The High Cost of the U.S. Budget

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Remember the ending of ”Thelma and Louise”? This is worse.

Check out this great read from Forbes:

The High Cost Of The U.S. Budget

David Malpass and Eric Singer, 02.08.10, 03:10 PM EST

Remember the ending of ”Thelma and Louise”? This is worse.


Early last week the administration unveiled its new $3.8 trillion budget. This budget, and the spending it assumes, is so reckless it is difficult to fathom. It projects a deficit of $1.6 trillion for fiscal 2010, with an explosion of publicly traded government debt to $18.5 trillion by 2020. Debt service is projected to reach $912 billion a year by 2020, or over $5,000 for every working person in America.

Even assuming that wages grow over time, the budget suggests the government believes that as U.S. citizens we should devote 10% or more of our gross income just to pay the interest on the federal debt. That 10% comes out of income even before people start paying for actual government programs like national defense, health care, bank rescues and welfare. Nor does it count the spending people need to make for state and local government obligations and their own mortgage and credit card payments.

Wow! On Very SAME Weekend, WATE Allows Shilling for Green Economy With No Disclosure!

Do you think it’s coincidence that on WATE Channel 6’s Sunday News program Tennessee This Week that they interview guests on the topic of green energy JUST LIKE WBIR did?!  Do you think its coincidence that Cortney Piper is a panelist on WATE and used her position to push for green energy just like Susan Richardson Williams did as a panelist on WBIR? Ms. Piper is employed by Susan Richardson Williams, former state GOP Party Chairman.

Both ladies have a contract to PUSH “green” legislation and neither lady disclosed such contract.  Ms. Piper states on WATE’s program that she and Susan Richardson Williams formed a business organization to promote green, but fails to disclose their contract with the Energy Foundation.

Is this how media in Knoxville operates?  Do the panelists get to pick the topics?  Do the panelists pick the guests?

It’s looking that way. From September 2009, here are some comments by SRW Associate Cortney Piper as posted to a Knoxville liberal community forum group (I have removed email addresses for this publication, however, they were readily available on the online forum):

From: Cortney Piper

Subject: Re: [communityorg-26] Responding to Corker’s Town Hall in Loudon

To: communityorg-26@meetup.com

Date: Thursday, September 3, 2009, 8:03 PM

Hey all,

I’m on WATE’s Tennessee this Week about twice a month.  I am trying to get Dr. Green on the show next week to talk about health care.  Tony Brown recommended him, said he was great on CTV.

He’s chief of staff at Blount Memorial and gave Corker his 26 page reform bill yesterday.

If you all know of any other type of progressive experts that can speak to current events and help set the record straight, I am happy to see if there is a place for them on TN this Week.

Link to archived shows (don’t think last week’s show is up yet, they are in the process of upgrading the website): www.tennesseethisweek.com or Sunday at noon on WATE.

Cp

On Sep 3, 2

And here is Ms. Piper talking about her co-panelist, conservative George Korda:

From: Cortney Piper

Subject: Re: [communityorg-26] Responding to Corker’s Town Hall in Loudon

To: communityorg-26@meetup.com

Date: Friday, September 4, 2009, 2:07 PM

Great suggestions, thank you all.

I am not on this Sunday so you’ll be graced with the ultra conservative, mis-informed babblings of my co-panelist.

I am on NEXT Sunday.

Thanks again,

Cp

And here is Ms. Piper sounding pretty confident about the way media works at the Knoxville News Sentinel:

From: TG
Subject: Re: [communityorg-26] ads and media strategy
To: communityorg-26@meetup.com
Date: Saturday, September 5, 2009, 9:31 PM

Cortney, due to the fact that I have been expressly told NOT to talk about my employer (or my role with the company) with any group discussing reform, I must withhold my name. Not that it’s not easy to find out, I just can’t out myself.

I’m not saying concede the KNS, I’m saying we have limited resources (apparently) and there are many other ways and avenues to fight the fight. No, you may not have a problem getting a story printed, but then you don’t work in health care. You don’t spend hundreds of thousands of dollars with KNS (I assume), and those companies in town who do, including all the local health care centers, well, they do have a bit of sway.

Sadly, the online comments at all the local media outlets usually devolve into screaming matches.

WATE is not the areas 3rd largest employer, lol. I work in health care, in Public Relations, with a concentration in digital/social media. Before that I worked in PR for years in California.

Again, if any of you are on Facebook, please consider signing up for the groups, Sick for Profit, Sit Out For Health Care, and my group, 1 in 12 million. There are several polls on FB going around and many are in favor of NO govt. option. Scientific? No. Can you vote more than once? Nope. And there are several good discussions and points in all the Universal Health Care groups, both for and against and somewhere in between.

Cortney Piper wrote:
> KNS publishes its letters to the editor online. I’m saying we need to keep up a steady flow b/c KNS is a major newspaper for Cong. Davis, Duncan and our two Senators.
>
> Personally, I’ve never had any problems pitching a story, getting it printed or getting an editorial bd mtg fr the KNS…and they’ve even editorialized in my favor. It hasn’t been an ez road, but I do believe I have developed a process that works. We can’t concede the KNS.
>
> Plus, all this stuff is free, just takes some time. So, my offer still stands to serve as a resource.
>
> TG, what’s your name? Do you work at WATE? Just wondering if we see each other when I come in on Fridays.
>
> Cp
>  Sent via BlackBerry by AT&T


Wow! WBIR Allows Shilling on Show Disguised as Discussion!!

Wow.  I just wrote a piece yesterday calling out WBIR for not requiring the so-called Republican voice Susan Richardson Williams to disclose all of her paid consulting and conflicts on their Sunday program Inside Tennessee.  Lo and  behold my phone just rang…”turn on WBIR, you’re not going to believe it,” the voice said.

So I turn it on for the last 10 minutes and it’s pure “green economy” discussion with Susan Richardson Williams discussing carbon and cap and trade as if she’s an independent voice.

Outrageous!  In the talk around, Don Bosch calls her out for being for a tax if it’s “for her people.”   He’s exactly right. She doesn’t disclose she’s been paid to “educate” we rubes about global warming!

Over at WBIR, I like Bill Shory and I like John Becker.  I applauded Mr. Shory for holding Lane Kiffin’s feet to the fire.  But gentlemen, you owe the viewers an honest disclosure.  Enough is enough already.  Really, enough is enough.

Global Warming Storm Prepares to Dump Up to 30 inches on D.C. and Former Tennessee GOP Chair Paid to Push Global Warming

As former Tennessee GOP State Party Chairman Susan Richardson Williams continues to lobby for the anti-middle-class cap and trade scam in the name of the global hoax known as global warming (modified to “climate change” in order to avoid current cooling trends), snow continues to fall on the epicenter of bad legislation.

Williams is on the payroll to push this stuff.  By the way, is it standard operating procedure for media outlets like the Knoxville News Sentinel to write articles on business leaders and their perspectives when those business leaders are actually PAID to lobby?

Will other lobbyists be afforded the same opportunities for “news” articles to be published about their own lobbying efforts?

Will WBIR ask regular “GOP” guest Ms. Richardson Williams to disclose each political lobbying contract she has prior to the beginning of each show on their Sunday programming?

Likewise, will Courtney Piper be asked by WATE to disclose all of her paid contracts regarding political issues/legislation prior to her appearances on their Sunday programming, Tennessee This Week? (Piper works for SRW and proudly displays on the website that she appears on TTW.)

After all, when you’re PAID to take a political position, are any of your political positions really genuine?  I don’t think so.  I believe the media and these women represent a very disingenuous and dishonest political dialogue. The Sentinel and WBIR and WATE should be embarrassed, but are not.

Maybe no one cares or notices, but I do.  And I know others that do as well.

From Georgianna Vines, 8/17/2009:

They have a contract with the Energy Foundation of San Francisco to conduct an informational campaign in the Southeast in support of the American Clean Energy and Security Act. The legislation has passed the U.S. House of Representatives and is now in the hands of six committees in the U.S. Senate.

Williams and Piper are working with a network of diverse organizations, including the Audubon Society, National Research Defense Council, National Wildlife Fund and faith-based organizations.

Ronald Reagan

February 6th is the birth date of Ronald Reagan.  He would have been 99 today.  A celebration honoring him will take place today at his Presidential Library.

You can watch it online with their live webcast.  Get the details here.

In his honor:

P.S. Happy Birthday to Lee!

Senator Corker Loved By the Wrong People

Like I said, Corker’s not working for our great middle class.  He’s on the wrong team.  Great find from Memphis Daily:

Former George W. Bush Treasury Secretary Henry Paulson gives Tennessee’s junior senator, Bob Corker, a few brief but positive mentions in the secretary’s memoir “On the Brink” published this week.

He refers, for example, to one “well-intentioned but dysfunctional meeting” attended by Federal Reserve Chairman Ben Bernanke and several Senate Banking Committee members. It was held in Corker’s office at the height of the crisis, a time when the former Chattanooga mayor has said he spoke with Paulson as frequently as possible.

“Corker, a constructive force in the Senate, wanted Ben and me to educate the group,” Paulson wrote.


AWESOME Video! Too Late to Apologize: The American Revolution

Hat tip to Ace, this is awesome!

Lt. Governor Ron Ramsey on Birth Certificate Issue

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Asked if he is for sure that Senator Barack Obama is a citizen, Lt. Governor Ron Ramsey responds that he doesn’t know for sure.  Now that’s an honest answer that I can appreciate.  We really don’t know for sure, do we?

When is the lapdog media going to ask why we know Al Gore’s grades, we’ve seen Bush’s college transcripts, we’ve perused John Kerry’s, etc., etc., etc., but President Obama’s are under lock and key?

I think that President Obama probably is a citizen, but I think where there is smoke, there is fire.  No one, and I mean no one that I know who has evidence to refute detractors holds it. I think there is most likely something Obama doesn’t want people know that would prove embarrassing or go to the heart of his character.  Something is there.  And enough questions have been raised to require that he lay the issue to rest by issuing his long form or releasing his college records.

From World Net Daily:

Ramsey was asked Feb. 2 about the issue by Maclin Davis, a former state lawmaker and attorney for the state GOP, the Associated Press reported.

“I don’t know whether President Obama is a citizen of the United States or not,” Ramsey responded. “I don’t know what the whole deal is there.”

Big Government

Here are several great examples of what’s wrong with government running the show.  Not only was our tax money stolen or misused in these cases, but then our tax dollars finance the investigation, the prosecution, etc.

First, from a mecca of corruption, the state of Illinois:

AZTECA SUPPLY, ITS OWNER AND HER HUSBAND INDICTED FOR

ALLEGED MINORITY CONTRACT FRAUD, INCLUDING TWO O’HARE PROJECTS

CHICAGO – The owner of a Chicago company certified as a minority- and woman-owned

business, her husband, and her company were indicted today on federal fraud charges for allegedly steering minority contracts through the company and collecting more than $9.5 million in fraudulent payments from three projects, including two at O’Hare International Airport.  The company, Azteca Supply Co., allegedly fraudulently received $9,695,168, between 2001 and July 2008 while being hired as a sham contractor on runway and restroom projects at O’Hare for the City of Chicago, and on a landscaping project at a new Metra commuter rail station for the south suburban Village of

Orland Park.

Then there’s this gem that grew from government taxing us to help schools connect to the internet, from DOJ:

WASHINGTON — Former co-owners of a New Jersey-based computer services provider were each sentenced to 27 months in jail for participating in a conspiracy to defraud the federal E-Rate program, the Department of Justice announced today.

Benjamin Rowner and Jay H. Soled, former owners of DeltaNet Inc., were also each sentenced to pay $271,716 in restitution…

Then there’s this presser from Congress Barton’s office on missing AIDS money:

U.S. Reps. Joe Barton, R-Texas, ranking member of the House Energy and Commerce Committee, and Greg Walden, R-Ore., ranking member of the Oversight and Investigations Subcommittee, on Thursday wrote to the head of the Health Resources and Services Administration asking how the agency is working to prevent fraud within the Ryan White HIV/AIDS program.

A recent series by The Washington Post, which highlighted questionable practices and spending by groups providing services for those living with HIV/AIDS, estimates that roughly $25 million of the $80 million awarded to the District of Columbia’s Department of Health between 2004 and 2008 went toward wasteful spending that didn’t result in meaningful services or resources for HIV/AIDS patients, the lawmakers wrote to HRSA Administrator Mary Wakefield. The District has one of the highest HIV/AIDS rates in the nation, with more than three percent of residents known to be living with the disease.

NBC Musician Offended

I can’t begin to imagine the firestorm if this were not NBC.  What do you think?

…NBC’s cafeteria at 30 Rock in New York offered fried chicken “in honor of Black History Month.”

From Newsbuster’s Tim Graham:

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Justice Thomas On Campaign Finance

When I think about the top ten people I’d love to get to personally meet and converse with, Justice Thomas ranks at the top.  Here he is on the big campaign finance dust up, from the New York Times, Feb 4, 2010:

He added that the history of Congressional regulation of corporate involvement in politics had a dark side, pointing to the Tillman Act, which banned corporate contributions to federal candidates in 1907.

“Go back and read why Tillman introduced that legislation,” Justice Thomas said, referring to Senator Benjamin Tillman. “Tillman was from South Carolina, and as I hear the story he was concerned that the corporations, Republican corporations, were favorable toward blacks and he felt that there was a need to regulate them.”

It is thus a mistake, the justice said, to applaud the regulation of corporate speech as “some sort of beatific action.”

Justice Thomas said the First Amendment’s protections applied regardless of how people chose to assemble to participate in the political process.

CUT!

Interesting polling from Scott Rasmussen:

Eighty-three percent (83%) of Americans say the size of the federal budget deficit is due more to the unwillingness of politicians to cut government spending than to the reluctance of taxpayers to pay more in taxes.

Ninety-four percent (94%) of Republicans and 91% of voters not affiliated with either major party place the blame on politicians, and two-thirds (66%) of Democrats agree.


Just 11% of all voters now think the government spends taxpayers’ money wisely and well. Seventy-eight percent (78%) do not believe that to be true.

Again, 90% or more of GOP voters and unaffiliateds don’t think the government handles taxpayers’ money well, compared to 54% of Democrats.

And here’s a good website for checking the latest numbers.

Warning Labels

These are pretty funny if you want to take a gander over at Forbes.

Warning: This costume does not enable flight or super strength.

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BLACKBURN VOTES NO ON FISCAL SCAM: “PayGo” An Easy Route To Raising Taxes

Congressman Marsha Blackburn on the spend-a-thon that is Nancy Pelosi’s Congress:

WASHINGON-  After voting to raise the federal debt limit to a staggering $14,294,000,000,000 by a single vote, House Democrats imposed a sham “PayGo” rule that would make it easier to raise taxes on average Americans. “PayGo” rules require every new funding item to be paid for by an equivalent spending cut or tax increase.

“In December, my colleagues voted to raise the debt limit by $290 billion. In the seven weeks since the limit was increased they have passed at least seven resolutions congratulating athletes and sports teams, over twenty resolutions honoring other individuals, named five post offices, and authorized $50 million to construct a new National Park in the Virgin Islands. Between the two debt limit increases, they haven’t taken a single action to cut spending. Why in the world should we believe that under PayGo rules they would suddenly become converts to the principles of restrained spending?”

“Many of my colleages will tell you that pay-as-you-go budgeting works the same way as any family’s budget. It can, but you have to follow the analogy to its logical conclusion. When a family wants to buy a new car they tend to save for it, not expect to go out and find new jobs that pay twice as much.”

“Those same House Members will tell their constituents that PayGo resulted in the surpluses in the 1990s. They are right, but only because in the 90s the House first looked to spending cuts to account for new programs. There are natural economic limits to how much of the gross domestic product the federal government should consume and equal natural limits on how much of our individual income can reasonably be withheld for that same purpose. The Democrats spending plans for 2011 represent the extreme limits of both taxing and spending.”


***********Just a little historical side note: Congressman Zach Wamp, current candidate for Governor, was an advocate for the Democrat PayGo and voted in its favor.


Thank Goodness! Republican Leaders Oppose Cable Tax.

Hot from the presser.  I’m loving it.

Republican leadership announces opposition to cable tax

(Nashville) – Republican Senate and House leaders today declared opposition to an increase of the cable TV tax included in the proposed 2010-2011 fiscal year budget. Lt. Governor Ron Ramsey, Senate Majority Leader Mark Norris and Caucus Chairman Diane Black were joined by House Majority Leader Jason Mumpower and Caucus Chairman Glen Casada in opposing both the cable TV increase and the proposal to apply sales taxes to the food given to hotel and motel customers.

“Increasing the cable bill of Tennessee citizens is not the way to balance our budget,” said Lt. Governor Ramsey (R-Blountville). “We must reduce spending and encourage job creation to grow our way out of the current economic climate.”

“Unlike Congress, the Tennessee General Assembly is constitutionally bound to balance the budget and we are not going to do it on the backs of the taxpayers,” said Majority Leader Mark Norris (R-Collierville).   “The legislature will closely examine the budget over the next two months.  The weakened economy means lawmakers must be vigilant to make sure that taxpayer dollars are spent in the most efficient and effective manner.”

“Republicans will scrutinize and question any tax proposal that could cost small businesses money during economically troubling times,” said Caucus Chairman Diane Black (R-Gallatin).  “We need to keep both taxes and spending low to return our economy back to growth and provide more opportunities for all Tennesseans.”

“The legislature should operate like Tennessee families and small businesses in these difficult times and reduce spending,” said House Majority Leader Jason Mumpower (R-Bristol).   “Tennesseans across the state are making difficult choices on a daily basis and state government must do the same to live within its means.”

“We simply cannot tax our way out of this recession,” said Caucus Chairman Glen Casada (R-College Grove). “We should take this moment to review our priorities and cut waste and unnecessary programs.”

Inheritance Tax Lapses: But Tennessee Still Takes A Bite

From Forbes:

Where Not To Die In 2010

Ashlea Ebeling, 02.03.10, 02:54 PM EST

While the federal estate tax has temporarily lapsed for 2010, 19 states still take a bite out of their residents’ estates.

Although Congress has let the federal estate tax lapse for 2010, your estate might still be subject to a state levy at your death. The feds are trying to work out a compromise to bring the federal tax back, maybe retroactively to Jan. 1, and with at least $3.5 million in wealth exempt per person. But some states tax far smaller estates and these laws aren’t going away.

Is Tennessee one of the 19 that takes a bite?  Yes, indeed.  Tennessee has a state inheritance tax.

Great Video: Yuri Besmenov

Lou Ann Zelenik was the first lady to step out and challenge long time incumbent Bart Gordon before he announced he wanted to spend more time with the family (uh-huh).

Lou Ann put up a great video on her facebook page that I know you’ll appreciate. Check out the video here. It’s of an interview from 1985 with a Soviet defector by the name of Yuri Bezmenov.  Amazing stuff.  Thanks to Lou Ann for putting it up.

Court Orders Documents Be Issued Re: Pelosi & Interrogation Techniques

Washington, DC — February 2, 2010

Judicial Watch, the public interest group that investigates and prosecutes government corruption, announced today that according to a court order issued by the U.S. District Court for the District of Columbia January 25, 2010, the Central Intelligence Agency (CIA) must provide to Judicial Watch by April 15 documents pertaining to congressional briefings on “enhanced interrogation techniques.” Judicial Watch is seeking documents detailing CIA briefings involving House Speaker Nancy Pelosi and/or her staff.

I’m just loving Judicial Watch.  I wish I had the money and law degree to have a Tennessee divison!

I’d love to go all Kurt Russell from Tombstone on the multitude of thugs in Nashville!

Michael Steele vs. Harold Ford Jr.

This looks good, from the NYDailyNews:

Tomorrow night, he’s due to square off against Republican National Committee chairman Michael Steele at the University of Arkansas in Little Rock – a political death match entitled, “Left, Right, and Forward: On the Future of America.”

“As prominent leaders representing both sides of the political spectrum, Harold Ford Jr. and Michael Steele will engage the audience in the most hot-button issues that will shape our nation’s future,” Dr. Jan Austin, director of UALR’s Office of Campus Life, said in a statement.


Passing Dumb Resolutions While Rome Burns

I ask you, gentle reader, is this not an insult to the uncertainty that you and your fellow Tennesseans face?  This is the junk your representative is actually wasting one second of time debating?  How much does it cost to sponsor and vote on such a resolution?  I think Rep. Hardaway should reimburse the taxpayers:

From NewsChannel5:

(AP) NASHVILLE, Tenn. – A resolution to honor the late pop superstar Michael Jackson has passed the Tennessee House with only one vote to spare.

The resolution sponsored by Democratic Rep. G. A. Hardaway of Memphis passed Wednesday on a vote of 51-22. Measures need at least 50 votes to pass the 99-member chamber. Another 24 lawmakers abstained.

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Thank goodness we got this resolution passed honoring Michael Jackson.  The future of Tennesseans hung in the balance.

Here’s Congressman Peter King on the “psychobabble” about Jackson:


Mo’ Money! Mo’ Money! Bredesen Wants More of Your Money! (Remember Those Big Surpluses?!)

From the Daily Times:

NASHVILLE — Some Tennessee lawmakers say they’re concerned about how their constituents will react to a state revenue proposal that includes taxing cable TV and hiking driver’s license fees for the first time in more than 20 years.

The measure is expected to generate more than $70 million, as part of Gov. Phil Bredesen’s $28.41 billion budget proposal unveiled in his State of the State address this week.

and:

The revenue proposal includes equalizing the sales tax on cable and satellite use and taxing cable boxes. The driver’s license fee increase — from $19.50 for five years to $46 for eight years — would be the first hike since 1988.

Well, why in the heck not raise some taxes, er, fees?  Right?  After all, the economy is in the tank, people are broke, unemployment is killer, real estate is dead.  Go ahead.  Government neeeeeds it.

I’m hoping our Tennessee Senate drives a stake in the heart of this bad idea.  Allow me to take you back just a moment ago to 2007 with our man in Nashville, media dean Tom Humphrey:

Economists: $600M more available than when budget first proposed

By TOM HUMPHREY, tomhumphrey3@aol.com
May 8, 2007

NASHVILLE – Economists told the State Funding Board on Monday that the state government will have about $600 million more to spend next year than expected when Gov. Phil Bredesen’s budget proposal was originally presented.

and this:

Collectively, the figures would mean that – since the current year budget was enacted last year – the state will be collecting about $700 million more for recurring use than expected, the previous $401 million plus the new $300 million.

On the non-recurring side, about $600 million in surplus funds will be available. The recurring and non-recurring total is about $1.3 billion above estimates made a year ago.

The State Funding Board will meet again Wednesday to make a formal recommendation to the governor and the state Legislature on how much new money is available to spend. By tradition, that recommendation is accepted for budgeting purposes.

Now because they governed and spent like they were starring in this movie…

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doesn’t mean WE have to pay the bill.  You guys and gals in government wanted the job, now you make the tough decisions.  It was really easy for you when you were spending, spending, spending!!

Now it’s not so easy, is it?

And while we’re looking back, let’s look back to a Jessica Fender Tennessean article from 2007 (while you’re broke, or squeezed, and/or suffering):

By JESSICA FENDER
Staff Writer

Top Tennessee officials’ paychecks now outstrip those of their peers in neighboring state governments by as much as $62,000 a year, according to data from a nonprofit study group.

Gov. Phil Bredesen pushed the raises — some as great as 63 percent — for his captains as a way to make the positions more competitive with private and public sector salaries, administration spokeswoman Lola Potter said Friday.

First Tennessee Bank Being Investigated: No Accusations, But Records Subpoenaed

While no accusations have been made, First Tennessee is one of 15 banks nationwide being probed because of high default rates:

A Tennessee bank is among 15 mortgage lenders being probed by the federal government.

This is over the default rates on FHA backed mortgages originated since 2007.

The U.S. Department of Housing and Urban Development’s inspector general subpoenaed First Tennessee Bank records related to failed loans resulting in claims paid out by FHA mortgage insurance fund.

And from Businessweek:

The investigation is “focusing on many of the worst performers in the FHA portfolio,” FHA Commissioner David Stevens said on a conference call with reporters in Washington.

“We aren’t making any accusations at this time, we have no evidence of wrongdoing, but we will aggressively pursue any indicators of fraud,” HUD Inspector General Kenneth Donohue said. “The fact that there are 15 institutions on this list today does not in any way suggest that there aren’t other institutions that we will not look at later.”

If you’ll recall, First Tennessee’s parent, First Horizon, received a big injection of government money during the big bailout.  Senator Bob Corker and Senator Lamar Alexander both have strong personal ties to First Tennessee and during the “crisis,”  Senator Corker revealed he had convened meetings with First Tennessee’s Byran Jordan.  From MemphisDailyNews  back in October 2008:

Prior to the forum in Memphis, Corker also met privately with Memphis-area bankers including First Horizon CEO Bryan Jordan. Memphis-based First Horizon National Corp., the parent company of First Tennessee, announced late Friday afternoon that it’s set to get an infusion of $866 million in capital from the Treasury, money that’s part of the federal government’s plan to put $250 billion directly into banks across the country.

The Economy

Wayne Jett has published great new piece.  It’s sobering.  For starters:

Total bank reserves were $44.6 billion at the end of August, 2008, and then leapt to $821 billion at YE 2008. From there, total reserves leapt again to $1.13 trillion at YE 2009. Meanwhile, required bank reserves rose from $41.5 billion at YE 2006 to $63 billion at YE 2009. Of total bank reserves at YE 2009, $170 billion were borrowed from the Fed and $969 billion were non-borrowed capital from the banks.

This represents an historic move by private banks to invest capital with the Federal Reserve rather than in the private economy. At YE 2009, total residual (net worth) of banks was $1.2 trillion, and essentially all of it was deposited as reserves at the Fed. Why did banks do this?

Financial fraud, Treasury, the Federal Reserve, FDIC, OTS and related regulators froze private investment and credit markets and shut down the U. S. economy in September, 2008. The Fed and Treasury stepped into the breach. The Fed came with newly created money. Treasury came with borrowed money, acquired at low rates as capital fled private investment, and intended to borrow much more.

gangbangers

By the way, because he’s done such a swell job, Tennessee Senators Bob Corker and Lamar Alexander voted to confirm Bernanke to a second term.  30 Senators voted against the reconfirmation. Roll call is here.

From the Chattanoogan.com:

Senators Bob Corker and Lamar Alexander today released the following statements regarding their votes to confirm Ben Bernanke to a second term as chairman of the Board of Governors of the Federal Reserve System:

Senator Alexander said, “We were fortunate to have Ben Bernanke at the helm as Chairman of the Federal Reserve when our country nearly slid into a depression. While some of the Fed’s actions might have been extreme, it’s impossible to know what would have happened otherwise. If we avoided a depression, he certainly deserves some of the credit.”

Senator Corker said, “I have had numerous conversations with Chairman Bernanke,…

Marco! Ruuuubbbioooo! I’m loving these numbers!

From Rasmussen:

Former state House Speaker Marco Rubio has now jumped to a 12-point lead over Governor Charlie Crist in Florida’s Republican Primary race for the U.S. Senate.

A new Rasmussen Reports telephone survey of likely GOP Primary voters in the state finds Rubio leading Crist 49% to 37%.

The More Things ‘Change’ the More They Stay the Same

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American Energy: Thanks to our politicians, it’s like a hamster on  a wheel.

Click on the images below to get  a better look.  I was looking through some of my Dad’s old newspapers and found a bunch of neat stuff.  I’ll share over time if you’re interested.  But right away, I wanted to share these two articles.  Both are from 1977.  Both deal with energy.   The first is Jimmy Carter slamming on the Breeder Reactor (he calls nuclear a “low priority energy source.”)  The second article I want to highlight is the picture of the two ladies from the library.  The part I find interesting reads:

Through the network, made possible by cooperation with Oak Ridge National Laboratory, UT Environment Center and other agencies, citizens can get information on solar design, installation, cost and tax benefits through their local public library.”

Are we on a hamster wheel?!  We’re stilling doing the same things!  Including tax benefits for solar!  Do you think 33 years is enough? If you look at these papers and compare them to today’s, you might think Tom Cruise and the band of scientologists are right!

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Must Read! Obama Interns from Public Schools

Thanks for the heads up from reader Tom on this must read from Noel Sheppard at NewsBusters.org:

A rather disturbing document surfaced on the Internet Saturday with grave implications concerning how the Obama administration is recruiting interns from public schools to assist in advancing the President’s agenda along with his desire to get Democrats including himself elected.

Even scarier, the internship application recommends participants read Saul Alinsky’s “Rules for Radicals.”

Please head over and check this out.  If you’re for your little Susie or Johnny hooking up with these radicals that’s one thing, but having tax dollars involved and schools giving credit for participation? No, that’s wrong.

Our Mailbox Latest Victim of Global Warming

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Global Warming storm caused anonymous driver to hit my mailbox.  Al Gore was right.  We’re all going to feel the effects.

The Political Class

Judicial Watch has done some amazing leg work on behalf of the American taxpayer:

Washington, DC — January 28, 2010

Judicial Watch, the public interest group that investigates and prosecutes government corruption, announced today that it has obtained documents from the Air Force detailing House Speaker Nancy Pelosi’s use of United States Air Force aircraft for Congressional Delegations (CODELs). According to the documents, obtained by Judicial Watch through the Freedom of Information Act (FOIA), the Speaker’s military travel cost the United States Air Force $2,100,744.59 over a two-year period — $101,429.14 of which was for in-flight expenses, including food and alcohol.

  • One CODEL traveling from Washington, DC, through Tel Aviv, Israel to Baghdad, Iraq May 15-20, 2008, “to discuss matters of mutual concern with government leaders” included members of Congress and their spouses and cost $17,931 per hour in aircraft alone. Purchases for the CODEL included: Johnny Walker Red scotch, Grey Goose vodka, E&J brandy, Bailey’s Irish Crème, Maker’s Mark whiskey, Courvoisier cognac, Bacardi Light rum, Jim Beam whiskey, Beefeater gin, Dewars scotch, Bombay Sapphire gin, Jack Daniels whiskey, Corona beer and several bottles of wine.

  • According to a “Memo for Record” from a March 29—April 7, 2007, CODEL that involved a stop in Israel, “CODEL could only bring Kosher items into the Hotel. Kosher alcohol for mixing beverages in the Delegation room was purchased on the local economy i.e. Bourbon, Whiskey, Scotch, Vodka, Gin, Triple Sec, Tequila, etc.”
  • The Department of Defense advanced a CODEL of 56 members of Congress and staff $60,000 to travel to Louisiana and Mississippi July 19-22, 2008, to “view flood relief advances from Hurricane Katrina.” The three-day trip cost the U.S. Air Force $65,505.46, exceeding authorized funding by $5,505.46.

johnnie red

Gee, if I could do photoshop, I could have some logo fun with our Democrat Mistress of Power and Booze.

We the People: American Pawns?

You’re working your rear end off and then you see articles like this.  Do you feel like a pawn in a bigger game?

From Bloomberg:

Jan. 29 (Bloomberg) — Russia urged China to dump its Fannie Mae and Freddie Mac bonds in 2008 in a bid to force a bailout of the largest U.S. mortgage-finance companies, former Treasury Secretary Henry Paulson said.

Paulson learned of the “disruptive scheme” while attending the Beijing Summer Olympics, according to his memoir, “On The Brink.”

The Russians made a “top-level approach” to the Chinese “that together they might sell big chunks of their GSE holdings to force the U.S. to use its emergency authorities to prop up these companies,” Paulson said, referring to the acronym for government sponsored entities. The Chinese declined, he said.

Russia’s five-day war with U.S. ally Georgia started on Aug. 8, the same day as the opening ceremonies of the Beijing Games. Prime Minister Vladimir Putin told U.S. President George W. Bush during those ceremonies that “war has started,” according to Dmitry Peskov, Putin’s spokesman.

“The report was deeply troubling — heavy selling could create a sudden loss of confidence in the GSEs and shake the capital markets,” Paulson wrote. “I waited till I was back home and in a secure environment to inform the president.”

Russia never approached China about dumping U.S. bonds, Peskov said today. “This is not the case,” he said by phone.

And here’s a brief excerpt from one of my friends in the business (whom I shall not name ) when I shot an email about the article:

I think Paulson is contriving scenarios which provide motives for his actions, trying to make them appear to be in the public’s interest rather than to assist fraudulent traders. I think you will remember our discussions about how Paulson grabbed Fannie and Freddie within a week after Lehman’s analyst said both Fannie and Freddie had adequate capital and cash flow and were more financially stable than the public was being led to believe. Each of their stock prices doubled, and then Paulson seized them that Sunday, wiping out private shareholders (mostly mutual funds and retirement plans) and making the naked short sellers much, much wealthier.


Fight Your Fights…

Posting this just because I want to…

Fight your fights, find a grace,

And all the things that you can change,

And help somebody if you can.

And get right with the Man.