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Saturday, August 6, 2011

And So It Begins...Pick Your Poison...Austerity or Extreme Inflation

I've spent a great deal of this afternoon reading about the possibilities for Monday. Here then is the Frankenstein Government consensus.

The dollar is going to make new lows. U.S. treasuries are going to start tanking and interest rates will rise. Other rating agencies are going to have to start downgrading U.S. debt. All public and private dollar denominated debt is going to get downgraded because they are all based on our inflated currency.

Thankfully, I think we can now haz our economic collapse. This will absolutely force politicians back to the table. I am calling it 50-50. That budget/debt ceiling compromise they struck is a joke and S&P is telling them so. You can bet your ass the administration is doing everything it can over the weekend to prepare for Monday. They deserve this ass kicking. Fucking crooks and liars.

I trust Peter Schiff to tell the truth. Here is 13 minutes of truth. Buy gold and silver.

What Is It About Obama That Brings Out Such Contempt in Me?

I would have liked JFK. I was only two at the time destiny found Kennedy winding his way through Dealey Plaza.

I couldn't stand Nixon. He should have been prosecuted. Of course, he was not and that incident along with the earlier Chappaquiddick incident ushered in the era of our two tiered criminal justice system. The ruling class plays by one set of rules which they can change as they need to. All others can eat cake. I was intimately aware of this in Moonbat Valley. The rich bought their way out of trouble.

Jimmy Carter was just a nice guy. Too nice to be President. Reagan was the best President of my conscious lifetime. And of all the things I liked about Reagan- it was he that saw the breakdown and moral decay of America. He knew it was family based. He predicted it would get worse and it has. The Bushes and Clinton- just politics as usual. Ruling class pricks. Bill Clinton was a cocaine addict. Not that anyone bothered to investigate.

Up until 2007, I was a classic independent. I learned to hate both parties- all they represent to me is the ruling class. You wanna know why I think Reagan was such a good guy? Because he had already acquired all the wealth and fame that anyone could want. He did not covet or crave anymore. With his needs for power and wealth already satiated via his prior life experience, Reagan could become President without those distractions. It's hard to bribe someone in the usual way when the target already enjoys all the fame and fortune he could ever want. Which brings me to President Obama.

All of the Presidents of my lifetime came to the Presidency with legitimate resumes'. Mostly governors. All of them have been reasonably wealthy upon arrival. And all of them had histories which were fairly transparent. Obama came with none of those things. He is still in the process of satiating those needs. With Obama, those needs are still primary and clearly he places those needs ahead of all else. He hasn't learned what Reagan already knew.

I have a rule of thumb for judging people that has been highly accurate over the years. It is simply an insight and as you read this- ask yourself if this is true in your experience. Anytime I listen to someone who speaks indirectly, or in circles, or in vague generalities, or circumlocously, I am looking at someone who has poor leadership qualities and is indecisive. Very often these people who ramble on and on- are intelligent and book savvy. They are generally considered "nice" people. Think Alan Greenspan. But they are terrible leaders and deep down they know it. They are trying to become something they aren't. I think that's what irritates the hell out of me. Obama has no idea what kind of a man he wants to be yet and he's like a windsock- susceptible to whatever way the wind is blowing.

Obama still craves power and wealth. His history is virtually opaque except for that fiction that either William Ayers' wrote or Obama wrote. I think Obama was bought and paid for by the ruling class, read desperate bankers on the verge of prosecution here, and he was susceptible to that carrot of power and wealth that the ruling class dangled in front of him. Of course, it didn't hurt that he was an excellent orator and black. The problem with Obama is that he cannot decide who he is. Or who he wants to be. And that indecisiveness has left this country in the lurch. Frozen in the headlights.

A rich black kid or a poor black kid? A live on the razor's edge son of an alcoholic or a respectable family man? Pro business or socialist? A Muslim or a Christian? An Indonesian or an American? He can't figure it out, nor can we. Obama compounds problems by ignoring larger ones. Obamacare could not have come at a worse time. Ever. Obama is inherently dishonest as well. His list of broken campaign vows makes me ill. The one that directly applied to me was Obama's insistence that people could cash in their 401ks and that the government would not penalize us. Remember that pre- Presidency bullshit? I do. I am still pissed about it. That was inherently dishonest.

You see, that's why I think Obama raises such contempt in me. At the end of the day, Obama simply can't decide who he is. Superficially, he is a decent looking guy and and an excellent orator. That was enough to get him elected but it certainly isn't enough to make him effective. Obama talks a good game but he can't deliver. He is untruthful and evasive. He is self absorbed. Still worried about his own fame and fortune. A wanna be member of the ruling class when in fact he is simply just an abandoned kid that has been  bounced between two worlds. A searcher. In every sense of the word. And my country- the one that I served long before I ever heard the name Obama- can't wait any longer. Four more years of this guy and my country will fully implode.

Ok. There. I feel better now.

Standard and Poor's Claims Last Remaining Smidgen of Integrity, Finally Downgrades the United States Ponzi Scheme

Finally someone has the balls to tell the truth...the Emperor is naked. Our debt has finally been downgraded by a domestic credit rating agency other than China's Dagong. I cannot think of a more appropriate metaphor than the original Anderson plot in the "Emperor's New Clothes." A quick refresher:

An Emperor who cares for nothing but his appearance and attire hires two tailors who promise him the finest suit of clothes from a fabric invisible to anyone who is unfit for his position or "just hopelessly stupid". The Emperor cannot see the cloth himself, but pretends that he can for fear of appearing unfit for his position; his ministers do the same. When the swindlers report that the suit is finished, they mime dressing him and the Emperor then marches in procession before his subjects, who play along with the pretense. Suddenly, a child in the crowd, too young to understand the desirability of keeping up the pretense, blurts out that the Emperor is wearing nothing at all and the cry is taken up by others. The Emperor cringes, suspecting the assertion is true, but holds himself up proudly and continues the procession.

I think the story of the Emperor's Clothes perfectly illustrates the reluctance that Americans have when asked to accept the obvious. We are a bankrupt, debtor nation. We are a nation in decline. Our leaders simply cannot accept their responsibility in this situation. When that truth is widely accepted rather than denied- then and only then can we start to turn this mess around.  We are in so much trouble on so many levels- that quite honestly I am not sure we can recover. I am getting a strong sense that there are many people like myself who are no longer in denial and realize just how desperate the situation is. They are searching for a rallying point. Let's hope one emerges and soon...

Thursday, August 4, 2011

Drug Company, Dendreon, Takes Human Greed To New and Unexplored Levels

Initially, I think I moved from outrage to just kind of sick to my stomach as I stumbled onto the story that I'm about to convey to you. It is about a drug company. This company apparently thinks nothing of exploiting desperate cancer victims and their families.

A couple of years ago I stumbled across a drug company called Dendreon. Dendreon first popped up on my radar screen when the stock had gone from something like 4 dollars to 40 dollars in the space of 24 hours. Wild gyrations. Stocks that trigger wild gains like that tend to grab my attention. Dendreon it seems, had invented a drug for the treatment of prostate cancer which was highly effective. Ultimately, I never bought Dendreon stock and after just a few days of watching it, I simply forgot about it. Today while making my rounds, I came across this comment on "naked capitalism" (the commenter mis-spells the company name):

Buried under the news about retail investors in the Dow getting whacked over the head with margin calls from their broker was this little factoid. The biggest single loser was a company called Dendron @ -65%. They produce a drug that is highly successful in combating prostate cancer. Since it is so effective they concluded that they could extort $95,000 for two treatments from men with potentially terminal cancer. Problem is, doctors won’t proscribe it because they don’t believe the pee party gubmint will honor their invoices and they will be stuck trying to extract the cost from the estates of the men who died anyway of heart attacks and old age. Once word got out that they couldn’t sell Provenge for a kings ransom, “investors” ran away leaving the company to drop dead on the bloody floor of the Nasdaq.
Wonderful health care system we have. Is it any wonder that we rank #37 in the world, immediately below that well known Narco-state, Columbia?

After I read this comment, I verified that it was essentially true. Here is one of the stories I came across. From Barrons:

I believe in free market capitalism. I define that as free markets with an absolute minimum of government intrusion. Drug companies lobbied government long ago, creating and enacting laws so that new drugs could be "patent protected" for what is currently twenty years. This has encouraged and enabled drug companies to bring new drugs to market- free from the fear that their compounds could be duplicated and sold at lower costs. Patent protection encourages drug companies to research and develop new drugs with the assurance that they can recover costs and make a healthy profit before their patent expires. Mostly, this is a good thing I think. A snip:

TRIPS agreement (applies to drugs after 1989) gives 20 year protection. Prior to that it was 16 years.
In many jurisdictions, pharmaceutical patents are elegible for patent term extension. For example, in USA, a patentee can get an extension of up to 5 years for a specific product o process (not the full scope of a claim) beyond the 20 year term for an FDA approved product. Variations on such extensions exist in many but not all jurisdictions.

I understand the need for patent protection. The problem shifts from recovering research and development costs and a reasonable profit- to absolute price gouging and greed. Government engages in all kinds of crony capitalism but what it doesn't engage in is capping what a drug company can ask or demand for it's product. Dendreon knows this. So what Dendreon did is price it's product so ridiculously high that nobody can afford it. They sought price discovery and realized that 90-100k had been excessive. At the nominal cost of a house here in Boise- doctors won't even prescribe it. This is one of the many reasons that our health care costs are spiraling out of control. We rank 37th in the world in terms of health care and our costs are 200-300%% higher than the next closest country. And if you are one of those health professionals living in the past and thinking that the U.S. is still the king of health care- I will point you to the latest findings of the World Health Organization.

The good news for Dendreon is that they have a gigantic market. All they have to do is re-price this drug within reason rather than bankrupting everyone who needs it. Show a little mercy and decency. Clearly those human qualities have been missing from their business plan. The truly bizarre question in my mind is... how did Dendreon come up with a 93 thousand dollar price tag? I'd like to see the math that justifies that price.

In America we were once taught to to do what was morally and ethically right. In today's world, those standards no longer exist. The only standard that exists now- is whether the act is permissible by law. If it is- then screw dying cancer patients and families. This is our price. One hundred thousand dollars, more or less. If Dendreon is a glimpse of what the future holds- God help us all.

Dendreon is proof positive that given a green light and protection to steal by the U.S. Government- companies can and will. Dendreon- you will not receive my "humanitarian" of the year award. This is not your finest hour. Somewhere, a collective body of people need some human decency. This is Dendreon's home page. They paint themselves humanitarian- as long as you have their admission price. Think about what they charge as you read their hopeful prose.

The FED and Member Banks Now Selling Stock Market, Bankers Exploiting Fear To Usher in QE3

Well the banker controlled stock market is plunging. Time to engineer a little fear and usher in the next round of quantitative easing. The DJIA down 350 this a.m. It finished down 512.

Fuck em. Remember what I said. When the market plunges so will commodity prices. At the bottom be ready to buy gold and silver on the cheap. Both metals taking a huge dive today along with the market.

The DOW should be trading at the 6-7000 point range if in fact it was non manipulated and actually reflected what is going on in the world. If it gets anywhere close to reality...

Buy gold and silver. That will most likely be our last chance to buy before precious metals prices go straight up.

Our President, M.I.A., Send This To Your Moonbat Friends

Just as I thought. Obama was the greatest obstructionist in the budget reconciliation room. Captain Transparency. Not. Here's praying that Obama is one and done.

The Liquidity Trap

This is a historic week for us. Our national debt will now exceed 100% of Gross Domestic Product. Mathematically speaking, we are hosed.

A liquidity trap occurs when a government can no longer stimulate it's economy. And since our government uses Keynesian theory I suppose the Keynesian definition is appropriate.

Japan's debt has exceeded 100 and 200% of GDP for 21 years. They have one thing going for them that we don't. Their citizens pick up the country's debt tab through individual investment. They get a small interest return. We sell our debt to the world, we also pay them the interest.

How the United States Plants Frankenstein Government Seeds in 1913, Now Reaping 17 Trillion Dollars Worth of Bitter Harvest

Very often on these pages, I have made a simple point. Government only exists to provide it's citizens with health, safety, and self defense. That's it. In fact, if we did not need those things- we would not need a government at all.

If you can think of an exception to this- please let me know. I have not found one yet.

And when I speak of health, I am talking about catastrophic plagues and epidemics. Not government provided check ups for Johnny and medicare. Or Obamacare. I am not talking about starting wars either- over political philosophy or oil. Just self defense of this country.

The original Constitution was a thing of beauty. It was written by a true genius, Thomas Jefferson. The role of the Federal Government was highly limited in size and scope. Jefferson knew history. And he damn sure knew that a Federal Government, given too much power, would trample the rights of its citizens. Just like it's doing now.

As a constitutionalist, I apply a simple test to any government function. Simply stated, does the intended action provide citizens with health, safety, or self defense? If it does not, we have no business engaging in that activity.

Here's the beautiful thing about government. Once they start over stepping their boundaries, they create a ripple effect. Screw one thing up and they will inevitably screw something else up trying to fix the unintended consequences of the first thing they screwed up. 

Such is the case of the Federal Reserve Bank and it's member TBTF banks. For 150 years, smart politicians including Jackson and Lincoln resisted and destroyed the greedy intentions of international bankers who desperately wanted to skim vast profits off the top of our growing country. It wasn't until 1913, after a sinister meeting at Jekyll Island, that a bought and paid for Congress and Woodrow Wilson did the single most destructive act in the history of the United States. They passed and signed the Federal Reserve Act while nobody was watching (Christmas Eve) and created that monstrosity called the FED.

Wilson himself, before he died, said this:
I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the civilized world. No longer a government by free opinion, no longer a government by conviction and the vote of the majority, but a government by the opinion and duress of a small group of dominant men.
~ Woodrow Wilson

Now of course, if the framers didn't want a Federal Reserve Bank and clearly they did not, they sure as hell could not have envisioned that a mistake of that size would blossom into a catastrophic mess of uncapped credit that would eventually bankrupt the country and lead to the ruin of our Republic. Or the world. The framers could not have known that we would do something so stupid primarily because they either underestimated the greediness of men or vastly overestimated future human intelligence. Or both.

So simply stated, the government has no business providing any kind of economic stimulus. This is where Moonbats and I usually part company. The government was never given that power or authority. They simply usurped it at some point after they created the FED and the cartel of member banks. Once that mistake was made, a series of other mistakes began, the worst of which was the Great Depression. It only took them 16 years to screw that pooch.

Does fiat money and the FED finance war? Of course. Where would we get the unlimited credit line otherwise?

The Federal Reserve Bank has to go. They are the single most crooked and treasonous threat to this country or the world that has ever existed. Forget Al Queda. These Central Banker crooks are far more sinister. They have mired us in a second depression of immense proportions and think- incorrectly- that somehow they can extract us and go about their business of stealing the wealth of this country. On a gold standard, without a FED, we wouldn't need economic stimulus. We wouldn't have had the Great Recession in the first place.

If you want your country back- start there. End the Fed. Ignore these pricks at your own peril...they have enslaved every one of us and our children and their children to the tune of 17 trillion and they won't stop until they own it all. That my friends, is Frankenstein Government.

Wednesday, August 3, 2011

Dagong Lowers Debt Rating on U.S., Media Spins Them as 'Little Known"

Dagong has only been in existence for a little over a year as a credit rating agency.

With corrupt and co-opted credit raters in the U.S., like Standard and Poor's and Moody's, the time was ripe for a credit rating agency that had some integrity. One that hadn't sold the world's investors a bunch of "AAA" rated bullshit. Enter Dagong. The only credit rating agency I trust. Chinese.

Not surprised that the media attacks Dagong's credibility by calling them "little known." I have been watching the partisan media protect every fraudulent and dishonest activity that has come under the Obama watch since before the 2008 election.

That would include the ratings of an honest albeit young, Chinese rating agency. At least they are not proven frauds and liars- like ours- yet.

In addition to Dagong, China now has their own precious metals commodity exchange. It is going to be much more difficult for American banks such as JP Morgan- to keep the lid on rising precious metals' prices now that they can no longer monopolize one sympathetic exchange.

Who would have ever thought there would come a day when we would welcome competition from another country for honest credit rating agencies and uncorrupted free market exchanges? That day is here.

Finding a Good Pubic Hair Sandwich Is Getting Hard These Days

I never, ever...send anything back to a restaurant cook. I either eat the food, or I don't eat it. I learned this many years ago.

In a neighboring city once upon a time, a guy sent a steak back to the kitchen three times because it was undercooked. After the third attempt at cooking it, he ate part of it and put the rest in a doggie bag. After arriving home he became violently ill. Eventually he sent the remaining steak, via the police, to the state crime lab. It tested positive for urine and methamphetamine.

Of all restaurant patrons, nobody is more suspicious of cooks than the police. During my career, I busted my share of cooks. I picked my restaurants carefully. Eating in uniform gave the enemy a distinct advantage. Now those days are behind me and I can generally relax. I wear gaudy clothes, biker stuff sometimes, and I have even pierced my ears. I moved to a much bigger city. I would grow a ponytail if I could. The point being- is that nobody mistakes me for any kind of cop now.

So it was, the other night, I ordered fajitas at a South of the Border restaurant in Boise. When the fajitas came out, the sum total of steak in this particular dish was a 2 inch by 2 inch piece of meat. For fifteen bucks, I was underwhelmed. I mentioned it to the waitress who is a personal friend of mine, who mentioned it to the manager. The manager came out and said that they would cook an additional piece of steak. You know what I was thinking. Ugh. I had opened my mouth and set this chain of events into motion. Special sauce for yours truly. I have never eyed a piece of steak more warily than I did the one that came out of that kitchen 5 minutes later. Having survived, I will never go back to that restaurant. Which brings me to the subject of this piece...

Years ago, one of my best friends who is now the Chief of Police in Moonbat Valley, ordered a sandwich at a local sandwich shop in uniform. It was a slow day. The only kid working at the restaurant was a kid we had busted a couple of times for drug offenses. As my friend sat down and ate his sandwich, he noticed that the young man behind the counter kept staring at him as he ate. As soon as the kid wasn't watching, my friend opened up the sandwich and discovered pubic hairs and discoloration on the inside of the bread. It appeared as though the employee had simply wiped the toilet rim with the crust of bread. (A year or two later- my friend ordered at a local McDonald's drive thru, saw who prepared the food, and threw the whole to go order in the trash. That is a veteran move.)

Shortly thereafter, that restaurant/sandwich shop went out of business. Imagine that. That was many years ago. Since that time, I have often remarked to my friend from Moonbat Valley- that I have never been able to find a good pubic hair sandwich. To this day, I read every deli menu very carefully even while traveling. If I ever do find a good pubic hair sandwich I assure him- you'll be the first person I tell.

Tuesday, August 2, 2011

Gold Going Parabolic*Updated

The ridiculousness of raising the debt ceiling another 3.0 trillion is causing gold and gold investors to realize that fiat money is essentially trash. With absolutely no restraint or constraints shown by governments worldwide, particularly the U.S.,  gold is now seeking the 1680 level. Silver up in sympathy beyond 41.

The world is now facing a liquidity trap. Japan has screwed the pooch, the U.S. has screwed the pooch, and the European Union has screwed the pooch en masse'. The flight to safety isn't going to be U.S. treasuries or as of this morning, the Swiss Franc. Clearly the flight to safety is precious metals.

If you've been looking to dump a couple gold crowns at 2k an oz., your wait is almost over.

The stock market is now diving in the appropriate direction. It is as though, markets without manipulation, actually act in a predictable fashion when the news sucks. They are going down.

Central Banks are going to have to try to intervene in some concerted fashion. If you aren't watching this show- you are missing the biggest game in town. Far more interesting than the debt drama over the weekend.

Just wished I would have bought more gold. Waiting to buy the next dip. It might not happen.

Furious Reefer Williams Gets Nabbed

So the other night, some gal goes on one of those neighborhood demolition derbies in Boise. She manages to get a major road closed for quite some time. People tell me she is smiling as her booking photo is taken- well after the carnage and inconvenience that the whole episode causes. So I looked her up on the Ada County jail website.

I never did find her. But I did note that Furious Reefer Williams got nabbed. That name might be one of the all time greats. Up until I saw that, my all time favorite first name was "Onestyle." Bestowed upon a child as a result of his parents proclivity for  having sex...well figure it out. I cannot put his full name and photo up because that is his story to tell. However, Furious Reefer has found the public domain.

Arrest Date:
Arrest Time:

One For the Old Guys

I have this neighborhood kid. Smart ass. One of those kids you secretly like because they are incredibly stupid but think they are really smart. You know the kind of kid I am talking about. Twenty one and knows everything? Yea, one of those. Just like me at 21.

Anyway, this kid is always running his mouth. Thinks he is a tough guy. Tattoos and stuff. Always calling me old man, shit like that.

I am 50 years old. At 6'4" and 270 lbs., I am no small critter. That and I work out 3 days a week. I can easily bench press this moronic kid. But I let him call me old man, give me shit, and then last week I had to finally draw the line. That happened when the moron stated in front of a bunch of people that he oughta whip my ass.

One of the problems with being a random moron, and displaying that hand many times in advance, is that it gives people like me- ample time to prepare for that easily predictable moment when their mouths' write a check that their asses' can't cash. Like this.

So I look at this kid and I said "Times' wasting, ready when you are." So he whips off his shirt ( a wife beater of course) exposing this little white fleshed gut and a few prison tattoos, and I started laughing. Genuinely. He says, "What are you laughing about?" "Nothing" I said. "How about we just arm wrestle because I don't want to go to jail for beating up an idiot." He thinks about it for a moment, sees that my arms are about the size of his legs, and declines.

Unfortunately for him, all of the people that witnessed this event start calling him a pussy and teasing him. I almost came to his defense. But ya know he earned that moment and I chose not to deprive him of it. I haven't seen him around all week. Odd.

He doesn't know this. I would never have fought with him. Not because I couldn't whip his ass but because I can't afford the 5 grand deductible in case I tear a rotator cuff. I didn't get to this lofty perch by being a dumb ass.

Joe Biden, Heap Big Important Man

I got a kick out of this article. Joe Biden is renting out a house to the Secret Service at a cost of 2200 a month. So not only does he get round the clock protection from the Secret Service on the government dime, but he makes an additional 26,400 a year. Like he needs the money.

By the way, do politicians have to pay capital gains on rent money? Can I see his IRS return? Bet me they don't. Probably they are allowed to deduct some amount of depreciation in excess of the rent money.

This is the kind of (insert appropriate adjective and gender) that runs for political office and and that we elect. They see government as a giant opportunity to get rich and powerful and exploit taxpayers. The best part of the Biden saga? Who in the hell would want to kill him? He is the biggest idiot on the planet. And when all of those deranged sociopaths are looking around for a target, they whisper to each other, "Leave him alone. He's one of us."

Personally, I kind of like Biden. I think he's just a big moron like most of my friends. Funny. Just because someone is my friend doesn't mean I don't keep an eye on the gold and china when they are around. Capiche?

Gold Cracks 1640

Gosh, who would have ever thought with another 2.7 trillion dollars being manufactured out of nowhere- that gold would resume it's march higher?

ZeroHedge based on some pretty accurate charting- sees gold at 1950 by years end as the government continues to take on unpayable amounts of debt. Others think gold will go completely parabolic at the 1750 level and folks, that might only be a week or two away.

I am still waiting to buy the deflationary dip. This market, amidst some of the shittiest numbers put up in the last three years, simply can't continue to levitate. It is a miracle that the Dow is not at 6000- where it should be.

Monday, August 1, 2011

With the Majority of This Country Angry- Why Do These Bastards in Congress Ignore Us?

Writing a budget. A simple task. Businesses do it, families do it. So why can't a bunch of six figured salaried- politicians do it? What makes it so difficult for them?

Cognitive Dissonance (ZeroHedge) makes a very good case. In brief, he states that the people we elect are addicted to power and wealth. They do not get power and wealth from ordinary citizens. They get the drug that they crave from the ruling class and the wealthy. They do what the ruling class wants and in turn they are given their drug of choice, power and wealth. It is a sound argument. In fact- I think CD is dead on. Having spent a great deal of my time with addicts and having been a former addict myself- I understand the mentality completely.

Quite simply, our Congressman and this President are addicts. They will do whatever they need get what they crave. In fact, they are lucid enough to realize that they are spending us into oblivion and yet they do not care. That's what addicts do. They will take any short term fix. They do not care about the long term consequences. That has nothing to do with you or us- really.

They are a bunch of self centered bastards and we keep electing them. We enable them to exist.

They can't do the budget because what they want is going to get them in serious trouble. They are going to borrow and steal more money- and that is going to piss off voters. That's why this ridiculousness has stretched beyond 800 days. They have to find a way to get what they crave and make it look like it's someone else's fault so that they can get re-elected. To spin it like it's a good deal. To "compromise" like the addict in the White House states.

That's the game. They cannot wait for their fix and they know they won't be around when the U.S. defaults. They will be long gone- perhaps like Christopher Dodd. Living in his Irish cottage.

Public service doesn't have a damn thing to do with public service anymore. Public service at the Congressional level is all about power, wealth, and ego validation. Serving the public at the expense of your own needs? How arcane. That philosophy is extinct, passe.' I have seen no sign of it in the last 30 years or so. I wish it would make a comeback.

Bachmann Agrees With Frankenstein Government

I said it first. The debt deal sucks. Now go vote "no" on it Michele. I am beginning to like this gal which is odd for me. She is a lawyer.

Sunday, July 31, 2011

Hiking the Debt Ceiling- A Giant Tea Party Failure

I spent all day and night reading on line...trying to identify the details of the agreed upon budget and debt ceiling hike. What I found is beyond disappointing. In fact, I will call it what it is. It is a piece of shit.

With a couple of tweaks here and there- it is essentially the Senate version or Reid's plan. It cuts very little and then attempts to baffle you with a bunch of hollow promises and future guarantees which will not come to fruition. In fact sorting through all that bullshit took me several hours this afternoon. Ultimately- it shows you what they did. They have kicked the can past 2012.

Here then is the agreed upon garbage.

-There will be an immediate 400 billion debt ceiling hike that occurs on Tues. (Aug. 2.)

-The debt ceiling will be raised again by Sept. when another 500 billion in debt will be added.

In exchange for this, the government will identify and commit to 1.2 trillion cuts in ten years. (This undoubtedly will come from winding down our two wars just as Reid proposed.)

Just for shits and giggles I embedded this. Real time.

-A committee of twelve congressman will be tasked with finding 1.5 trillion in cuts. The cuts will be voted on by year's end. The debt ceiling will be raised another 1.5 trillion whether or not the committee's cuts are agreed on or passed. (Dollar for dollar, no reduction)

In other words, the COMMITTEE is simply a HOLLOW PROMISE. Their work is non binding. The debt ceiling goes up whether cuts are agreed to or not. Nobody will be watching this committee either.

However, if the committee fails to reach consensus on a list of cuts, then automatic cuts of $1.5 trillion will be imposed like this...
  • 50 percent from the Defense Department. (Winding down wars, bet me)
  • 50 percent from non-defense discretionary funds. (75 billion per year)
  • However, the automatic cuts may not include Social Security, Medicare, Medicaid, veteran's benefits or other welfare programs such as food stamps, Aid to Families with Dependent Children, the Women's, Infants and Children's (WIC) program, etc.
They will introduce a balanced budget amerndment by year's end. Get this. But because the amendment would be subject to a 60-vote threshold in the Senate, its defeat is all but certain. The subsequent debt-ceiling increase does not depend on the balanced budget amendment passing, however.

Here then is the Frankenstein Government Summary.

The debt ceiling is going up 2.7 trillion just as President Obama had hoped. There will be no further discussion of this topic until 2013 when we will be even more bankrupt than we are now and when-  hopefully President Screw Off will be making money talking about his adventures on some college speaking circuit.

The net-net easy math on all of this? Total 2.7 trillion debt added. Insignificant cuts. A giant tea party failure. It will be interesting to see how they vote and what they say about this package tomorrow as they face Geithner's imaginary deadline.

Budget Bill 10.4

So I think we are over that part where each chamber of Congress comes up with a bill and the other body  shit cans it. This is the behavior we all learn as children. It didn't work well back then- but I'll be damned if we don't keep using it.

So today, the real budget talks will start in earnest. Let me make my point perfectly clear. No matter what budget they come up with, it simply won't matter. You are viewing the end game. Any chance to slash and burn government expenses and pay down that ungawdly principal is evaporating. The economy is screwed. That GDP number Friday proved it. We cannot create enough wealth to pay the debt. Hell we can't create enough money in ONE YEAR without the government over spending 1.6 trillion.

They will over spend 1.6 trillion this year. Think how ridiculous that is. Could you do that?

It's over. The real hard stuff is coming. That's when these pricks start defaulting on your social security. You know the money they stole from you for 40 or 50 years. They don't want to give that back.  And pricks like Alan Simpson are going to call you names while they get their government retirement checks and cash them.

So here is the finished piece of work in rough draft form. 
  • $2.8 trillion in deficit reduction with $1 trillion locked in through discretionary spending caps over 10 years and the remainder determined by a so-called super committee.
  • The Super Committee must report precise deficit-reduction proposals by Thanksgiving.
  • The Super Committee would have to propose $1.8 trillion spending cuts to achieve that amount of deficit reduction over 10 years. If that doesn't happen, across-the-board spending cuts would go into effect and could touch Medicare and defense spending.
  • If the Super Committee fails, Congress must send a balanced-budget amendment to the states for ratification (at least according to Major Garrett, the ABC report is that there has to be a Balanced budget vote either way)
  • The Super Committee is allowed to discuss spending cuts only...No net new tax revenue would be part of the special committee's deliberations.

They will all exclaim how hard they worked and they will try to emphasize the strong points. But make no mistake about it. They are parasites. They cannot stop. Eventually parasites kill the host. But right up until they kill you- they like to tell you what fine creatures they are. That's a pretty good analogy for this.