national debt

Mar 24, 2009

Anti-Progressive "Environmentalists"

Harney and Grant counties have the highest unemployment rates in the state, at 19.7 and 19.3 respectively. While the economic situation in these areas is desperate, the people are resilient and determined and, like me, they cannot understand why we cannot make better use of our vast timber resources on federal lands to create lasting family wage jobs, reduce the threat of fire by cleaning out the forests, and generate renewable energy with the debris.

Hundreds of millions of dollars of private investment is ready to come into these two counties in the form of biomass facilities and wind energy, and yet the federal government stands in the way. The uncertainty of supply of fiber from the forests and trying to site a power line on public land are standing between these people’s economic recovery and depression-era unemployment. This has to change.

Their plight attracted national news attention with a feature story from Fox News. Click here to watch the piece. Attempts by Fox to interview local Forest Service officials were nixed by Obama Administration officials, which is both disturbing and unfortunate.

The power line to connect the green energy from wind would take up about 180 acres of the more than six million acres of BLM land in Harney County . And yet, environmental groups have made it clear they plan an all out-assault to stop the wind energy from getting to the grid.

On the forest side, the Malheur National Forest has about a 28-year backlog of treatment at its current dismal rate. And that’s if you took a snapshot in time. It doesn’t include the enormous growth and mortality of trees and vegetation on the forest.

Mar 14, 2009

Why the "Employee Free Choice Act" is not for Employees or Free Choice

The spectacular productivity of this nation has been sapped by the $70 an hour wages of the auto and steel workers unions. That has made them unable to compete inside our own nation. Why a car maker/worker in Detroit should get twice what my mechanic in Portland gets in wages and salaries I will never understand.

The collapse of the car makers led to the collapse of the housing market in terms of mortgage loans. The collapse of the mortgage loans lead to the collapse of the housing industry and the credit industry. The collaps of the housing is leading to double digit unemployment.

Now the Unions want to usurp more workers' power, ruin more of the economy, and take more power by sidelining their secret ballots. The "Card Check" system will allow some union terrorist to extract signatures rather than restrict decisions to a secret ballot. Some brother Teamster will meet you in the parking lot to sign the paper.

The claims that the "Employee Free Choice Act," are from unions who have seen their power collapse, not because fewer can chose unions, but because those who do have lost their jobs.

The highest and best mission of the unions was to improve worker conditions and protect their natural rights. They are ignoring that and have focused on wages and benefits. In doing that, our nation's workers have gone from employed at $40 per hour to unemployed at $70 per hour.

This is about increasing union power and revenues from dues. It is not about more freedom for workers, but less. It is not about picking your union or having a union. It is about taking power from the workers to be represented by those who fail to represent them.

Senator Merkley is NOT a friend of the worker. He is a tool of the unions bosses.

Mar 9, 2009

“We worked hard to get the right Russian word. Do you think we got it?” Clinton said as reporters, allowed in to observe the first few minutes of the meeting, watched.

“You got it wrong,” Lavrov said, to Clinton’s clear surprise. Instead of "reset," he said the word on the box meant “overcharge.”

Clinton and Lavrov guffawed. “We won’t let you do that to us,” she said.

Best & The Brightest: Dealing with Depression, Running with Recession, or Staving off Stagflation

If you want to make radical change, you have to make basic changes to the institutions. You cannot expect to double down on debt and expect the economy to improve.

One of the pluses of the Kennedy Administration was he began acting on the Recession of 1959/1960 immediately with the "Best and the Brightest." They attracted the talent necessary for financial free markets.

Treasury Secretary Timothy Geithner cannot fill the ranks of his senior staff because there are no "True Believers," who can support this "Spend Your Way To Success." If there are those who have adopted this ideology, they do not have the credentials and credibility for the bureaucratic back-up that a cabinate level Secretary needs.

President Obama's choice may have passed the Senate selection, but it has not passed the credit community as a choice. It did not help to alienate them with his last weekend speech of February.

I know these steps won’t sit well with the special interests and lobbyists who are invested in the old way of doing business, and I know they’re gearing up for a fight as we speak. My message to them is this:

"So am I."

For those who were alive and lived through the JFK and LBJ foreign wars and economic policies, Big Government is the "old way of doing business," the answer was to spend your way out of a recession.

Those with those credentials and that experience will not be joining this Administration with this Congress. They are in retirement.

For those in business who went through the Stagflation of October 1981 through July of 1982 and April of 2001 through October of 2001, even short term inflationary spending that results in printing more money has long term consequences. Those who dealt with that are up close and personal with those President Obama has deliberately alienated.

For those favored few who succeeded in surviving since the Great Depression, they can tell the story of a contracting economy where the Gross Domestic Product dipped every day for four years. For every three months you have economic depression, three years are needed to recover or turn around. That will not start until the Government stops bleeding red and printing green.

That is just for the economy, not the individuals invested in it. Those who were and are planning for their retirement, their recovery will take 15 years. As much as this may cost the corporate "fat cats," they will still have a comfortable life.

It is those business people who are considered "rich," and invested their whole life earnings that have lost and will lose. It is those who put away for their retirement, including into 401(k) investments, that will change their whole lives.

Here is a quick review for those who do not know what a Recession is. When not attacked by inflation, a Recession is when the Gross Domestic Product (GDP) has failed to increase while the population has increased (in billions in actual and in 2000 dollars):

Jul-1948 $273.9 $1,654.1
Oct-1948 $275.2 $1,658.0
Jan-1949 $270.0 $1,633.2
Apr-1949 $266.2 $1,628.4
Jul-1949 $267.7 $1,646.7
Oct-1949 $265.2 $1,629.9
Jan-1950 $275.2 $1,696.8

Apr-1957 $459.2 $2,294.6
Jul-1957 $466.4 $2,317.0
Oct-1957 $461.5 $2,292.5
Jan-1958 $454.0 $2,230.2
Apr-1958 $458.1 $2,243.4
Jul-1958 $471.7 $2,295.2

Jan-1960 $526.9 $2,517.4
Apr-1960 $526.1 $2,504.8
Jul-1960 $528.9 $2,508.7
Oct-1960 $523.6 $2,476.2
Jan-1961 $527.9 $2,491.2
Apr-1961 $539.0 $2,538.0

Those are the periods without double digit inflation or unemployment. These are periods of Stagflation where, while the dollar figures for the GDP may have increased, they were due to inflation:

Apr-1947 $240.5 $1,568.7
Jul-1947 $244.6 $1,568.0
Oct-1947 $254.4 $1,590.9
Jan-1948 $260.4 $1,616.1

Jul-1981 $3,178.7 $5,329.8
Oct-1981 $3,196.4 $5,263.4
Jan-1982 $3,186.8 $5,177.1
Apr-1982 $3,242.7 $5,204.9
Jul-1982 $3,276.2 $5,185.2
Oct-1982 $3,314.4 $5,189.8
Jan-1983 $3,382.9 $5,253.8

Apr-2001 $10,128.9 $9,905.9
Jul-2001 $10,135.1 $9,871.1
Oct-2001 $10,226.3 $9,910.0

Stagflation is much more difficult to deal with as increased spending with the means of production decreasing means more dollars chasing the same goods.

One of the reasons healthcare costs have increased is the demand created by a greater population has not increased the means of providing for that service. Adding more Federal dollars to chase that same resource has increased prices rather than numbers of those providing services.

These are some of the figures for the last eight years of our Gross Domestic Product and they include both the unadjusted GDP and the GDP adjusted for inflation:

Jan. 2001 $10,021.5 U $ 9,875.6 A
Jan. 2006 $12,959.6 U $11,217.3 A
Jan. 2007 $13,510.9 U $11,357.8 A
Oct. 2007 $14,031.2 U $11,620.7 A
Apr. 2008 $14,294.5 U $11,727.4 A
Jul. 2008 $14,412.8 U $11,712.4 A
Oct. 2008 $14,200.3 U $11,525.0 A

Experience has shown that no administration exists in isolation from the Speaker of the House, where bills for budgets begin. So, it is more insightful to look at them as a combination.

The first year, and the worst year for the Bush/Hastert Administration resulted in a 3.11% increase in GDP. The full six years of the Bush/Hastert resulted in a growth of 34.8%, or an annual rate of over 5.1%.

The Bush/Pelosi Administration from January 2007 to October 2008 resulted in below that 5.1%. In the period from October 2007 to October 2008, it was 1.2%. As you can see, the decrease in GDP, after adjustment for inflation, began before April of 2008.

This can be traced back to Pelosi's introduction and Bush's signing of the "Supplimental Appropriations Act of 2007" introduced in January of 2007. As a Senator, President Obama voted for this.

This was further aggravated by the "Economic Stabilization Act of 2008" that included the TARP amendment for bailouts. Again, as a Senator, President Obama voted for this.

While a great deal can be attributed to President Bush, failing to sign or writing a veto on spending by Chairwoman Pelosi is not one of those things. The same is true of Senator Obama's/President Obama's support either.

While there is generally a problem with recruiting "The Best and the Brightest" for President Obama's Administration, it looks like an impossible task for the Treasury to Recruit them knowing the issues of the last two years of policy and the present deliberate alienation of the "special interest" called Business.

Of course, the most clear expression of a special interest is the use of earmarks. The Pelosi/Obama Administration claims to seek reform, yet fails to do this in practice. No reputable economist or attorney can resolve that issue. That kind of double-think scares away qualified candidates from not only the Treasury, but every other part of the Executive Branch.

The Economy: What you can do

There are many things you can do and this article has a tool kit for individuals.

You need to know how we got from the economy we had to the one we have, though, first.

When the first "Stimulus Plan" was promoted in 2008, Robert Barro and Nobel Prize-winners Robert Lucas, Jr., Vernon L. Smith, Edward C. Prescott and James M. Buchanan were critical of the government spending, saying that the package will increase unemployment and place more debt on future generations.

Those huge increase in deficit spending since 2007 when the Democrats took over the House (Pelosi) and the Senate (Reid). During the first six years, Speaker Hastert (R)added $2.833 Trillion over six years from 2000 to 2006, or $472 billion per year. Since the Chairwoman Pelosi (D) took over two years ago, she added $1.518 Trillion over two years, or 759 billion per year. That is a 60% increase in deficit spending.

U.S. Debt:
$5.674 Trillion - 2000
$8.507 Trillion - 2006 Increase of $2.833 Trillion over six years, or $472 billion per year
$9.007 Trillion - 2007
$10.025 Trillion -2008 Increase of $1.518 Trillion over two years, or $759 billion per year
You can check the figures for yourself.

The jobless rate for March of 2007 was 6.7 million unemployed or 4.4%.
The jobless rate for February of 2009 was 12.5 million unemployed or 8.1%.

So, the one Nobel prize winner who agreed with the Democrats was wrong and the four who predicted it would cause increased joblessness and U.S. debt seem to be correct.

This turning around until the market dips below 5800 and it is not likely to turn around for at least a month. Plan on April 1, 2009 looking a lot like April 1, of 1996 with a drop of over 850.


If you are not in the Market yet, you should keep your money in FDIC insured accounts and at more than one bank. Another option is to buy Treasury bills. At 5800 though, the assets of companies are at a bargain price. They will either split up those assets in the courts, be sold at auction by themselves or survive and thrive.

If you are not making a decision between stock or commodity investments, then consider options that reduce your costs. If that means taking over a mortgage because it is less than the cost of rent, then do that. I would look at a 15 year mortgage payment cost to compare it with your rental. If you are in a small business, you are looking at investing in those things that maintain your means of production rather than expanding.

What I am expecting in the long run is an increase in the cost of living or inflation. Look at the prices of commodities for that. When precious metals and oil go up, then inflation will have set in. The reason for not having wild inflation yet is the low cost of fuel. The low cost of fuel is because consumer and commercial uses of energy have dropped all over, including Europe.

What my mother would have done is to fill the freezer, can, and stock up on dry goods like blackeyed peas, garbonzo beans, and other beans. But, then, she was in the Great Depression and would bunker down.

The long term solution is to reduce the cost of government in comparison to the Gross Domestic Product. We can only afford so much Government. When the Government says they are spending more, the Markets respond:

The Obama/Bush Comparison in the Stock Market:

01/20/09-03/06/09 -1647.75 (-19.9%) President Pelosi/Reid/Obama Administration

01/19/01-01/20/09 -2576.29 (-24.48%) President Bush Administration

That was with a 32.50 gain in the DOW today.

Obama is nearing the loses that President Bush had.... in less than two months.

The engine of job making is the small business owner and when the economy is good because Government is 17% of the GDP, then they survive and thrive. When the economy is bad because Government is costing 21 to 40% of the GDP, then the survival rate is low. Even if they do not fire employees, they are not going to hire them.

Of ARRA or the "Stimulus Plan," 49% is for revenue replacement in states, 33% is in tax cuts, and 18% is for "Infrastructure." While it builds roads and bridges, it does not increase our security at our ports or borders. While it gives money to alternative energy, in a budget of $787 billion, only $6 billion is for alternative energy. They are willing to loan hundreds of billions of dollars for failing banks but they are not willing to loan that money to rural electric co-ops and private developers of wind, biomass, and solar.

If they would unclench on the drilling, there is enough natural gas, including in and off the coast of Oregon, enough to meet our energy needs for 20,000 years. In terms of our state economics, selling oil leases and taxing production could, like it has in Alaska, end the state income tax.

Natural gas burns cleaner than gasoline and diesal. It is more easily and economically converted to than electric for transportation. As it is, it is created and escapes into the air every day without being burned. It is 22 times more potent in creating the greenhouse effect than CO2.

Mar 5, 2009

Democrats' Diversionary Tactics

The Federal government has no check on it from a vote of the people.

It is a Republican government in that we elect representatives from the States. When they spend our money, there is no referendum we are allowed to vote on it before it becomes law.

There is no process where citizens can make an initiative to propose law. We are completely at the whim of partisan politics. Voters cannot even recall a Federal elected official when they fail to represent those who voted for them.

Because of all that, all the economic power is being concentrated in the Federal government, including the incomes of individuals.

Now they are manipulating the media so we do not look at these things. They try to make Limbaugh or the "Fairness Doctrine" the issue.

Is that socialism? Or is that despotism?

The Obama Nation Today:

Jan.20,2009-Mar.05,2009 = -1643.53(-19.85%) Obama Presidency
Jan.26, 2009-Jan.21,2009= -2359.49(-22.29%) Bush Presidency

However, I do not want to give the impression that President Obama is the issue. Chairwoman Pelosi is. Every time President Obama parrots the Policies of Chairwoman Pelosi, the market takes a dive. As you can see, I have a suggestion for the proper placement of the Presidential Seal.

Power should NOT be in the hands of the House of Representatives. They do not represent the People and they are not responsible. The House of Representatives is where the power of the purse is. They have abused our credit and name in war and economics.

We cannot vote on laws there.
We cannot make laws to be voted on there.
We cannot vote to remove Representatives who fail to represent us there.

Mar 4, 2009

Happy March Forth Unbirthday And the First Step of 12 for Government Spending Addicts

The first step to any Recovery is to admit you have an addiction. The Government needs to admit it is powerless over its spending and refer, with a referendum, the spending of the U.S. government to We, the People.

Today, March Fourth, 2009, Treasury Secretary Geithner in testimony before the Senate budget committee, was told by Senator Grassley a study shows the borrowing the Government is doing, the deficit, would be less if the government did nothing. Essentially, the Treasury, Geithner, said that report had to be wrong because it did not agree with the Administration. Senator Grassley said he expected the Treasury to make an assessment of that study and report back.

I emailed the following to Senators Grassley, Wyden, and Merkley:

"I wrote the following to Senator Grassley:
The markets went up after you asked those hard questions. Being retired, I have an interest in the market's effect and the time to watch.

One question I am interested in is when you said a study shows if the Government does nothing, then the deficits will be lower than what the Adminstration is claiming. You said you expected him to evaluate that and get back to you.

Everyone would like to know the answer to that question before piling on $1.8 trillion more into debt.

I want your answer to that question in real terms, not some glittering genealities in a form letter

Appropriations Ranking Senator Grassley:
Senior Oregon U.S. Senator Wyden:
Junior Oregon U.S. Senator Merkley:

So, if it disagrees with the Administration, it has to be wrong is the argument that must be dealt with first. The Administration (Obama), the Credit Card (Pelosi), and the Credit Manager (Reid) need to be ready to admit when the spending is wrong. The Government is not willing to tighten its belt as We, the People, are doing every day.

Another question to the Treasury was the claim that this Deficit will "save or create 3.5 million jobs." A Senator asked how the Government could be held accountable to prove that happened. That or create is impossible to prove or disprove. If 3.5 million more jobs are lost, the Government will claim the loss would have been 7 million.

It is like a drunk asking for $20 for three bottles of wine if they promise not to drink more. Then if they drink six bottles, they claim if We, the People, had not paid for three bottle, they would have drank nine. If that is confused thinking, then it is because the Treasury is confused by intoxication from spending.

Anyone could be confused by the spending. It is like Alice In Wonderland where Alice is at the Mad Tea Party celebrating their Unbirthday by with giving presents to themselves.

Tf you would like to email Congressman Wu please use this.

If you would like to email Congressman Walden please use this:

If you would like to emal Congressman Blumenauer please use this:

If you would like to email Congressman DeFazio, please use this:

If you would like to email Congressman Schrader, please usethis:

That last one is my representative. I have written him also and am expecting an answer from him. If I receive an answer from my "represenative" or our Senators, I will post that. If I do not, I will post that also. A progressive government only governs by the consent of the governed, We do not have a Progressive Government in that we can recall Representatives, Senators, or the President, so my recommendation is that you make your voice heard.

If those are not your Senators, go here.

if those are not your Representatives, go here.

Mar 3, 2009

Recent History of DOW Jones Industrial Average

01/26/01-01/21/09=-2359.49(-22.29%) Bush Presidency
01/20/09-03/03/09=-1223.07 (-15.39%) Obama Presidency
09/23/08-10/22/08=-2496.48(-22.66%) Month Obama Becomes Candidate
01/20/09-02/13/09=-430.81(-5.2%) First Month of Obama Presidency
01/29/09-03/02/09=-1604.99(-19.16%) Worst Month of Obama Presidency
02/25/09-03/03/09=-625.92(-8.5%) Last Week of Obama Presidency.

Then there is this:


Republican Leaders in the Senate & House

Senator/ Republican Leader Mitch McConnell's official YouTube channel The official YouTube channel of Senate Republican Leader Mitch McConnell
Senator Jim DeMint's Official YouTube Account Following the November elections in 2006, the senator stood up against big spenders in Congress and stopped over 10,000 wasteful pork projects. Famed Washington journalist Robert Novak called him a "hero."He was recently ranked as the Senate's most conservative member by National Journal and as the No. 1 senator voting for responsible tax and spending policies by the National Taxpayers Union. DeMint understands the greatness of a country is found in its people and values, not in its government
Republican Leader of the House, John Boehner House Republican Leader and a staunch opponent of pork-barrel politics, John is fighting to eliminate wasteful spending, create jobs, and balance the federal budget without raising taxes. He has challenged Republicans in the 111th Congress to be not just the party of “opposition,” but the party of better solutions to the challenges facing the American people. Under the new House GOP leadership team John leads, House Republicans have formed “solutions groups” to develop principled alternatives on the issues that matter most to American families and small businesses, and launched the GOP State Solutions project, an initiative aimed at bringing reform-minded Republicans at the state and federal levels together to promote common-sense solutions from outside the Beltway.

"Gone" Barack Obama

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