Born 1776, Died 2008

Professor Joseph Olson of Hamline University School of Law, St. Paul, Minnesota, points out some interesting facts concerning last November’s Presidential election:
Number of States won by: Democrats: 19 Republicans: 29

Square miles of land won by: Democrats: 580,000 Republicans: 2,427,000

Population of counties won by: Democrats: 127 million Republicans: 143 million

Murder rate per 100,000 residents in counties won by: Democrats: 13.2 Republicans: 2.1

Professor Olson adds: “In aggregate, the map of the territory Republicans won was mostly the land owned by the taxpaying citizens of the country.
Democrat territory mostly encompassed those citizens living in low-income tenements and living off various forms of government welfare…”

Olson believes the United States is now somewhere between the “complacency and apathy” phase of Professor Tyler’s definition of democracy, with some forty percent of the nation’s population already having reached the “governmental dependency”

Obama’s election brought the United States astronomical public debt, a slumping currency, increasing government control of the economy, continued job losses, radical judges, a disastrous foreign policy, a proposed government takeover of health care and a job-killing energy bill. Americans — some unwittingly — put in place the most radical government in generations, and they now are realizing what they have wrought.”

And if American freedom dies it will be the enablers in academia, left -wing religion and journalism that are partly responsible for its demise.The underlying myth in much of their “reporting,”and teaching has been that free market capitalism was a greater threat to human happiness than communism or socialism!

In many ways the USA is rapidly approaching the economic situation that precipitated the rise in power of Adolph Hitler in Germany. With the massive spending of money that the Treasury is printing on a 24 hour cycle to fund the outlandish social programs the Congress is passing to satisfy the Marxist in the White House. We are setting ourselves up for this scenario as described in Wikipedia.

In 1922 and 1923 Germany was hit by Hyperinflation. This means massive rise in prices, everyone was affected by this. Te confusion caused by the hyperinflation led Adolf Hitler to believe that he could take power in Munich in November 1923. The attempt failed. Hitler believed that the government was so unpopular that Germans would be on his side. Hitler was arrested for high treason. While Hitler was in prison he wrote a book called my struggle(Mein Kamp), he became very popular with the Germans.

When Hitler left prison he set up a proper political with a national organization. He set up different sections for the party teachers, women and children. He appointed Josef Goebbels as head of propaganda.

There was bad employment IN Germany as we have here in the USA, and the prdictions are that it will get worse!. From 1929 support for the Nazis grew steadily. Most of what Hitler did in his quest for power was legal. Such as his move to centralize all aspects of German government, social life and its economy. Sound familiar!

The nazi party was well organised and had the support of Alfred Hugenberg who was a millionaire and owned 53 newspapers.And Hitler was an eloquent speaker who could motivate people not unlike the man we have in the White House!

The career of Adolf Hitler was marked by a spectacular rise to power. He went from being a nobody in the streets of Vienna to the supreme leader of one of the most powerful nations on earth. Hitler came to power through a combination of legal means and backroom politics. The events leading up to the rise of the Nazis and Hitler are prime examples of the myriad of factors intertwining in the area of social action. Economists view the economic conditions as the major reason for the downfall of the Weimar republic and the rise of the Nazis. Are we heading toward the fate of the Weimar Republic?



Posted in

Government’s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.” —Ronald Reagan

Pollster Frank Luntz understands wahtpresident "Rexus Magnumus" meant!. In a recent column for The New York Daily News, Luntz reports on his interview survey of 6,400 people, the results of which appear in his new book "What Americans Really Want ... Really." Luntz discovered that people are angry with the government because of the lack of accountability by our leaders and a lack of progress on anything meaningful in Washington.


The "absence of accountability," he writes, "ranks No. 1 in the hearts and guts of the average American. It is as though they get elected and move to Washing ton, and forget who sent them. I sincerely believe they live in a unpenitrible bubble only accessed through and by special interests that will keep them in their powerful seat!
Washington spends billions to bail out big business and then can't explain where the money went. Washington spends $800 billion on a stimulus package filled with earmarks and pork projects. And now Washington is trying to create a trillion-dollar health-care experiment when over 85 percent of Americans are satisfied with their health care just as it is."

Luntz continues: "This could be forgiven, perhaps, if those elected officials from Washington exhibited even an ounce of respect for the voters who pay their salaries. But the combination of a political class that ignores those with whom they disagree and a business class that ignores the very real suffering of the working class (if they are, in fact, working) while pocketing million-dollar bonuses has convinced the public that no one cares."

 As a candidate for president, Barack Obama decried the financial toll that the Iraq war was taking on the economy, but Obama’s proposed spending on welfare through 2010 will eclipse Bush’s war spending by more than $260 billion.That is a quarter of a trillion. The figure we never heard about until Obama and his Congress took over!


Even after he has been in office for eight months he is still blaming Bush for the deficits we are builing. It is time for people to realize that he owns the debt now and has done nothingto reduce it, but doubled up on the debt!
“Because of the Bush-McCain policies, our debt has ballooned,” then-Sen. Barack Obama told a Charleston, W.V., crowd in March 2008. “This is creating problems in our fragile economy. And that kind of debt also places an unfair burden on our children and grandchildren, who will have to repay it.”

During the entire administration of George W. Bush, the Iraq war cost a total of $622 billion, according to the Congressional Research Service.

President Obama’s welfare spending will reach $888 billion in a single fiscal year--2010--more than the Bush administration spent on war in Iraq from the first “shock and awe” attack in 2003 until Bush left office in January.

Obama’s spending proposals call for the largest increases in welfare benefits in U.S. history, according to a report by the Heritage Foundation, a conservative think tank. This will lead to a spending total of $10.3 trillion over the next decade on various welfare programs. These include cash payments, food, housing, Medicaid and various social services for low-income Americans and those at 200 percent of the poverty level, or $44,000 for a family of four. Among that total, $7.5 trillion will be federal money and $2.8 trillion will be federally mandated state expenditures.

“One in seven in total federal and state dollars now goes to welfare. But this is a completely unknown story,” Rector said. “This is not being reported. No one knows Obama is spending $10 trillion on welfare.”

Welfare spending has taken its toll on the federal debt. Since the beginning of the “war on poverty,” $15.9 trillion has been spent on welfare programs. The total cost of every war in American history, starting with the American Revolution, is $6.4 trillion when adjusted for inflation.

Welfare has been the fastest growing part of the federal government’s spending, increasing by 292 percent from 1989 to 2008. That’s compared to Social Security and Medicare, which grew 213 percent, the study says.And the Left ignores their handy work, and screams about the increased cost of private medical care!

Adjusted for inflation, welfare is 5 percent of the gross domestic product today. It was only 1.2 percent of GDP in 1965, the report says. Also, over the next decade, $1.5 trillion in welfare benefits will be paid to low-skilled immigrants.
Adjusted for inflation, welfare is 5 percent of the gross domestic product today. It was only 1.2 percent of GDP in 1965, the report says. Also, over the next decade, $1.5 trillion in welfare benefits will be paid to low-skilled immigrants. Mostly to people who sneaked across our pourus border!

Still, high levels of poverty are reflected by the U.S. Census Bureau because shockingly, the bureau counts only 4 percent of the total welfare spending as income when it calculates poverty. Thus, most discussions on poverty begin on the virtual premise that welfare does not exist, the study says.

“None of the $800 billion being spent is counted as income, so the Census comes back and they say, ‘Oh my goodness, we have 40 million poor people. We need to spend more money,’” Rector explained. “That is a game WE taxpayers can never win.”

Despite the fact that the highly touted stimulus spending has not reduced the unemployment rate, nor has it limited it to 8.5% as Obama predicted.With an unemployment rate of over 10% and climing the Democrat controled Congress is proposing another round of stimulus spending.

The "royalty in Washington apparently are either out of touch with reality or simply do not care what those who put them in the priviledgrd position by voting for them.
Congress has appropriated so much money that the Congressional Budget Office forecasts that Obama’s spending plan would leave a deficit of $672 billion by the end of 2013. Explaining the differences between his projections and CBO’s, Obama said his administration projects a higher growth rate.

Well he is being overly optimistic or flat out lying, as most sane economists predict a growth rate of less than 2%! It makes sense when you consider the negative affect that his Cap and Trade Bill
will have.
It is also important to understand that “cutting the deficit in half” is a deceit for the fact that it means he’ll still be running up a record deficit of over 600 billion a year. That is not progress in deficit reduction or “fiscally responsible” government. But it sounds good when thrown out there in a sound bite. Maybe this will help make my point:

Both the most “pessimistic” and his own projections see huge deficits projected well into the future, and as many economists have said, unsustainable deficits.

So let’s get a few facts straight concerning spending and deficits before Obama took over as president and after. The then and now!
Obama has been trying to pass himself off as a fiscally conservative leader, but his true tax-and-spend identity is starting to show through as he claims that a government “rescue” of the economy (as if any such thing were even possible) is more important than budget deficits or the federal debt.In simple terms obama believes(or at least wants us to believe)that spending money that is worthless, because it exceedes the GNP, will get us out of the economic mess we are in!

President Bush expanded the federal budget by a historic $700 billion through 2008. President Obama has added another $1 trillion.

President Bush began a string of expensive financial bailouts. President Obama is accelerating that course at breakneck speed.

China, the biggest overseas holder of U.S. Treasuries, trimmed its holdings of government notes and bonds by $4.4 billion to $763.5 billion in April. Premier Wen Jiabao said in March that he was “worried” the dollar would weaken as U.S. President Barack Obama sells record amounts of debt to fund his $787 billion economic stimulus plan.

“The objective is to develop a substitute for the dollar as the world’s reserve currency,” said Tim Condon, Singapore- based head of Asia research at ING Groep NV, part of the largest Dutch financial-services group. “That will reduce the ability of the U.S. government to finance deficits with impunity.”

Even Germany has said at the G8 summit, that we should cut back on spending!

Government isn’t the solution, it’s the problem! Ronald Reagan

British economist John Maynard Keynes argued in "General Theory of Employment Interest and Money" that lower aggregate expenditures in the economy contributed to a massive decline in income and to employment that was well below the average. In this situation, the economy might have reached a perfect balance, at a cost of high unemployment.
Although Keynes never mentions fiscal policy in The General Theory, and instead advocates the need to socialize investments, Keynes ushered in more of a theoretical revolution than a policy one. His basic idea was simple: to keep people fully employed, governments have to run deficits when the economy is slowing because the private sector will not invest enough to increase production and reverse the recession. Keynesian economists called on governments during times of economic crisis to pick up the slack by increasing government spending and/or cutting taxes.

In 1928 and 1929 prior to the great depression, the Federal Reserve raised interest rates to try to curb Wall Street speculation (otherwise known as a "bubble"). Many historians like Brad DeLong believe the Fed. "overdid it" and brought on a recession. Moreover, the Fed then sat on its hands: "The Federal Reserve did not use open market operations to keep the money supply from falling.... [a move] approved by the most eminent economists."
There was not yet a "too big to fail" mentality at the federal government policy level. And today to pay for Obama's spending the Fed has had to artificially raise the principal on our T-Bonds to get foreign governments to buy them! Source: Wikapedia.com

It appears that president Obama is, if not a student of the Keynesian theory,a person who is using Keynes ideas to spend our country out of what he refers to as an impending economic disaster

During the Depression, Roosevelt tried public works, farm subsidies, and other devices to restart the economy, but never completely gave up trying to balance the budget. According to the Keynesians, he needed to spend much more money, but they were unable to say how much more.
Keynesian economists assumed poor people would spend new incomes; however, they saved much of the new money; that is, they paid back debts owed to landlords, grocers and family. Keynesian ideas of the consumption function were upset in the 1950s by Milton Friedman and Franco Modigliani,but apparently Obama has either forgot or put aside that portion of our history.
He has spent or committed trillions of dollars to government take over programs, and he always prefaces his program with the idea that if we do not do it we will have financial disaster in the future. Never once admitting that the debt he is growing will saddle not only this generation, but generations to come after us with the burden of high taxes and a weak dollar!

A perfect example of how this president uses fear to persuade any doubting people that what he is proposing is necessary to avoid a disaster is his speech today about Wall Street.

Obama said; “Wall Street seems to maybe have a shorter memory about how close we were to the abyss than I would have expected,” President Obama told Bloomberg News in an interview published on Wednesday. Most prudent thinkers will agree the word "abyss" is a large and shameful description of our times.

“When I hear some of the commentary that’s been creeping up about, “You know, it’s time for government to get out of the economy. And what’s the Obama administration doing?’ I have to try to remind them -- all we’re doing is cleaning up after the mess that was made,” Yes he inherited a large debt, but it is about time that Obama takes some of the blame for spending us into a 11.4 trillion dollar debt!

Obama's comments came hours before the unveiling of what are the most sweeping changes to the US financial regulatory system since the 1930s, as an attempt to prevent last year's financial crisis from happening again they say.


Although acknowledging that "you’re starting to see the engines of the economy turn,” the President added that "it’s going to take a long time” for a robust recovery to emerge.

The proposals to be announced today will require approval by Congress and the administration is hoping to have the legislation passed by the end of the year.

The President also told Bloomberg that "as soon as this economy has stabilised, we want the market to do what it does best, and that is produce jobs, invest.” He cannot be serious!

Mr. Keynes said this about people who claim to know the way to solve economic problems.
"The ideas of economists and political philosophers, both when they are right and when they are wrong, are more powerful than is commonly understood. Indeed, the world is ruled by little else. Practical men, who believe themselves to be quite exempt from any intellectual influences, are usually the slaves of some defunct economist. Madmen in authority, who hear voices in the air, are distilling their frenzy from some academic scribbler of a few years back... soon or late, it is ideas, not vested interests, which are dangerous for good or evil".

Obamas' popularity is still high in the USA despite the fact that he has spent more tax payers money than any president in history.
His approval rating is above 60% because people either do not realize what he is doing to the value of our money, or because they still look at him with adoring eyes as one would to a savior.

The 13 trillion dollar debt that he is running up and the resulting tax increases and devaluation of our dollar have not effected the average person as much as it will in year or two, when bread and cereal may cost $4.00 each!
But the British are realizing that Obamas' attempt to collect taxes from Americans who live and work in England will be an expensive for them, and they get nothing for being Obamas' tax collector.

"Andy Thompson of Association of Private Client Investment Managers and Stockbrokers (APCIMS) said: "The cost and administration of the US tax regime is causing UK investment firms to consider disinvesting in US shares on behalf of their clients. This is not right and emphasises that the administration of a tax regime on a global scale without any flexibility damages the very economy it is trying to protect."

One executive at a top UK bank who didn't want to be named for fear of angering the IRS said: "It's just about manageable under the current system - and that's because we're big. The danger to us is suddenly being hauled over the coals by the IRS for a client that hasn't paid proper taxes. The audit costs will soar. We'll have to pay it but I know plenty of smaller players won't."

The British Bankers Association (BBA) and APCIMS had a meeting with European counterparts 10 days ago to discuss the crisis. A delegation is set to meet the US Treasury's Internal Revenue Service on 16th June to demand they drop the reforms." source:Drudge Report

President Obama's proposals are built on the so-called Qualified Intermediary system which was intended to ensure Americans paid the correct tax wherever they were domiciled. Foreign financial institutions that handle American money have to fill in a US tax form on behalf of the client that has to be audited too. In return, the banks receive a QI seal of approval as a qualified intermediary.
But the seal is not legal tender. It sounds strangely similar to president Roosevelt's NRA sign that merchants could put in their window during WWII if they agreed to price controls.

At the same time, Reuters reported that The dollar fell to a 2009 low on Friday as fears intensified that the United States could lose its triple-A rating, while renewed caution about the world economy and banks prompted Asian and European stocks to slip.


Yesterday, the President was interviewed by Steve Scully of C-SPAN, about the status of our economy, and despite the fact hat he has spent more money than the combined cost of all the wars since WWI, he still takes no blame for the deficit spending that he calls "stimulus".

In the interview he was asked about the possibility that the USA could run out of money. The following is a quote from that interview.
"SCULLY: You know the numbers, $1.7 trillion debt, a national deficit of $11 trillion. At what point do we run out of money?

OBAMA: Well, we are out of money now. We are operating in deep deficits, not caused by any decisions we've made on health care so far. This is a consequence of the crisis that we've seen and in fact our failure to make some good decisions on health care over the last several decades.

So we've got a short-term problem, which is we had to spend a lot of money to salvage our financial system, we had to deal with the auto companies, a huge recession which drains tax revenue at the same time it's putting more pressure on governments to provide unemployment insurance or make sure that food stamps are available for people who have been laid off.

So we have a short-term problem and we also have a long-term problem. The short-term problem is dwarfed by the long-term problem. And the long-term problem is Medicaid and Medicare. If we don't reduce long-term health care inflation substantially, we can't get control of the deficit".

So unlike this simple minded citizen, our Harvard Law school president refuses to recognize that he cannot spend the Country out of a recession. He implies that he will spend the estimated trillion dollars to bring about socialized medicine, on top of his massive "spendulus" program.
This will assuredly sink our generation and future generations further into debt, that will result in dollar devaluation and massive inflation to satisfy his quest to Socialize our Country. This is a sign that education doesn't necessarily make one smarter! Or was his intention to wreck the U.S. economy and the free enterprise system all the while?

President R.Reagan said, "This is the issue: whether we believe in our capacity for self-government or whether we abandon the American Revolution and confess that a little intellectual elite in a far distant capital can plan our lives for us better than we can plan them for ourselves. ... Somewhere a perversion has taken place. Our natural, inalienable rights are now considered to be a dispensation of government, and freedom has never been so fragile, so close to slipping from our grasp as it is at this moment."

And it appears that President Obama his pulling hard on the fabric of freedom that we hold so dear. His Federally mandated confiscation and redistribution of more than $ 1.3 trillion to be spent over the next 10 years, and may grow to 3 trillion if he keeps pending like a drunken sailor! Will certainly devalue the dollar and cause rapid out of control inflation. It could get so bad that even the Communist Chinese will not buy our T- Bonds.
Between Japan and China we have outstanding $1.27 trillion in debt before Hillary went with hat in hand to Beijing to ask them to buy more. She never broached the subject of their air pollution(the worst in he world) or the horrible human rights record. It was as though she went to visit a friend not a Communist enemy who would like to bury us both economically and militarily.

And not be out done in the spending frenzy. The U.S. Congress is proceeding with plans to spend even more of the taxpayers money on their personal favorite, themselves and their voters.
The irony of it all is that on the day the President held a "fiscal responsibility" summit at the White House -- the House of Representatives Appropriations Committee released an omnibus budget measure designed to finance the dozens of federal agencies whose 2009 budgets were not approved in the last Congress.(they held this back just on the chance that Bush might have used his veto pen,which he seldom used).

True to Democratic rhetoric heard throughout the Bush years, the legislation would provide significant new funds to many domestic programs...US Rep. David Obey, the Wisconsin Democrat who heads the House Appropriations Committee, said in a news release Monday, "Congress...today presents a bill that will keep the government running and finish last year’s business. This bill works in harmony with the economic recovery package, making investments that address the country’s immediate needs while investing in our long term economic strength." Much of that spending is directed toward programs important to higher education.The legislation would provide an extra $347 million in funds for the Pell Grant Program for low-income students, an increase paid for in large part by taking money that the Bush administration proposed directing toward the Academic Competitiveness and Science and Mathematics Access to Retain Talent Grant Programs that have gone underutilized by colleges.

Note: They are taking the money from areas where American students fall behind many Asian and European Countries, and giving it to students who will never attain the excellence we need in our schools and Universities.

Just a few of he programs that will receive multi-millions of dollars that I feel has nothing to do with stimulating the "Countries Immediate Needs", and everything to do with strengthening the Democrat voter base, are listed below.

Strengthening Tribally Controlled Colleges and Universities $23,158,000
Strengthening Alaska Native/Native Hawaiian Institutions $11,579,000
Strengthening Historically Black Colleges and Universities $ 238,095,000
Strengthening Historically Black Graduate Institutions $58,500,000
Minority Science and Engineering Improvement $8,577,000
Developing Hispanic Serving Institutions $93,256,000
Strengthening Asian American and Pacific Islander-serving Institutions $2,500,000
Tribally Controlled Postsecondary Voc-Tech Institutions $7,773,000
I am all for education, but could this not wait until the taxpayer can breath again when and if the economy rights itself. Obama and Congress are doing everything they can to destroy it despite the Pious Platitudes!

With Obama shaking his fist at Republicans for delaying his spendulus bill. It apparently has convinced three Republican Senators to back the behemoth "STIMULUS" Bill.
What the President and our elected princess and prince's of the Senate are not telling you about the economic package that they will send to the Oval office is that the government has already committed hundred of billions of dollars to back door programs that when added to the billions that the Senate is passing, totals a commitment of
$9.7 trillion, enough to pay off more than 90 percent of the nation’s home mortgages. And I want to note that the spending bill will make this 13 times more than we have spent on the wars in Iraq and Afghanistan!


The Federal Reserve, Treasury Department and Federal Deposit Insurance Corporation have lent or spent almost $3 trillion over the past two years and pledged to provide up to $5.7 trillion more if needed.

The $780 billion being pushed through the Senate, that President Barack Obama says is needed to avert a deeper recession Would need to be reconciled with an $819 billion plan the House approved last month.

Despite the fact that Obama campaigned on having an open government. Only the stimulus package to be approved this week, the $700 billion Troubled Asset Relief Program passed four months ago and $168 billion in tax cuts and rebates approved in 2008 have been voted on by lawmakers. The remaining $8 trillion in commitments are lending programs and guarantees, almost all under the authority of the Fed and the FDIC. The recipients’ names have not been disclosed.

“We’ve seen money go out the back door of this government unlike any time in the history of our country,” Senator Byron Dorgan, a North Dakota Democrat, said on the Senate floor Feb. 3. “Nobody knows what went out of the Federal Reserve Board, to whom and for what purpose. How much from the FDIC? How much from TARP? When? Why?”

The $9.7 trillion in pledges would be enough to send a $1,430 check to every man, woman and child alive in the world. It’s 13 times what the U.S. has spent so far on wars in Iraq and Afghanistan, according to Congressional Budget Office data, and is almost enough to pay off every home mortgage loan in the U.S., calculated at $10.5 trillion by the Federal Reserve. Source:CBO data

When Congress approved the TARP on Oct. 3, Fed Chairman Ben S. Bernanke and then Treasury Secretary Henry Paulson acknowledged the need for transparency and oversight. The Federal Reserve so far is refusing to disclose loan recipients or reveal the collateral they are taking in return. Collateral is an asset pledged by a borrower in the event a loan payment isn’t made. In my opinion this is where the PONZI scheme comes in!

"Ponzi" Schemes
Ponzi schemes are a type of illegal pyramid scheme named for Charles Ponzi, who duped thousands of New England residents into investing in a postage stamp speculation scheme back in the 1920s. Ponzi thought he could take advantage of differences between U.S. and foreign currencies used to buy and sell international mail coupons. Ponzi told investors that he could provide a 40% return in just 90 days compared with 5% for bank savings accounts. Ponzi was deluged with funds from investors, taking in $1 million during one three-hour period—and this was 1921! Though a few early investors were paid off to make the scheme look legitimate, an investigation found that Ponzi had only purchased about $30 worth of the international mail coupons.

Decades later, the Ponzi scheme continues to work on the "rob-Peter-to-pay-Paul" principle, as money from new investors is used to pay off earlier investors until the whole scheme collapses. Unfortunately the "investor in this PONZI is the taxpayers ,alive and yet to be born! Peter and Paul are Mr, and Mrs. taxpayer!
Source:http://www.sec.gov/answers/ponzi.htm