLAN. Iraq was a lie from the start, designed to benefit the war, oil and gas industries at the expense of the American middle class. It has done nothing to protect us from terror. Neither has the spike in non-Iraq conventional military spending at home.

While it is true that we do have a moral responsibility not to make conditions in Iraq any worse, we also have a moral responsibility to acknowledge that the President has seriously and immorally abused his office by lying to Congress and the American People to lead us into an unnecessary war for reasons that boil down to the avarice of the few; and in so doing has destroyed respect for our nation abroad, weakened our diplomatic credibility, undermined international law, damaged the UN, increased terror threats worldwide, volatilized world energy markets, weakened our ability to respond militarily to real and necessary global crises, weakened our ability to respond to terror and natural disasters at home by putting our National Guard and its equipment in Iraq, subjected our troops to unnecessary attacks, and pushed Islamic states towards more extremist regimes (as in Iran and Palestine).

We need to withdraw from Iraq as soon as possible in an orderly manner, seriously considering Senator Biden's Partition Plan as an appropriate and realistic solution for a Balkanized Iraq.

We need to abandon "neocon" policies of unilateral action, preemptive strikes, lying to the UN, abusing human rights and scoffing at international law by authorizing torture, the holding of prisoners without charge, the imprisoning of people without evidence, and denying due process of law.

We need to reaffirm our former policy of cooperative and diplomatic engagement of other nations, including promoting--rather than obstructing--important international treaties such as Kyoto that are necessary to secure the peace and prosperity of the community of nations and the evironmental integrity of the planet.

And finally, we need put into place real protection against terror at home. That means better policing our borders; securing our nuclear facilities, transportation infrastructure, government targets, and other high-profile targets; and adopting an approach that recognizes that terror is not war but international crime, and that it cannot be defeated by conventional military spending or "war".

That includes supporting and promoting religious tolerance through the encouragement and fostering of secular governments that recognize a policy of division of church and state.

It also includes subsidization of tolerance-teaching public education programs in nations with terror problems--and favored trade status and other incentives for nations that develop such programs and foster such policies.

It further includes programs to spur economic development in communities that are now hotbeds of new terror recruits.

Think Marshall Plan, not Iraq II.

2. A single-payer national health insurance program (HIP) with comprehensive coverage and freedom of choice as to provider.

HIP would save hundreds of billions of dollars in costs and restore market efficiency to the health care industry by eliminating zero-value-added private insurers whose every dollar in expenses or profit is a dollar taken away from healthcare Americans need; by eliminating the redundant bureaucracies of Medicare, Medicaid, and the VA; by leveraging single-payer status to negotiate fair prices with drug companies; by cutting providers' overhead costs (billing and float); and by regulating excessive awards to lower malpractice rates.

HIP would represent a huge economic benefit to consumers--46 million workers and children would be insured, and would not have to pay for healthcare out-of-pocket; millions more would be freed of burdensome co-pays and deductibles and paying dental and/or eyecare out of pocket.

Employers would see substantial, and possibly even total reductions in their health benefits costs. In one version, employers could be required to pay into the national Health Insurance Fund at a modest rate for each employye-hour worked (without regard to F/T or P/T status); in the other, employer-subsidized insurance could be eliminated entirely.

Either choice means a huge shot in the arm to businesses' bottom lines, and a big help to industries struggling to compete in the global market. HIP would therefore help reduce outsourcing, while creating great new jobs as providers expand to administer care to more Americans than ever before.

HIP is a huge economic issue--one could pass it on market efficiency alone, without even getting to the right to health insurance.

3. ENERGY SECURITY: this includes not just "energy independence" (domestic production of most of our energy needs) but also "economic security". We are currently experiencing persistent, energy (oil&gas)-fueled inflation and chronic interest rate increases. This drag on our economy will not stop as long as we remain open to gaming and gouging by foreign oil producers and disruptive acts of war. If we don't change course, we'll send the American middle class into serious recession.

We need to set the most aggressive clean and renewable energy standards, fuel efficiency standards, green building standards, appliance and electrical efficiency standards, and green government standards in the world.

This is partly economic self defense. We need to be ahead of the curve in clean tech, which is the future--we need to be selling this stuff overseas. It is also as part of a desperately-needed NATURAL DISASTER AND GLOBAL WARMING DEFENSE PLAN. Permitting global warming and pollution to threaten our agriculture, our cities and our coastlines spells economic disaster.

Energy security is an economic issue of staggering importance.

4. A Natural Disaster and Global Warming Defense Plan includes CUTTING SUBSIDIES FOR OIL and natural gas and coal, and putting the money into R&D for clean and renewable energy. WE have to be proactive. Global warming is real, and threatens our physical and economic security.

5. Completely PUBLICLY-FUNDED ELECTIONS and a NATIONAL TELEVISION STATION (NTV) allowing ample and equal time to all candidates, national and local, to present their positions and participate in debates.

Our current system of rampant corporate lobbying has resulted in the above-mentioned energy-fueled chronic inflation and interest-rate hikes and probable recession; it has put impossible burdens on American business and consumers by artificially driving up health benefits and healthcare costs; it has permitted the war industry and military contractors in combination with the energy industry to conspire to mislead America into war in Iraq--with devastating impact on our debt burden, creating a squeeze on social spending now, threatening to choke Social Security in the future.

These anti-middle-class, anti-consumer policies are just a few of those brought about by government by and for the rich. They constitute a drag on our economy by forcing consumers to submit to cash grabs by the supply-side plutocratic ascendancy.

Publicly-funded elections might be the single most important economic issue facing America.

6. Saving Social Security.

7. We need to BALANCE THE BUDGET to prevent the squeezing of social programs, and to stop supply-side sowing of Debt to choke Social Security in the future.

8. Balancing the budget entails progressive tax reform reversing tax cuts for the rich and eliminating loopholes and dodges.

That means creating a simple, progressive, consumer-friendly federal income tax code. One in in which the federal government does not act as a drag on consumption in a regressive system in which 31% of our revenues are raised through payroll taxes and 35% in federal income tax.

The poor should not pay federal income tax at all; the middle class should pay less; and the rich should pay their fair share. The rich should also be taxed progressively, like the rest of the populace. That means additional tax brackets.

9. Balancing the budget also entails cutting war pork. That means no more preemptive wars and no-bid contracts. It means getting out of Iraq as soon as possible, possibly through a partitioned Iraq stabilized with UN forces.

It also means erasing the GOP's absurd non-Iraq increases in conventional military spending that do nothing to protect us against terror. We need a smarter, smaller, more efficient army. It's not our job to permanently occupy nations. It was bad business for the British in their day, and it's still bad business now.

All of the above ought to be planks in a progressive platform designed to unite the middle class.

LIB/CON WEDGE ISSUES

The following issues are divisive WEDGES that splinter the middle class and should NOT be emphasized in democratic campaigns. That does not mean that candidates shouldn't say where they stand on these issues. It means they should say it quickly, say it's an issue the American People have to decide, and then get back immediately to the unifying, progressive issue they were talking about.

1. Abortion. Big divider, big wedge. State your position and quickly get back on the progressive platform. If dems as a party run nationwide as progressives and they'll win big and find themselves able to appoint liberal judges. If they run as liberals on wedge issues nation-wide, just watch what happens.

2. STEM CELLS are part of the abortion wedge. State your position and move on.

3. Gay marriage. State your position--point out that an anti-gay-marriage amendment is essentially silly--and move on.

CONCLUSION:

A national platform that embraces Economic and Security Issues and minimizes wedge differences will get farther in our Utahs and win more elections than a platform that deliberately focuses attention on wedge issues.

Fear of Global Warming

Probably the most disingenuous thing Pres. Barrack Obama has done was claimed people opposed to him use fear to sell their message. 

Nothing sells global warming and climate change like the end of the world. UK prime minister Gordon Brown pitches a fear fastball right down the middle of the plate in this BBC news piece and video.

This is worth watching.

Morality Deficit is Even Higher than Budget Deficit

In the previous post, I mentioned that we are adding $1.89 trillion to the national debt this year. 

I don't know how to actually track the morality deficit in numbers or dollars, but this video from Frontline shows the painful and costly tale of popular culture. If this doesn't break your heart, you really don't have a heart.

Budget Deficit and National Debt

I wish there would be some stories about why these numbers are so different...

Reported 2009 budget deficit (fiscal year ended September 30, 2009) = $1.4 trillion

National Debt as of Sept 30, 2008 = $10.024 trillion

National Debt as of  September 30, 2009 = $11.909 trillion

Actual Budget Deficit for 2009 fiscal year = $1. 885 trillion

There are two things you should be aware of with these numbers...

First, you should ask why the government's "official" budget deficit is nearly $500 billion less than the amount added to the national debt.

Second, you should know the government must sell treasury bills to finance the $1.885 trillion. Currently, only $900 billion have been bought by American people, and foreign people and foreign governments. Who do you think bought the rest?

The Federal Reserve. How can that happen? The government can't pay the bills so the Central Bank buys the debt. Hmm. I wonder if this concerns Tim Johnson or Stephanie Herseth--or anyone in government. It seems like when you look at those numbers, you wonder why we are even debating a health care program to add another trillion of debt that we can not afford...

Government Control Run Amuck

Government is broken. We hear about it all the time. But this story about government shutting down a neighbor helping a neighbor should shock you. 

For those of you that don't understand freedom and liberty and getting government out of our lives, you must read this article.

The state government in Michigan actually threatened a mom from watching kids waiting for the bus in the morning.  This must stop.

Social Security Insolvent: $150 billion added to federal deficit

Today, the Social Security program became insolvent.

Since its inception, Social Security was running a surplus, and promises of "lock boxes" and "trust funds" were made by politicians claiming that the program was flush with money and that we have many years of solvency.

We all knew this was bogus, of course, as I laid it out here last year. But now the Social Security program no longer will artificially lower our federal deficit, it will add to it. From today on, we will have to "borrow" money from the trust fund that we already spent.

Last year, when the federal deficit was around $480 billion, we added $1 trillion to the national debt. How was that possible? First, there was $350 billion of "off budget" spending such as emergency spending on the wars and economic bailouts. But more importantly, the surpluses of the Social Security trust fund was lent to the general budget (and not counted against the federal deficit).

This year, however, we will miss the opportunity to spend the $150 billion that was added to the general fund. Now we are forced to print more money to pay for Social Security.

Washington is broken and needs an honest analysis and serious belt tightening...

But here is the link to this groundbreaking story that no one will really cover...

Pop Culture Icon Offers Great Advice

Simon Cowell, of American Idol fame, is sitting at the top of the mountain. Fame, success and riches.

On his 50th birthday, he wrote this letter to his younger self, that summarizes his life--and to offer some advice...

The take away? 

1. Don't worry so much from day to day...

2. Don't buy something to impress others

3. Don't do debt

4. Work hard and believe in yourself..

Inflation at 18%?

If China and Japan do not buy additional debt, the cost for the US government to borrow money will go up (interest rates will rise). 

It should be STRONGLY noted that Japan is only buying SHORT TERM DEBT. America is not able to keep borrowing long term. It is simple as that. 

On a related note, the United States will have to borrow $2.5 trillion this year alone. In addition, the Obama Administration wants to push universal health care at a cost of $1 trillion over 10 years. Additionally, a cap and trade bill will cost Americans trillions of dollars in increased energy costs and inflation for EVERY product requiring transportation.

Now how do we expect to solve this problem with Washington living in a parallel alternative universe? The answer? We can't. We need some tough love for our elected leaders. The questions is, who will be the recipients of tough love, the producers or non producers?

Read the story of inflation predictions here.

American Debt Crisis

I have had many conversations with people in powerful positions in Sioux Falls over the last week. When asked what is the condition of America, all responded that we are somewhere between a 5 and 6 on a scale of 10. (10 being absolute destruction).

I maintain we are approaching a 9--in medical terms, it would be referred to as "approaching room temperature." Why do I have such a grim outlook when others seem fearful, yet confident we will recover? 

As person after person explained to me, there have been terrible times throughout our nations history. During WWII, imagine facing a world war. After the Korean War, but especially after the Vietnam War, our country faced mutually assured destruction. One individual says his mother truly thought during the Bay of Pigs that nuclear war was imminent. Finally another reminded me of the days of 18% interest rates and 10% inflation of the middle and late 1970's. America has always rebounded and come around.

But as I explained to them, we have never seen a time in our country where government promises and the government's ability to pay for them have been so far apart. We are adding $2.5 trillion to the national debt in a single year. We have $65 trillion of toxic assets that are bubbling right below the economic surface. 

And then this article explains the biggest problem of all. Record government spending over the next 30 years that will eventually bleed the taxpayers dry.

Don't miss it. This will make you reconsider the frightening future of America.