Archive for December 31, 2008


Here we are 2009! What resolutions have you decided on? I don’t do the resolution thing anymore last time I made a resolution to lose weigh and gained 30 lbs., basically I have decided list work better. If it is in my face I will do it otherwise not so much.

Here is a preview of possible 2009 milestones that does not mention the bail-out, thank God.

Ebaum

Credit: Ebaum

Happy New Year!!!!!!!!

Source: Nick Juliano – Raw Story

The divisions taking hold among Republicans are becoming more severe as the party prepares to accuse its outgoing president of embracing “socialism.”

The slur that conservatives were so fond of lobbing at Barack Obama during the presidential campaign is now being directed toward President Bush and GOP lawmakers who supported federal bailouts of the banking and auto industries.

At its meeting next month, the Republican National Committee is set to vote on a resolution formally opposing the bailouts, accusing Bush of helping nationalize the banks and taking “another dangerous step closer toward socialism,” the Washington Times reports Tuesday.

“We can’t be a party of small government, free markets and low taxes while supporting bailouts and nationalizing industries, which lead to big government, socialism and high taxes at the expense of individual liberty and freedoms,” Solomon Yue, an Oregon member and co-sponsor of the resolution told the Times.

The resolution reads, in part:

“WHEREAS, the Bank Bailout Bill effectively nationalized the Nation’s banking system, giving the United States non-voting warrants from participating financial institutions, and moving our free market based economy another dangerous step closer toward socialism; and WHEREAS, what was needed, and is still needed, to fix the banking industry is not a bailout, but rather a commitment to fiscal responsibility.”

Republican leaders in both the House and Senate supported the Wall Street bailout, and GOP presidential candidate John McCain infamously “suspended” his campaign to return to Washington and whip up support for the bill. A Republican-led filibuster blocked the auto industry bailout in the Senate, but Bush decided to use some of the previously approved $700 billion to grant loans to the car companies.

During the campaign, accusations that Obama was a closet socialist proliferated on talk radio, conservative blogs and in McCain/Palin campaign speeches.

For the record, “The resolution also opposes President-elect Obama’s proposed public works program and supports conservative alternatives,” another co-sponsor told the Times.

Where do you think the U.S. is headed financially in 2009? The topic is food for thought as long as you have the Pepto, handy. Consumer confidence is at a all time low and 1 in 10 Americans are either behind on their mortgage or in foreclosure. So far the steps the government and the Fed have taken, seem to be making matters worse, in fact the bailout or whatever you want to call it, has clearly worsened the economy by the further devaluation of the dollar. There are many in the financial sector that say the worst is yet to come. The following videos are from one of those folks sounding the alarm, Peter Schiff. Schiff has a different take on 2009 and beyond worth consideration.

Source: Peter Schiff  – President of Euro Pacific Capital

About the video: In this video Schiff predicts that the DOW will be worth 7-9 ounces a gold in 2009, and in the coming years will fall to 1 ounce of gold. Aside from giving his usual speech about getting into commodities, gold/silver and out of the dollar, he talks about what caused the Great Depression.

Andy Busch (BMO Capital Markets) agrees with Peter that the stimulus programs are going to be inflationary and bad for currencies. However, he says regulation is coming so lets make it work because we need it.

Vince Farrell (Soleil Securities CIO) says we don’t have a choice and that the government has to increase debt and that they can’t do nothing. Peter refutes by saying we don’t need to substitute government debt for personal debt, we need to get rid of our debt. Vince and Peter then argue over how the Great Depression came about.

Part 1

“The problem was in the 1920’s, the Federal Reserve blew up a stock market bubble, when it burst we needed to have a severe recession but Hoover wouldn’t let that happen, he tried to intervene, he tried to prop up companies, he tried to keep companies from failing, he was the most interventionist president up until that point – he started the Great Depression,” said Schiff, adding that Roosevelt then compounded the problem through the rest of the 30’s.

Part 2

Now, consider the following excerpt from Ron Paul circa 2007, that in my opinion, sums up where we are now.

The greatest threat facing America today is not terrorism, or foreign economic competition, or illegal immigration.  The greatest threat facing America today is the disastrous fiscal policies of our own government, marked by shameless deficit spending and Federal Reserve currency devaluation.  It is this one-two punch– Congress spending more than it can tax or borrow, and the Fed printing money to make up the difference– that threatens to impoverish us by further destroying the value of our dollars.

Paul’s right as usual don’t you think? The only problem for most of us is that it is impossible for Americans (as a whole) to pay off their debt. The simple mechanics of the debt-based money that is in use dictates that all debt can never be completely paid back. For me, arguing the role of the government beyond its protection of the Federal Reserve  is a mute point and maybe, what we are watching is karma for years of crafted financial corruption implodingat the feet of the designers. Switzerland anyone?

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