Archive for January, 2008

State of the Union Address (January 28, 2008)

Posted in Bush on January 28, 2008 by

My fellow Americans,

I raised the national Debt from 5.7 trillion dollars at the beginning of my reign to more that 9.2 trillion dollars today.

I squandered a $261 billion dollar budget deficit and now propose a deficit that could swell to $250 billion dollars or more once the economic surge is approved.

I lied to you that deficits do not matter.

I watched unemployment rise from 4.2 percent in 2001 to 5.0 percent and rising today from the comfortable of Air Force 1.

I slept comfortably in the White House while the country built a house of cards constructed of houses which then collapsed predictably into the worst financial crises in the last 80 years.

I precluded any regulation at the federal level and preempted any rules by the states to govern lending practices for housing that would have prevented or mitigated this economic catastrophe.

I destroyed the reputation and respect previously accorded the United States of America in the world.

I divided our allies and united our enemies.

I ordered an unprovoked and unnecessary attack against a sovereign nation that did not threaten the security and well-being of the United States.

I changed the justification for the invasion code-named Operation Iraqi Liberation (OIL) each time one lie proved to be too false and too fraudulent even for you the American people to swallow.

I played fiddle while the military played taps.

I presided during a rise in oil prices from about $23 a barrel on September 11, 2001 to about $100 a barrel.

I watched gas go from about $1.50 a gallon in 2001 to about $3.00 a gallon and higher on my watch.

I hired faux journalists and fooled the real ones.

I undermined the Constitution at every opportunity.

I deceived myself and the public every day.

I decided.


Bumper sticker of the week:


Talk About Housing (January 21, 2008)

Posted in Housing, Perjury, Society on January 21, 2008 by

“It’s a no-brainer.  You can’t miss.  You don’t need a job and you don’t need any income.  Okay, so you already have two strikes going against you, but they really don’t care.  Just lie and tell them you are unemployed with no income.  Buy and ride it up and then sell.  You don’t even have to paint the place.”

“You have to heat it.”

“You can get one place and flip it and then get another one and flip it.”

“It will flop.  And you must insure it.  In my book, insurance is necessary but not productive.”

“Everyone’s doin’ in.  It can’t fail.”

“And more taxes.  They give you enticing tax breaks to acquire a bigger palace that is then subject to higher taxes.  My digs are already too big.”

“I shared one bathroom with three others and now I have four to myself.  I can shower in three different showers.  One is a steam bath.  Now, that’s livin’.”

“And buy more furniture.”

“I can sleep in one of five bedrooms.  I had to share a room with my brother.”

“Prices will collapse by 2006, 2007 at the latest.”

“No way.  This is America.”

“They take the bait and call in.  They are already hooked.  Operators standing by to assist you.  No one stands by to assist you.  I sold some old lady in Florida, some seventy-something widow, a loan for $44,000 on a property she owned free and clear.  She had enough income to cover her expenses, but I told her she needed more and told her she knew it because she called the number.  She can cover the early payments, and I’ll be gone before she realizes what hit her.”

“Seems sporting.”

“It was her decision.”

”Seems that someone in her seventies doesn’t always make sound decisions.”

“Look, this is America.  The land of the free.  The home of the brave.  Apple pie.  All that stuff.  She is free to make her own decisions.  And anyway, she’s old, she can eat dog food.”

Bumper sticker of the week:

Let Them Eat Dog Food

The “R” Word; The “D” Word or The “S” Word? (January 14, 2008)

Posted in Conflicts of Interest, Depression, Economics, Perjury, Rating Agencies, Recession on January 14, 2008 by

“A recession occurs when your neighbor loses his job; a depression occurs when you lose your job.“  A recession is technically defined as two successive quarters of a downturn in the economy.  The traditional definition of a recession is backward looking.  Would you value being told that you were pregnant fifteen months ago?  Policy planning requires a more forward-looking perspective.  If you lose your job, is it a depression?  If you have less earning capacity despite working overtime and pay more for goods and services, is it stagflation?  (See the e-ssay dated August 7, 2006 entitled “The Fed: Deal With ‘Stag’; Deal With ‘Flation’?”).

The credit rating agencies such as Standard & Poor’s, Moody’s and Fitch suffered from the same grade inflation their employees suffered from in college.  Everyone in college gets As; their parents are spending too much to bestow anything less.  In the real world, the grade inflation is trebled.  The credit rating agencies gave the insurers of bonds the “AAA” ratings.  The insurers of bonds such as Ambac Financial Group and MBIA also suffered from grade inflation.  The insurers of bonds then gave everyone the “AAA” ratings.

The downturns in foreign markets today are a more accurate verdict on the state of and prospects for the American Economy.  In America, risk is not tied to reward whereas foreign investment professionals are more accountable for their performance.  And while the foreign kids were in college, they did not get As just for showing up.

[The recent incident in the Strait of Hormuz:  Gulf of Tonkin II or the USS Cole II?  The statements in English (not translated from a foreign language) from someone expressed a clear present intent to do harm.  The Navy responded in a professional and disciplined way and maintained their course and speed.  Someone can be provocative without provoking a response that is not in the nation’s interest.]

Bumper sticker of the week:

The Mortgage Meltdown continues.

Deficits Do Matter (January 7, 2008)

Posted in Bush, Congress, Debt/Deficits on January 7, 2008 by

There may be no greater lie than the one advanced by Reagan, Bush, Cheney and others that budget deficits do not matter.  Budget deficits do matter.  Budget deficits are a form of taxation.  Budget deficits are a tax imposed on the next generation.  The Cheney-Bush team and their ilk have raised taxes via deficit spending more than all other previous administrations in American history.  The Reagan budgets produced the second largest deficits as a result of “tax increases.”  About seventy percent (70%) of the Nine Trillion Two Hundred Billion Dollar + (9,200,000,000,000.00 +) Debt is attributable to Reagan, Bush, Bush and Cheney.  An irresponsible Congress constituted of Democrats and Republicans and an irresponsible White House populated by Democrats and Republicans contributed.

A temporary budget deficit followed by a balanced budget or a surplus would not matter in the intermediate run.  However, a deficit (“little d”) that is followed by a deficit followed by a deficit followed by a deficit followed by a deficit followed by a deficit has created and is creating a catastrophic national Debt (“Big D”).  Imagine spending $10,000 a month for twelve (12) months.  The $10,000 expenditure is a “rate” of spending and is described as the “deficit.”  At the end of the year, the total amount of $120,000 and accumulated interest is described as the “Debt.”  deficit + deficit + deficit + deficit + deficit + deficit ……. = Debt.  The Debt is now more than nine decimal two (9.2) trillion dollars.   $9,200,000,000,000.00.

Bumper stickers of the week:

deficits do matter;
Debt really does matter

Debt Is Deferred Taxation

Debt is Debilitating

Attention:  deficit Disorder

Attention:  Debt Disorder

Trade Deficits Matter Also

Household Debt Matters Also