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Politics 2009-end

It does not require a majority to prevail, but rather an irate, tireless minority keen to set brush fires in people's minds” - Samuel Adams

"My friends, we live in the greatest nation in the history of the world. I hope you'll join with me as we try to change it." - Barack Obama

Let's start be determining who's responsible for creating the spending pipeline that resulted in our nation's debt orgy?
Who's been in control of congressional spending, virtually unopposed, for the last 75 years?

Microsoft Excel WorksheetMicrosoft Excel Worksheet

Chart Data Provided by the Senate and the House.

Perhaps it's best that the party of Woodrow Wilson, who presided over the introduction of our phony money via Federal Reserve, and our Marxist system of income taxation, is in power to preside over the collapse of their failed Wilsonian - Keynesian economic scheme.

NOTES

8-12
Video version shows he hit a couple feet short of the plate: http://www.youtube.com/watch?v=Ss5Mn1amhfk

8-5 Obama proposes billions to develop batteries for hybrid cars? Didn't anybody tell him that the electricity we produce to put in those batteries is generated from coal and diesel?

7-31 So the government steals $4500 dollars from future generations, to hand to each automobile owner of this generation, who is inticed by the money into turning their cars over to the government to destroy. This may result in the greatest amount of created wealth destroyed - with that sole intent - ever accomplished in world history.
Like all government programs, it will hurt the poorest and least able among us the most. In this case it will reduce the volume of used cars, thereby making them increasingly unaffordable to the poor, at a time when more people are and will be shopping for used cars than have been for decades. Just look at the prices on 5-10 year old Toyotas and Hondas with 125,000 miles or more on them.

7-30 And so Obama elects a diversion in the form of a beer party, for what he declared to be a "teachable moment". A moment in which he is the one that needed the lesson, but chooses to remain without.

7-26 From anonymous email:
The former Illinois governor who tried to sell the Obama seat in congress.  
 Barack Obama  quote: "I only saw Rod Blagojevich one  time ... and that was in the stands and from a distance at a Chicago Bears  Football Game."  


Rod Blagojevich, Barack Obama and Richard Daley during  a rally in Chicago , April 16, 2007. Photo Reuters.
Rod Blagojevich  (Democrat), Barack Obama (Democrat), and Richard M. Daley (Democrat -  Mayor of Chicago since 1989)
To understand  the next 4 years,  you have to understand the world according to Chicago .  

While it is a  city in Illinois, it is also a completely different country with a whole  different set of morals and language.

There are  only three rules which anybody can  understand.

You don't even need an attorney to understand them and if you need an attorney, well, you  know too much . . . so look out for rule #3!

RULE  #1...No matter  what you see, hear, or do, you don't know anybody and you don't know  nothing!   
RULE #2...If you capture something on tape or  camera, it doesn't reveal nothing!
RULE  #3...If you  know what everybody knows in Chicago, well, you still don't know  nothing.
Now pay close  attention!  We don't want to have to say this more than once. It's very simple . . . we'll illustrate.  Remember, you know  nothing.  
These two? They  don't know each other!  They said they didn't.


The fellas in the  background of this picture? Well, what fellas?  We don't see nothing!


The guy on the  left?  For all you know he's Santa Claus.  And the guy on the  right, well, he's the Easter Bunny!  That's all you need to  know.


Go to your eye  doctor...your eyes are lying to you!  Ca'pish?   


Remember Jimmy  Hoffa!  He knew too much and now, well, now no one knows where he is. Is the big picture clear?  Not these pictures!  Remember,  You've already forgot them...


Now, ain't that  simple? They don't know each other, 'cause they said so! and neither do  we!
And don't forget  it!  
P.S.   If you pass this  on to your friends, don't forget, you know nothing and they know NOTHING.  

7-22 An apology to the cops that Obama falsely accused, is out of the question, for a bigot with an ego the size of Obama's. Typical speak for liberals when they are caught in lies and compelled to defend them. They compound their lie by lumping all of the people involved into one group, as if all were guilty, in an effort to obfuscate their error, rather than apologizing for it.


 (link to this spot)

(update 7-12-09) In spite of a collapse in the cost of borrowing money, as shown by the ever lower T-bill and 5-year note rates in the chart below, our interest expense for fiscal '09 on U.S. debt is already at 320 billion, with a quarter yet to go.

Under the Clinton administration much of our long term debt was retired in favor of short term debt, to make it appear that our deficit was shrinking, because short-term instruments have lower rates of interest than long-term  (brainchild of then Treasury Secretary Robert Rubin (of Goldman Sachs 26 years)). The risk paid off right up until interest rates moved to lows not seen since the 1940s (likely no accident or chance). But here's the stunner. I did a search for "average maturity of U.S. debt", for the first time in a few years, and found this Encarta article: "Maturity of U.S. debt ranges from less than a year to over 20 years, with the average maturity about 3 years. More than half of the debt, however, is short term, maturing in less than a year."

It doesn't take a rocket scientist to see what will happen to our national interest expense, with just a little uptick in interest rates, from the absurdly low cost of borrowing the Treasury has enjoyed for many years now. In spite of lower and lower rates, each year we still pay more total interest than the year before, because our debt keeps climbing as shown in the chart at the top. The democrat government adding trillions of new debt within weeks and months of taking office.

What if short-term interest rates move to just 1%, which is a multiple of 5 times the 0.19% that T-bills yield now (July 14 '09 which is still higher than the average over the last 8 months (chart)? Now what if they return to the Jimmy Carter highs of 15% in 1980, which would reasonably reflect the risk of loaning money, to a government that obviously could NEVER pay it back? That would be a multiple of 75 times what our cost of money is today, just on the short-term HALF of our debt.

What foreigner in their right mind, would loan us money at 1/5 of 1% interest, with the currency risk reflected in the Dollar Index chart above?  It's obvious that NOBODY would, if they didn't have to. It's central bankers trying to keep brave faces as the entire global money system stands, not teetering, but having lost it's balance, at the edge of the abyss.
T-bill rate chart - table        Note we haven't seen T-bill rates this low since the 1940's.
5 year note chart - table

 (link to this spot)

U.S. DEBT INTEREST CHART

In spite of the steadily decreasing cost of borrowing over the last 30 years, with interest rates falling to lows not seen for 65 years, annual interest expense has steadily increased because of crushing increases in our national debt. Over just the first 3 quarters of fiscal 2009 the U.S. has paid over 320 billion in interest. With over half our debt paper having maturity of less than a year, what will happen to our annual interest expense, with just a little uptick in rates? Would seem debt interest promises to be the "smoking gun".
Chart debt interest numbers from treasury: http://www.treasurydirect.gov/govt/reports/ir/ir_expense.htm

Microsoft Excel Worksheet
"But the Emperor has nothing at all on!" Said a little child.  "Listen to the voice of innocence!" exclaimed the father; and what the child had said was whispered from one to another.  "But he has nothing on!" at last cried all the people.  The Emperor was vexed, for he knew that the people were right; but he thought, "The procession must go on now!"  And the lords of the bed-chamber took greater pains than ever to appear holding up a train, although, in reality, there was no train to hold. - Hans Christian Anderson

America, it's time to bend over, put your head between your legs, and kiss your tutu good-bye. We can thank Woodrow Wilson (_ylt=A0geu_EdAl1Kj0wB1sVXNyoA?p=edward+mandel+house+wilson+alter+ego&y=Search&fr=yfp-t-501&fr2=sb-top&sao=2Mandel House), the Federal Reserve, the Keynesians, and the early 20th century progressive movement, that is so aptly represented by our current democrat government. Perhaps that's where the buck should stop - pun intended. (end update)

"Give me control over a nation's currency and I care not who makes it's laws." - Baron Meyer Amschel Bauer Rothschild

The Dark Years are Here - by Egon von Greyerz – Matterhorn Asset Management - Ludwig von Mises Institute

6-17

Obama proposes "sweeping changes" giving greater powers to the Federal Reserve. It was reported as additional power for government, but anyone who knows anything about the Federal Reserve knows that it is a transfer of power from the U.S. government to a private banking institution that was established by the global family elites on Jeckyll Island. The "Federal" Reserve never even having been audited.

 (link to this spot)

(update 7-12-09) In spite of a collapse in the cost of borrowing money, as shown by the ever lower T-bill and 5-year note rates in the chart below, our interest expense for fiscal '09 on U.S. debt is already at 320 billion, with a quarter yet to go.

Under the Clinton administration much of our long term debt was retired in favor of short term debt, to make it appear that our deficit was shrinking, because short-term instruments have lower rates of interest than long-term  (brainchild of then Treasury Secretary Robert Rubin (of Goldman Sachs 26 years)). The risk paid off right up until interest rates moved to lows not seen since the 1940s (likely no accident or chance). But here's the stunner. I did a search for "average maturity of U.S. debt", for the first time in a few years, and found this Encarta article: "Maturity of U.S. debt ranges from less than a year to over 20 years, with the average maturity about 3 years. More than half of the debt, however, is short term, maturing in less than a year."

It doesn't take a rocket scientist to see what will happen to our national interest expense, with just a little uptick in interest rates, from the absurdly low cost of borrowing the Treasury has enjoyed for many years now. In spite of lower and lower rates, each year we still pay more total interest than the year before, because our debt keeps climbing as shown in the chart at the top. The democrat government adding trillions of new debt within weeks and months of taking office.

What if short-term interest rates move to just 1%, which is a multiple of 5 times the 0.19% that T-bills yield now (July 14 '09 which is still higher than the average over the last 8 months (chart)? Now what if they return to the Jimmy Carter highs of 15% in 1980, which would reasonably reflect the risk of loaning money, to a government that obviously could NEVER pay it back? That would be a multiple of 75 times what our cost of money is today, just on the short-term HALF of our debt.

What foreigner in their right mind, would loan us money at 1/5 of 1% interest, with the currency risk reflected in the Dollar Index chart above?  It's obvious that NOBODY would, if they didn't have to. It's central bankers trying to keep brave faces as the entire global money system stands, not teetering, but having lost it's balance, at the edge of the abyss.
T-bill rate chart - table        Note we haven't seen T-bill rates this low since the 1940's.
5 year note chart - table

6-11
Interesting video played backwards
http://www.youtube.com/watch?v=021drUxrzEw


6-8 Anyone holding corporate bonds better keep a sharp eye over their shoulder. We are learning that automotive CEOs Barak Obama, Barney Frank and Ruth Bader Ginsberg's willingness to go directly against bankruptcy law and simply nullify the "secured creditor" position of the bond holders of Chrysler. Same guys running the car companies are the same guys that are running the courts.

5-31

5-19


5-13-09 Does the U.S. want to remain deaf dumb and blind to energy independence? Try a Yahoo search like - cng utah

5-1-09 I no longer feel the need to do much with this site as I did through the years of crying out in the wilderness, warning of events that are now irrevocably set in motion, are increasingly self-evident. Many are now awake. I would venture that if Glenn Beck had seen someone talk as he is today, several years ago, he would have categorized him a "kook" as Rush Limbaugh and others still do. I don't have much time for this but every now and then I will add a little observation.

HOWEVER, as the government continues to amaze even those of us who expected the worst, and the shucksters on Wall Street and in the financial press seem to be back to their old selves as if nothing happened, as well as the still-deluded "investing" public. If they weren't why is so little said about the Price to Earnings? "A fool and his money are soon parted".

The chart below shows that orporate earnings have collapsed so fast that even with the dramatic fall of the stock market, it would seem it hasn't even begun to adjust to it with PEs on the S&P 500 at 120 times.


3-7-09 As it happened, the younger someone was, the more likely it is that they voted for Obama and democrats. So fortunately, the people who put this government in office will be the ones whose children, and children's children, will be stuck paying Obama's bills. Perhaps while renting from, and serving as domestics for, the Chicoms that are busily buying up American assets. The ironic thing is that all this squandered money is for the benefit of the politicians generation, and at the expense of the generation that voted for him the most!
But I guess it was inevitable that the U.S. eventually fall to communism as explored in this video.


2-26-09 Stunning even those who thought they knew how clueless the new government is, at a time when charities are hurting for donations, Obama decides to limit deductability of charitable contributions. Perhaps Obama never read "Atlas Shrugged". He apparently doesn't understand that ALL those productive folks he is out to punish can simply move ALL their charitable contributions OFFSHORE and leave U.S. based charities hanging out to dry. After all, the overwhelming majority of folks that are recipients of that aid voted for the Obama. Let him take care of them. The wealthy that he is out to get don't need this country either. They can live and spend their money, in countries that have open arms, which is what Obama has just invited them to do.

If that weren't absurd enough, at a time when a deflating housing market is reducing home sales, Obama decides to reduce home mortgage interest deductability. One has to wonder if his isn't a continuing - increasingly overt - attempt, to shut down the American economy completely, and ultimately make us subservient to foreign/global powers.*end update

Not that long ago America elected an all democrat government presided over by a peanut farmer. The price was a Fed Funds rate over 18% with mortgage rates and interest rates over 22%. The U.S. under Carter was reduced to government inspired social experimentation like wage and price controls to try to mitigate the mess.
The PE on the S&P 500 went to 7 TIMES EARNINGS.
It was ugly. Expect a rerun.


2-24-09 Hillary had to go to China - the last lender standing - to beg them for money - while stressing that we have no interest in their human rights abuses. One of the Chinese leaders actually expressed a hatred for America. How long before they become tired, of receiving virtually no interest for loaning us money, that they know will never be repaid? My bet is about as long as we buy enough of their stuff to make it worth their while. After that..... *end update


2-19-09 As expected Obama has chosen to reward the most reckless and greedy among us, at the direct expense of the children of those who chose not to throw money at a housing bubble, or buy more house than they could afford.
The tragedy is the framing of the money being squandered as "government" or "taxpayer" expense. I believe things would go very differently if it was framed more like:
"We democrats have decided to stick your children, and their children, with the expense of buying homes for people, who bought more house than they should have, at prices they never should have paid, on terms they never would have accepted, were it not for greed."
The reason it is called the "Public Debt" is because, while the government runs it up, it is American citizens that owe it. It is an impossibility that these bills will EVER be paid, let alone, by the generation that is generating them. Transparently fraudlent, the so-called "stimulus" plan only spends a small fraction of the funds this fiscal year. This bill should be dubbed The Communizing of America Bill. Once foreign lenders are finally convinced America will NEVER be able to repay the money we owe, expect interest rates to sky rocket to levels we experienced under Jimmy Carter and the last all Democrat administration. They will likely go even higher, to failed banana republic levels.
"We have decided to stick the children, and their children, of those that live in conservative states, with the bills of profligate spending states like Massachusetts, New York and California. This, even though California could pay all their bills if they helped our country become more energy independent, by exploiting offshore drilling, but a majority of their profligate government spenders choose not to, but instead prefer to accept welfare from the other 49 states." (end 2-19 update)*


2-19-09 At least the party of consummate evil wears it on it's sleeve for all to see:
"PROHIBITED USES OF FUNDS. - No funds awarded under this section may be used for - (C) modernization, renovation, or repair of facilities - (i) used for sectarian instruction, religious worship, or a school or department of divinity; or (ii) in which a substantial portion of the functions of the facilities are subsumed in a religious mission." Article*

The majority of voters got their Obamanation.
"The first thing I'd do as president is sign the Freedom of Choice Act.  That's the first thing that I'd do."
Senator Barack Obama, speaking to the Planned Parenthood Action Fund, July 17, 2007
This will nationalize abortion and nullify virtually all federal and state limitations on abortion, restoring partial birth abortion. The blood will be on the hands of those who voted for any democrat as the term "pro-life" and "democrat" have become evermore oxymoronic, with only about 28 pro-life democrats remaining in congress as of 2004, with none in positions of power.

Click here for images of the whole procedure.

In Illinois Obama voted against a ban on "live birth abortion" meaning if a baby is born live during an abortion, it could then be killed - outside of the womb.


1-9-09 Barak Obama said "expect trillion dollar deficits to be the reality for years to come". Unfortunately he wasn't predicting the inevitable result of this fiscal year's recession-caused reduction of revenue, but rather his promise to spend our way into them. Consider the charts above and below. We couldn't come within 500 billion dollars of a balanced budget before the global financial meltdown. With interest alone on our debt, of 450 billion dollars last year, what will the interest payments be that we are putting on our kids and grandchildren? Obama and his democrat congress have decided to convert the U.S. to the Union of Soviet Socialist Republics model. It should be obvious that this is about destroying our republic, not restoring it.
Obama also promised that those that live in fiscally conservative states will be forced to subsidize those liberal profligate spending states like New York, Mass and California, which will effectively end any kind of competition between states toward good governance, and end any reason to run any state with fiscal conservatism. This transfer from right to wrong is also very much within the U.S.S.R. model, the productive Polish describing the Soviet Union as a big cow that ate in Poland but was milked in Russia.
Obama demonized corporations, by mentioning the greed of a few CEOs, but for some reason never mentioned the greed of American individuals who threw their money at a housing bubble, and continue to throw their money at a stock market that, still today, remains at stubbornly high bubble style valuations.*


12-2-08 Barak Obama believes that the reason last summer's stimulus package failed to produce results was that the $150 billion just wasn't enough. Even before taking office Obama has already proposed spending in the neighborhood of 5 trillion dollars on bailouts and "stimulus" (including the 800 billion congress already committed). It doesn't take rocket science to understand that an increase of 50% in all of the debt accumulated over the last century, will result in a 50% increase in the interest we pay IF interest rates remain low, which will not be likely if foreign lenders seriously consider our inability to repay our debt. Particularly since we couldn't even service the 450 billion dollar interest bill for '07, how are we to service a 675 billion dollar interest payment for fiscal '08, with shrinking revenues, from a sinking economy? Could this break the U.S. and make us dependents of the U.N. - global community? Is that the intent?*


S&P PE updates:
12-2-08 Sadly, corporate earnings are sinking so much faster than the markets can adjust, that the PE of the S&P 500 is actually rocketing UPWARD as a result, making the price of stocks near historical HIGHS. In other words, today the market is priced higher than at any time in stock market history, except for a couple of mania peaks. From about a PE of 17 last year first quarter, to a PE of 25 at the end of the third quarter '08 (Chart BillandBearWise.com):*


11-17-08 Did the government need to bail out the steel industry in Pittsburgh? No. Is Pittsburgh better off for it? The residents of Pittsburgh would offer a resounding "yes". So why bail out the auto makers? Because it isn't a bail out of car companies. It is a direct transfer to unions, who are responsible for the problems to begin with.*

11-17-08 Obama was elected through mind-control, and George Soros money. Soros invested 18 million dollars toward his future during the Gore campaign. Remains to be seen how much he invested with the low profile he maintained this time in the Obama campaign as Obama's Colonel Mandel House. He had already donated lavishly to Obama's Senatorial campaign.

"In mid-March George Soros wrote his latest broadside against the "Israel Lobby"-calling for the Democratic Party to "liberate" itself from the influence of the pro-Israel lobby and stating that America should be dealing with Hamas, the terror group that is now the governing authority of the Palestinians." Expect a Soros/Obama holocaust against the Israelis.*



11-11-08 In spite of congress having the lowest approval rating of any in the history of the Republic - as low as 9% approval - voters actually expanded the number of democrat seats held in the Senate by 5 and in the House by 7, moving that party back toward it's 75 year running, virtual lock, on our government. But then for over half a century it has been government by the media.

The democrats are now firmly in charge of the Executive, Legislative and Judicial branches, with virtually no checks and balances.
The result they produce will leave them without excuse.

The German people elected Hitler who ran on a message of "change", "hope", and peace.
The ONLY change articulated by Obama was exactly the Soviet Union model of socalism through redistribution of wealth, along with an all out Federal Government assault against the unborn.
America elected an all democrat government presided over by a peanut farmer once too. We can be confident that we will receive exactly the governance we deserve. Or do we deserve it?

 (anchor)
Rather than foolishness this time it would seem America was seduced by Obama's masterful skill at "conversational hypnosis". An American Association of Physicians and Surgeons article recently suggested that Obama deliberately used techniques of neuro-linguistic programming - NLP a covert form of hypnosis. Very good PDF on the specifics of Obama's techniques.

Here's a brief YouTube on Obama's mind-control techniques:


11-11-08 Wasting no time by announcing repeal of executive orders banning fetal stem cell research as an act to occur on the first day in office we can expect labs to be used as baby manufacturing and dismemberment chop-shops for trafficking in sales of _ylt=A0geu5PMyRFJaRgBlZ9XNyoA?p=%5Cbaby+body+parts+for+sale&y=Search&fr=yfp-t-501&ei=UTF-8baby body parts in a _ylt=A0geu79fyhFJFckAMepXNyoA?p=embryonic+stem+cell+failure&y=Search&fr=yfp-t-501&ei=UTF-8futile effort to repair folks like Michael J. Fox with _ylt=A0geu.lkyhFJmfwAeclXNyoA?p=embryonic+stem+cell+no+success&y=Search&fr=yfp-t-501&ei=UTF-8embryonic stem cells. At least we know what's most important to Obama and those that support him.*

 
(URL Internet address to this spot)

It is instructive to note the responsible parties of the sub-prime mortgage mess. Keep your mouse over the video pause/play button. This one moves pretty quickly.

http://www.youtube.com/user/TheMouthPeace

"To spread the wealth the communist's willing:  He'll tax your pennies and keep his shilling."

Under Obama's redistribution plan, as many as 44 million Americans will receive a check in the mail every January, of money transferred from "wealthy" people. Laughably, the theory is that confiscating the fruit produced by a productive individual who became prosperous, would also transfer prosperity, from those "wealthy" folks.
It doesn't take a rocket scientist to figure out what that "found money" will do for booze companies, and illegal drug dealers. Rather than transfering prosperity it will instead convert prosperity into someone else's misery through substance abuse and subsequent wife beating, job loss, etc.

11-11-08 Last week Nancy Pelosi got on board with Obama's "stimulus" characterizing the checks in the mail as "tax cuts". Problem with the language is that those getting the checks don't pay income taxes to cut. Interestingly the government squandered 150 billion in "stimulus" last summer and the only result was a severely sold off stock market and deepening housing crash. All that effectively happened was to send another 150 billion dollars worth of debt down the pipeline to our children's children to pay in the future. Do we really need more of that? It used to be illegal to purchase votes.*

A government big enough to give you everything you want, is strong enough to take everything you have. - Thomas Jefferson

Typical Obama supporter at Bank Atlantic Center - (Scroll to about 3/4 of the way through video): "It was the most memorable time of my life. I...it... was a touching moment. Because I never thought this day would happen. I won't have to worry about puttin' gas in my car. I won't have to worry about payin' my mortgage. You know, if I help him, he's gonna help me." So goes the way of a once great Republic.


 (URL to this spot)

Is Barack Obama  a natural born U.S. citizen as our constitution requires?
(Former Attorney General of Pennsylvania filed suit for Obama to produce a birth certificate.)


Why can we suppose it is that the Islamic community, both national and international, embraces Barack Obama rather than condemning him? The penalty for apostasy, or leaving Islam, even today in many countries is death. Why did Kadafi refer to Obama as his Muslim brother?


 (anchor)
11-11-08 The most important enemy the new administration will recognize that it faces will be truth, as exposed by it's critics.
The only declared war of Soros/Obama is likely to remain only against the unborn and Israelis. Certainly not against those that consider the U.S. "that great satan".
The most important thing on the agenda will be control of speech. We have already seen, for example, that asking questions of Al Gore's global warming cult's view is characterized as "hate speech", equivalent to holocaust denial. Voices of dissention must be controlled because of this administrations immediate ambitions to turn United States sovereignty over to the United Nations. Obama has already supported a bill to transfer United States wealth to his home country of Kenya, and elsewhere, by making the U.S. subservient to U.N. international taxes under the guise of "relief".*


Perhaps it was poetic justice that McCain crashed and burned to a four million dollar TV infomercial slickster, as a direct result of his hand-holding with democrats in advancing George Soros styled campaign finance so-called reform, having been outspent by a factor of 4. Once again reinforcing that reaching a hand across the isle to the liberals only accomplishes getting it bitten off.

In Florida Barrack Obama said "vote early" - and thanks to Acorn - vote often. Likely the reason for telling people to vote early is that each day more people were catching on to the fact that you can't propose a trillion dollars in new spending and finance it with the 30 billion he proposed soaking the rich for. Last count taxes will increase for those making over $42,000.
Cuban Americans recognized the stunning similarity to the manic popularity that got Castro elected.

Obama got right in the spending groove though with his campaign burning 4 times as much cash as McCain's. Four million in a single TV infomercial that not surprisingly didn't explore how he plans to finance his promises. Would seem that George Soros preferred the background for this election. An obscene six hundred million squandered.
What might that money have done for someone like this little shaver.

I created this new page to serve as a blog.


MOST OF THE FOLLOWING WAS WRITTEN PRE-ELECTION

Over the last 10 years the Biden's averaged just $369 annually, in deductible donations.
Over the 5 years of 2000 through 2004 Obama's averaged just .9% of income donated, but once in the political spotlight juiced it up a little in 2005 and 2006, bringing the 7 year average up to 2.18% of income.

No surprise that those that haven't given a relative two nickels worth of their own income to help the poor, can't imagine the poor being helped by other than government sponsored programs financed by theft of the property of others.

The chart below is from The Generosity Index, compiled by The Catalogue For Philanthropy. It is computed by taking each state’s average income and average charitable contribution, then subtracting the second rank from the first to get a single number for each state. No surprise which states rank at the top of the list as the most generous, and at the bottom as the least.


No surprise then that the democrats, as a party, understand philanthropy to be a function of government rather than a personal responsibility. As we look more closely at the table we find that the chart also perfectly describes the story of the "widow's mite", as we witness the poorest states being the most generous, with some of the most well off states being at the bottom of the list.

Over the last 2 years John McCain's deductible donations averaged 22% of his income.
Over the last 2 years the Palin's deductible donations averaged 2.5%. With a lower income than the Bidens they still gave over the last 2 years, more than the Bidens gave over the last 8 years.

The quote above describing the cycle of a republic, perfectly describes this, our final election season, as a Republic. With the bottom 50% of tax filers covering only 2.99% of the entire national tax burden, and with God removed from public view obscuring the immorality of income taxation, it should come as no surprise that we have reached the point where the majority would vote themselves largesse at the expense of the minority.

In the context of the above, what percentage of the current electorate is in favor of having the government confiscate income from fellow Americans, and having it transferred to themselves to pay for their health care?

Anyone who characterizes our current global recession as a failure of capitalism, is clueless. It is a global failure of Wilsonian - Keynesian - Federal Reserve - styled, phony money.

As we review the charts above and see economies in the U.S., Europe, Russia, China, South America, and the Pacific Rim, sink, it becomes obvious that anyone who characterizes our overall situation as a problem of recent history, or a purely national crisis, is either a liar or a fool.

Particularly since the banking problems in Europe are looking as though they may be worse than the U.S.
Even Iceland is suffering a stunning banking crisis. Indeed today's events have been baked in the cake since Woodrow Wilson presided over the start of the Federal Reserve System, and Maynard Keynes, who brought us Keynesian Economics.

The cruelest thing the government can do, is to try to keep people in houses that they paid too much money for at the housing bubble peak, particularly cruel as prices will likely continue to depreciate through 2010, with the - current - 11 month supply of unsold houses hanging over the housing market. Keeping these poor folks in their home benefits the bankers, while Wall Street takes home 56 billion dollars a year - in bonuses alone. Almost 100 years ago, Keynes critics correctly predicted the catastrophic long run of Keynesian economics, ending in our present-day crisis. Keynes retorted "In the long run we're all dead".

2Timothy 3:13 But evil men and seducers shall wax worse and worse, deceiving, and being deceived.

"From each according to his ability, to each according to his need" - Barack Obama. Errrr wait, that was Karl Marx.
Obama puts it: "time to spread the wealth around". After all, it worked really well in the Soviet Union!
"To spread the wealth the communist's willing:  He'll tax your pennies and keep his shilling."

Obama wants to "spread the wealth". Put simply, Marxist confiscation and redistribution.
Obama was endorsed by the head of the Iranian Parliament
Obama was endorsed by Louis Farrakhan
The Democrat party benefits from voter fraud.
The Democrat party benefits from abortion.
The Democrat party is supported by Hollywood.
The Democrat party is supported by the liberal media elite.
The Democrat party is the party that instituted Marxist income taxes less than 100 years ago.
The Democrat party is supported by the terrorist organization Hamas.
The Democrat party is supported by all those who want the Jews driven out of Israel and into the sea.
The Democrat party is supported by Islam.
Two successive liaisons to the Muslim community from Obama's  campaign have been fired for ties to Hamas and Islamic terrorist organizations.
The Democrat party is supported by our enemies around the world.
The Democrat party is supported by Fidel Castro.
The Democrat party is the natural party home of atheists and agnostics.
The Democrat party launched an assault on free speech disguised in "hate crimes" legislation. Expect the end of any speech that disagrees with them, labeled as "hate".
Hey, but what's wrong with Islamic sharia law?
A woman's testimony in court is worth 1/2 that of a man's.
A woman's inheritance is 1/2 that of her brother's.
England has already allowed sharia law arbiters into their legal system. A case has already been allowed to be settled in England where the female received 1/2 as much inheritance as her male sibling.

Obama's already proposed 160 billion in new spending right out of the gate. Has that been our problem? Not enough government spending?

"The Great Depression--a failure of government intervention--was called a failure of capitalism, and was used to justify even more government intervention. We are seeing this same process repeat itself today." Dr. Yaron Brook

Anonymous email:
Catching Wild Pigs

A chemistry professor in a large college had some exchange
students in the class. One day while the class was in the lab the Professor
noticed one young man (exchange student) who kept rubbing his back, and
stretching as if his back hurt.
The professor asked the young man what was the matter. The
student told him he had a bullet lodged in his back. He had been shot while
fighting communists in his native country who were trying to
overthrow his country's government and install a new communist government.
In the midst of his story he looked at the professor and
asked a strange question. He asked, 'Do you know how to catch wild
pigs?'
The professor thought it was a joke and asked for the punch
line. The young man said this was no joke. 'You catch wild pigs by
finding a suitable place in the woods and putting corn on the ground. The pigs find
it and begin to come everyday to eat the free corn. When they are used to
coming every day, you put a fence down one side of the place where they are
used to coming. When they get used to the fence, they begin to eat the corn
again and you put up another side of the fence. They get used to that and
start to eat again. You continue until you have all four sides of the
fence up with a gate in The last side. The pigs, who are used to the free
corn, start to come through the gate to eat, you slam the gate on them and
catch the whole herd. Suddenly the wild pigs have lost their freedom. They run
around and around inside the fence, but they are caught. Soon they go back to
eating the free corn. They are so used to it that they have forgotten how
to forage in the woods for themselves, so they accept their captivity.
The young man then told the professor that is exactly what
he sees happening to America . The government keeps pushing us toward
socialism and keeps spreading the free corn out in the form of programs such as
supplemental income, tax credit for unearned income, tobacco subsidies,
dairy subsidies, payments not to plant crops (CRP), welfare, medicine,
drugs, etc.. While we continually lose our freedoms -- just a little at a time.


If there were a clock like the above for M3, or phony money production, it would be running at an even faster rate then the debt clock above.

On the insanity of banning short selling click here.
All of a sudden it's criminal to expose a company's stinky balance sheet and tell folks to sell it, but it's still not criminal to tell people a company is good and they should buy it, even though the average  PE of the S&P is stubbornly stuck at a whopping 25, even as the global economy shrinks and companies earnings follow suit? (update PE of the S&P looks more like 11 to 15 now as we BEGIN the fall earnings surprises).

Has anyone in favor of the 700 billion dollar spending package proposed a dollar by dollar public accounting for the funds? No. The reason being that they stuffed it full of pork. Congress is stealing your children's money and throwing it at the those that should be the last recipients of it. The money will go the way of the 150 billion dollar "stimulus package" - down a black hole. The AIG bailout financed a $440,000 luxury trip to a California retreat for top execs. Look for LOTS MORE of the same.


 (anchor)
(Update market close 10-9-08 after the 678 point sell-off today closing at Dow 8579, it is suggested that the PE of the S&P 500 is now at 12, though projections are that once earnings come in it will be at 15 times earnings, which is the historical average. The historical lows are, of course at 6 times earnings. With corporate earnings chasing the PE south, it could require a lot more blood letting from here.)*

What about those that blame it on Wall Street greed? If it weren't for the greed of deluded so-called "investors" throwing money at a market that sits at historically high valuations, there would be no such thing as Wall Street greed. But then I suppose that would require accepting personal responsibility for their gambling. A lot of folks perhaps don't even stop to consider that if they loose half of what they invest in the stock market, that they will then have to make a profit of 100% on what's left, just to get back to even. How long would it take in T-bills paying 1-1/2% interest annually?

We have read that there is a ton of cash sitting on the sidelines. Today 94% of mortgages are being paid on time. Why not let houses be foreclosed on, deflating prices to more affordable levels, to allow purchase by those that were more prudent than to throw their money at an unaffordable bubble-priced house? Why not reward those that were more prudent than to borrow long term with short term ARM instruments. In the late 80's and early 90's that is exactly how the prices readjusted. IN THE MARKET. Houses in the southeast lost maybe 1/4 to 1/3 of their value and houses in Texas 50% and much more in the collapse of the oil industry that resulted from oil going back down to $10 per barrel (also ending any economic sense in alternative energy solutions). Some contractors that built on spec went belly-up. It all adjusted and those involved learned valuable lessons about greed as well as patience and prudence.

Was the taxpayer responsible for speculators that chose to put their money into pets.com at the peak of the greatest stock market bubble/mania in the history of the Republic? Was it the taxpayer's fault that folks threw their money at the biggest housing bubble/mania in our nation's history? Is it the taxpayers fault that some still choose to continue to throw their money at an extremely overvalued stock market? Then why is the taxpayer - particularly those who chose not to take those kind of risks - being asked to make the gamblers whole?

Massachusetts is filing for part of the 700 billion dollar bail-out money because they bankrupted their state by instituting on the state level, the very same kind of health care system that Obama is proposing to enact, at the federal level. Another liberal big spending state California was first in line with their request.

Should we be surprised that early voting in Ohio has began Sept 30 and someone could go in, register to vote, pick up an absentee ballot, and vote all in one stop. Dig this. You didn't even need an ID. They allowed registration and voting with just the presentation of a utility bill. Reports from students are that they voted multiple times. Why not? All they would need is to collect utility bills to vote again and again. Of course the Obama campaign was right out front promoting it.

The above video doesn't even expose the relationship with ACORN (the Association of Community Organizations for Reform Now).
"As it stands, if the bailout proposal goes through with the counter-proposals from Sen. Sen. Chris Dodd (D-Del.), ACORN would receive 20% of 700 billion dollars of the bailout money." link to source  This is a corrupt socialist organization with leaders that have been indicted for record breaking voter fraud, and embezzlement. They were the recipients of the "community organizing".
Chicago Annenberg Challenge
More videos. George Soros aspires to be his Col. Edward Mandell House - his alter ego - since he can't run for president himself as a foreign born citizen.

Acorn and Voter Fraud


Connections


SOME Americans decided to gamble their savings in a stock market, that has been overvalued for decades, knowing that risk is proportionate to reward. Now that they see their retirement BEGIN to disappear they feel foolish for having gambled their future in such a cavalier fashion. But THEY WERE THE ONES who decided that 2% T-bill interest just wouldn't do it for them. THEY WERE THE ONES WHO BET THEIR FUTURE IN THE MARKET. If they lost money in Vegas would they look to the casino operator to make them whole or take personal responsibility for their actions? Yet those who didn't gamble with their savings, are expected to make New York City, two million dollar apartment dwellers, whole. It used to be that stock market downturns were a lesson to greedy speculators and vindication for those that didn't gamble with their hard earned money.

Stunningly the price to earnings ratio on the S&P 500 has stubbornly remained at 25 times earnings, in spite of recent corrections. That means that VALUATIONS ARE STILL IN HISTORICALLY HIGH BUBBLE TERRITORY, even as those "investors" weep over their retirement losses. Yet many remain "all in" for "the long haul".  Does anyone expect them to look in their mirrors when they play the blame game? You can see from the chart that the PE ratio of the S&P 500, at the depths of the bear markets in the mid-70's and early 80's, was around 6 times earnings. Business Week's headline read "Death of Equities". Unwillingness to allow the risk-takers their due will continue to make the future adjustment evermore painful and catastrophic.

The government announces it's willingness to squander taxpayer money to bail out irresponsible insolvent institutions, and the market surges with those hoping to claim their share of this new infusion of "money" that is being extorted from the taxpayer (actually foreign central bank lenders and ultimately our children).

Fannie Freddie - whose responsible?


Excellent video channel
 
(URL Internet address to this spot)


You have to wonder why the democrats would build a ticket with Obama, the #1 most liberal Senator and Biden the #3 most liberal Senator, in government. Does it really require any thought or effort to sign every bill that calls for more spending? That is except for those realted to our national defense.

Joe Biden condescendingly suggests that those making over $250 should feel more generous and "patriotic" enough to pay more. But what is Biden's personal record for helping the poor and downtrodden? Over the last 10 years he averaged just $369 per year in charitable contributions. Yahoo it. In the mold of Al Gore's nearly identical charitable contribution record.  Are people really duped that easily by vacant words spoken by hypocrites? Is that different than Gore's annual utility bill of $30,000 (including heating his pool in the winter time) while he beats the drum for energy conservation - that is - for those other than himself?

"To spread the wealth the communist's willing:  He'll tax your pennies and keep his shilling."

The "compassionate" liberals. Great paper on this subject by Taylor Caldwell: "Mr. and Mrs. Buttons"

Barack Obama's big idea is to confiscate more from each according to his ability to pay, and transfer the spoils to each according to his need. He calls this change. Those of us that are apparently a little more well read than Obama understand it as MARXISM. The former Soviet Union should have provided a sufficient example of the end result.  

This is the result of the immorality of income taxation which America has suffered under for less than 100 years. This is why our country was founded on consumption taxes, with freedom for citizens, not imprisonment for simply failing to produce income tax paperwork for the government.

Here's who currently pays:
http://ntu.org/main/page.php?PageID=6

Source: Internal Revenue Service
For Tax Year 2006

Top 1% - Those with average Adjusted Gross Incomes of  $388,806 covered 39.89% of the tax burden
Top 5% - AGI $153,542 - 60.14% of the taxes
Top 10% - AGI $108,904 - 70.79%
Top 25% - AGI $64,702 - 86.27%
Top 50% - AGI $31,987 - 97.01%
Bottom 50% - AGI <$31,987 - 2.99% of the total tax burden, is paid by the bottom 50% of tax payers.

While Obama believes the rich aren't paying their fair share, he hasn't breathed a word in regard to spending reductions, rather only spending increases. He's getting a lot of practice at squandering money with his campaign having - by far - the highest cash burn rate of any political machine in the history of the Republic.

Detroit Michigan is another example of shrinking revenue resulting from ever increasing taxation. Yet discussion this political season has revolved mostly around what to do in terms of taxation. McCain and Palin are the only ones that talked about reducing spending, both having histories of voting for reductions in spending, exercising veto power, and both experienced in reducing pork.

Global Warming and U.N. Mind Control

Part 2   Part 3   Part 4   Part 5

Maynard Keynes on Lenin: "Lenin is said to have declared that the best way to destroy the Capitalist System was to debauch the currency. By a continuing process of inflation, government can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily; and while the process impoverishes many, it actually enriches some. – As the inflation proceeds and the real value of the currency fluctuates wildly from month to month, all permanent relations between debtors and creditors, which form the ultimate foundation of capitalism, become so utterly disordered as to be almost meaningless; and the process of wealth-getting degenerates into a gamble and a lottery."

Higher taxes reduce incoming revenue. The former Soviet Union is an excellent example of the end result of income confiscation and redistribution.  The instituted, failed, and then repealed, "luxury tax" here in the U.S. was another classic example of capital confiscation shrinking markets, causing job layoffs and business failures, that reduced the incoming revenue stream rather than increasing it as intended.

Not since the Republicans abandoned their "contract with America" in 1994 have we heard the promise. Sadly, the polls showed that the American people were solidly behind that "contract", particularly through the government shut-down, but the whimps caved in to the media's constant drumbeat, in spite of the shut-down's popularity with the American public, and fiscal responsibility demonstrated.

Change, change, chaaaaaange, change of....
Well we haven't had a domestic terror attack since 9-11, so it's time to change that.
We are having some success in winning freedom and self-determination for the Iraqi people. Time to change that too.
Freedom of speech has served this country for 200 years, but it's time to change that too.
Our government apparently hasn't been confiscating and redistributing enough hard earned money so it's time to change that.
Congress is at a historically low 15% approval rating, but do you think the American people will change that? Not a chance.
Change, change, chaaaaaange, change of....
Obama's Missouri Prosecutors and Sheriff Truth Squad
An Obama Presidency
Can you believe the chutzpah of Alan Greenspan!  One would have thought he would have skulked off into the shadows hoping never to be noticed again, but instead he writes a book and points his finger.  
In the 1960's he was a gold-backed sound-money champion and Ayn Rand groupie.  But by the turn of the century, as chairman of the so-called Federal Reserve - a private banking institution with nothing Federal about it - the Creature From Jekyll Island - Greenspan presided over the creation of the largest amount of phony money of any currency in the history of the world.  HE BECAME everything he had earlier condemned in his 1960's paper "Gold and Economic Freedom", perhaps confirming the quote by Lord Acton, the British historian, who said: "All power tends to corrupt; absolute power corrupts absolutely."

 (URL to this spot)


Microsoft Excel Worksheet
Woodrow Wilson and Maynard Keynes' phony money chickens, comin' home to roost. The era of Keynesian economics is coming to a close. Maynard Keynes detractors predicted events of today almost 100 years ago.
"Faith that paper money itself was of any lasting value would have struck our forebears as patently absurd." - Christopher Mayer - writing for the Ludwig Von Mises Institute.
Microsoft Excel Worksheet
Microsoft Excel Worksheet
"But the Emperor has nothing at all on!" Said a little child.  "Listen to the voice of innocence!" exclaimed the father; and what the child had said was whispered from one to another.  "But he has nothing on!" at last cried all the people.  The Emperor was vexed, for he knew that the people were right; but he thought, "The procession must go on now!"  And the lords of the bed-chamber took greater pains than ever to appear holding up a train, although, in reality, there was no train to hold. - Hans Christian Anderson
The Federal Reserve was given control of mortgages in 1994. So who is surprised by the outcome?
Who would have thought that it would be the emperor that wound up pointing at himself!  In mid-March the Fed announced that they were standing by with however much money was required, to keep their Keynesian scheme afloat.  In other words, the supply of "money" available to them is infinite.  Perhaps it will need to be considering a 70 trillion dollar derivative liability in the markets.
Imagine how different the world would be if, in a single day, everyone in the world came to realize that the "money" of all of the nations of the world ..... isn't!  Watts of '65, Detroit of '67, on a global basis.
(Note on 9-29-08. Market down 777 points. Blame is placed on the bill being voted down. It's pretty apparent that the powers that be are intent on sending our children the bill for keeping their parent's generation's stock market speculation accounts from loosing value. What do young people starting their lives out, that have been making prudent personal financial decisions, think about this?
The problem is that so many drank the Wall Street cool-aide. They came to believe in the promise of a free lunch.)
(Note 9-30-08. Market up 485 points. How come nobody blames the up market on the bill being voted down?
Indeed more likely the market was witness to the panic buying of shorts getting killed, and having to buy ever higher, to close positions.)
THE POLITICS OF IT
Young people you've been had by "the man" again.
Housing "rescue" bill = Marxist redistribution = taxpayer destruction. Didn't we learn anything from the Soviet Union and Cuba?
Politicians have been talking about whether those mean nasty U.S. oil companies would or would not adjust the price of gas, in light of a tax, that is or is not imposed on them, and such.  How can they be so ignorant considering the high offices they occupy or are running for?  The price of gas is set by the GLOBAL buyers and sellers in the commodity market - every day - not at the whim of some U.S. oil company exec sitting with his feet up on a desk. Here is a link to a weekly chart of unleaded gas at the New York Mercantile Exchange.  This price is largely determined by the price of crude which is bought and sold the same way, and in the same place.
Buyers and sellers include producers, end product wholesales, and speculators. Without the added liquidity that speculators provide the market couldn't function nearly as efficiently as it does. The market works the same for oil, corn, livestock, cocoa, gold, or any other commodity.
Anyone who wants to join in the "profits" of these evil, nasty, greedy speculators, of whom about 80% LOOSE money in the commodity markets, is welcome to risk their retirement money into a contract at the CBOT or CME or New York Merc Exchange, or if money is more limited than the margins required, then an Exchange Traded Fund that tracks the price of oil, like the United States Oil Fund.

Oil companies that retail gas in the U.S. are in extremely close competition. If they weren't you would likely be driving to their competitor's gas pump. Perhaps you already shop for the cheapest. Some stations depend almost solely on profits from beer and Twinkies, with high volume gas at break-even prices, just to get you into their station store.
If the government merely announced approval to drill in ANWR, and offshore like our neighbors do, crude oil prices would begin a precipitous decline, perhaps back to the $10 that they declined to last time such a perception arrived.  What most folks who don't bother to inform themselves don't understand is that the proposed drilling in ANWR would only require a 6 acre footprint. That's likely smaller than your closest neighborhood park.
But the hippies and liberals have won that debate in their effort to transfer U.S. wealth to Hugh Chavez, Iran, Russia and Saudi-Arabia.  
But then the liberals may accomplish $10 a barrel oil yet again - but through deflationary depression.

Liberals and hippies prevented drilling ANWR.
Prevented developing offshore oil.
Prevented developing shale oil, a domestic resource larger than Middle East oil.
Prevented increasing our nuclear derived power from the measly 20% obtained that way today, with France at 80% for example.
Ted Kennedy and his cronies are fighting against wind energy generation. Expect plenty more of that with one-party control of government.
Liberals complain about a non-existent energy policy, that they fought tooth and nail, while stunningly pushing for more electric vehicles, to tax an already fragile electric grid.  All while suggesting that all we have to do is rely on energy sources that are 50 years away from development.

No surprise then that enemies of freedom around the world like Hugh Chavez, Fidel Castro and terrorist organizations like Hamas and Hezbollah voice support of the liberals. Yet amazingly the electorate can't seem to draw the connection. If raising taxes and increasing regulation and government paved the road to prosperity then the Soviet Union would have been the most dynamic economy in the world today.

Is it then a surprise that they receive the adoration of France, Germany, England and the rest of Europe? Hardly.
America has managed to remain slightly less socialist that Europe, which has allowed us to maintain a slight competitive advantage. Liberals in control across the board in government, with the promises they have made just to date, will invert that advantage in a New York minute. We'll wind up importing more goods from Europe having lost our competitive edge around the entire world. Europe is licking their chops for it. So are terrorists.

Consider the debt clock above. How much of the debt is represented by increased energy expense borne directly by the government, with over half of our working population directly or indirectly in government employ?
When I use the term hippie I refer to those that cut their hair, but failed to mature beyond that.

One thing is for sure. This November our nation will receive exactly the governance it deserves. The House already passed, and pending Senate approval, is a bill that will criminalize truth as hate speech.  We have already heard voices seeking reason in the environmental debate, characterized as "hate speech" and equivalent to "holocaust denial".

Poor people and the elderly on fixed income can thank the liberals for electricity and gas taking an ever greater share of their already thin disposable income. Next time you are having to choose between medicine and electricity, thank the liberals for skyrocketing energy costs resulting from diminishing domestic production and their backwards, archaic, 1970's styled anti-nuclear buffoons.  

Here is a cute little nuclear reactor, the size of an average household water heater, for a remote Alaskan town.
France is much more densely populated than the U.S. yet 80% of their power comes from nuclear reactors compared to 20% in the U.S.

How many more poor and elderly people are we willing to continue to sacrifice on the alter of pseudo science, under the spurious guise of "correcting" climate change?

The caribou love the  Alaska pipeline.

As an aside, nature produces 29 times the CO2 of all fossil fuel burning and forest prescribed burning.  Termites alone, produce 10 times the CO2 of all fossil fuel burning. So  who owns the environmental movement? Is this "environmental movement" simply about mind control?
MORE ON MONEY
And now with "helicopter" Ben Bernake repeatedly lowering rates to the further destruction of our phony dollar we can see how this tightrope act would seem to be reaching a conclusion.  The rock and the hard place.
With a grossly overvalued stock market shaving a few points, and a little of the fluff gone from the housing bubble/mania, the financial pundits are all screaming for the Fed to lower rates, and the Fed has accommodated apparently not getting that Japan's rates were around 1/2 of a percent (even to 0% I believe) for much of the 20 consecutive years of deflation. And they began their depression with one of the world's strongest currencies, and as the world's leading creditor nation, and with one of the world's highest savings rates.  None-the-less Japan lost 80-90% of the value of their real estate market during that deflation.  Lower rates didn't do it for them, and all it is doing for us is further destruction of our "dollar".  Why borrow money when you know that whatever you do with it will be worth less the longer you hold it?
"History does not deal kindly with the aftermath of protracted periods of low risk premiums," "Such an increase in market value is too often viewed by market participants as structural and permanent." Alan Greenspan, 2005
Why not lower the rates to 0%?  I'm sure the world would then be really eager to finance our debt with no interest return on their money, in a currency that will likely depreciate at 10% or so per year, relative to their own.  Oh well. I guess that's what we should expect when values are set by non-productive and arbitrary setters of value, in a Keynesian financial system dependent on them.
To top it off, some politicians answer is raising capital gains tax to 25%, rather than cutting spending!  This means that after selling an asset, an investor would only have 3/4 of the gain left. Then in order to justify reinvestment of that money into another asset/business, it would have to realize a 33% profit on that amount - in the first moment of acquisition - in order to return the investor only back to a zero position.  Starting with a weak economy, it would put the economy into a deep freeze.
Microsoft Excel Worksheet
Here's a fun U-tube on debt as money.  While a good discussion about money, the conclusions and repair suggestions are liberal and unrealistic.  If history is any guide, the only "fix" for phony money begins with economic collapse, followed by a collective interest in returning to sound money.
So why would anyone loan our government money at 4% interest, when the Fed has depreciated our currency by 15% over the last year alone?  And by 36% over the last 5 years.  Could it be that the world's central bankers understand how fully they are involved in a game of musical chairs - marching in a circle with their paper hats on - in which they also understand there are no chairs whatsoever?
Some in Congress even had the nerve to launch a charade putting oil executives in the hot-seat for the price of gas going up, while it is our ability to purchase it  with U.S. dollars that has been being destroyed.  This even though crude oil is traded, and the price set, on the world market.
Any politician that blames the executive branch, or the presidency, for the Fed's blizzard of fake money housing bubble and bust, in it's near-century-old Keynesian scheme, should automatically be disqualified from serving in public office, purely on the basis of sheer stupidity.
Monthly chart of the U.S. Dollar Index as of 3-19-08 below.
http://futures.tradingcharts.com/chart/US/M
Click on chart for current weekly chart.
"Helicopter" Ben Bernake will now commence with an even greater blizzard of cash financing a chicken in every pot.  Politicians from both sides fell all over each other to promise a few hundred bucks to voters in another wealth redistribution scheme.  But who pays the bills after the so-called stimulus drunken binge is over?  At least to Greenspan's credit, when faced with a slow-down, he suggested that a broad-based, middle class tax cut, was the worst possible thing that Congress could do, and that permanently eliminating capital gains tax, would be the best form of stimulus.

Here is what the Marxists in Congress will do to "fix" the problem.
1)  They will make whole stock market speculators and the greedy people who had no savings, and still bought larger homes than they should have, or those without savings who shouldn't have bought in the first place.
2)  A blizzard of money will destroy the value of the savings of those who worked hard all their lives and maintained their finances conservatively.
3)  The stimulus will be financed on the backs of hard working conservative people who live within their means, bought homes they could afford, and saved for a rainy day.
The result will, of course, be a further collapsing dollar, and continuing skyrocketing debt, the interest alone on which we paid over 429 billion dollars last year.

Here's the funny part.  All of the stimulus will be geared toward increasing consumption of exactly those who are already living above their means, as evidenced by a negative savings rate.

"Encouragement of consumption is no benefit to commerce, for the difficulty lies in supplying the means, not in stimulating the desire of consumption: and we have seen that production alone furnishes those means.  Thus, it is the aim of good government to stimulate production, of bad government to encourage consumption." - Jean-Baptiste Say - "A Treatise on Political Economy", 1803

POLITICS 2008

Oh well, I guess representative republics were only meant to last until Marxism replaces morality, and an ignorant majority believes it can gain materially, by voting itself largesse at the expense of the prudent minority.

Woodrow Wilson is responsible for our phony money via the Federal Reserve.  But who is historically responsible for our evermore exponential debt?  It's congress that controls the spending.

Microsoft Excel Worksheet

We can see from the chart that prior to 1994 Democrats held overwhelming control of the House for nearly the entirety of the prior 60 years, beginning in 1933.  In fact ALL of the tiny portions of Republican control since then have included extremely narrow majorities by comparison.  Recent years of historically unprecedented Democrat filibusters of Republican judicial appointments aptly demonstrated that the Republican's majority margin was too thin to offer any congressional power whatsoever.

The few moments of Republican SHARED control, throughout the last 74 years were saddled with spending that was already in the pipeline - increasing since Roosevelt.

In '06 America decided to put the party back into power, that's been historically overwhelmingly responsible for the profligate spending expressed on this page, and our nation's obvious inability to finance it.  But then it has been government by the media.  But the republican congress has shown no restraint either, since abandoning their "Contract with America", in the early 90's.  Bush Sr.'s "Points of Light" and the two Bush's profligate spending piled on.  Particularly via the Medicare Prescription Drug Benefit.

Microsoft Excel Worksheet

During the 60 years prior to 1994 Democrats also held nearly complete, and usually overwhelming, majority control of the senate, with the exception of 6 years under Reagan during which the Senate Republicans had to contend with an obstructionist Democrat majority in the House.  

"Don't gamble. Take all your savings and buy some good stock and hold it til it goes up then sell it.  If it don't go up, don't buy it." - Will Rogers

Chart Data Provided by the Senate and the House.

POLITICS 2008

The author of the U.S. DEBT CLOCK also has a crime clock listed under "politically incorrect" that can be accessed on his site at hhulen.com.  Note the figures for "defensive gun use by law abiding citizens" and then ask yourself why so many of our masters in congress want to take away our ability to defend ourselves.  Here is a link to the home page of TopTips.com.
 
ON SHORT SELLING

I was stunned when the English banned short-selling in a fanciful effort to make their stock market go up. But NOTHING lifts a market more rapidly, or hysterically, than short seller pain resulting in a subsequent manic buying panic to cover their position.
In the days following 9-11 when nitwits declared it "immoral" or "unpatriotic" to short sell, nobody took short positions. Predictably the market dropped day after day as "patriotic" longs piled in, and then as the buying dried up, could only exit in pain, leaving the market lower with each successive wave of buying and running away.
Without shorts buying to cover, rocketing the markets higher - particularly from the stinkiest bottoms - there would have been no end to the successive waves lower. After several days of that they announced that everybody - including shorts - were welcome back into the market. That morning it opened and as I remember was up 300 or 500 points in the first 20 minutes, on the backs of the short-sellers that had jumped in, and then were each required to cover at their own individual threshold of pain. The market never looked back. The negativity of 9-11 proved the perfect catalyst to rocket the market higher on fear, that had been dropping steadily long before 9-11.
So what's the brilliant solution by government nitwits and wall street regulators when shorts and their negativity could be the perfect advantage? In their effort to keep an S&P afloat (with a stunning PE of 25, keeping it still in the bubble stratosphere)?
Their bright idea is to ban short selling! Their folly will be found out in very few market days.

Don't drink the Kool-Aid