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Milton J. Madison - An American Refugee Now Living in China, Where Liberty is Ascending

Federalism, Free Markets and the Liberty To Let One's Mind Wander. I Am Very Worried About the Fate of Liberty in the USA, Where Government is Taking people's Lives ____________________________________________________________________________________________ "Extremism in defense of liberty is no vice. Tolerance in the face of tyranny is no virtue." -Barry Goldwater-

Tuesday, March 31, 2009

Why is 'free trade' beneficial?

Free Trade is Common by Don Boudreaux
Persons who, fancying themselves observant realists, insist that "free trade doesn't exist" have their visions and brains distorted by political boundaries.

It is quite true that national governments almost universally erect barriers that hinder their citizens' freedom to trade with citizens ruled by other national governments. Some governments erect higher barriers than do other governments. But, indeed, it's rare to find a national government that doesn't indulge the greed of politically powerful interest groups, as well as the prejudice and economic ignorance of much of its population, with trade barriers.

And yet free trade is ubiquitous. Freedom to trade generally reigns within political borders. For example, the 50 U.S. states are united on one very large and very successful free-trade zone.

Karol, Thomas, and I live in Burke, Virginia. We are free to trade not only with cabbage growers in Culpeper, Virginia, but with cabbage growers in California. We trade freely with residents of any state, from the Atlantic to the Pacific, from the U.S. border with Canada to the U.S. border with Mexico. That is, whatever taxes and burdens Uncle Sam might impose (however wisely or foolishly) on economic activity within the U.S., those burdens are nation-wide. No special space-specific burdens are placed on my and my family's ability to trade with other Americans; no extra tariff or restriction applies to our exchanges with an Alaskan or with a Floridian simply because we do not live in those states.

Practically speaking, therefore, there is free trade throughout the United States. My family and I routinely buy wine from California and Oregon, oranges and lemons from Florida, computer software from Washington state, maple syrup from Vermont, peaches from South Carolina, television newscasts from New York and Atlanta, lumber from Alabama, spicy sauces from Louisiana, crabs from Maryland. The list is long.

And yet no one, not even Lou Dobbs, insists that the Boudreaux family would be richer if only the government in Richmond could fine a successful way around the U.S. Constitution and managed to slap stiff tariffs on California wine, Florida citrus fruits, cajun seasoning from Louisiana, and you name it.

Surely the burden of persuasion is on those who would insist that each American would be more prosperous if only his or her state were better able to restrict trade with citizens of other states. If this burden of persuasion cannot be met, then the case for free international trade is pretty solidly established.

Anyone skeptical of free trade must explain why political borders are economically relevant. With the exception of pointing to (mostly rather vague and poorly considered) national-defense issues, protectionists have never managed -- and I dare say never will manage -- to impart genuine economic relevance to political borders.

Because all reasonably prosperous countries today impose no, or only very few, internal restrictions on trade, two facts stand: (1) free trade is in fact quite common, and (2) free trade is beneficial.

Monday, March 30, 2009

Barocky Road ice cream....

In Honor of the 44th President of the United States, Baskin-Robbins Ice Cream has issued a new flavor, "Barocky Road ."

Barocky Road is a blend of half Vanilla, half Chocolate, and surrounded by Nuts and Flakes. The Vanilla portion of the mix is not openly advertised and usually denied as an ingredient. So, most people think that it is 100% chocolate when in fact, it is not. The Nuts and Flakes are all very bitter and hard to swallow.

The cost is $100.00 per scoop. When purchased, it will be presented to you in a large beautiful cone, but then the Ice Cream is taken away and given to the person in line behind you whether they want it or not.

Thus you are left with an empty wallet, no "change", holding an empty cone, with no "hope" of getting any Ice Cream.

Its all so stimulating, isn't it?

Stupid comment of the day......

Should morality and money be connected in any way? If so, how? Does it feed your ego to have the wealthy decide who gets what? If the money is there (as in big oil)why not compensate the "lower level" employees? If you only used your U.S. education system smarts for good instead of evil the world might be a little better off. Go kick a homeless person, it'll make you feel good.
From anonymous, of course.

Hahaha. Should morality and money be connected? Like your morality with my money?

Just because I do not think that governments should not be involved in most transactions between people does not mean that I advocate hostility to the less fortunate. However, in most cases, they are less fortunate for many different reasons. Its not Exxon's fault that little Shaniquille Jones gets knocked up when she is 17 years old.

So, instead of pounding me, you should take a hard look at yourself and let me know if you have done everything you could as an individual (not forcing the government to do something about it)to make a difference. After you have passed that test, let me know.

Why inflation will not be a risk, just government default.....

The creation of inflation, one of the risks of the explosion of the Federal Reserves balance sheet, isn't really much of a risk these days. In the olden days such as the Wiemar Germany of the 1920's or in more current experiences such as the hyper-inflation in Zimbabwe, where excess monetary creation drove inflation so high that currency became worthless, relies upon the ability to create excess money without people or businesses knowing what is going on.

The problem with the inflationary conspiracy talked about today, is that there is plenty of transparency in the Fed's balance sheet so it would be very very difficult to get a really good inflation going without a commensurate increase in interest rates to compensate. See Bond Vigilantes, here. As inflation expectations increase, so will interest rates to compensate for the loss in purchasing power. So, if inflation rises to 8%, for example, 10-year treasury securities will rise to maybe 10% and one should probably expect 8% T-bills. New mortgages and other financial costs will rise commensurately and this will immediately filter through to damp demand for money and goods across the economy.

So, one may ask, so-what? Well, with demand for money and goods declining, this will lead to lower profits, income and ultimate tax collections. Additionally, the interest on the recently exploding debt, lets say $12 trillion dollars or so in a year, will be an implied approximation of $1 trillion ($12 trillion times 8%). Of course, so that already hold the bonds will lose a lot as the value of the securities decline dramatically.

So, one can expect a massive increase in the cost of funding this debt will drive the Federal Government budget deeper and deeper into deficit. One may postulate that the Government could raise taxes to covered the increased costs but at one point, higher taxes will also dampen economic growth.

So, it appears to me as if the US Government will be forced to restructure their debt, essentially defaulting sometime in the next 10 years. A very real risk.

Sunday, March 29, 2009

Quote of the day.....

"Every government interference in the economy consists of giving an unearned benefit, extorted by force, to some men at the expense of others.”

-Ayn Rand-

Saturday, March 28, 2009

Enraged about spending in Britain....

Things that need to be said and is completely appropriate in the United State of Amerika.

Hannan bashes Brown in the European Parliament....

With Britain in worse shape than the the United State of Amerika, I wonder if we can blame this on Bush too?

Neo-Thatcher? Can read what he says on his blog, here.

Global energy problems now solved......

Who would have thunk? Cats and jelly toast over white carpet.

Tuesday, March 24, 2009

Slam of the day....

The first two months of the Age of the Hopeychange have been an eye-opener. I expected it to be ideologically distasteful to me, but I didn’t expect it to be so inept. Not because I had any expectations of President Obama’s executive skills. But I assumed he’d have folks around him who could take care of details like governing, while he pranced around as the smiley-face hopeychange frontman. But the bench is still empty save for a handful of mediocrities. And the disconnect between the smoothly scripted mush and what’s actually happening makes the telepromptered cool look even more ridiculous.
From Mark Steyn's Op-ed piece, here.

The problem with the Hopeychange-in-Chief, is that he is neither charming nor funny. His bowling is not 'Special Olympics,' his administration is, the guy has never lead anything and it is painfully obvious that he has never had to make decisions and lead people. These Obamaniacs cannot lead the nation and have been having a more than difficult time leading the increasingly silly single-party Congress. Some people think that he gives a good speech but those speeches are only good if one does not listen to content. I hate Washington and what these people are doing with every fiber of my existence.

A Republican, a Libertarian and a Democrat....

A Republican walked into a bar and asked the bartender, "Isn't that Jesus over there?" When the bartender said "Yes," the Republican sent over a drink. "Put it on my tab," he said.

A little later a Libertarian walked in. "Say," he said, "Isn't that Jesus sitting over there?" The barman said, "Yes," so the Libertarian sent over a hamburger.

Presently a Democrat showed up, noticed Jesus and sent over a plate of french fries.

Jesus soon left. On his way out he stopped to talk to the Republican. "Thanks for the drink," he said; "It was really good. Is there anything I can do for you?" "Well," said the Republican, "I'm facing knee surgery..." "Don't say another word," said Jesus as he laid a hand on the man's knee. "You are healed."

Jesus came to the Libertarian and said, "Thanks for the hamburger. It was really good. Is there anything I can do for you?" "Well," said the Libertarian, "I have cataracts..." Jesus placed his fingers on the man's eyes and said, "You are healed."

Finally, Jesus came to the Democrat. He thanked him for the fries and offered him any help he needed. "Don't touch me!" shouted the Democrat, "I'm on Disability!!"

Monday, March 23, 2009

Chart of the day....

So look a the chart below that compares savings, interest rates and home ownership rates....

Savings have already increased to 5% and it on its way to 10% in my opinion. Additionally, home ownership rates will fall, probably to the mid-60's range. The implication is that as savings rates rise, household consumption will fall to a more sustainable level.

However, interest rates will eventually rise and coupled with the gigantic increases in the PUBLIC debt, that is debt issued on the market and owned by others, will definitively create interest payments that will bust the American Government's budget and cause it to default on its obligations. Probably the first obligation that it will default on is Social Security and/or Medicare.

Quote of the day.....

You see, taxes matter. They hugely impact economic behavior. The whole economic system is run on incentives to work, invest and take risks. And it must pay, after tax, to ignite the entrepreneurial activity that really drives the economy. Like it or not, our free-market capitalist system is driven by the economic activist, provided he or she is properly rewarded.
From Larry Kudlow, here.

The silly season in Washington is upon us, the inmates are now in charge of the asylum. So, the first volley was punitive taxes announce by 'the one' on work and success under the moniker of 'fairness.' Now we get punitive tax rates on these same $250,000+ earners that work for AIG and other recipients of TARP money of 90% since they are 'bad.' Next, there will be another hit to these earners under some other excuse.

So, the question must be asked 'Why come to the US for opportunity if you cannot keep the fruits of your success?' Why invest here if its going to be taxed? Why even try? And who is John Galt in all of this? John Galt, from Ayn Rand's novel Atlas Shrugged, is described as such....
As the plot unfolds, Galt is acknowledged to be a creator and inventor who embodies the power of the individual. He serves as a counterpoint to the social and economic structure depicted in the novel. The depiction portrays a society based on oppressive bureaucratic functionaries and a culture that embraces the stifling mediocrity and egalitarianism of socialistic idealism. He is a metaphorical Atlas of Greek mythology, holding up the world.

An engineer by trade, Galt's actions include withdrawing his talents, "stopping the motor of the world," and leading the "strikers" (in this case the captains of industry) against the "looters" (in this case the mob rule of strikers and the common man). The storyline unfolds by exploring rumors and legends about the identity of Galt. Galt's actual identity is learned only after a prolonged search by Dagny Taggart, the heroine of the story, with whom Galt has a romantic relationship. Galt is also referred to in the story as the Mystery Worker.
I hate what is going on in the US with every fiber of my existence. We are all John Galts. We need to all be John Galts and have a responsibility to our children and grandchildren to be John Galts. do not pay your taxes, do not sign your tax return, do not work.

Saturday, March 21, 2009

End of the USA?

The days are numbered for the United State of Amerika? Here.

The Obamessiah screws up big time.....

I want to go line by line through every item in the Federal budget and eliminate programs that don’t work, and make sure that those that do work work better and cheaper.

-Sen. Barack Obama, NBC Presidential Debate, Nashville, TN, 10/7/08-
Ok, line-by-line. This is change that we can believe in.
President Barack Obama said he was surprised when he learned about the bonuses paid to employees of American International Group Inc. after the troubled insurer had to be rescued with taxpayer funds and vowed to recoup the money.

"Stunned is the word," Obama said last night in an interview on NBC’s "The Tonight Show with Jay Leno."
Shocked. Shocked I tell you.
From page H1412 of the Final Stimulus Bill, “SEC. 111. EXECUTIVE COMPENSATION AND CORPORATE GOVERNANCE:

"(iii) The prohibition required under clause (i) shall not be construed to prohibit any bonus payment required to be paid pursuant to a writte employment contract executed on or before February 11, 2009, as such valid employment contracts are determined by the Secretary or the designee of the Secretary."
Whoopsie daisy, I guess he did not read the bill line-by-line, or maybe he or his Renfields did not read it all all. Maybe the Obamessiah confused this line item with the Obamabucks that were going to the "Friends" of the Democratic party for getting these foolish people elected.

Apparently this clause was written into the Porkulus bill at the behest of Treasury by the ethically challenged Chris Dodd and jammed through Congress under the push by the Campaigner-in-chief and the boneheaded Democratic congress.

Now that they have been caught looking wildly stupid, they are now trying to abrogate these contracts, that were reported in AIG's SEC filings before the middle of last year, and has been public knowledge for many many months. There are several problems with this:
1. If one tries to nullify contracts, no matter how heinous, outside the courts or rule of law, one destroys the strength of all contracts and weakens the ability to conduct commerce.
2. By focusing on small class of people for punishment, if the public allows this, then it opens up the government's ability to target other groups for similar retribution. Maybe the next group will be Journalists that do not do what the government wants or some other group that does not acquiesce to government desire.
3. Qualified people will leave those institutions that receive the hostility and go to others that are not subject to it. Those that are less qualified will stay and it will be more-and-more difficult to fill positions within a broad group of companies.
We have come to expect this kind of class warfare from our public officials and attempting to punish some people does not raise the lot of the others.

I find this whole thing so incredibly funny as government again proves that it is even less than incompetent and is completely incapable to effectively intervene in business. Also, the Obamessiah's populism and his inability to fathom or grasp what needs to be done is hilarious. He seems completely out of touch with reality. I wish we had the "incompetence" of Bush over the incompetence of the Obamessiah. At least Bush would have been able to explain and would have stood behind the concept of contract, taking bullets and angst if need be. Populist Kleptocrats, oh I mean Democrats, are incapable of doing so. Bush would have taken bullets whereas the Campaigner-n-Chief is like a deer in the headlights. An embarrassment. Laughingstock of the world is what he is.

How funny will it be when the government sues AIG over this. These idiots will be suing themselves since they already own 80% of company. The government owns AIG. Ha ha ha. Does Congress even know what AIG does?

Also, imagine all the screw-ups we have in store when this clown gets a hold of healthcare!!!! Ha ha ha. Americans elected a complete incompetent.

Friday, March 20, 2009


Wednesday, March 18, 2009

My all time favorite comment....

Say Osh*t enough and we might all forget how incompetent Bush was.

We need a real Republican party, a party that will re-build itself on conservative principles, a party that will develop real solutions to our economic problems, communicate them to the people, and propose them in opposition, a party that will do sanity checks on the majority proposals and negotiate the most important changes that we need. What we don't need is this juvenile ranting.

How can I vote Republican when all you aim and wish for is failure. Can we really afford to wait for 4 years?
Its all about Bush. First line, first thought, Bush Derangement Syndrome (BDS)lives!!!! And as far Bushes incompetence, I suspect that one day very soon, (some are very worried about the Obamessiah's competence now) we will be wishing for the good old days of Bush incompetence over the malaise offered by the Leninist Obamessiah.

Additionally, I sincerely doubt if you ever voted Republican. So, I am somewhat confused by your thoughts; one is willing to vote in a Leninist because the Republican's are not conservative enough? I am sorry, that is just dopey

I think that I will change the name of the blog from Milton J. Madison to Stupid White Guy Rant. Will that make you happy? As it is becoming clear to me, rants (as well as violence)only are allowed if its against Republicans and of course Democrats are pure in heart so no one can rant against them. Also, how can one rant against the modern Jesus? Heresy, apostasy and all of that.

Furthermore, I am a Conservative. Unfortunately, Republicans have lost their way and this has allowed the Pelosi/Reid socialists to takeover the government. But maybe this is what we need. I do not need Republicans, but Republicans need us. I look forward to a civil war or huge civil disobedience where people take their country back.


In honor of the above anonymous commenter, I offer this similitude....

Insideous corporate income taxes......

US corporate taxes, among the highest in the developed world, moves marginal investment capital offshore to other jurisdictions where taxes are lower. For example, lets say that a Swiss investor wants to invest in some new technology, process or good. Would you choose to set-up in the US or some other country that offers lower taxes. No, that is not what drives the decision since other factors all go into the the decision, however, IT dOES affect the decision. The lowest tax jurisdiction does not get 100% of all investment capital but having the highest corporate income taxes does negatively impact investment and productivity decisions....
Simulation results show that repealing the corpo­rate income tax alone, which would cost approxi­mately $300 billion in annual tax revenue, would produce by 2012:
* 2 million more jobs than the baseline scenario;
* $280 billion more in real GDP);
* $4,000 more in real disposable income for a fam­ily of four;
* $707 billion more in household net wealth—the base of economic strength and stability.

The Obamessiah, one that wants to take all of your income and redistribute according to his values and wishes, is not one that will make the US nation competitive from a tax perspective. In fact, I suspect that he will heap all kinds of new taxes on businesses and productive enterprises and this will promise that less investment capital will be deployed to the US than otherwise would be the case. So we get less long-term investment capital from external investors and we also get the government taxing capital generated by businesses and then deployed into the 'golden calf's' investment agenda. Also, some try to argue that the US dollar is improving but I warn to not confuse short-term capital movements with long-term investment, they are very different and those funds that move in quickly can also leave very quickly.

Tuesday, March 17, 2009

One of my favorite comments from months ago.....

The reason that I love and adore getting comments, is that I get to laugh at the angry leftists that think that what they say is either going to have an effect on me or they think that their psychotic rants actually make some kind of sense....
At 10:07 AM, Anonymous Anonymous said...

You'd make an excellent dictator - Kill all the people that want a piece of the dream and keep everything for yourself by exploiting others. The less they have, the more you have. By the way, you're already an American terrorist. Please send your passport back. You must love China where the exploitation is just getting started.

At 11:35 AM, Blogger glenzo said...

Ha ha. you are funny. If I earn it, I want to keep it. The founders of the Republic understood the problems of the tyranny of the majority. You and I will come to regret the socialization of the USA. In certain respects, China is freer than in the US.

At 10:15 AM, Anonymous Anonymous said...

What if people earned their money through the exploitation of others? Should our economic model be if I can get away with it, it's mine? Does big oil who made obscene record breaking profits and claimed to be a victim have any obligation to take some of those billions and give a raise to their 45k a year truck drivers or secretaries. How is the US socializing? How is China freer than the US? Wait let me ask the millions who are starving or the families of those that dissapear in the night. You're not a terrorist. That would connotate passion or dedication to a cause. You're just a pirate looking to enrich yourself off the backs of others (didn't I see you on a tanker off the coast of Somalia?)
I love this word exploitation, the noun, exploit, the verb, and exploits the other noun. since using the word against someone somehow is supposed to define them as a 'bad' person. But semantics is not something that interests me.

What I find most entertaining is this concept that such people or entities that make 'obscene' profits are somehow obligated to support others, specifically economically. Is someone like Warren Buffet or any other successful investor or businessperson is obligated to support people above and beyond the 10's if not 100's of thousands that they already employ? Is someone that buys shares in a company such as Coca-Cola exploiting people to gain profits? Yes. Should they be severely punished? If one does punish them for that activity, they will do a lot less of it. So if one punishes the exploiters, you will get a lot less of it. You will get a lot less investment, a lot less employment and alot less availability of goods and services. Welcome to the world of Obamanomics. Punish people that work and save to the benefit to those that live profligate and reckless lives. Its a pure recipe for complete disaster.

Octo-mom birthing sequence....

Even Hitler lost money with Madoff.....

Saturday, March 14, 2009

Barackobucks, the worthless currency.....

I think that we should take George Washington off of the US 1 dollar note and put the Obamessiah on "the one."

Well, at least the money is still green. In fact, the current President is the greenest President we ever had. He he.

Friday, March 13, 2009

Cap and trade.....

The average American family will have to pay between $700-1400 a year in increased energy costs through the economically intrusive cap and trade plan as introduced by the Campaigner-in-chief....

So, 95% of American families may see a 'tax cut' but will see whopping bills come their way for everything else as government takes an ever increasing role in the American economy. There will be no place to hide as government takes over huge chunks of the economy and creates all kinds of new strange incentives. Remember, that the rights to release carbon dioxide into the atmosphere will be purchased from..... THE US GOVERNMENT. The US Government will collect somewhere in the neighborhood of $700 billion in new taxes over 10 years when this is implemented. The heroin addict in Washington needs new an innovative ways to rape the American taxpayer and this one is truly innovative.

Global warming nonsense and the excuse to use this as another reason to intervene int eh economy and take large chunks of resources for use by the government will do nothing for 'global warming' and will only create a giant reallocation of resources away from the United States. Why do business in the US? do it somewhere else where the business environment is not so hostile. Government policy will make Americans much poorer and servants of the Leviathan and I cannot offer any positive encouragement to the boneheads that are allowing this to happen. I look forward to upcoming civil war.

Thursday, March 12, 2009

The Obamessiah taking his 'majic show' on the road in Japan.....

Magic using 'Change that we can believe in' and 'Yes we can' performed by the Obamessiah....

Quote at Rockefeller Center in NYC....

I believe in the supreme with of the individual and in his right to life, liberty and the pursuit of happiness. I believe that every right implies a responsibility, every opportunity, an obligation; every possession a duty.

I believe that the law was made for man and not man for the law; that government is the servant of the people and not their master.

I believe in the dignity of labor, whether with head or hand; that he world owes no man a living but it owes every man an opportunity to make a living.

I believe that thrift is essential to well-ordered living and that economy is a prime request of a sound financial structure, whether in government, business or personal affairs.

I believe in the sacredness of a promise, that a man's word should be as good as his bond; that character-not wealth or power or position-is of supreme worth.

I believe that the rendering of useful service is the common duty of mankind and that only in the purifying fire of sacrifice is the dross (waste matter) of selfishness consumed and the greatness of the human soul set free.

I believe in all-wise-and all-loving God, named by whatever name, and that the individuals highest fulfillment, greatest happiness, and widest usefulness are to be found in living in harmony with His will.

I believe that love is the greatest thing in the world; that it alone can overcome hate; that right can and will triumph over might.

-John d. Rockefeller, Jr.-

Moral hazards....

Moral hazard as explained here in a paper on looting.

Wednesday, March 11, 2009

Greater risk of a US default as evidenced by market prices.....

From this link....
The spreads on credit-default swaps for U.S. government debt jumped to 97 basis points Tuesday, nearly seven times higher than a year ago and 60% higher than the end of last year, to a level roughly in line with those of France, according to data supplied by Markit. The spreads also hit a record last week.
I always wondered if the US government did default, what would one get paid with? Essentially, one must pay $10,000 to guarantee $1,000,000 in US Government debt.

Wouldn't a default make the currency worthless? Probably, so seems like a great bet. So, if I underwrote this transaction, received the insurance payment of $10,000, spent the $10,000 on wine, woman and song, then was asked to make good on this obligation in the event that that the US Government did have a 'credit event,' would I too, be eligible for a bailout from the Obamessiah? Seems like what is going on here with my theoretical example where I can assume that either I cannot pay, pay back with worhtless currency and/or get bailed out by the leviathan is the same as the people today that did stupid transactions and get bailed out by those that lived more conservatively.

So what lesson can we learn from this? Let's all get stupid since it doesn't really matter anymore. Rick Santelli is right.

But what find most appropriate is that credit risk of US Government debt is similar to that of socialist France. Blah, its just so deadening.

Idiots guide to ruining the US economy....

1. Since investors and the market in general hate uncertainty, have a vast array of conflicting ad hoc policy decisions so as to create uncertainty everywhere.
2. Transfer money from those who create sustainable jobs to those who create unsustainable jobs, e.g., the government
3. Promise to invest money in things that will enhance the country’s infrastructure, such as roads and internet access, but then practice bait and switch on a breathtaking scale, so the effort is swamped with pork for pet projects dear to Democrats
4. A sufficiently generous larding of pork can help ensure the destruction of bi-partisanship, so squandering the initial good will is definitely a very good move. After all, it’s hard to get things done when you’ve alienated people whose help you need.
5. Undermine the ability of those who create jobs by increasing their taxes so there’s less money available for investment.
6. While you’re at it, offer to spread the income around by raising taxes, in the process, making it clear to those who work hard, invest in their educations, take risks, save, and delay gratification that they will see their money go to those who do not do these things.
7. Encourage class warfare. Divide the populace and destroy cooperation, thus encouraging backlash and creating paralyzing polarization.
8. Talk up protectionism, since the beggar-thy-neighbor approach has such a long and vigorous history of encouraging depression.
9. Scare people with talk of economic catastrophe. You can backpedal later, but the initial good work of helping people lose confidence should have a lasting impact.
10. Print money on a scale that will insure inflation in the future. Print it on a scale that will make people not want to hold U.S. debt without staggering interest on that debt, if they’re willing to hold U.S. government debt at all.
11. Instead of allowing hopeless institutions to go bankrupt, pour vast amounts of money into them, prolonging the pain and running up the cost while only delaying the inevitable.
12. Burden future generations with unprecedented amounts of debt so that the economy you ruined today stays ruined tomorrow.
Well, good luck. Today's lunacy also should not be justified by past stupidity. One cannot justify enormous increases in silly spending from GWBush'es stupid spending. But if you are one of the idiot Obamacons, you will forced to hang onto every little effete and silly economic argument that can be mustered. Welcome to the Colt-45 economy!!!!

Tuesday, March 10, 2009

Feckless socialist Obamessiah......

So, when the New York Times asked the Obamessiah if he was a socialist, he apparently felt afterwards that he didn't not adequately answer the question. so what did he do? He talked only about the bailouts of the banking system. Nothing about the socialization of healthcare? Nothing about a new push towards Utopian wealth redistribution by taxing the 'rich' and redistributing it to the poor? Nothing about the push towards card check unionization of workers in the US? Nothing about the 'fairness doctrine' that promises to kick the legs out of any opposition or conservative voices?
The phone call came after the president was asked aboard his plane: "Are you a socialist as some people have suggested?"

He was clear in his first answer: "You know, let’s take a look at the budget – the answer would be no."

"Is there anything wrong with saying, 'Yes'?" a Times reporter pressed.

"Let’s just take a look at what we’ve done," Obama said, ticking off efforts his administration has made to stabilize the economy. But he acknowledged that, as he told Joe the Plumber, he plans to try to spread the wealth around.
If you are a socialist, then why not admit it? Or maybe that does not jive with "hope and change?"

Muslims say 'death to America' but why bother? Its already dead.....

The government's actions to date do not portend a bright future for the overall economy, especially in the longer run, which policymakers are disregarding in their haste to bail out failing financial institutions. . . .

Heedless of what had created the debacle in the first place and fearful of its dire potential consequences, government officials intervened to bail out poorly managed banks and set in motion a partial nationalization of the banking and other industries. The government's commitments for cash infusions, loans, and loan guarantees have already reached the astronomical total of nearly $8 trillion and more commitments seem likely to follow. . . .

With government deeply entrenched in banking and other financial businesses, the president and members of Congress will swarm as bees to honey to turn the government's control in directions they consider favorable to their political prospects. In sum, the bailouts will almost certainly produce another turn of the ratchet toward permanently bigger government.
The leviathan is gobbling up all that was good in the USA. We now reached the inflection point on the slippery slope towards socialism and the road to serfdom. People in the US will be living to serve the government. The days of opportunity in the US are quickly coming to a close. Therefore, I cannot in good conscience, advise my children to choose citizenship in the USA when they turn 18 vs. their other opportunities.

Remembering the 'fun' we had during the campaign.....

People were giving the campaigner-and-chief a hard time during the election...

Now he is just too tired to behave properly when the British come for a visit. Poor Barack. Never had a real job before so this is just proving to be too tough. Poor little Barack. Break out the Colt-45 and lets have a party or maybe the good old days when he did a little 'blow.'

I now still wonder weather if one disagrees with the Obamessiah's socialist agenda if it is still 'racist' to do so. disagreeing with an African American is racist but not disagreeing with a man of color such as Bobby Jindal or even Michael Steele. Well, at least we have America's first brown President and Americans can be ssssooooooooo proud of that. Its not post racist, its white folks falling on the sword for feeling falsely sorry for slavery? So lets elect an incompetent Black man and then we will be able to 'prove' that we are not a racist nation. NOT. The benefactors of this perceived racism will find new and more pernicious examples of racism. Well, he is who he is, the anti-Christ and we have President even though he is completely incapable and has absolutely no experience in making decisions.

Monday, March 09, 2009

Lincoln vs. Obamessiah.....

Sunday, March 08, 2009


The British were a little peeved that Obama essentially embarrassed British Prime Minister Gordon Brown on his recent visit to the Messiah. But the Obamessiah has an excuse because....
The American source said: "Obama is overwhelmed. There is a zero sum tension between his ability to attend to the economic issues and his ability to be a proactive sculptor of the national security agenda.
Wow, what a shock. The guy is just a simple incompetent who has never really run anything and has no experience on which to make decisions. Well, his domestic policy is sinking quickly as panic has set into the campaigner-and-chief's White House. A summer of discontent is coming? I surely hope so.

Maybe he can make a speech and seize all of our assets to do a wonderful wealth redistribution that will make everything good again? NOT. Well at least the 50% of the taxpayers that pay no taxes won't have to worry about that. I am so very sorry that you fools elected this clown.

Thoughts for the weekend.....

Since October 2007, when the bear market started, the Dow has given up an amazing 7,640 points. I'm looking at the market now. The Dow is at 6512. At this price, the Dow has lost more than half of all its gains since its lowest point in the Great Depression, which was 41.22 recorded in July 1932.
Remember that this is in nominal dollars not in real inflation adjusted dollars. So the losses are even more than 50% since a dollar back then was probably worth more than 5 times what it is now. I have somewhere in the neighborhood of 50% cash now. But eventually, the government will try to seize that cash for the "greater good." What should I do with it? Ship it offshore? I do not think that there are any places to hide.

Someone has reserved guns for me for when I return....

I have reserved an AR-15, 6 magazines, enough 5.56 match ammo for practice and defense, and a HK USP 9mm with 5 magazines, ammo for you.

Anything special you would like, just let me know.

Be prepared to return when O-boy is gone, and the next president begins the rebuilding process. We will need all the help we can get, as the real idiots will just continue sponging off of us.
Thanks buddy, we will take our country back, through violence if necessary.

Saturday, March 07, 2009

Thought of the day.....

...freedom and property are closely linked: separate property from private possession, and Leviathan becomes master of all.

-Russell Kirk, political philosopher-
Seems like an appropriate thing to think about in these times. We will all lose our freedoms in return for some kind of benefit like 'healthcare." Ha hah ha. If it wasn't so sad, it would be funny.

More, on Kirk: He developed six "canons" of conservatism:
1. A belief in a transcendent order, which Kirk described variously as based in tradition, divine revelation, or natural law;
2. An affection for the "variety and mystery" of human existence;
3. A conviction that society requires orders and classes that emphasize "natural" distinctions;
4. A belief that property and freedom are closely linked;
5. A faith in custom, convention, and prescription, and
6. A recognition that innovation must be tied to existing traditions and customs, which entails a respect for the political value of prudence.
Kirk believed that Christianity and Western Civilization are "unimaginable apart from one another" and that all culture arises out of religion. As I see now in large swathes of the United States, particularly the uber-Liberal northeast, Chicago and California where religion and God is now banned from much of public life, Kirk thought that when religious faith decays, culture must decline, though often seeming to flourish for a space after the religion which has nourished it has sunk into disbelief. This is what is happening in the US. Many American now worship the 'golden calf' in Washington and have a new Messiah as embodied in the President. They will be sorely disappointed.

When I asked my biological father why don't churches open clinics in inner cities if there is such an overwhelming need, he said, "They have no money." No, what they have is no faith.

Friday, March 06, 2009

The Obama Effect on the Weath of the Nation.....

I noticed this last year, that the market completely collapsed as it became painfully obvious that the nation was going to elect an empty suit socialist that is quickly proving to be a total clown. My discipline was to sell my shares if a socialist came into power. But I did not sell nearly enough. I should have sold all of them. So I lost lots of my life savings like many others.

**Note: the S&P500 is now below 700 an is below the bottom of the chart.

Some may argue that the Obamessiah inherited a lot of the problems, and I agree with that. Bush also inherited these same problems too as well as Clinton, Bush 1, Reagan, et al. 70 years of creeping socialism has destroyed the fabric of the nation that I think should now be called the United State instead of the United States.

But doubling down on socialism promises to create even more problems. One of the reasons that socialism destroys investment as it did too during the great depression is that governments have to arbitrarily seize some people's assets to distribute to others. For example, in healthcare reform, the government will implement all kinds of price caps and other meddling in the pricing mechanism that will transfer wealth from providers to consumers. This will have the effect of lowering costs at first, but it will also stifle innovation and lead to shortages of certain kinds of healthcare availability. More of that later.

But what happens is that when governments promise to deliver something, markets are concerned that funds will be generated in some arbitrary manner leading to lower and unpredictable returns for many investment classes. Prices adjust to take into account these uncertainties. This is why many researchers think that the stock market did so poorly in the 1930's and that is that there was uncertainty by investors over the future of government intervention in the economy. When investors do not make investments, people are not hired since there are no new jobs created. Communism was a hot topic back then and investors do not win under communism. Few win under communism.

Heathcare availability? I have heard whining from some leftists that poor people have to go to hospital emergency rooms to get care and that this is inefficient and less than optimal. Yes, this is true, but poor people are covered by health insurance through Medicaid. So why do they go to hospital emergency rooms? Because there is a lack of doctors that want to service Medicare patients since the government pays less for services than others. People cannot provide the service profitably so they do not do it. So, under government heathcare, we will all suffer. Many of us will die in dirty, squalid, insect infested government hospitals without comfort in terrible pain as treatments will be unavailable. I will just laugh since we asked for this.

Wednesday, March 04, 2009

Obama is making Lenin proud.....

I do not like Jim Cramer, think that he is foolish but what he laments here rings true.

The stock market is a reflection of expectations and is not reacting to what we already know. It is not directed by anyone but is a massive voting machine on what millions of investors think about the future. The stock market is predicting a much worse economy than most pundits and the administration are hoping for.

Socialism does not work, the 70-year slide into socialism is now becoming complete. Socialism and government intervention in private transactions misallocates resources and lowers living standards sometimes dramatically. In this case, the living standards of Americans WILL fall dramatically over the next 5 years.

I Used to be an Optimist.....

But here is what now what I think:

1. The Dow Jones industrial average will fall to 4,500 within the next year.
2. The government budget deficit will top $3 trillion for fiscal 2010 or 20% or GDP since tax collections will drop dramatically and spending will go totally out of control as public officials panic.
3. The stock market will not reach levels that we saw during 2007 during my lifetime.
4. If the stock market market rises to 14,000 again, it will be due to hyper inflation but on a real basis will be significantly below even my 4,500 prediction
5. Inflation will rise but it will be in all Developed nations and there will be nowhere to hide from the destruction.
6. Unemployment will reach 15% but there will be significant underemployment.
7. Within 5 years, there will be a shortage of electricity in the US due to hostile taxes on carbon producing utilities.
8. There will be a serious effort on creating "free states."
9. Europe will be in even worse shape than the US.
10. There will be significant social unrest and deflation of real estate in China as unreported but actual unemployment there rises to 15% also.
11. 50% of the people that paid in social security will not see anything at all back from the ponzi scheme.
12. There will be a significant number of street protests and that the National Guard will be asked to restore order but this will be ineffective.
13. The US Government will repudiate some of the debt.

Costs of Corporate Taxes.....

Tuesday, March 03, 2009


He talks about everything, touches lightly on everything, he says everything he has filched out of books brightly and picturesquely, but he hasn't got any of it in his head; and you see afterwards that a talk with a humble merchant who knows nothing but his own business but does know that thoroughly and by experience, is better than all these chatterboxes.
Philosopher N. Gogol wrote this in the mid 19th Century. But it reminds me so clearly of the arrogance of government and their faith in themselves to make mega decisions that are believed to be better or more worthy of consideration than the everyday decisions of millions.

The arrogance of socialist economic policy, that is the core of the current resident of the Whitehouse and whose empty soaring rhetoric has caused former sensible people to worship this beast, will prove to be the undoing of the millions that would have done a much better job in aggregate.

Sunday, March 01, 2009

Capitalist or socialist.....

There is a widespread notion that one of the most primitive of modern ideological choices is whether a government shall be Keynesian or not . . . no present or future administration really has the non-Keynesian choice.

-J. Kenneth Galbraith-
We have been on the slippery slope of socialism for 70 years. The damage was done by FDR and this seed grew into a gigantic tree and as Galbraith points out its not weather-or-not governmental prescriptions are Keysian (code word for socialism) or not but to what degree that these prescriptions are used. In our lifetimes, there really hasn't been true capitalism since government has increasingly intervened in the live of Americans particularly economically.

However, I think that over time, as government needs to run faster-and-faster just to stay in place, markets will create severe adjustments to foil those central planned prescriptions. Government cannot force prosperity but can destroy it by creating an enviroment where resourses are mis-allocated. That is what we are dealing with now. The problems created by governments mis-allocating resources will never be solved by governments mis-allocating even more resources. It will only make the adjustment that much more painful.

For example, markets are adjusting to mis-allocated resources in housing where government assistance programs have been in place since the 1930's. Prices rose dramatically as government incentives created excess investment in housing and unsustainable high prices. Housing prices will fall to the point where housing becomes less of a burden to typical Americans and attitudes will change so that people will not consider housing an investment but just a place to live. Housing will have to become 'cheap' before prices stabilize. And it will be cheap when the price of the total housing stock falls relative to GDP This will free up investment capital for more productive uses and will create a foundation for the bottom and a sustainable recovery. However, under the current socialist prescriptions of the current resident of the White House, the campaigner-in-chief solutions are just a continuation of the behaviors that created this problem to start with. It will not work. Maybe temporarily but the next downturn will only be more severe.


This country, with its institutions, belongs to the people who inhabit it. Whenever they shall grow weary of the existing Government, they can exercise their constitutional right of amending it or their revolutionary right to dismember or overthrow it.

-Abraham Lincoln-

Quote of the day....

The problem with socialism is that eventually you run out of other people’s money.

-Margret Thatcher-

Ruled By Evil.....

Of course Monty Python had this to say about being ruled....

But Gandhi had this to say....

If one asks if it better to be ruled or to have liberty, then I choose liberty.