Thursday, December 25, 2008

Consuming our way to Prosperity, or Maybe not

So how are things going for you financially? How is that 401K? How are houses selling in your neighborhood? Well, don't worry. The government has more economic stimulus packages on the way. Just a trillion here, a trillion there and we will jump-start the economy again and get everything back on track. Our Democrat Congress, Pelosi and conservative Republican President GWB(Bush) has already borrowed trillions the past year for bailouts and stimulus packages and don't forget those cuts in interest rates. Didn't you get a check last spring? Didn't you spending it create tons of new jobs, boost your 401K and increase your house value when we all went out shopping with that money the government borrowed to send us? ( Well some of us anyway, if you were too successful your spending doesn't count.)

The saviours of America's economy go into battle for Washington/Wall Street:

President Obama promises even more spending and will send out even more stimulus tax rebate checks. From his website: "Barack Obama will provide a tax cut for working families: Obama and Biden will restore fairness to the tax code and provide 95 percent of working Americans the tax relief they need. They will create a new 'Making Work Pay' tax credit of up to $500 per person, or $1,000 per working family". And Obama and democrats promise that sending out borrowed money, primarily to those that pay no taxes, is the secret of creating jobs. They are also for federal funding of key companies like GM that provide great paying jobs with fantastic benefits and unbelievable retirement pensions, and we all want those, right? Maybe they will hire us!

On cable (from 2006-2007 ) Financial Expert Ben Stein predicts record economy growth:
Now in late 2008 Financial Expert Ben Stein says we are in a depression and need massive multi-trillion dollar stimulus and bailout packages :".. keep people alive": (FNC Cavuto. business.)

While our investment advisers and those experts on cable like Ben Stein were promising us that the financial stocks were a great bargain and the next cut in interest rates and stimulus packages were going to continue the boom, one man called the bust :The Financial Prophet Calls it (Peter Schiff). Peter Schiff predicted that the housing market would crash the financial market and then the stock market. The cause? He said that the entire economic boom of the last six years has been based on debt, printed dollars(low interest rates) and consumption. The rest of the world loans us money either through federal bonds or through private financial investments and we spend it to buy goods produced in other countries. He predicted that our housing boom was a bubble based on borrowing and printing.

Saving the economy with 2008 tax rebate checks at Walmarts

Watch the following videos (November 2006 part 2 and 3) where Schiff says the internet boom went bust just before GWB got in office 2000 and why the economy needed a recession as a fix back in 2002.

(Nov 2006 Peter Schiff Mortgage Bankers Speech Part 2 of 8)

Instead of allowing the needed limited recession in 2002, the federal government (Washington-Establishment-Wall Street) along with Greenspan set both monetary and fiscal policy (government borrowing and spending, printing, low interest rates) such that it created the biggest consumption binge in history. This pushed off the recession till 2007-2008 getting Bush and Republicans re-elected in 2004 while creating unproductive record debt. The debt/borrowing was used for non productive depreciating consumer goods: food, gasoline, vacations, foreign products, remodeling kitchens. The consumer part of the debt was leveraged against our increased housing values in home equity loans based on future price predictions. This was only possible because our interest rates stayed low said Schiff. Foreigners were keeping our currency from dropping in value by buying our debt (loaning us money) allowing us to continue buying their products. While the rest of the world loaning us their savings, the low interest rates and the foreign investment kept our house prices rising. Schiff said "We are not offering the world anything but our debt." The low interest rates discouraged saving, encourage borrowing, consuming and encourage speculation of stocks,commodities and investment property, including buying investment houses/property with no money down or leveraged against other properties that don't pay for themselves (ie enough rent) all based on future property value appreciation.

(Nov 2006 Peter Schiff Mortgage Bankers Speech Part 3 of 8)

Schiff quote : 'Saving is under-consumption in the present for consumption in the future'. Saving is the solution, a recession. In America we consumed in the present for the expense of the future.' Another Schiff quote :"The boom is the problem, the bust is the solution". His economic theory is that you need a recession to get healthy, the sooner the better and says in 2002 we needed one, but this is political death for the elected. Politicians running for re-election need to pump more and more money, borrowed and printed (ie low interest rates), into the economy to look like they are fending off a recession but it only delays the eventual crash and makes it much worse. Guess what? There's No Pain-Free Cure for Recession (by Peter Schiff Dec 2008). The delay got Bush re-elected with an increase in congress, but his Republican party paid the price afterward. The natural inflation of other products like gas and food and commodities as part of the boom triggered the crash in late 2007 to 2008. Schiff also says the the federal government tries to hide inflation by keeping items out of the Consumer Price Index (CPI) like energy.

Here's a perfect parallel: As the consumer and federal government borrowed money from the future, GWB borrowed political election chips from the Republican Party's future dooming them in 2008. If the bust could have been held off till 2009, the Bush gamble could have paid off and McCain might have been elected and looked like the saviour of the economy in 2009, cutting deals with democrats for more socialist spending packages. Schiff makes the case that president Johnson did the same as GWB in 1960s with Vietnam, the Great Society, and the race to the Moon all at the same time without raising taxes. This was paid for by economic catastrophy in the 1970s, inflation and joblessness at the same time for a decade as the succeeding administrations printed the money. The Hannity-Levin (Bush apologists) talking points are that the whole financial boom bust problem was caused by the Community Reinvestment Act(CRA)with Fannie May-Freddie Mac. But that welfare type-affordable housing lending program could not possibly be the entire cause of the boom and bust and it didn't sell as a political message in 2008. Yes, the democrats were part of the financial problem with CRA and the easy loans for affordable housing but they had nothing to lose when those policies caused longer term damage. They knew any long term damage could be blamed on GWB as president and congressional republicans would pay the price and did in 2008. Bush and Republicans could not sound the fire alarm until it was too late, 2008 because they needed to take credit for the boom especially with problems in Iraq. But they also got the blame for the inflation. There are some clips of republicans warning democrats in congress opposing regulation but Barney Frank knew Republicans would get the blame being in majority in congress. See entertaining clip of Barney Frank Tells Bill O'Reilly it's all Republican's Fault because they were in majority, says to ignore past clips of himself .

If you watch the whole series (Nov 2006 Peter Schiff Mortgage Bankers Speech ) above and some other Schiff predictions at The Financial Prophet Calls it (Peter Schiff) it shows GWB/Washington/Wall Street/Democrats economic policy a failure and Obama's plans even worse, In fact he is saying EXACTLY what the 2009 Republican-minority need to say. Schiff is the direction the directionless republicans need to oppose democrats massive spending plans. The one thing Schiff didn't predict was that the USA would take the rest of the world economy with them, creating the current world deflation and short term flight to the dollar. But the solutions proposed by Obama and democrats, even more massive spending and borrowing will bring us the stagflation of the 1970s that he as predicted. All that needs to happen is that the rest of the world consume each other's goods without us to mount a world recovery and crash of the dollar.

Our President elect Barrack Obama has promised to 'put money in our pockets' with income tax cuts for those that pay no income taxes. This he promises as during campaign will create immediate jobs as these voters run out and spend the newly printed money. All that on top of the Bush/Paulson/Pelosi 700B bailout plan that democrat congress passed in Fall 2008 to reward bad investments some of which went to GM/UAW. Fred Thompson has a few words about how we got to where we are and the federal governments ability to manage the economy by more borrowing and spending.

More Peter Schiff prediction videos are at :The Financial Prophet Calls it (Peter Schiff)

Tuesday, December 23, 2008

Social Security and Obama: Pension or Welfare?

My dad warned me about Social Security(SS)/Medicare. He told me I'd be rich many times over if they didn't take the payroll taxes away from me over my life.

My biggest problem with SS is the middle class sees it as a pension. Many republicans use the delusional phrase "but I paid in...." . It is so annoying when republicans claim they "paid in" as if they checked a box on their income tax form for "Yes, I want to contribute to SS". This is democrats greatest victory. You never “paid into” anything, taxes are taken from us by force if necessary. The feds are taking my (FDIC taxpayers) money and giving some to you (SS beneficiary) and spending the rest. Your money was “taken away from you and given away and spent many years ago”. It is a welfare scheme that is setup to convince the recipient they they earned it, even if they paid little or no federal taxes. That way they will demand it. Democrats love it, it is their biggest victory having the middle class addicted to a welfare type redistribution system. They actually call it a federal mandatory insurance system, not a pension. You are insured against having NO income at retirement if you have met some minor work history requirements. It is also expanded to the disabled (as a disability payment) and to minor dependent survivors. Like Medicare, it is very popular with those that get it.

I understand it is taking money from the young to give to the poor. I also understand we need to take care our poor elderly. My problem is the outright dishonesty in the way it is presented. Social security was originally setup like a pension, those that paid more in payroll taxes got more benefits when they retired. The payroll taxes are not tax exempt. That was OK until the government started taxing SS benefits. This means that while the feds claim to pay you your full benefits, in reality some of your benefits go to the general budget if your income is too high. Sound familiar? That's because since the 1980s the SS payroll tax has run a surplus and the feds wrote themselves a phony IOU and spent that money on other stuff too.

If this doesn't sound enough like a scam, to encourage lower income people to work we not only don't charge them income tax, but we pay them the Earned Income Tax Credit (EITC) out of general revenue. This is equivalent to us paying their SS payroll taxes while they pay no income taxes. So if you do well you pay income taxes on both your SS taxes and on your benefits. And part of your payroll taxes goes to the fake trust fund, which is just general tax revenue to pay some poor guy's SS taxes through the EITC. But when he retires he will demand his full SS benefits, because he was told he paid in. And don't try to cut his when it goes broke because he needs it, unlike you. This is the problem and the brilliance of it. Those who don't pay are sure that they earned it.

Lastly , Obama and democats want to expand the tax credit for payroll taxes, sending even more money back. He calls it "Making work pay". So it's really welfare but set up to look like a pension so the seniors will demand it

Obama to lead our Children (but where?)

President elect-Obama was promoted as the education president in 2008. He had the traditional support of the NEA. And public school teachers across the country put up signs that said, "Teachers for Obama"(as above) on their lawns. Obama promises a massive public schools spending program to 'rebuild' our crumbling schools, so public school teachers are giddy with his victory. I mean, What is more important than "our children"?? Forget that Obama's poor masses are blocked from private school vouchers by the educated elite democrat leaders and the NEA orders.Forget that Obama is sending HIS kids to private school. Instead we need to examine exactly what these rich-elite-educated democrats have in store for our kids. Here is a video of how they educate their young kids to be 'socially' conscious.

Think of this video next time you see a child on TV telling us we need to save the world, either with a nuclear freeze (ala 1980s) or with Global Warming 2008 ala Al Gore. As liberals say, "A Child shall Lead us"

Obama, Saviour of the Poor Uneducated Masses?

First off, I have start off with some concessions. Democrats (Obama/Pelosi) won the last election with carefully controlled well thought-out 4 year anti-Bush campaign. Yes, they had MSM-media completely on their side but on our side we had a very unpopular two term president, our crappy candidate McCain was selected by the media, and he ran a very terrible campaign except for a brief period this summer. Republicans lost the college educated vote this election 2008 who they won in 2000 and also lost highly educated high income 'me too elites' (government types) all three elections 2004, 2006 and 2008. But something else happened too.

Obama motivated the masses: the poor, the uneducated and something new the poor-under educated blacks to go out and vote. He energized this base (with help from GWB). These masses, as referenced in Orwell's 1984 were the real revolution of 2008. Some of it was racial, blacks have forever longed for a handsome articulate JFK type of their race. They loved JFK, and yet he was white. As Sherri Shepard said on the View, now she can tell her son 'he can be president'(my paraphrase, see video), she said "People died at Selma to see this day". You have to be sympathetic to this view, put yourself in their shoes. Of course Colin Powell and Condi Rice, even Michael Steele didnt count because they were republicans.

But besides the symbolic , what did these Obama most base supporters think they were voting for ?? This video was taken outside an Obama rally where the Man on the Street asked Obama supporters exactly what they thought Obama would do after watching him speak. Keep in mind he repeated his campaign promises at this rally so they should have been fresh on these voters minds, a few minutes afterward. Before anyone gets offended, you can find uneducated whites that will say stupid things on camera. My point here is that Obama ran primarily on redistribution, and get out the first time voter,

Clearly these supporters were motivated by getting free stuff from the government: gasoline, energy, although some appear not to remember exactly what he promised. Peggy was at a rally and clearly thought she was getting Obama to pay for her gas and mortgage.

Peggy is surely in for a letdown. While Obama may send her tax rebate checks, he is going to raise taxes on energy, and maybe even the gasoline tax. Now that Obama won a historic victory, what might this new voting block (poor uneducated) expect from him? We call this one "We Ain't Rich like Yall , But one day We Will Be Cuz of Boorack 'O' Bama!" (this one is for laughs is representative of at least some the Obama uneducated masses.)

Last, what about the remaining Obama supporters that lived the past year every waking moment with one dream? What do we do with them now?

Monday, December 22, 2008

How did we end up here? Our Dream of a Hero

How did we end up here? Back in 2001 it all seemed so hopeful finally having both the white house and congress. And then September 11th our party became the sole leaders of country. All of us conservatives thought we were in heaven as the country looked toward us for safety. And we had a hero, everyone needs heros. Even African Americans looked at our party for the first time and gave thanks that we were in charge (that could not last).
Yet somehow we are here in 2008 looking forward to a very liberal democratic president and congress. We have an outgoing wounded Republican President with a 20% approval rating making deals with democrats against republicans (for 2 years) in an attempt to get future MSM praise, for his future legacy. These socialist deals are setting up the incoming liberal president for a socialistic takeover of industry, massive public works programs, higher taxes, and forced unionization of remaining non-union employees.
We all need a hero. And talk radio, Rush, Hannity, Levin; they all told us he was the one. On election night 2006 they once again assured us that the polls were turning (and 2008 again), or outright wrong and we would win another 2004 election surprise. But unfortunately GWB luck had run out. And ours too.

The Financial Prophet Calls it (Peter Schiff)

Back in 2006 Peter Schiff predicted a huge recession in 2007 or 2008 . The consumer, he said, will have to stop consumer spending and instead save his money and pay off debts after being over leveraged, as his phony assets drop in value. This recession is a natural process that must happen to get healthy again, the sooner the better. Unfortunately this late in the bubble will cause a crash of the speculative values because the entire US economy is now based on consumption and debt. He explained that all our so called wealth is just the increased paper values of our stocks and real estate based on over leveraged foreign debt. Watch the other expert investment advisors back in 2007 predict a continuing growing economy and laughing at Schiff when he predicts the coming crash. His message is , "American is a country of real estate agents and stock brokers (ie the self service sector) creating nothing but increased paper values based on foreign debt, printed money, and consumption of foreign products. " We need to start saving and producing again.

October 2008 Schiff predicts that Obama will win in a landslide and that Obama's change is 'change for the worst', as with Bush, pumping more and more money into the system trying to get americans to borrow and spend again. He says government must allow the markets to rebalance the economy, we need consumers to save.

The following debate with Peter Sciff on CNN 11/20/08 is a classic. He argues that government intervention/bailouts specifically GM with borrowed money will in the long run stop creation of more jobs than it saves. That is because the government creates nothing and has no money, it has to take it away from the productive sectors to give to companies the government selects.

Our President elect Barrack Obama has promised to 'put money in our pockets' with income tax cuts for those that pay no income taxes. This he promised (during campaign) will create immediate jobs as these voters run out and spend the money. Add the Bush/Paulson/Pelosi 700B bailout plan that democrat congress passed in Fall 2008. Fred Thompson has a few words about how we got to where we are and the federal governments ability to manage the economy by more borrowing and spending.

The Birth of the Revival Conservative Blog (Home of Our Counter-Revolution)

December 2008: The traditionally conservative party the Republican party has gone down in flames with two elections, a wounded leader GWB, and a failed candidate John McCain. Barrack Obama , now the president elect, soon to be president, has a huge majority in congress and almost a filibuster proof Senate. Furthermore he has a great advantage in the failing economy and socialist precedents left by GWB to enact the democrat’s socialist dream, the New Deal 2. Obama and Speaker Pelosi (shown in picture) represent the most liberal shift in power since the 1970s. However the loss is an opportunity for the Republican party to revive as a conservative party, and stand for something once again. For the first time since 1994 the public will expect the democrats to do something, and may even blame them when they screw up (can you imagine?Finally). Now with the democrats socialist revolution complete the liberals take the castle and we on the outside mount the ambushes (political). To the counter-revolution! Mount the insurgency!

Sunday, December 21, 2008

Goodbye President McCain Wanna-Be

I thought republicans had gone nuts during 2008 campaign selecting John McCain as their presidential candidate. McCain had little chances of winning that election barring a foreign policy crisis, and had zero chance after he soiled his pants on financial bailout. Think about this: in September (2008) he tried to run on “I’m not a republican I am a reformer” , the true McCain showed his colors throwing fellow republicans running for office under bus. Suppose he had got lucky and on last week of campaign won on Ayers with a democrat majority? He would be so hated by democrats and liberal blacks he would cut deals left and right to get back in favor with them and MSM. He would divide our party for the next decade as he puts Republican brand on tax hikes, amnesty, etc. McCain and a Democrat majority? I think not! Now that he lost, which he had to to save our party, he will have few Republican friends if he tries this crap.