A recent letter to the local paper came up with a brilliant solution to all of the current economic problems. He wants to strengthen unions so that they can raise wages. Brilliant but there is a faster way. All that the Obama and his minions have to do is raise the minimum wage to $125 an hour. Everyone would then make at least $250,000 a year. Consumer spending would increase as they buy stuff with their new found wealth. The result would be manufacturing jobs and the deficit would disappear since everyone would be taxed. This guy probably bought Brooklyn Bridge last week.
It is economic idiocy like this that is driving President’s policy down the road to ruin and being cheered on by those who have no idea what they are talking about.
Wednesday, August 18, 2010
Carbon
Newsday is pushing the Cap and Trade bill as a solution to dealing with climate change, speeding up the development of alternative energy solutions, promoting job creation and curing dandruff. The Editors propose that Congressional Democrats will not act because they are too timid and fear “an anti-incumbent tsunami”. Well, every Congress should fear an anti-incumbent tsunami. That is why it is called democracy.
As for the Cap and Trade bill, the appeal is vague. At most basic, it is another tax on business and since business deals with taxes by raising prices, it is a tax that will be paid by consumers. In a world where the market for carbon based fuels is world wide, if the US is the only one having this tax, business in the United States will be put at another competitive disadvantage. Just what we do not need now – or ever. (There is no chance that the world’s biggest polluters – China and India – will do the same.) Further, underlying this whole approach is not only a restriction on carbon based fuels but a desire to cut fuel consumption across the board. These guys actually are looking to lower the standard of living. Their ideas are to not use the air conditioning as much; to use mass transit – no matter how inconvenient; and to buy those light bulbs with the mercury in them.
We will be a third world country soon.
As for the Cap and Trade bill, the appeal is vague. At most basic, it is another tax on business and since business deals with taxes by raising prices, it is a tax that will be paid by consumers. In a world where the market for carbon based fuels is world wide, if the US is the only one having this tax, business in the United States will be put at another competitive disadvantage. Just what we do not need now – or ever. (There is no chance that the world’s biggest polluters – China and India – will do the same.) Further, underlying this whole approach is not only a restriction on carbon based fuels but a desire to cut fuel consumption across the board. These guys actually are looking to lower the standard of living. Their ideas are to not use the air conditioning as much; to use mass transit – no matter how inconvenient; and to buy those light bulbs with the mercury in them.
We will be a third world country soon.
Bank rules
The new bank rules have begun. Banks are not allowed to charge fees for overdrafts unless the customer has declared beforehand that they will accept the charges. Here a vote for expanding the law to cover Congress. It is the same situation. If they have no money – and they don’t – they are not allowed to spend anything. They are currently overdrawing the country’s account and the taxpayers in the country will have to pay the resulting interest charges. I do not remember making the decision to accept these charges.
Sunday, August 15, 2010
Mosques
The First Dope is saying that people are opposing this mosque because they were "traumatized" (his word) by 9/11. Apparently, he was not traumatized - he had no emotional reaction to Muslin nut jobs killing "the Infidel" - meaning every who is not a Muslim. He also has no opinion on the wisdom of the Hamas supported Imam throwing gas on the fire. He instructed his State Department to finance the Imam's trip to the Middle East to raise money to build the thing. He is expending your tax dollars to help find financing for this thing.
He thinks that that this another emotional reaction by the same people who are just clinging to their guns and Bibles.
Could this get any dopier?
Freedom of Speech does not allow you to yell "Fire" in a crowded theater. The same argument applies here to the freedom of religion.
He thinks that that this another emotional reaction by the same people who are just clinging to their guns and Bibles.
Could this get any dopier?
Freedom of Speech does not allow you to yell "Fire" in a crowded theater. The same argument applies here to the freedom of religion.
His lips were moving again
First, Social Security is not an entitlement. People and their employers pay into it.
Second, any privatization program would not impact people over 40 (various plans go lower)
Third, these plans all guarantee that the resulting payout will be no lower than what "regular" SS would have been.
Third, I an 64, if my and my employers SS contributions had been put into an account that tracked the Stock Market, I would have a private account with over 3/4 of a million dollars. This is even after the recent downturn and would pay more in interest that what I will receive from Social Security and would go to my kids when I die.
Privatization is a good idea that the Democrats hate because it will stop them from being able to spend SS taxes.
I wish it has started 40 years ago.
Second, any privatization program would not impact people over 40 (various plans go lower)
Third, these plans all guarantee that the resulting payout will be no lower than what "regular" SS would have been.
Third, I an 64, if my and my employers SS contributions had been put into an account that tracked the Stock Market, I would have a private account with over 3/4 of a million dollars. This is even after the recent downturn and would pay more in interest that what I will receive from Social Security and would go to my kids when I die.
Privatization is a good idea that the Democrats hate because it will stop them from being able to spend SS taxes.
I wish it has started 40 years ago.
Saturday, August 14, 2010
Will it work this time?
The Obama administration continues to pour money into Fannie Mae and Freddie Mac. With the recent $1.8 billion, the total is now $148.1 billion and Freddie alone lost $6 billion in the 2nd quarter of 2010. The reasons for lending them more money are vague. They both talk about continued focus on the quality of new business. Their new business means continuing to purchase mortgage loans with no down payment and limited (no) income. This is what caused the problem in the first palace and they are still doing it and tax dollars are going to support this insanity.
A recent Newsday article [Freddie wants another $1.8B] said; “During the housing boom, Freddie and Fannie faced political pressure to expand home ownership and competitive pressure from Wall Street to back ever riskier loans.” Well, that is half right. There certainly was documented political pressure from Dodd, Frank and Andrew Cuomo to expand home ownership. Their plan was to let everyone buy any house they wanted. Just give everyone a 105% mortgage loan (to even cover the closing costs) and don’t require any sort of income verification. These wizards were on record as proclaiming the safety and soundness of such loans up to two weeks before the bottom dropped out. But the plan as usual, is to shift the blame to Wall Street – the evil bankers. But read that part again. It says “competitive pressure from Wall Street”. So, Wall Street was competing with the US Treasury to make bad loans? Huh? Even if that made any sense (which it does not), by what economic theory does it make sense for agencies of the Federal Government to compete with private industry to do something as stupid as to make mortgage loans that everyone knew were bad investments? The custodians of the public treasury could easily have said “No”. They have no “competitive pressure”; they have no risk of going out of business.
The whole episode was caused by the Government and they are still at it.
A recent Newsday article [Freddie wants another $1.8B] said; “During the housing boom, Freddie and Fannie faced political pressure to expand home ownership and competitive pressure from Wall Street to back ever riskier loans.” Well, that is half right. There certainly was documented political pressure from Dodd, Frank and Andrew Cuomo to expand home ownership. Their plan was to let everyone buy any house they wanted. Just give everyone a 105% mortgage loan (to even cover the closing costs) and don’t require any sort of income verification. These wizards were on record as proclaiming the safety and soundness of such loans up to two weeks before the bottom dropped out. But the plan as usual, is to shift the blame to Wall Street – the evil bankers. But read that part again. It says “competitive pressure from Wall Street”. So, Wall Street was competing with the US Treasury to make bad loans? Huh? Even if that made any sense (which it does not), by what economic theory does it make sense for agencies of the Federal Government to compete with private industry to do something as stupid as to make mortgage loans that everyone knew were bad investments? The custodians of the public treasury could easily have said “No”. They have no “competitive pressure”; they have no risk of going out of business.
The whole episode was caused by the Government and they are still at it.
Sunday, August 8, 2010
The Common Defense - Part 2
The second great external challenge to the Common Defense is from the nut jobs that follow a religion that considers everyone else an infidel who should be killed or converted. Here the arguments are more subtle and so more dangerous.
The current Administration is simply not fighting this war. Of course, there is military action in Afganistan and Iraq. Whether is goes far enough or too far is a subject for a different debate. The subject here is whether the Administration gets understands what it is fighting.
There are organizations of nuts who clearly want to do as much harm to this country and its citizens as possible. The idea of promoting the common defense is that he government needs to do whatever is necessary to stop it and protect people. And do they? No. This Administration's primary concern is whether these nuts get the proper legal treatment. The international conventions on the subject clearly define that the people captured as part of these movements are not subject to the conventions covering captured soldiers. The vast majority of them are not US citizens and in no way need to be afforded the protections of the US Constitution that they are trying to destroy. Those that are US citizens are guilty of treaon and can be legally shot in time of war. In the face of all of this, the debate is about whether these guys were properly given the Miranda rights that they are not eligible for in the first place. The administration is putting their responsibility to provide for the common defense at the bottom of thgeir priority list.
Perhaps the Administration's problem in seeing this comes from an inability to realize what they are fighting. These are self proclaimed religious warriors fighting according to their interpretation of the tenants of their religion. (Whether this is what the religion really dictates is another debate for later.) But this Administration does not get the religion thing. They don’t do the religion thing at all so just can’t understand what the big deal is. To them, these nuts are just another group clinging to their guns and Bible but this time it’s a Koran and not a Bible.
Until this Administration figure out what its responsibilites are they have no chance to do what is necessary.
The current Administration is simply not fighting this war. Of course, there is military action in Afganistan and Iraq. Whether is goes far enough or too far is a subject for a different debate. The subject here is whether the Administration gets understands what it is fighting.
There are organizations of nuts who clearly want to do as much harm to this country and its citizens as possible. The idea of promoting the common defense is that he government needs to do whatever is necessary to stop it and protect people. And do they? No. This Administration's primary concern is whether these nuts get the proper legal treatment. The international conventions on the subject clearly define that the people captured as part of these movements are not subject to the conventions covering captured soldiers. The vast majority of them are not US citizens and in no way need to be afforded the protections of the US Constitution that they are trying to destroy. Those that are US citizens are guilty of treaon and can be legally shot in time of war. In the face of all of this, the debate is about whether these guys were properly given the Miranda rights that they are not eligible for in the first place. The administration is putting their responsibility to provide for the common defense at the bottom of thgeir priority list.
Perhaps the Administration's problem in seeing this comes from an inability to realize what they are fighting. These are self proclaimed religious warriors fighting according to their interpretation of the tenants of their religion. (Whether this is what the religion really dictates is another debate for later.) But this Administration does not get the religion thing. They don’t do the religion thing at all so just can’t understand what the big deal is. To them, these nuts are just another group clinging to their guns and Bible but this time it’s a Koran and not a Bible.
Until this Administration figure out what its responsibilites are they have no chance to do what is necessary.
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