Archive for June, 2011

The Dallas Fed President and the Economy….

June 28, 2011

Here is an article on CNBC with the following headline:

“Economy May Grow 4% in Second Half” – Dallas Fed Chief

I want EVERYONE to understand that CNBC is owned by Government General Electric.  They HAVE an agenda, and they are attempting to help their viewers pressure the Federal Reserve, the President, the Congress, and the Senate to come to a certain conclusion.  I will not say what I think that “conclusion” is, but here is another article quoting Mr. Fisher from Bloomberg.  The following is quote from the Bloomberg article:

“Federal Reserve Bank of Dallas President Richard Fisher said he sees economic growth picking up in the second half while remaining slow…”

The rate in the first quarter was 1.8%.  I am not sure if Mr. Fisher believes that the economy will grow twice as fast in the second half, but I am doubtful.  Just some points to consider:

     1)  Greece (Ireland, Spain, Italy, Portugal, etc.) is about to explode with social unrest when they are FORCED to forfeit everything that was promised to them by their politicians.  IF Greece and the others implode and the banks fail it WILL affect the USA greatly.  In fact, this will make the failure of Lehman Brothers insignificant.

     2)  The Middle East (Egypt, Yemen, Libya, Syria just to name the ones that EVERYONE knows about) is undergoing a tectonic shift in politics.  Where it ends up is anyone’s guess at this point in time.  Will it be friendly to the USA, will it be hostile to the USA or will it land somewhere in the middle??  We still need OIL from these areas, because our “leaders” (from BOTH parties) have failed to act on energy security for 30 years.  I would venture the argument that the energy security of the USA has gotten much, much worse in the last 2 years.

     3)  China is curtailing its purchases of USA debt and attempting to diversify its foreign reserves.  This can ONLY put pressure on interest rates in the USA.  NOT if but WHEN Interest Rates move higher, the proportion of the revenues of the USA going to interest payments WILL rise dramatically.

     4)  The current occupant of The White House and his administration are doing EVERYTHING they can to enact new REGULATIONS (FCC, USDA, here, NLRB, etc.) that HINDER economic growth.  The previous examples are not inclusive and have left out the two largest question marks, TAXES and OBAMACARE, but does ANYONE think these policies HELP businesses, not including lobbyists, lawyers, accountants (people that actually produce NOTHING worthwhile) etc?

     5)  The Federal Reserve is going to stop the ONLY action (QE2) that has “helped” the stock market for the past 6 months, in 2 weeks.  And it ONLY cost $600 BILLION of your dollars, so Wall Street could “feel” better.  Doesn’t that make YOU feel better?

IF the Dallas Federal Reserve President Richard Fisher believes that the economy is going to do substantially better in the second half of 2011, I am willing to make a wager.  I say it will be NO better than 3% (I would go down to 2.5%, but then we would have to negotiate my salary first), if I am correct maybe Mr. Fisher could find me a job, working for the Federal Reserve (and I DO have some qualifications including education and work experience that would be useful to the Fed).  If I am wrong, I will NEVER bad mouth the Fed again.

What say you Mr. Dallas Federal Reserve Bank President Richard Fisher?

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Deficit Reduction and the Debt Limit….

June 28, 2011

I was reading this article from the Wall Street Journal this morning, and I saw the following sentence:

“The two sides are aiming to reach a deficit reduction agreement that could pave the way for Congress to raise the $14.29 trillion federal borrowing limit by Aug. 2.”

I am just wondering if ANYONE else sees the problem with this statement??

the two sides are attempting to come to an agreement to REDUCE THE DEFICIT so they can INCREASE THE DEBT CEILING!!!

Anyone?…..Anyone?  Bueller…..Bueller….Bueller

Hello???

This is the problem with the situation today.  The politicians are trying to spin the situation to their viewpoint, the media is NOT critical, and no one is calling them on it!!!  In order for the DEFICIT to be REDUCED we must SPEND LESS than we TAKE IN.  It is NOT difficult!!  IF we spend less than we take in, there is NO need to increase the DEBT LIMIT!!

Any questions??

The Consumer Price Index or CPI…

June 22, 2011

Previously, I have mentioned that the Inflation number that the “government” uses is too low.  I have also said that the government has a VESTED interest in this number remaining low.  This post does not mean to single out one political party over another, as they BOTH do this manipulation.  I am merely using the current administration as an example, because they are the current administration.

Please read this article from Dow Jones as posted on the NASDAQ website.  And this one is a follow up from Zerohedge.  Below are a few quotes:

“Those talks involve Democratic and Republican lawmakers from both chambers and are led by Vice President Joe Biden.”  See, both sides are involved.  It appears as though Vice President “The new sheriff in town” Biden, the one that was over seeing TARP so that NO money was “misused”, is proposing the changes.

“Such a move is widely seen by economists as resulting in a slower rise in inflation. That would impact an array of federal programs that are linked to CPI including the Social Security program and income tax brackets set by the federal government.”  This means that two things WILL happen.  1)  Social Security payments will not rise as quickly, most likely TRAILING real inflation, and 2)  the changes in Income Tax Brackets will not rise with inflation (meaning when you tell your boss that you need more money to survive, and they give you a “raise” (LOL, sorry), that you will be paying more in taxes).  I call this a STEALTH TAX.

Lawmakers are considering changing how the Consumer Price Index is calculated, a move that could save perhaps $220 billion…”  This money comes from YOU!!  This comes from any “program” that is indexed to the CPI.  The main one being Social Security.  This is NOT a “tax on the RICH”!!  This is a tax on average America.  But the politicians are trying to get away with this “manipulation”, without calling it a TAX.  The Government is AGAIN attempting to manipulate the numbers, so that what they ARE doing looks better.

Here is some talk about the changes to the CPI calculation.  And here is an analysis that puts the current CPI well above 5% from Shadowstats

I will say it again, the Government has a VESTED interest in the “reported inflation rate” remaining low, not 0% or below.  The number that they “use” IS incorrect as it relates to average America, and the errors benefit the Government ALWAYS!  We need to remove this system from the control of corrupt/ignorant politicians.  Go back to the original formula.  Do not let them have the power to change it.  MAKE them live with the same Inflation that WE are experiencing!

I may finally agree with Al Gore!!!

June 22, 2011

Al Gore wants to control population size.  I may finally agree with the guy who “invented” the internet.  Although we may differ on the process.  Mr. Gore believes that we, the human race, can help control the climate by reducing births.  I think that is going to take way to long for the results to materialize.  So, I have some suggestions for Mr. Gore.

 Let’s start with Mr. Al Gore and his entire family!!!  Think about it.  If we remove him from the planet it will be a double benefit.  First, we will reduce the population, which he says he wants, so why doesn’t he SET the example.  Second, we will eliminate the overabundance of Hot Air, that he continuously spews forth.  Really, that will reduce the carbon dioxide in the atmosphere.

Wait….it might have a third benefit.  Third, we can scrap his fuel guzzling air plane, his energy wasting residence, and his gas guzzling SUV’s.  Just think of the carbon reduction this will accomplish!!!

I say lead by example Mr. EX-Vice President!!!  It was nice having you around.  NOT!!! 

For anyone that does not know me, this is sarcasm.  I do not want to see the best X-VP dead, I just do not want to see him at all…….EVER……ANYWHERE!!!

Are people OVERPAID??

June 9, 2011

Previously, I have written about certain salaries in the United States.  For another example, let’s visit New York, and from the New York Post.

“The Syosset Central School District, which serves an enclave of gated communities, ritzy eateries and children’s boutiques…”

The Superintendent earns…?

“The school superintendent, Carole Hankin — who oversees 6,687 kids in 10 schools — is the highest-paid in the state with $506,322 in total compensation. She collects a $386,868 salary, $67,454 in fringe benefits and $52,000 in retirement funds and expenses including use of a “late model car,” plus gas.”

That $386,868 salary is less than $14,000 less than the President of the United States!!  You know, that guy responsible for 300 Million American’s safety, the economy, Government Motors, the unions, the social organizers, EVERYONE”S health care, etc.  Mrs. Hankin is only responsible for LESS than 7,000 kids!

But wait, that’s not all…If you buy right now…you will also get..

$382,382: Jeffrey Streitman, deputy superintendent
$238,221: Joseph LaMelza, assistant superintendent
$145,114: Dean Strohmayer, gym teacher
$129,818: Jeffrey Rozran, English teacher”

$145,114!!  For a GYM teacher!!  Are you kidding me??

This is the CRAP that has to STOP!!

Steve Liesman and the Unemployment Rate under Obama…

June 2, 2011

Here is a fantastic article that shows the bias of the Lame Stream Media.  I would like to concentrate on Steve Liesman at CNBC.  I know I have written about Mr. Liesman before, but I can not resist pointing out the hypocrisy of a channel that is reporting on Business, OBJECTIVELY (I had hoped).  Below is the relevant quote.

“The concern here is that there was a lot of hurricane related with bounce back from September and a lot of construction related activity that added to jobs in October.”

Do you know when this was said??  It was in 2004, when Mr. Liesman was criticizing the Unemployment numbers under President Bush.

Hey Rick Santelli, the next time Mr. Liesman is spouting off about how much better the Unemployment numbers really are (under The One), ask him about the “bounce” that has probably occurred from the recent tornadoes that have ravaged parts of the country.  So really, the numbers would be MUCH worse without the Natural Disasters that have “saved” Obama’s economy.

Or does that only count when a Republican is in charge??