Category Archives: big government

big government, Constitution, Doing the Right Thing, personal responsibility, supreme court

Wyden says bill could have prevented AIG Bonuses

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At the Huffington Post, Democrat Senator Ron Wyden is quoted as saying that had “that legislation [a large tax on bonuses] been passed it would have been a very strong disincentive to anybody paying out bonuses in the future.”  Wyden did vote against the major bailouts, but appears to have voted for the “stimulus.”

Let’s recall a few facts:

1. The “Stimulus” Bill that both Houses and the President approved included provisions authorizing the bonuses.  Perhaps if Congress READ their Bills they would not be able blame someone else when people do what Congress is authorized.

2. A large number of people have made the statement, “but it is taxpayer money.”  I agree that it is taxpayer money.

The real question though is whether we want to go down the path of controlling everyone who receives taxpayer money?

However, if we are going to do so, we need to think about the consequences in detail:

a. If you receive food stamps, shall we limit your choices to low-fat food?  Soda?

b. If you receive Medicare, how much of your life can we control?  Pretty much everything since we are footing the bill. Are you over-weight?  Get on the treadmill.  Do you drink?  Stop, we’re going to pay for your new liver.  Like chocolate?  Sorry, diabetes.  Ride a bike?  Put on a helmet!  Like to sunbathe?  Skin cancer, get inside.  It is taxpayer money paying for your vices.  Should the taxpayers be paying and not having input?

c. Are you on Social Security?  What can’t taxpayers control since we’re paying your bills.

Additions:

d. Cash for clunkers?  Hope you aren’t a lead foot!

e. ObamaCare – apply the Medicare rules to everyone!

Trading freedom for the chance to pick someone else’s pocket is a bad idea morally and fiscally.

Abuse of Power, big government, Constitution

“Quantitative Easing” and “Open Market Operations” mean “printing money”

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You may hear the terms “Quantitative Easing” and “Open Market Operations” from the Federal Reserve and wonder what they are.  They sound official and complicated, but are not.  When you get down to the basics, they quite simply mean the Federal Reserve is printing money.

Quantitative easing is a type of monetary policy that increases the money in an economy when the Federal Funds Rate (overnight lending rate) is close to (or at) zero.  The Fed (or central bank) purchases financial assets from banks and other financial institutions using money it has created out of thin air (ex nihilo is the latin jargon).  It is equivalent to “printing money” although it is done electronically so no printing is needed.  Just a push of a few buttons and magically they Federal Reserve says “we now have another $1000 Billion in the bank.”  Nice bank account if you can get it.

Quantitative easing and open market operations are complicated ways of saying that the Federal Reserve (or other central bank) is printing money.  The cost is inflation, or in the worst case, hyper-inflation.  Inflation robs you of the value of your money stealthily and is a hidden tax on your savings (retirement etc) and promised obligations.  Remember that, as Milton Friedman defines inflation, it is a monetary phenomenon – too much money chasing too few goods.

So, now you know the basics of quantitative easing and open market operations, and the risks involved.  Should you trust politicians and the appointed members of the Federal Reserve to manage the value of your money?  Would you find a ruler that changed length daily useful?  When a person is managing the value of the dollar, the value varies every day with the trend down.  Down more than 95% since the Federal Reserve was created.   That is the problem with inflation, a dollar today will be only worth a nickel eventually.

Abuse of Power, big government, Constitution, internet, Obama-Biden

The Democratic Senate Puts Heavy Restrictions on the Internet

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The Democrat controlled Senate is working on a Bill that would give President Obama the authority to shut down the Internet.  This is the so-called Cybersecurity Act of 2009,  S.773 was introduced by Senators Rockefeller, Bayh, Nelson, and Snowe.

The Bill would also give the government access to the digital records from many industries including telecommunications, banking and energy.  All would be under the authority of a cybersecurity czar.

Clamp down on the free speech on the Internet in the event of a need to “protect national security” and there goes the ability to dissent.

Nice.

big government, Constitution, Freedom

Asinine stress tests

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Is this America — when you do what your government asks you to do and then retroactively you also have additional conditions? If we were not forced to take the TARP money, we would have been able to raise private capital at that time [and not need to cut the dividend.]  It is absolutely asinine that somebody would announce we’re going to do stress tests for banks and we’ll give you the answer in 12 weeks.

— Wells Fargo Chairman Richard Kovacevich, March 16, 2009

Welcome to the new America where the Constitution is ignored.  Which of the first Ten Amendments hasn’t been gutted or ignored?  Only the 3rd.  Talk about a disgrace.

big government, Constitution, Freedom, Obama-Biden, taxes

Economic Advice

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Since the White House seems to be in need of economic advice, here are a few suggestions that would help to turn things around quickly.  Items #1 and #2 would not cost anything.

1. Eliminate Mark to Market – for people holding until the asset matures, mark to market is crazy.

2. Reinstate the uptick rule in order to restore some balance to the market.

3. Instead of spending more than $1.2 trillion on questionable projects, much of which won’t be spent for years, stop collecting income taxes for 2009.  Federal Revenue in 2007 was approximately $2.5 trillion with individual income taxes making up a bit over 40% of that.  So, drop the stimulus and put the money right back in everyone’s pocket this week.  Save $200 billion, and let the citizens of the company keep their own money.

4. Talk about some of the positives: lower fuel costs, productivity and the like.

big government, Freedom, taxes

American Diabetes Association says Obama’s tax increase is “only 5%”

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The American Diabetes Association called me today, “not to ask for money.”  In the course of the conversation, the lady from the American Diabetes Association said that Obama’s tax increase is “only going to be about 5%.  It’s not that much.”

My mother died of pancreatic cancer and I generally do support charities that deal with diseases of the pancreas (including being on the founding board of PanCan), but since the American Diabetes Association thinks that it is “not that much” they’ll be the ones who realize that the “not that much” comes out of their budget.  But since it is “not that much” the American Diabetes Association won’t miss it.

When a charity calls today, this is what I am going to say when they ask for money:

Oh, didn’t you know that we have a new President in Washington?  I suggest that now that he has declared that he is the best person to decide who “needs” the money more that you and I call the White House and see if you can beg from them.  His tax increases are taking my charitable donations.  The choice is simple: vote freedom or statism/socialism.

Now, I’ll still be donating, but it will be to charities that (a) support freedom, and (b) don’t sit at the trough of the federal government claiming handouts from the rest of us at the point of a gun.

Abuse of Power, big government, Constitution, First Amendment, Freedom, rights, supreme court

Obama targets Rush Limbaugh.

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While obvious for some time, the Politico (Politico) today confirms that President Obama is targeting Rush Limbaugh.

What Obama fails to realize is that this means that Rush begins to set the agenda for the Democrats and in that case they are going to have a tough time of it.  Rush has three hours per day on the air to respond so anyone willing to listen to him will hear the truth instead of the Obama and mainstream media’s spin.  While good for Rush, letting him set the agenda will be bad for the President.

It should also be noted that:

  1. Enemies lists are not acceptable.  President Nixon would be proud.
  2. It is now acceptable for the President to target private citizens (well, it was before just ask “Joe the Plumber”).  Imagine if it were you next and had no way to respond.
  3. It is acceptable for the President of the United States to take what a private citizen says out of context and publicize it.  Amazing and scary.
big government, Constitution, Freedom, Obama-Biden, personal responsibility

Robert Gibbs has hearing problems?

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“it would be charitable to say he doubled down on what he said in January in wishing and hoping for economic failure in this country.” – Robert Gibbs, Press Secretary for President Barack Hussein Obama on Rush Limbaugh, March 2, 2009

 

Not that Rush Limbaugh needs defending, but Robert Gibbs either purposefully ignores what Rush says, has hearing and reading problems, or is just plain dense.  Anyone who opposes socialism/statism/collectivism should hope that the policies that President Obama proposes fail.  “Success” in this case means LESS FREEDOM and more control of  your lives from Washington.  NO ONE hopes that the country fails economically, anyone who treasures freedom hopes that anti-liberty policies fail.  Gibbs, it is easy to attack a straw man argument, the Presidency deserves real responses, not copouts.

 

“I can only imagine what might have been said a few years ago if somebody might have said that on the other side relating to what was going on in this country or our  endeavors overseas.” – Gibbs

And it appears his memory is failing too.