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Friedman Calls Code Red and then Instructs Us in Confidence: Depression is Here. Believe in O’Bozo

Friedman Calls Code Red and then Instructs Us in Confidence: Depression is Here. Believe in O’Bozo

The New York Times—aka the Walter Duranty Papers[1]has an all-embracing and tortuous history of apologizing for Communism, propping up losers, celebrating AIDS along with the perverted practices that spread this horror, and its never ending pursuit of higher and higher and higher taxes.  The Times has never retreated from its pathological contempt for capitalism. The Times has also relentlessly praised any leftist parasite or pervert who will openly parade their dishonor in our now degenerated society.  Today, as the economy starts to sag, the Times appears to wax a bit solemn on certain economic matters but grinds on with their propaganda on the essence of the Obama Depression Politics. [2] We are encouraged to be confident. Obama is here!

 

Our Resident EcoNazi[3], now wrapped in his new scintillating economic gown steps up to the podium on Mt. Olympus to offer guidance to the unwashed masses with a confession and a suggestion:

 

So, I have a confession and a suggestion. The confession: I go into restaurants these days, look around at the tables often still crowded with young people, and I have this urge to go from table to table and say: “You don’t know me, but I have to tell you that you shouldn’t be here. You should be saving your money. You should be home eating tuna fish. This financial crisis is so far from over. We are just at the end of the beginning. Please, wrap up that steak in a doggy bag and go home.” [4]-- We Found the W.M.D. By Thomas L. Friedman Op-Ed Columnist [Emphasis is mine in all quotes.]This link references all quotes in this essay unless otherwise stated.

 

 Then, from a banker:

 

This is the real “Code Red.” As one banker remarked to me: “We finally found the W.M.D.” They were buried in our own backyard — subprime mortgages and all the derivatives attached to them.”-- Thomas L. Friedman

 

No blame here for Fannie Mae and her idiot brother  Freddy or the CRA  [Community Communist Reinvestment Act][5][6]? Of course not. Not even a mention. All that ‘affordable housing’ must have been a good idea as a good liberal Democrat tells us:

 

"These two entities—Fannie Mae and Freddie Mac—are not facing any kind of financial crisis," said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. "The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing."[7]—Backside Barney Frank

 

Just 5 trillion dollars of toxic debt Barney. Reviewing a recent article by Krugman from Nov. 14[gee not even two weeks ago] by the igNoble Leechette[8][9], we get the following prediction:

The economic news, in case you haven’t noticed, keeps getting worse. Bad as it is, however, I don’t expect another Great Depression. In fact, we probably won’t see the unemployment rate match its post-Depression peak of 10.7 percent, reached in 1982 (although I wish I was sure about that)”[10]-- Depression Economics Returns By Paul Krugman Op-Ed Columnist Published: November 14, 2008 [Emphasis is mine in all quotes.]

Well, there are two predictions that belong in the latrine. So, what does Friedman, our Hero of the Moment, advise us to do except eat tuna?

The last point is something only a new President Obama can inject. What ails us right now is as much a loss of confidence — in our financial system and our leadership — as anything else. I have no illusions that Obama’s arrival on the scene will be a magic wand, but it would help.”

My confidence soared after I learned O’Bozo listened to Jeremiah Wright for 20 years.

“Right now there is something deeply dysfunctional, bordering on scandalously irresponsible, in the fractious way our political elite are behaving — with business as usual in the most unusual economic moment of our lifetimes. They don’t seem to understand: Our financial system is imperiled.”-- Thomas L. Friedman

Conventional wisdom says it’s good for a new president to start at the bottom. The only way to go is up. That’s true — unless the bottom falls out before he starts.”

So, what is the message here? This is the Bush Depression and only some Messiah like O’Bozo can rescue us from this looming financial disaster? We all have loads of confidence in O’Bozo.

One of Friedman’s errant comments is placed here as the conclusion to this mess:

The stock and credit markets haven’t been fooled. They have started to price financial stocks at Great Depression levels, not just recession levels. With $5, you can now buy one share of Citigroup and have enough left over for a bite at McDonalds.”

Now, this is fact and a rare admission of the truth from the NYT. I wonder if Friedman passed this around and by Krugman before his published this heresy. This group who could see through the odious leftist fog is called the Smart Money Set and they can consider themselves as being somewhat beyond tuna [sans thon in French] sandwiches at this point. The dumb money is known by its sticky attachment to the Party of Democrats or their theories of class warfare and taxation.

We have smart money and the smart voters who have, at least in part, finessed this social and financial disaster by avoiding the phony tax-whoring antics of Fanny Mae, the gurgling and Elmer Fudd fluster bluster and flying spittle droplets of Barney Frank and have cleared their debts. The dumb voters are still mesmerized by O’Bozo, the Messiah, who will give us ‘confidence’ in the future. Indeed, the smart money is already making business plans to make profits when the bottom falls out of probably half of our businesses. The dumb money will follow the Detroit Bailout, Green Weenieisms and other follies.

Sure.

Let us hype the confidence up and stimulate the masses with some massive taxes on the middle class, the use of a big fat carbon taxe[11] on all energy forms and maybe a neat environment-preserving gasoline tax of say $2 per gallon. We all have confidence in O’Bozo.

rycK

 

Comments: ryckki@gmail.com

 



[1] In honor of that celebrated Communist stooge and liar and winner of the Pulitzer Prize for the NYT. The color RED is used in my essays in honor of Walter Duranty, a saint, if there could be one, in the Marxist Archives of Honor.

[4] We Found the W.M.D. By Thomas L. Friedman Op-Ed Columnist http://www.nytimes.com/2008/11/23/opinion/23friedman.html

 

[5]Bear Stearns made the first public securitization of Community Reinvestment Act (CRA) loans started in 1997.[6] Editorialists in some American newspapers[7][8] and US Congressman Ron Paul[9] say the CRA loans were lent to otherwise un-credit-worthy consumers in the name of ending discrimination, although an analysis of actual lending patterns does not generally support this conclusion.[10][11][12]

On June 22, 2007, Bear Stearns pledged a collateralized loan of up to $3.2 billion to "bail out" one of its funds, the Bear Stearns High-Grade Structured Credit Fund, while negotiating with other banks to loan money against collateral to another fund, the Bear Stearns High-Grade Structured Credit Enhanced Leveraged Fund.[13] The funds were invested in thinly traded collateralized debt obligations (CDOs) found to be worth less than their mark-to-market value. Merrill Lynch seized $850 million worth of the underlying collateral but only was able to auction $100 million of them. The incident sparked concern of contagion as Bear Stearns might be forced to liquidate its CDOs, prompting a mark-down of similar assets in other portfolios.[14][15] Richard A. Marin, a senior executive at Bear Stearns Asset Management responsible for the two hedge funds, was replaced on June 29 by Jeffrey B. Lane, a former Vice Chairman of rival investment bank, Lehman Brothers.[16]

During the week of July 16, 2007, Bear Stearns disclosed that the two subprime hedge funds had lost nearly all of their value amid a rapid decline in the market for subprime mortgages.

 

[6] http://en.wikipedia.org/wiki/Community_Reinvestment_Act

Community Reinvestment Act (or CRA, Pub.L. 95-128, title VIII, 91 Stat. 1147, 12 U.S.C. § 2901 et seq.)

 

[10] Depression Economics Returns By Paul Krugman Op-Ed Columnist Published: November 14, 2008 http://www.nytimes.com/2008/11/14/opinion/14krugman.html?_r=1&oref=slogin

 

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It May Be Time For a Bunker Mentality: The Economy is Crashing and We have a New Dictator in Charge.

It May Be Time For a Bunker Mentality: The Economy is Crashing and We have a New Dictator in Charge.

 

We need to think seriously about a few things in light of the recent political and economic disasters we are swimming in.  We have some serious problems that are not being considered or given light treatment:

 

[1] We have a nation with fully ¼ of the population that has an IQ lower than 85[1].  We have people who cannot grasp even the simplest notions about business, society and conduct. Many of our cities are now simply rescue missions.[2] Many of our high schools have dropout rates of 50% or more.

 

[2] We have 2 million felons in prison now and some 5-10 million more on ‘probation’ and even more including those who are still committing crimes and haven’t been caught yet. There is much sympathy for druggies.[3]

 

[3] We have 12-20 million illegal aliens running around the country hustling drugs and evading taxes and 5 million of them got sub-prime or zero-down ‘affordable’ housing mortgages[4] a the urging of our government.

 

[4] We have college-educated citizens who believe that carbon dioxide is a pollutant[5] and that we must tax every form of energy to save the polar bears.

 

[5] We have fully 1/20 of our society who want to take drugs rather than work and many of these have an IQ exceeding 120.  We have cities where drugs are not only tolerated but they are celebrated.[6]  We have drug ‘rehab’ programs that do nothing but waste money.

 

[6] We have very large cities where the crime rates are the highest in the world.  The solution is to let the miscreants go free.

 

[7] We have so-called experts who advise us that paying excessive taxes is ‘patriotic[7]’ and that the government can solve our social problems if only they had some more money.

 

[8] We have millions of people who believe that we can subsidize the auto industry in Detroit[8] and that they can compete with their $80 dollar per hour wages and benefit costs against other auto makers with 1/3 of those costs.

 

[9] We have an ‘educational’ system where we cannot give and publish the results of standardized tests because it makes some students ‘feel bad.’ We have teachers in our public schools systems that apparently cannot read and are rated well in their job performances evaluations.

 

[10] We have ignoramuses that think that a ‘redistribution’ of wealth will allow everybody to live above the average. We have people who think now that Obama will pay for our mortgages and fill up our gas tanks for nothing.

 

[11] We have university professors who advocate running the printing presses so as to flood the economy with paper money and that will produce prosperity some time down the line.

 

We must do some thinking and research on human behavior on the foll0wing topics:

 

[a] How did Mussolini, Lenin, Churchill, FDR, Hitler and Franco get to power and are those enabling elements present in our society today? Who and what is Barack Obama and where did his power come from?

 

[b] How is deflation fixed?[9] The Great Depression was only ‘fixed’ with a world war. Is that the solution to the present problem? Who do we go to war against? Ourselves? Why is the price of gold rising during a deflationary period?

 

[c] How did we get into this financial mess with 6-9 of our top banks going broke? How did a single bank create a leveraged debt [$13.40 trillion[10]] exceeding the national debt? How did we wind up with 5-7 trillion dollars in toxic debt from non performing mortgages? How did Social Security wind up with some 30 trillion dollars of unfunded potential debt?

 

[d] Why are we electing politicians who want to give away free housing[11], replace traditional education with propaganda and then tax everything in sight? Where did they get the kind of people who run California[12], New York[13] and New Jersey?

 

[e] Why are we dumping on Christianity while celebrating Islam? Why do we denigrate our own soldiers and make excuses for the enemy?

 

[f] What must we do with our business plans for the future in light of the massive tax threats from the liberals? Should we close businesses and avoid taxable income? We should work and take risks for what? Higher and higher and higher taxes?

 

[g] Is it true that if we buy a car from the Big Three in Detroit that some residual of that purchase will burden us in future taxes to pay for excessive pension liabilities?

 

[h] Are we to believe that ‘science’ and ‘technology’ will ‘create new green jobs’ as we note that they as yet have no satisfactory car battery, or efficient solar energy converters [after 50 years of research] and that windmills are not very efficient? Are we trying to make cold fusion work?

 

 What are we doing here? We seem to elect losers and then it looks like we are casting swine before pearls whenever one of these parasites makes a speech. Is our wealth and our future being sold out for some phony political notion?

 

 

rycK

 

 

 

Comments: ryckki@gmail.com

 



[1] The Bell Curve: Intelligence and Class Structure in American Life (ISBN: 0029146739)

by Herrnstein, Richard J. and  Murray, Charles  Free Press of Glencoe , Inc, Old Tappan, New Jersey, U.S.A., 1994.

The Babbling Brooks of the NYT Babbles about Education.

http://rycksrationalizations.blogtownhall.com/2008/07/29/the_babbling_brooks_of_the_nyt_babbles_about_education.thtml

 

[2] San Francisco, Protects, and Adores Sleaze and Illegal Aliens.  This Effort will launch a Parasite to the CA Governor’s Office. http://rycksrationalizations.blogtownhall.com/2008/07/09/san_francisco,_protects,_and_adores_sleaze_and_illegal_aliens__this_effort_will_launch_a_parasite_to_the_ca_governor’s_office.thtml

[3] Fresh Ideas for a Tired Crusade  By TIMOTHY EGAN Contributing Columnist Published: April 1, 2008. http://www.nytimes.com/2008/04/01/opinion/01egan.html?_r=1&hp&oref=slogin

[5] Europe Puts On a Little Song and Dance over their Economic Woes.  So Come to the Cabaret and celebrate Sharia.

http://rycksrationalizations.blogtownhall.com/2008/11/03/europe_puts_on_a_little_song_and_dance_over_their_economic_woes__so_come_to_the_cabaret_and_celebrate_sharia.thtml

 

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Speaking in the Future Past Perfect Subjunctive Tense: “If Bankruptcy Hits Detroit” and Other Blather from the NYT

Speaking in the Future Past Perfect Subjunctive Tense: “If Bankruptcy Hits Detroit” and Other Blather from the NYT

 The New York Times—aka the Walter Duranty Papers [1]  operates a screed generation station. They have polluted the world  with all-embracing and tortuous display of apologizing for Communism, propping up losers like Al Gore[2], underwriting the phony theater of Global Warming[3] and drooling over the tax behemoth  Carbon Caps[4], advocating the lunacy of  the  Princeling of Wails[5], celebrating AIDS, hiding illegal aliens and mumbling about education. They have no other reason to exist other than to whine and sob and push for more socialism, or worse.  No matter what disaster pops up from hurricanes to venereal disease epidemics the NYT rushes to show that the taxpayer must come to the rescue. Has anybody noticed the NYT is going broke?

 

Purporting to be written in the literary guise of an editorial, we learn that, very predictably, Detroit must be bailed out using massive tax revenue infusions. We read maudlin fluff like this:

 

Congress has given Detroit’s flailing automakers less than two weeks to come up with a restructuring plan that would justify giving them tens of billions of taxpayer dollars and ensure that they have a reasonable path back to profitability. We hope it is a good plan, because the lame-duck Congress does not have a choice.”[6]-- If Bankruptcy Hits Detroit NYT Editorial Published: November 22, 2008 [Emphasis is mine in all quotes.]This link references all quotes in this essay unless otherwise stated.

 

The tune here is called “The Inevitability of Socialism…….yah yah yoodle ..dinky…donkey doodle…gimme yer money…hoot...toot and all taxes to the rescue.”

 

There is no limit to the goodness and mercy that can be had for humanity if we just keep raising taxes and subsidizing failure wherever it occurs in our society. To point out that this verbose wreckage is just an extension of the common leftist tax-whoring[7], tautological precept is to waste our time. The Times will never offer anything else.

 

No choice??

 

Unpalatable as it seems to underwrite the proven record of failure of Detroit’s automakers, Congress must provide sufficient money to shore them up until the Obama administration takes office. Then, the new president and new Congress can decide how to manage either a rescue package with tight strings attached or a bankruptcy process that ensures the fallen companies have a reasonable shot at picking up the pieces.”

 

The translation here is: yes, we know the greedy unions have sucked the life out of this business and will use their massive union dues to continue to bribe politicians and other social parasites to subsidize their greed and poltroonery so they can continue to spread this contagion. Then O’Bozo[8] will bless and cure.

 

Economists Luigi Zingales and Joshua Rauh of the University of Chicago estimated that if General Motors were to collapse, underfunded pension liabilities would cost taxpayers roughly $23 billion.”

 

This sounds like a bargain to me. We should continue to guarantee pensions based on $80 per hour earnings and other wild benefits? What happens when the wages rise to $120 per hour or $200. How big would this bill be in 5 or 10 more years? $100 billion? More?

 

It would still be our choice that the restructuring of blundering auto companies occur in an orderly way and be combined with a national strategy to deliver more fuel-efficient cars. Congress, so far, has failed in its duty to help make that happen. What must be avoided at all costs is for a big car company to spiral into liquidation.

 

These companies must produce sound business plans because the non union plants in the US can expand and cover the production of cars. The notion that we can let the Sierra Club micromanage automobile design is preposterous. Such a plan will have to truncate salaries and benefits to be less than $30 per hour to be competitive.

 

The unions and C.A.F.E. standards have ruined this business so let us put them into Chapter 11 and restructure them and see if they can compete in the market place. I don’t think they have a chance.

 

We quit making TVs, watches, textiles and other products on our soil and our civilization managed to survive so if Detroit no longer makes cars we can probably muddle through.

 

Let the leftists at the Times bawl. They are part of the problem.

 rycK

  Comments: ryckki@gmail.com

 


[1] In honor of that celebrated Communist stooge and liar and winner of the Pulitzer Prize for the NYT. The color RED is used in my essays in honor of Walter Duranty, a saint, if there could be one, in the Marxist Archives of Honor.

[3] 21,000 Scientists Refute the Phony Global Warming Follies as The Biggest Attempt to Tax The World Has Even Seen. Monday, January 28, 2008 10:46 AM

http://rycksrationalizations.townhall.com/g/c9173a36-97a1-4108-9e7d-cdaa38b28cbf

 

[6] If Bankruptcy Hits Detroit NYT Editorial Published: November 22, 2008 http://www.nytimes.com/2008/11/22/opinion/22sat1.html?_r=1&oref=slogin

[Emphasis is mine in all quotes.]This link references all quotes in this essay unless otherwise stated.

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Krugman‘s Lame Duck Thinking about Lame Duck Thinking: Half-Circular Empty Logic

 Krugman‘s Lame Duck Thinking about Lame Duck Thinking: Half-Circular Empty Logic

The New York Times—aka the Walter Duranty Papers [1]  has an all-embracing and tortuous history of apologizing for Communism, propping up losers like Al Gore[2] or the Princeling of Wails[3], celebrating AIDS along with the perverted practices that spread this horror, practicing the wanton tax whoring for higher taxes for any implausible reasons, praising African and South American dictators and despots in their opinion columns and scrounging for original new ways to reinvent Marxism as a new-fangled and magical solution to achieve a great society. The Times has relentlessly praised any leftist parasite or pervert who will openly parade their dishonor in our now degenerated society.  Today, the Times revisit, again, their revered Rooseveltian Memorabilia to propagandize us on the glory of the Democratic Party when they partied over the misery during the Great Depression.

 Our newest, but least proficient igNoble Leechette[4][5][6], has previously inculcated us with his special insights on recessions and a sweeping denunciation of Republican economics and their leadership paralysis while he heaps more praise upon the statues and legends of Franklin Del Ano. [7] He has a new New Deal for us to pay for.

 But, a recent analysis of the tautological krugmaniacal screeds suggests that maybe Paul Krugman has forgotten some of his previous erroneous opinions.  Not that someone of his high stature might be disallowed a change of his views, given an analysis of the facts.  We should be able to tolerate some latitude here, within reason, if the reversals were influenced by the guiding illumination of the facts and, or, more importantly, in light of the current political crisis, whatever that might be.  But, we can only go so far. So in a departure from my normal procedure, I post some of his previous comments and recommendations before we examine his newest and brightest advice and counsel for advanced liberalism.

 A little prep from one of his recent screeds is thusly revisited where he mumbles about the  Del Ano, tax increases, spending and war as the ‘solution’ to ending the depression:

 “Well, it wasn’t as major as you might think. The effects of federal public works spending were largely offset by other factors, notably a large tax increase, enacted by Herbert Hoover, whose full effects weren’t felt until his successor took office. Also, expansionary policy at the federal level was undercut by spending cuts and tax increases at the state and local level.”[8]-- Paul Krugman [Emphasis is mine in all quotes.]

So, no tax increases during a steep recession or depression? Spend?"

“What saved the economy, and the New Deal, was the enormous public works project known as World War II, which finally provided a fiscal stimulus adequate to the economy’s needs.”[9]-- Paul Krugman

So, we need another “enormous public works project?”

 The economic lesson is the importance of doing enough. F.D.R. thought he was being prudent by reining in his spending plans; in reality, he was taking big risks with the economy and with his legacy. My advice to the Obama people is to figure out how much help they think the economy needs, then add 50 percent. It’s much better, in a depressed economy, to err on the side of too much stimulus than on the side of too little.”[10]-- Paul Krugman

 This looks like spend, spend and spend some more.[11] Hey just add 50% to some unknown number. That is Krugman Economics at its best.

 Okay, now from today:

 Everyone’s talking about a new New Deal, for obvious reasons. In 2008, as in 1932, a long era of Republican political dominance came to an end in the face of an economic and financial crisis that, in voters’ minds, both discredited the G.O.P.’s free-market ideology and undermined its claims of competence. And for those on the progressive side of the political spectrum, these are hopeful times.”[12]--The Lame-Duck Economy by Paul Krugman Op-Ed Columnist Published: November 21, 2008

 What is the alternative to free-market ideology we might wonder? Protectionism? Subsidizing our failing industries?[13] High tariffs?

 Now, we dump on the Republicans:

 the emergence of a power vacuum at the height of the crisis…yadda… How much can go wrong in the two months before Mr. Obama takes the oath of office? …yadda…Standard & Poor’s 500-stock index has now fallen more than 50 percent from its peak. yadda…no new rescue plan is in sight. …yadda…clear deflationary pressure on the U.S. economy right now……yadda…”—Krugman Published[today]: November 21, 2008

 But a prediction from 2002 from our economist:

 And so the threat of deflation is worse now than it was a year ago.”[14]-- Crisis In Prices? By Paul Krugman Published: December 31, 2002

 He predicted this malady 6 years ago? He is indeed a sage and soothsayer. Gee, are there any time constraints or boundaries of reason or guessing that we might apply to the incoherent rants of the igNoble Leechette? No. This is the "Jeane Dixon effect." [15] All he has to do is guess every possible outcome and then claim ownership of any prediction that comes ‘true.’ There are only two absolute—cut in stone and guarded by The Ugliest San Francisco Harpies—Grand Precepts from our krugmaniacal one:

 [1] High taxes and more taxes are always necessary and [2] Big government is best  and bigger government is much better.

 Everything else in the economic basket is subject to a little sculpture and some quickie patina washes so as to put the usual spin and a little glitter on the leftist view. But, remaining true to the unions who worked with due diligence to get Obama elected we read:

 “I’m concerned, in particular, about the two D’s: deflation and Detroit.”

 Here we go! A bailout for the unions.[16]

 There’s now a real risk that, in the absence of quick federal aid, the Big Three automakers and their network of suppliers will be forced into liquidation — that is, forced to shut down, lay off all their workers and sell off their assets. And if that happens, it will be very hard to bring them back.”

 This is the Chapter 7 version, which nobody is advocating. Chapter 11, however—and our sputtering igNoble Leechette knows this—would allow judges to meet with  labor, creditors, auto executives and such and formulate a plan for restructuring. It is clear that the Big Three cannot compete with anybody in the world with their $80 per hour labor costs. This is where we see the liberals drift off into space: No matter what we must subsidize greedy unions because they are political partisans. No matter that there is no way to compete unless those labors costs are truncated some 65% to get a sound business plan—we need some “quick federal aid,” to fix this up. [17]

 Even the Reptile of San Francisco[18] a loathsome, vindictive Marxist parasite also known as Spartacus[19] in honor of the Marxist heroine Rosa Luxemburg the former chair of the Marxist Progressive Caucus[20] or Congress' Red Army caucus[21] wants to see a business plan that works, or offers lies to that effect.

 Until we see the plan…we cannot show them the money,” said House Speaker Nancy Pelosi.[22]

 Why wouldn’t Nancy and Harry just dump a few hundred billion into Detroit so as to erect a permanent socialist empire there? Krugman has no problem with this. Whatever it costs just dump in 50% more.

 This appears to be just a freak show version of the Blame Game. If the Dems waste money then they will get the flak and lose seats in 2010 as they will surely do, since they will do nothing but sink us in debt in the next two years with the blessings of the IgNoble One. If they can blame Bush2 for inaction then the Dems win the current battle.

 There is one more slimy option: The Big Three Beggars and their Union Stooges might show up at some secret meeting with Nancy and Harry  shining in the splendor of their purple robes and hand off their ‘plan’ and then,  unread, the Two might announce that this is a done deal. Thus, the taxpayers get stuck with subsidizing failure, the only real option for the left in a capitalist economy.

 One missing link here: where is the soothing essay on tax hikes? Are we to accept the phony notion that Obama will NOT increase taxes on those who make less than $250,000 as he ‘promised’ and Plugs recited as he echoed his Master’s Voice?[23]

 Detroit has no future as a business center, as a non primitive society or even as a sanitary landfill. It is a rusty containment facility for losers, drug addicts and criminals of leftist persuasion.

 But, our hero sums up with this:

 And it’s scary to think how much more can go wrong before Inauguration Day.”

 And, after Inauguration Day Obama will fix all this up with high taxation and wild spending. Sure.

 My analysis:

 What we are looking at here is an ideological socialist who willingly contorts any fundamental tenets anywhere in the theory or history of economics in a manner so as the service the expediency of the leftist political vision and echo the elements of the current political crisis. He is a crisis monger. Economic theory aside, he really does hop and clap when he hears his master’s voice. His view of economics is faulty if we read his works and note that tax cuts are never appropriate and government can never be too big or oppressive. There is no balance in this view as he omits any reference to market theory or fundamental capitalism. We can only celebrate and acknowledge him for his earned image as a trusty leftist lackey and heap praise upon him for fittingly performing his role as an ideological sycophant who deserves his Nobel Prize if it can be universally accepted for what it really is.

 Given his mechanical ideology and immunity from the basics of economics and reason, we can safely check out his noisy screeds as the first place to look for the wrong thing to do in our society.

 Great work Paul. You are to be celebrated as a Bellwether in Reverse.

  rycK

 Comments: ryckki@gmail.com

 


[1] In honor of that celebrated Communist stooge and liar and winner of the Pulitzer Prize for the NYT. The color RED is used in my essays in honor of Walter Duranty, a saint, if there could be one, in the Marxist Archives of Honor.

[7] Italian word:  ?ano noun, masculine anus http://www.wordreference.com/iten/ano

[12] The Lame-Duck Economy by Paul Krugman Op-Ed Columnist Published: November 21, 2008 http://www.nytimes.com/2008/11/21/opinion/21krugman.html?_r=1

 

[14] Crisis In Prices? By Paul Krugman Published: December 31, 2002 http://query.nytimes.com/gst/fullpage.html?res=9D00E7DE153FF932A05751C1A9649C8B63

[15] Dixon was so well-known that John Allen Paulos, a mathematician at Temple University, coined what he called the "Jeane Dixon effect", in which people loudly tout a few correct predictions and overlook false predictions. Many of Dixon's forecasts proved false, such as her prediction that World War III would begin in 1958 over the offshore Chinese islands of Quemoy and Matsu, that labor leader Walter Reuther would run for president in 1964 and that the Soviets would land the first man on the moon.” http://en.wikipedia.org/wiki/Jeane_Dixon

[18] Nancy Pelosi should go (but won't) By Yael T. Abouhalkah, Kansas City Star Editorial Page columnist http://voices.kansascity.com/node/2732

[19] Pelosi: The New Red Flag Rules of Spartacus.

Thursday, November 09, 2006 10:37 AM

[20] http://en.wikipedia.org/wiki/Congressional_Progressive_Caucus#Ideology .

“An array of national progressive organizations will work to support the efforts of the caucus, including the Institute for Policy Studies, The Nation Magazine, Moveon.org, National Priorities Project, Jobs with Justice Campaign, Peace Action, Americans for Democratic Action, and Progressive Democrats of America. Also co-sponsoring the kickoff event were the NAACP, ACLU, Progressive Majority, League of United Latin American Citizens, Rainbow/Push Coalition, National Council of La Raza, Hip Hop Caucus, Human Rights Campaign, Association of Farmworker Opportunity Programs, and the National Hip Hop Political Convention. The CPC has long maintained cordial ties with the Democratic Socialists of America, which hosted its website during the 1990s.”

[21] Congress' Red Army caucus. Here was their charter in 1998: Our purpose is to present thoughtful, practical solutions to the economic and social problems facing America," says its statement of purpose. "Our people-based agenda extends from job creation to job training, to economic conversion, to single payer health-care reform, to adequate funding for the AIDS crisis, to environmental reform and to women's rights. "Now that the Cold War is over, this nation's budget and overall priorities must reflect that reality. We support further cuts in outdated and unnecessary military spending, a more progressive tax system in which wealthy taxpayers and corporations contribute their fair share, and a substantial increase in social programs designed to meet the needs of low-and-middle-income American families. We believe that these goals fit within an overall commitment to deficit reduction." http://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=14542

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Political Lies, Ghouls, Dictators and the Eternal Quest for your Wealth.

Political Lies, Ghouls, Dictators and the Eternal Quest for your Wealth.

 

We can take the simplistic view and point out, as Marx did, that the world is really divided into two factions: those who can be successful, build wealth and security and enjoy life and others who cannot. This appears to be trite and a mere scoop of  hackneyed reason from a sweeping statement of history until we look at the stark reality and then look deeper into the pond at the political types who would make promises to get at your money and assets. This dichotomy really appears to be the case and this tragedy forms the basis for leftist politics. They claim [a lie] that they can fix this and bring us a better society. So far, all they have brought is misery or stagnation.

 

The world has never seen a place of any size that has a homogeneous collection of citizens who have what some economist might describe as a resemblance of equality. The great empires such as Egypt, the Roman Empire, the feudal systems in Japan or Europe or England or China, or anywhere in Africa for the last 7000 years have never produced equality or a reasonable distribution of wealth. This quest for equality has never materialized. We have witnessed a warped version of ‘equality’ in Cambodia and North Korea after the socialists finished with their social engineering and cut away the unnecessary masses. We can discount little places such as Switzerland or Sweden as they have special forms of parasitic income [the dirty gun business or the dirty money business] or places like Bermuda where tourism is forced upon the polis and everybody has a job. These are anomalies and cannot be distinguished from certain isolated parts of bigger countries and regions such as the French Nobility and their lands, the kings of the Middle East, the City of Rome or some islands in the Caribbean. It is not possible to even start out with a homogeneous distribution of wealth [other than zero] and maintain that balance for two or three generations. Sooner or later those who cannot manage their assets and money will spend it away and return to their earned lower station in life.  An exception might be San Francisco where a sufficiently drug-addicted community might experience equality and bliss in some unknown dimension without regard for money or housing or even food. We need to ask what happened in South America after 500 years of European enlightenment and wonder why they missed the opportunity for greatness. They have achieved little more than mediocrity. Three words can describe South America [including Mexico]: Poverty, revolution and sloth.

 

Religion first offered a form of equality, for a small price, in the terms of either the existing life or the afterlife depending on which one you picked. The reward was contentment and a few cures for diseases and the notion that following the path of religions morality would produce a better society for all. But, as we see in India or just outside the Vatican or in the streets of old Saigon, any form of economic equality is clearly absent. Religion usually attempted to redistribute the essentials of life in terms of food and shelter by the alms method, which was to be understood as a solemn duty and the fulfillment of a mandate according to the tenets of the church. This worked in a few places, but the propensity to collect sufficient contributions from the supplicants to homogenize the population with charity in any given area was nil.  People living in view of the Vatican have gone hungry for centuries. In the 1970s the ugliest slum I had witnessed north of Tijuana was the human wreckage that surrounded Gracie Mansion in New York. The liberals have no solutions to social problems. All they have to offer the poor are lies, threats, phony social programs that work in reverse and acts of brutality.

 

The First Big Lies and how they wrecked your lives:

 

We can start a study of overt leftist prevarications with a strange character known as J J. Rousseau and his tautological lackey Karl Marx, two jokers who were able to warp the societies of France and Russia with phony notions, mass murder and absurd promises. Rousseau proffered a host of implausible nostrums that were supposed to improve society. Rousseau taught that man was out of place in the society as it then existed and that we should preferably  share many attributes found in the animal kingdom in nature and, thusly,  crafted a social contract for us to follow that would solve this problem. The savage was nobler than the nobles it seems. This mental patient formulated his theory as Theory of Natural Man[1] and mumbled about social justice, and equality and economics and thus was made to look like a gibbering fool. He made discourtesy a social attribute.  France promptly tested his phony notions, a pack of preposterous lies, with the glorious French Revolution that resulted in the systematic murder of thousands. Baskets of heads were paraded thought the streets and this became  the grand culmination of this lunacy. Liberalism was born and died here. All books became the ‘property of the state’ and many still lie moldering away in bins in France [in Bibliothèque Nationale de France (BnF) ]unread. The Napoleonic dictator ship followed.

 

Not to be bested in terms of terror and propaganda, Karl Marx conjured his phony notion that if the proletariat could take over the means of production from the bourgeois then the profits of capitalism might be returned to the people and eventually government would no longer be necessary. This would be the Golden Age. The fault here is that political types were put into power after the entire means of production was confiscated in a brutal revolution and some 65 million people put to death and then they couldn’t manage the economy they had usurped. This wreckage slowly degraded for 74 years until it finally crashed in infamy and shame in 1989 with a strong push from Ronald Reagan. Lenin and several of his subsequent disgusting parasites mangled the economy and mismanaged the natural resources and were able to produce 100 million dead during their reigns. That Marxism could produce any form of a decent society is a brutal lie.  Yet, there are many on the left today who enjoy prosperity in the US while they avidly celebrate the governments of Cuba, North Korea and Nicaragua.  Liberals freeze and stare off into space when prompted to explain why the last 100 or so Marxist dictatorship in Africa failed to deliver on their promises to make a decent society for their tribal members.  They also have some deep reverence and misplaced respect for Islamo-Fascism and, as such, defend overt terrorism. Many liberals and their ignorant victims lament the demise of the USSR and would want the old régime to return to power. This is happening.

 

The obvious brutality and public murder of millions in order to produce a society that would be egalitarian or at least produce some form of social justice prompted some to think of other lies that might drain the wealth of the bourgeois away even in small packets and use that to create social programs that would redistribute the wealth with fewer murders. Communism morphed into radical socialism where command economies might be created that would employ Marx’s theories such as high progressive taxes and confiscatory inheritance taxes and could ‘spread around the wealth’ as we heard recently in our Presidential election.  After two world wars, 80 million dead and a Great Depression in Europe, the European Union was formed and it is now collapsing from poor administration and the predictable defect of the manifold inefficiency of big government.  The phony notion [another lie]that some cluster of politicians can micromanage the economy of millions and adjust the economic supply and demand schedules of food, housing, transportation, defense and other societal metrics is so preposterous as to be dismissed immediately if we judge the result based on the outcome. When the means of production are controlled by politicians the number of ways to fail multiplies almost in proportion to the numerical square of the number of bureaucrats on the planning boards. Thus, the nostrum that big government can solve problems and spread around the wealth in a sane and equitable manner is a sick joke and a preposterous lie. Take a close look at Europe as a test case. The proof lies there anywhere you look.

 

The Notion of Education:

 

The quest for ‘equality’ and ‘social justice’ might be attained in other ways we are told and that ‘education’ of the masses is the way to do this. If we teach our offspring to be classless and steep them in fairness and humanity then social justice will spring forth like flowers in the meadows.  The disease that prevented this splendor was capitalism. Any intrinsic truths in the educational theory entrenched in this message failed to materialize in the society as a whole because of two factors: propaganda and the maldistribution of cognitive attributes or IQs.

 

Given the chance to edify their citizens and others, the early educators were tutors in Egypt, Greece, Rome and other empires and they first concentrated on teaching administrative theory, then diplomacy and  then into war colleges and  then into business. The Romans were highly educated with many high schools in The City/State of Rome where Greeks were revered as those who could teach Romans the essentials of philosophy, engineering, probably war and society.  Their republic lasted either 800 or 1000 years depending on when you might think it ended.  Nothing has matched this, ever. After the Roman Empire crashed, the classical education efforts  remained concentrated in Europe  and was based on the ‘authority of the ancients’ and thus Latin was the language of the educated up to about the end of the 18 century.  But, there was no equality for the masses in the strict terms of equal incomes, equivalent housing and assets and the essential fact that those who had great wealth actually provided for the poor was ignored and refuted. That form of education only benefited the adept and was wasted on the ignoranti.

 

To fix this problem, propaganda must replace education. The trickle down theory of distribution of wealth was unacceptable according to the new educated view.  Now leaders of corporations became greedy tyrants and exploited their employees instead of being benefactors and employing millions from their risk-taking and ingenuity. Only a few of these entrepreneurs would rise to power and they were not the ones who by an accident of birth became royal rulers, but they were the ones who were adept in business. In England those who were originally privileged to become educated by their royal parents or peers of the realm were supplanted by those with higher intelligence, more assertive personalities and advancing business skills. Education had now, in the views of the left, produced the same monsters as the royal bed chambers and must be severely modified to teach the masses how to recognize the proper leaders that would create a more liberal society. Education, then, must be modified and transformed into a major propaganda mechanism [a lie machine] that would create a mold where the elite could push out conditioned citizens who would conform to the liberal model. The citizens must be ‘educated’ to the phony notion that socialism or one of its variants is the best form of government for all. This, of course, is a lie and a difficult one to implement without some heavy propaganda and some other drastic measures. The left used both.  Educators must now be social tyrants and act as stooges of some leftist social agenda to hold jobs in the leftist-dominated educational system. Testing must be minimized and students passed along to higher grade levels without regard for academic credentials or any recognizable form of performance. Politics has now replaced facts.

 

The Failure of Education and Proliferation of Propaganda:

 

Somehow, the citizens of so-called democracies must be educated and properly propagandized into mere obedient and static pieces of some grand collage that can be constructed in accordance with modern concepts of liberalism. But, the difficulty here is that the skeptical must be lead to believe that they are giving up both power and wealth for some cause. Fear, compassion and hate are the strongest emotions so a good propagandist must use a complex elixir of all three to strip the affluent citizens of some or all of their wealth. The leftists have not ignored this precept.

 

World Wars 1, 2 were suitable propagandistic instruments to convince the good citizens to give up their time, lives and much wealth in order to fix some threatening situation.  The assassination of the Archduke Ferdinand precipitated the first big war that was going to proceed anyway but that was as good an excuse as any available at the time. Here, the fear that the enemy might march in and take over your house was real so Europe went bankrupt in the hasty prevention of this threat and received something worse for the effort.  The fact that militaristic politicians conjured up this behemoth was beside the point.  Without warring politicos there would never have been war. We are reminded by George F. Will[2] that diplomacy might have solved the dispute by talking it over as reasonable persons and making some compromises.  That [diplomacy] was only one of the big lies.  By definition, diplomacy has never solved any major war or aggression in the history of the world. American taxpayers, after sacrificing 160,000 soldiers, paid Europe to restructure and they managed to get along until the Great Depression. We were promised that this was the ‘war to end all wars’ or at least until the next big one, which was set up by the Treaty of Versailles and would start within a generation.

 

During the Great Depression, which may not have been so great because we have not seen the end of the new one we are entering, was an occasion to institute novel social programs with grand promises that failed to solve the problems of deflation and unemployment.  Promises to decrease the unemployment with infrastructure and building programs failed. Another war was necessary to mobilize the citizens and pull us out of the depression.

 

The American citizens originally balked at the notion of another World War as the first one was a bummer.  The lie here was that fascism would engulf us and we would be slaves of Hitler or worse. He couldn’t even handle Russia. He was lucky to survive his own army. The Neutrality Act passed by Congress to keep us out of that wasteful mêlée was ignored by FDR and he goaded Japan on numerous issues such as oil and helium and scrap metal and credit and presto—the war was on.  We took sides against Germany and Italy by helping a belligerent [England] during the ‘neutrality’ and they knew it and responded. This one war cost us a year’s GDP and 400,000 dead. The outcome was that anti-capitalistic ideological enemies were now the masters of half of Europe and they now possessed nuclear weapons so we had a cold war for half a century or so. The fear here was that the USSR would nuke us so we dug holes in the ground and put in missiles and built subs that could hide on the bottom of the ocean in wait of a signal to destroy the enemy in 15 min.  The big lie here was that the Communists were our allies. After the war, some of our more ignorant politicos like Truman found out the truth. Today, we are still counseled that anticommunism is evil and that the Soviets were really not out to get us.[3]  Did the Poles ever hear this? What about Georgia? We must tolerate communists, in our society it was proffered, because attacking or exposing them is unacceptable and sanctions the inane process of Red Baiting or McCarthyism.  We should respect these parasites and murderers. This form of propaganda gives more latitude to the leftist attacks on capitalism. With capitalism out of the way the leftists in America could party with international communists over the wreckage and fumes. We would then experience justice and freedom.

 

Unexpected Prosperity Undermines Government.

 

By accident, and entirely unpredicted, the economy surged after WW2 and prosperity if not peace stubbornly persisted. This was not some detailed plan by government.  Indeed, the government had predicted more depression, but they could not stop individualism and capitalism. The tax cuts of JFK, Ronald Reagan and George Bush produced prosperity and marginalized socialism. This process must be halted the leftists argued if egalitarian notions were to be implemented. Capitalism is inherently evil the lie goes and the government knows how to create a balanced society. They can accomplish this by redistributive tax policies.

 

Big Lies About Big Government And Their  Big Promises.

 

Several big lies from the New Deal era were worked simultaneously. The big one was that social security would provide some retirement benefits and would benefit all. The lie here was the taxes on this program were excessive and unnecessary so politicians spent the excess and let the system debt grow like a cancer upon our society. We now face some 30 trillion dollars in costs by 2050 with no obvious way to pay for this. The IOUs at the Treasury are worthless as the taxpayer is stuck with this. Other social programs such as new forms of ‘education’ were instituted with massive costs. We wonder why the SATs are down and the high school graduation rates in half the population is barely 50%.The strange notion that many who could not seem to pass courses and were marginalized in their education by insufficient unit spending was crushed when Washington, D. C. trudged on for decades with the highest spending per pupil in the Western Hemisphere and produced horrible results. Indeed, the debate over cognitive skills as described in the Bell Curve was hot and nasty and the scientific findings of the very basis of cognitive skills were dismissed by the left.[4] They could not handle even a discussion of the educational ‘gap.’ The truism that many minorities and everybody else on the left tail of the bell curve could not compete with equality on standardized tests was known from 1906, but became a major political issue in 1965 after LBJ asked Professor Jensen at Berkeley why his Great Society educational spending failed to produce results. The big lie was the tests were racially biased as any differences in cognitive skills among races would be the equivalent overt racism [a lie] hence not true.  People are ‘equal.’ Affirmative Action was then instituted to make up the difference between certain minorities and others who participated in the society. The big lie here was that if quotas and race norming test scores were instituted the results could show that everybody could have an equal outcome in economic terms. A bigger lie was that the IQ tests proved nothing and the emotional intelligence[5] was the true measure of the citizen and more important than a mere cognitive metric.  The standardized tests were ‘unfair’ and just another lie.  It is interesting that when the tests were redesigned according to norms suggested by experts in minority matters that the tests show that the IQs did not change significantly. Lies of this magnitude allowed political parties to attract minorities with the promises that they would ‘fix’ the problem. That was a lie. What else should an IQ test do except sort out the test takers by IQ?

 

The Big Lie That Tax Cuts Do Not Produce Prosperity.

 

Keynesians and other ‘economists’ insist in some big lie that lost taxes are ‘costs’ to an economy and that tax cuts result in bad economies. The New York Times publishes the foaming screeds of this failed economic theory twice a week for our amusement. [6]This lie has been disproved many times, but the left cling to this notion because if they were to agree then the funding for the politicians would decrease and they would lose power and see capitalism become even stronger. Capitalism is the enemy here and taxes curtail capitalism. Only half of this is true. Excessive taxation destroys capitalism and results in distressed economies like we see in Germany, England and France. They are now beggared by socialist levels of taxation, have lost hope and crawl to the US for money to bail them out.  We cannot afford to bail them out three times in a single century.

 

The Big Lie That ‘Affordable Housing’ Is Good For Our Society.

 

If any lie can top this one then we must look to the future and see how the Carbon Cap taxation and Climate Change taxes work out. We see now that the CRA [the Community Communist Reinvestment Act][7][8] created mountains of bad debt[9] by forcing banks to give away free houses to the uncreditworthy low class in exchange for their votes under penalty of prosecution by the government. The scam here was that banks were forced to loan money to people with poor credit, scant educational skills, drug addicts and even illegal aliens and could peddle this worthless paper into the dumpsters known as Fannie Mae and Freddie Mac.  What happened here is that the process demanded ‘affordable housing’ for millions and wealth was then lost from the failure to make mortgage payments. These two phony big-lie federal quasi-government corporations racked up 3-5 trillion dollars in debt [we don’t know how much yet] and started off a steep recession that will probably turn into a depression.  Somehow, this mortgage process mentality infected Europe and elsewhere and they have the same problem with the deflation of housing prices.  Europe is busted now and Japan is following. But, this may be nothing if we look for even a bigger lie.

 

The Big Lie That Global Warming Will Destroy Our Planet.

 

The biggest lies are the most preposterous but like the [false] Hitlerian case[10] cited as:”… if stressed long enough then the populace will eventually be convinced of the lie’s efficacy or “…in the primitive simplicity of their minds they more readily fall victims to the big lie than the small lie,...”  Hitler was talking about somebody else and not offering this as his own propaganda mechanism.  Nevertheless, the notion of the big lie seems to work well for the left and they use it as far as they can. The lie here, thus, is that we cannot confine big lies exclusively to the narrow zones of National Socialism as this variant is only one small historical sector of the broad expanse of socialism and Communism, its charter benefactor. We cannot allow the environmentalists [read EcoNazis here] the opportunity to escape the provable accusation that they are wantonly using this fascist propaganda theme to support their big lie. The quest for wealth and control of assets and means of production has never matched this attempt at control of our society.

 

Two big lies are intertwined here: The first is that Carbon dioxide is a pollutant and the second is that the global temperature is rising due to the use of fossil fuels. CO2 is not a pollutant.[11] This is a lie. The temperature of the earth is not rising—this is a lie.  The temperature has been falling the last three years.

 

The big prize for the socialists is that the entire planet can now be taxed because the toxic gas produced from respiration of animals like us pervades the entire sphere and everybody must reduce emissions. This big lie transcends the socialist notion of confiscatory taxes on individuals or corporations as now everybody can pay for the abusive use of certain forms of energy from any source. A bigger lie would come from a few years of destroying our industrial base and living like beggars when the EcoNazis can announce that all these measures prevented the oceans from rising and boiling and saved us. Here we have the potential case where a big lie that predicted a nasty outcome was the correct path of prevention because the dire outc0me did not happen to materialize. This self-aggrandizing ‘truth’ resembles the act of hanging of garlic around the house and this prophylaxis has prevented the home owners from being bitten by vampires. Perhaps we should just howl at the moon every evening during the CBS News broadcasts and measure the height of the oceans and if the waters do not rise then we can just keep howling on key and in time. This would be proof that such nonsense fixed any problem. This is a lower cost version and just as effective.

 

The Big Lie about Tax Cuts in 2009.

 

The politicians that seem to float to the top of the heap are mostly disgusting parasites. They are crooked and tell lies to get power. We were promised ‘tax cuts’ for those making less than $250,000 by president-elect Barack Obama and this was seconded with by his VP running mate Joe Biden. [12] This is probably a lie.  We will find out soon enough.

 

We were assured by Barney Frank about the security of Fannie Mae and that story was this: on July 14, 2008:

 

I think this is a case where Freddie Mac and Fannie Mae are fundamentally sound. They're not in danger of going under. They're not the best investment these days from a long term standpoint going back. I think they are in good shape going forward. They're in the housing market. I do think their prospects going forward are very solid.”[13] [14]

 

This was probably a lie, but Barney Frank is not the kind of person we can be persuaded that knows what he believes in, if anything. He seems to speak in some political dialect so we don’t know what he knew. I doubt if he does.  Now, we face new ‘leadership’ in the form of a person who is 100% left liberal and has no accomplishments other than blindly voting for far leftist causes. So far, Obama is nobody with nothing to say outside some liberal script.

“Obama is nothing but a sophomoric political construct that is nothing more than a scripted oratorical puppet that performs on a glittering stage and gives sterling speeches that fall backward upon old, stale socialist precepts. He would be pedestrian-level, but has a new and talented style of tinsel-town stage delivery and a few hundred million dollars in funding from the Middle East and Europe. The money makes the man here.”[15] –from my previous blog by rycK

The Real Ugly Question: Do the Lefties Care if We Enter a Depression?

 

This is hard to tell at this point. The history of the various quests for power in numerous countries by those in power in leftist circles is strewn with dead bodies, wasted economies and even piles of human skulls. A crushing depression would allow our elected ‘leaders’ to institute drastic measures like setting up confiscatory taxes, the attachment of  our 401(k)s and mandated closure of banks so that we cannot get to our bank accounts. There are many political opportunities here for Democrats to proclaim that capitalism has failed and needs to be suppressed. They would then use our ill-gotten wealth to institute socialism.

 

You might watch the movie Doctor Zhivago[16] again and pay special attention to the scenes where Gromeko's house is confiscated by a citizen’s committee and his literary works condemned by the state. That movie tells us much about the left and their mentality. The outcome of Doctor Zhivago is one leftist-endorsed way to get an enlightened ending to capitalist society that matches the typical leftist’s notions of fairness and equity.  War and/or depression are the only changes that will allow for a concrete change in our society according to the left. They have nothing else but other people’s wealth.[17]revised comment from a previous blog by rycK

 

The answer to the last question will probably be revealed if and when Obama and his friends go after the tax base, place a high tax on gasoline and restructure the economy based on the EcoNazi tenets of clean and green.  The residual wealth in the US is in our bank accounts, 401(k)s and homes.  They could roll our IRAs into the phony Social Security system and close the banks for a time and reopen them with government downsized account balances.

 

We shall see how much they hate capitalism very soon. They may try to confiscate guns soon.

 

rycK

 

Comments: ryckki@gmail.com

 



[1] The first man who, having fenced in a piece of land, said "This is mine," and found people naive enough to believe him, that man was the true founder of civil society. From how many crimes, wars, and murders, from how many horrors and misfortunes might not any one have saved mankind, by pulling up the stakes, or filling up the ditch, and crying to his fellows: Beware of listening to this imposter; you are undone if you once forget that the fruits of the earth belong to us all, and the earth itself to nobody.

[3] Richard Gid Powers, Not Without Honor, The History of American Anticommunism, The Free Press, 1995

[4] The Bell Curve: Intelligence and Class Structure in American Life (ISBN: 0029146739)  by Herrnstein, Richard J. and  Murray, Charles  Free Press of Glencoe , Inc, Old Tappan, New Jersey, U.S.A., 1994.

[7]Bear Stearns made the first public securitization of Community Reinvestment Act (CRA) loans started in 1997.[6] Editorialists in some American newspapers[7][8] and US Congressman Ron Paul[9] say the CRA loans were lent to otherwise un-credit-worthy consumers in the name of ending discrimination, although an analysis of actual lending patterns does not generally support this conclusion.[10][11][12]

On June 22, 2007, Bear Stearns pledged a collateralized loan of up to $3.2 billion to "bail out" one of its funds, the Bear Stearns High-Grade Structured Credit Fund, while negotiating with other banks to loan money against collateral to another fund, the Bear Stearns High-Grade Structured Credit Enhanced Leveraged Fund.[13] The funds were invested in thinly traded collateralized debt obligations (CDOs) found to be worth less than their mark-to-market value. Merrill Lynch seized $850 million worth of the underlying collateral but only was able to auction $100 million of them. The incident sparked concern of contagion as Bear Stearns might be forced to liquidate its CDOs, prompting a mark-down of similar assets in other portfolios.[14][15] Richard A. Marin, a senior executive at Bear Stearns Asset Management responsible for the two hedge funds, was replaced on June 29 by Jeffrey B. Lane, a former Vice Chairman of rival investment bank, Lehman Brothers.[16]

During the week of July 16, 2007, Bear Stearns disclosed that the two subprime hedge funds had lost nearly all of their value amid a rapid decline in the market for subprime mortgages.

 

[8] http://en.wikipedia.org/wiki/Community_Reinvestment_Act

Community Reinvestment Act (or CRA, Pub.L. 95-128, title VIII, 91 Stat. 1147, 12 U.S.C. § 2901 et seq.)

 

[9] The Rape of the Your Wealth: Obama and his Illegal Aliens are set to Regulate and Redistribute All that you have.

http://rycksrationalizations.blogtownhall.com/2008/10/20/the_rape_of__your_wealth_obama_and_his_illegal_aliens_are_set_to_regulate_and_redistribute_all_that_you_have.thtml

"These two entities—Fannie Mae and Freddie Mac—are not facing any kind of financial crisis," said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. "The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing."[9]— Barney Frank  http://www.usnews.com/blogs/sam-dealey/2008/9/10/barney-franks-fannie-and-freddie-muddle.html

 

[10] [It is often erroneously claimed or implied Hitler had advocated the use of the Big Lie as a viable propaganda technique.  Chapter 10 of Mein Kampf:

“... in the big lie there is always a certain force of credibility; because the broad masses of a nation are always more easily corrupted in the deeper strata of their emotional nature than consciously or voluntarily; and thus in the primitive simplicity of their minds they more readily fall victims to the big lie than the small lie, since they themselves often tell small lies in little matters but would be ashamed to resort to large-scale falsehoods. It would never come into their heads to fabricate colossal untruths, and they would not believe that others could have the impudence to distort the truth so infamously. Even though the facts which prove this to be so may be brought clearly to their minds, they will still doubt and waver and will continue to think that there may be some other explanation. For the grossly impudent lie always leaves traces behind it, even after it has been nailed down, a fact which is known to all expert liars in this world and to all who conspire together in the art of lying.

—Adolf Hitler , Mein Kampf, vol. I, ch. X http://en.wikipedia.org/wiki/Big_Lie#Use_of_the_expression_by_Hitler

 

[12]"Read my lips," Biden  said, using Bush's famous phrase while referring to a Barack Obama administration. "Nobody, nobody making less than $250,000 is going to see a penny of their taxes go up."—Biden in an incoherent rant at some county fairgrounds near the campus of Ohio University in Athens on Oct 15, 2008.

 

[14] "Zeese-a two intities—Foonnie-a Mee-a und Freddie-a Mec—ire-a not fecing uny kind ooff finoonciel creesis[14]," said Representative Barney Frank of Massachusetts[14], the ranking Democrat on the Financial Services Committee. " Zee-a more-a people-a ixeggerete-a zeese-a problems, zee-a more-a pressoore-a zeere-a is oon zeese-a compoonies, zee-a less we-a will see-a in terms ooff iffffordeble-a hooosing"."[14]

Iffffordeble-a hooosing” is what burdened Fanny Mae with three trillion dollars worth of phony mortgages and we still have failing mortgages that were given to 5 million illegal aliens. We can solve this finoonciel creesis by simply printing more money! The

 

Looming Depression and Surviving the Politicians who Lust for your Wealth.

http://rycksrationalizations.blogtownhall.com/2008/11/17/the_looming_depression_and_surviving_the_politicians_who_lust_for_your_wealth.thtml

 

[16] Yuri returns to Moscow, finding that his Aunt Anna is dead and that the Gromeko's house has been apportioned by the revolutionary government to accommodate 20 or 30 other people. Yuri meets his son Sasha for the first time, and resumes his old job at the local hospital, but is furious that his family is lacking in basic fuel and food. One night, while he tries to steal wood from a fence for his family stove, he is spotted by Yevgraf who follows him home. Yevgraf informs Zhivago that his poems have been condemned by the government as antagonistic to the new ideology, putting their whole family at risk for collective punishment. He helps arrange for rail passes for their transport to the Gromeko estate at Varykino, in theUrals. http://en.wikipedia.org/wiki/Doctor_Zhivago_(1965_film)

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Paulson Speaks and Squeaks and Speaks of Confidence while He Cannot Seem to Tell Us How Much Money has been Spen

Paulson Speaks and Squeaks and Speaks of Confidence while He Cannot Seem to Tell Us How Much Money has been Spent.

 

The New York Times—aka the Walter Duranty Papers[1]--is a strange platform for a Republican to talk about success and confidence.  Apart from staying toward Dewey in 1948, the Times has a solid history of blindly rubber-stamping any Marxist dictator, any tax increase on anything, Castro’s phony healthcare system and celebrating the death of every American solider since the Korean Conflict. Today, they must have some arcane design in mind as they let somebody who does not know what to do tell us just that.

 

Paulson brings a partial account of what our government is doing in the US and brings us nothing but a revisionist version of a FDR Fireside Chat.

 

I am very proud of the decisive actions by the Treasury Department, the Federal Reserve and the F.D.I.C. to stabilize our financial system. … We have preserved the flexibility of President-elect Barack Obama and the new secretary of the Treasury to address the challenges in the economy and capital markets they will face.”[2]--Fighting the Financial Crisis, One Challenge at a Time By Henry M. Paulson Jr. Op-Ed Contributor Published: November 17, 2008 [Emphasis is mine in all quotes.]This link references all quotes in this essay unless otherwise stated.

 

This, after he seems to have told us that we wisely spent 250 billion, but the notion that we could cover ‘troubled assets’ is now out of reach.

 

A troubled-asset purchase program, to be effective, would require a huge commitment of money. In mid-September, before economic conditions worsened, $700 billion in troubled asset purchases would have had a significant impact. But half of that sum, in a worse economy, simply isn’t enough firepower.”

 

If we have learned anything throughout this year, we have learned that this financial crisis is unpredictable and difficult to counteract. We decided it was prudent to reserve our TARP money, maintaining not only our flexibility, but also that of the next administration.”

We keep wondering just how much money was spent when we look at this chart:

Given the speed at which the federal government is throwing money at the financial crisis, the average taxpayer, never mind member of Congress, might not be faulted for losing track. CNBC, however, has been paying very close attention and keeping a running tally of actual spending as well as the commitments involved.”[3]-- Financial Crisis Tab Already In The Trillions By CNBC.com |17 Nov 2008 |

FINANCIAL CRISIS BALANCE SHEET

 

Government Entity

Sum in Billions of Dollars

Federal Reserve

 

 

 

(TAF) Term Auction Facility

900

Discount Window Lending

 

Commercial Banks

99.2

Investment Banks

56.7

Loans to buy ABCP

76.5

AIG

112.5

Bear Stearns

29.5

(TSLF) Term Securities Lending Facility

225

Swap Lines

613

(MMIFF) Money Market Investor Funding Facility

540

Commercial Paper Funding Facility

257

(TARP) Treasury Asset Relief Program

700

Other:

 

Automakers

25

(FHA) Federal Housing Administration

300

Fannie Mae/Freddie Mac

350

 

 

Total

4284.5

Note: Figures as of Nov. 13, 2008

How do we reconcile this fraction of the $700 bln prattle with this list? Fannie Mae is a dumpster to hide the phony ‘affordable housing[4]’ giveaways  like the CRA[5]to people who cannot afford houses and the only asset value left is the current market price of the housing. Are we taxpayers expected to cover the losses of bad debt? This is a socialist monster that we must handle by [1] halting the phony notion that we have to give away housing to anybody and [2] that we must give them ‘loans’ or ‘adjust’ their mortgage payment and stick the banks and loan institutions with the losses.

One billion dollars is about 8$ in taxes for workers who pay taxes so 1.0 trillion dollars is $8000 in some kind of tax liability so this works out to the interesting value of $34 trillion dollars. We know that the household asset value in the US is about $58 trillion so we have just put in jeopardy more than half of our citizen’s assets. For the individual worker we are looking at $34,000 per worker except that the lower half pays essentially no taxes so let us double that just to be fair and add in a few bucks for the illegal aliens. This rises to about $80,000 in debt against an average of about $200,000[58 trillion divided by 300 million citizens is $193,000] in total assets for home owners.

To this mess we are supposed to add  in socialized medicine, aid to Africa, and spend a few hundred billion supporting the unions in Detroit who will not budge from their cushy $60-$80 dollar per hour wages and benefits that make the auto business in that area untenable. We have just a few trillion here and there in unfunded mandates in Social Security and entitlements to think about as well.

With a GDP of about 16 trillion we tax ¼ of this to about 4 trillion [3 trillion to the fed] and we now just spent another 4 trillion?! This looks like an effective tax rate of 50% on everything we do and we just elected some liberal who wants to ‘change the world?’

Well, the world has already changed. We have to keep the banks solvent and dump a lot of government rules and regulations like the Clean Air Act and the Carbon Cap taxes because they will consume a few more trillion dollars per year if we do not.

We are going broke and the liberals want to raise taxes?

rycK

 

Comments: ryckki@gmail.com

 


[1] In honor of that celebrated Communist stooge and liar and winner of the Pulitzer Prize for the NYT. The color RED is used in my essays in honor of Walter Duranty, a saint, if there could be one, in the Marxist Archives of Honor.

[2] Fighting the Financial Crisis, One Challenge at a Time By Henry M. Paulson Jr. Op-Ed Contributor Published: November 17, 2008 http://www.nytimes.com/2008/11/18/opinion/18paulson.html?_r=1

[3] Financial Crisis Tab Already In The Trillions By CNBC.com |17 Nov 2008 | http://www.cnbc.com/id/27719011

[4] "Zeese-a two intities—Foonnie-a Mee-a und Freddie-a Mec—ire-a not fecing uny kind ooff finoonciel creesis[4]," said Representative Barney Frank of Massachusetts[4], the ranking Democrat on the Financial Services Committee. " Zee-a more-a people-a ixeggerete-a zeese-a problems, zee-a more-a pressoore-a zeere-a is oon zeese-a compoonies, zee-a less we-a will see-a in terms ooff iffffordeble-a hooosing"."[4]

Iffffordeble-a hooosing” is what burdened Fanny Mae with three trillion dollars worth of phony mortgages and we still have failing mortgages that were given to 5 million illegal aliens. We can solve this finoonciel creesis by simply printing more money! http://www.usnews.com/blogs/sam-dealey/2008/9/10/barney-franks-fannie-and-freddie-muddle.html

[5] CRA [the phony Community Communist Reinvestment Act]

The CRA [the phony Community Communist Reinvestment Act][5][5] created mountains of bad debt by forcing banks to give away free houses to the uncreditworthy low class in exchange for their votes under penalty of prosecution by the government. You were supposed to wipe out Redlining[5]  and replace it with Greenlining.[5] Minorities must have loans [free if necessary] so they can participate in the American Dream. This is known as ‘affordable housing’—you cannot afford, but the illegal aliens and criminals and ‘poor’ certainly can.  The cost is essentially zero.  The thrust by the left now is to ‘suspend’ foreclosures that were a result of not paying off their loans and use some bank or government money [what else from a socialist?] to pay for the monthly mortgage payments.  Illegal aliens and dope dealers are most welcome.” The Obama Depression and Surviving the Leftists: Free Homes and Debt Forgiveness for your Votes.

http://rycksrationalizations.blogtownhall.com/2008/11/14/the_obama_depression_and_surviving_the_leftists_free_homes_and_debt_forgiveness_for_your_votes.thtml

 

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The Looming Depression and Surviving the Politicians who Lust for your Wealth.

The Looming Depression and Surviving the Politicians who Lust for your Wealth.

 

We are advised that socialism is the best way to control the masses as this method purports to deliver ‘fairness’ and ‘equality’ to the masses. The evils of capitalism are manifold and may be used to blame a wide assortment of social evils ranging from AIDS to crop failures in the Sudan.  We are further educated that capitalism is intrinsically flawed in that it performs some ghoulish misdistribution of wealth and is based on racism, exploitation and greed.

 

We could suggest that we might inspect the economic and social differences among the variants of the socialist themes and capitalist examples now in operation around the world. We could inquire about the ‘successes’ of socialism when compared to its counterpart. The findings are not encouraging.[1] Not only is socialism not a success but the process seems to promote dictators and mass murder al0ng with the novel creation and maintenance of pogroms, novel gulags and piles of human skulls.  Europe is now the rotting image of a long gone capitalist society that now has encouraged Islamo- Fascists to be their new overseers. Feudalism returns to reeducate the unwashed masses with a new religions message. The infidels have already earned their punishment.

 

The New Obama Socialists are politicizing the recession that will blossom into a full-blown depression by pandering to the unfortunate over the notion that the government ought to pick up their loses and probably give  them a free house at the expense of the banks or other corporations. It is difficult to imagine any socialist measure that tops giving out freebees. We are expected to salvage the union monster in Detroit[2] to pay back the leftists for their political support.

 

Now, a pack of mostly socialist politicos are now mindlessly groping for funding and offering heaps of maudlin stories about failing economies, mountains of debt and the need for the US to spread around its wealth to support Marxism and emerging economies on those soils.

 

The G-2o met Sunday and then  issued a  slobbery screed [see ref[3]] replete  with mushy syntax, drippy clauses and imbedded sobs with all anchored to the nostrum that President-Elect Obama will sort of ignore the levels or our federal budget deficits for a couple of years. We can spend ourselves into prosperity! Who blamed Bush2 for spending too much money? Oh, well, that is just politics.

 

Placing blame is all the emerging ‘countries’ have and here it is inscribed in this hallowed document: DECLARATION SUMMIT ON FINANCIAL MARKETS AND THE WORLD ECONOMY:

 

Root Causes of the Current Crisis

[3]. During a period of strong global growth, growing capital flows, and prolonged stability earlier this decade, market participants sought higher yields without an adequate appreciation of the risks and failed to exercise proper due diligence. At the same time, weak underwriting standards, unsound risk management practices, increasingly complex and opaque financial products, and consequent excessive leverage combined to create vulnerabilities in the system. Policy-makers, regulators and supervisors, in some advanced countries, did not adequately appreciate and address the risks building up in financial markets, keep pace with financial innovation, or take into account the systemic ramifications of domestic regulatory actions.”[4]-- DECLARATION SUMMIT ON FINANCIAL MARKETS AND THE WORLD ECONOMY November 15, 2008  [Emphasis is mine in all quotes.]

This all so much whine and blow and all we have left from a tortured distillation of this declaration is that the US must have caused this problem and certainly ought to bail out the world. Not to be left out, the ‘emerging countries,’ innocent by definition here, must get their due and presumable act in a leadership manner that would be a shining example of what Americans failed to do. The notion that we have about 90 countries that have failed economies based, mostly, on the ugly social acts of tribalism and Marxism seems to be missing here. It has only been 7,000 years so they need more time and, of course, more money. We need to learn all about the diversity of tribal holocausts, celebration of terrorism and the worship of dictatorships and then shovel money into these garbage pits during the learning exercise.

A solution here is proffered:

[7]… we agreed that a broader policy response is needed, based on closer macroeconomic cooperation, to restore growth, avoid negative spillovers and support emerging market economies and developing countries.

Much of this piffle of the prostrate emerges  from the outrageous Obama promise that he will ‘change the world’ and that he will heed nonsense like this from the New York Times—aka the Walter Duranty Papers[5]--who never saw either a crushing tax or a Marxist revolution that they couldn’t celebrate with drugs, song and dance. Money money money.

Well, there’s no question that fighting the crisis will cost a lot of money. Rescuing the financial system will probably require large outlays beyond the funds already disbursed. And on top of that, we badly need a program of increased government spending to support output and employment. Could next year’s federal budget deficit reach $1 trillion? Yes.”[6]--Paul Krugman November 7, 2008

The Slush Pump will be some ‘revised’ version of the Bretton Woods Institutions:

 

Reforming International Financial Institutions: We are committed to advancing the reform of the Bretton Woods Institutions so that they can more adequately reflect changing economic weights in the world economy in order to increase their legitimacy and effectiveness. In this respect, emerging and developing economies, including the poorest countries, should have greater voice and representation.

 

So. Let us witness a cluster of Marxian Primitives all dancing around the money pit as Obama chucks in truckloads of freshly printed US dollars to the tune of the L'Internationale.[7] 

We might inquire where the funding for all this might be found as now Japan is entering its second major recession[8] since its 15 year encounter with deflation. The US is financially stalling in a similar deflationary manner and entering into a deep recession. The EU losers are now confirmed slobbering beggars and as proof we seem them prostrate and crawling up the steps of the US Treasury to beg alms form Paulson and others who do not know what do.  We might inquire where the World Trade Organization [WTO] is faring now.[9] They are being led down the economic rut by such characters as Princeling of Wails[10] and other losers.

We wonder how primitive societies like India, Viet Nam and France can cope with massive Carbon Cap taxes although the US might be generous and print money for them too.  The Carbon Cap Follies of the EcoNazis and their Latent Lysenko lackeys [(LLLs) like Al Gore[11]] might cost the world 500 billion in phony taxes in the next 5 years alone. This is all to ‘save the planet’ as they watch their phony computer models spit out crap. They looked like fools as the earth’s temperature fell when they had nosily predicted a constant rise.[12] They didn’t even blink before they changed their slogan form Global Warming to Climate Change. Now, either up or down is bad for the ecology. They need your money and will concoct any stupid lie that will scare the mentally disnimble into supporting their phony science.

And at home we are going to bailout our worthless auto industry in Michigan with the legislative assistance of Barney Frank, the Carbuncle of Society, issuing mystical runes in this Elmer Fudd dialect:

"Zeese-a two intities—Foonnie-a Mee-a und Freddie-a Mec—ire-a not fecing uny kind ooff finoonciel creesis[13]," said Representative Barney Frank of Massachusetts[14], the ranking Democrat on the Financial Services Committee. " Zee-a more-a people-a ixeggerete-a zeese-a problems, zee-a more-a pressoore-a zeere-a is oon zeese-a compoonies, zee-a less we-a will see-a in terms ooff iffffordeble-a hooosing"."[15]

Iffffordeble-a hooosing” is what burdened Fanny Mae with three trillion dollars worth of phony mortgages and we still have failing mortgages that were given to 5 million illegal aliens. We can solve this finoonciel creesis by simply printing more money!

So, the world again crashes in socialism and folly and the United States is supposed to provide the corn mean, the sympathy and sanitary rump swabs to clean up this mess. And, all they have left in the world is your home, your 410(k)s and the rest of your assets.

It is now time to institute a World-Wide Wealth Tax so the greedy capitalists can be hunted down and cannot escape their crimes and a nifty global and ‘transparent’[16] banking system is just the item to sort out who has money and seize it.

rycK

 

Comments: ryckki@gmail.com



[2] A Translation of the Bailout Plan for Detroit: Bigger Government, Bigger Unions and Cars Designed by EcoNazis http://rycksrationalizations.blogtownhall.com/2008/11/16/a_translation_of_the_bailout_plan_for_detroit_bigger_government,_bigger_unions_and_cars_designed_by_econazis.thtml

 

[4] DECLARATION SUMMIT ON FINANCIAL MARKETS AND THE WORLD ECONOMY November 15, 2008

http://online.wsj.com/article/SB122677642316131071.html#articleTabs%3Darticle

 

[5] In honor of that celebrated Communist stooge and liar and winner of the Pulitzer Prize for the NYT. The color RED is used in my essays in honor of Walter Duranty, a saint, if there could be one, in the Marxist Archives of Honor.

[12] Can the Global Warming Zombies Admit they look like Fools Yet??

Posted by rycK on Thursday, February 28, 2008 4:49:57 PM

http://rycksrationalizations.blogtownhall.com/2008/02/28/can_the_global_warming_zombies_admit_they_look_like_fools_yet.thtml

 

[14] Soon to go bankrupt.

[16] Strengthening Transparency and Accountability. “With a view toward promoting financial stability, the governance of the international accounting standard setting body should be further enhanced, including by undertaking a review of its membership, in particular in order to ensure transparency, accountability, and an appropriate relationship between this independent body and the relevant authorities.” http://online.wsj.com/article/SB122677642316131071.html#articleTabs%3Darticle

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