Curried Wealth Building
Finding an Edge

If you want help with your finances, give me a call at 703-791-3243.
July 25, 2009
Issue 55  -  The Con Job Continues
 
As I have said before, I am not a political animal.  I don't support either the democrats or republicans because in the main, they are identical in their spending and disregard for the constitution.  I favor a more libertarian view but they have problems also.  That being said, this latest nonsense from the democrats is SO out of line with the reality of things that it simply boggles the mind.  EVERY government program has led to HIGHER costs and WORSE execution, but this one will be DIFFERENT.  Riiiiiiggggggghtttt.  Sure it will.  Go back and look at the estimates for the costs of social security and you will literally laugh at the sheer magnitude of error.  We are talking several orders of magnitude off.  Here, look at the way this thing is going to work:  (I know, it's from the republicans, but from what I see it looks credible)
 
 
 
 
 

 Now if that doesn't make you nervous, I don't know what will.  Also taking into account that the democrats are blocking mailing of the picture:

"Democrats Block GOP Health Care Mailing

July 23, 2009
By Jackie Kucinich
Roll Call Staff


Democrats are preventing Republican House Members from sending their constituents a mailing that is critical of the majority’s health care reform plan, blocking the mailing by alleging that it is inaccurate.

House Republicans are crying foul and claiming that the Democrats are using their majority to prevent GOP Members from communicating with their constituents.

The dispute centers on a chart (view PDF) created by Rep. Kevin Brady (R-Texas) and Republican staff of the Joint Economic Committee to illustrate the organization of the Democratic health care plan.

At first glance, Brady’s chart resembles a board game: a colorful collection of shapes and images with a web of lines connecting them.

But a closer look at the image reveals a complicated menagerie of government offices and programs that Republicans say will be created if the leading Democratic health care plan becomes law.

In a memo sent Monday to Republicans on the House franking commission, Democrats argue that sending the chart to constituents as official mail would violate House rules because the information is misleading.

In their eight-point memo, which was obtained by Roll Call, Democrats identify a litany of areas where they believe the chart is incorrect.

For example, Democrats argue that the chart depicts a “Health Insurance Exchange Trust Fund” that is “simply a recipient of IRS funds, with no outflow. ... This is false.”

The chart’s illustration of low-income subsidies is also “misleading and false,” Democrats argue.

Congressional rules for franked mail bar Members from using taxpayer-funded mail for newsletters that use “partisan, politicized or personalized” comments to criticize legislation or policy.

The dispute over Brady’s chart is being reviewed by the franking commission, which must approve any mail before it can be sent. No decision had been made on the matter by press time.

Brady adamantly denied that the chart was misleading and said Democrats are simply threatened by the content of the graphic.

“I think their review was laughable,” Brady said. “It’s ... downright false in most of the cases. The chart depicts their health care plan as their committees developed it.”

“The chart reveals how their health care bureaucracy works, and people are frightened by it,” he added. “So this is their effort to try and discredit” the chart.

Republican Members have made 20 requests to mail a version of the chart to their constituents and have been told that the requests are being delayed while the commission reviews allegations that the chart is misleading.

“Hiding the truth about wildly unpopular policies is a Democrat specialty,” said one GOP aide. “I’d like to see the flow chart on how Speaker [Nancy] Pelosi plans on implementing the open and transparent government she keeps promising everyone.”

“We have initiated discussions with the minority to try and resolve current differences and are operating in good faith to achieve that goal,” said Kyle Anderson, a spokesman for House Administration Chairman Robert Brady (D-Pa.). The committee has oversight of the commission.

Rep. Dan Lungren (R-Calif.), ranking member of the committee and a member of the franking commission, said through a spokeswoman that he is also aware of the situation and is working with the members of the franking commission to resolve the differences, but he added that he believed Democrats on the commission were overreaching.

“He strongly believes that the franking commission does not have the authority to deny Member communications based on partisan differences of pending legislation,” said Salley Collins, a spokeswoman for Lungren.

The franking commission is made up of three Democrats and three Republicans.

Republicans quickly embraced Brady’s chart, and over the past week about 50 Members have posted it on their Congressional Web sites or used it in a floor speech. It has also been posted on the home page of the Republican National Committee. "


I have never heard of the majority blocking a frank mailing.  Not saying it hasn't happened but it is rare.  The democrats are rushing to pass this mess and regardless of what you think of our health care system, that chart is a mess, before they go back home.  Why the hurry?  It's 20% of the economy and we are rushing?  Oh, and they aren't even faking the "reading" part of passing legislature:

 

 

So this idiot is making fun of reading a bill?  As if that's stupid.  Well excuse my ignorance, congressman, and I use that term very loosely, but how can you tell if a bill is constitutional, and you take an OATH to uphold the constitution, if you don't read it?  Hmmmmmmmm?  You can't.  What a creep.  This guy should be thrown out of office immediately but the press has barely mentioned this lunacy.  We are soooooo screwed.

As if that wasn't enough Bernanke doesn't know who he gave 500 BILLION dollars:  (you couldn't make this up) (from GATA)

"Bill
The extract below hardly needs any commentary except to say that a Fed audit does seem to be urgently necessary, and that an audit of Fort Knox, (and the other US gold depositories) should be thrown in at the same time for good measure.

I begin to wonder whether Bernanke will be replaced at the end of his term at the beginning of next year.

If you want a sure bet of course, he will be replaced by a Goldman alumni, one of those early retired multi millionaires, « sacrificing their retirement with some public service for the good of the nation. »

Bernanke to Congress " I dont know to whom we gave half a trillion dollars"

« Bernanke: "Those are swaps that were done with foreign central banks..."
Grayson: "So who got the money?"
Bernanke: "Financial institutions in Europe and other countries..."
Grayson: "Which ones?"
Bernanke: "I don't know."
Grayson: "Half a trillion dollars and you don't know who got the money?"
Bernanke: "Um, um, the loans go to the central banks and they then put them out to their institutions..." » END

Best
Alan

 

Mind boggling.  Grayson is one of my heroes in congress as he consistently lets these guys know what's up.  Gee, I wonder how much money the tax payers have lost due to these "bailouts"?  Let's ask the Treasury Secretary, because I'm sure he'll know.  Wait a second.....maybe not:  (from GATA)

 

"11:52 Treasury Secretary Geithner says not in a position to give a realistic estimate of taxpayer losses due to bailouts
The comment was made in response to a question. Geithner, Fed Chairman Bernanke, FDIC Chairman Bair, and Comptroller of the Currency Dugan are participating in a hearing to examine the regulatory perspectives of the Obama administration’s financial regulatory reform proposals."

 

Who cares how much we lose?  We'll just print up some more, right?  As I've said for months, we are being robbed, plain and simple.  Our kids and grand kids could never hope to pay all this back.  We are destined to begin anew as a country.  It's that simple.  More evidence? One more from GATA:
 

 

"Another nail in the dollar's coffin

The Democratic Party of Japan is going to assume power in Japan. One of the main platforms of the DPJ has been to diversify Japan's currency reserves away from the U.S. dollar, which means they will be either buying less, or outright selling, Treasuries.

Given the August 30th timing of this power shift in Japan, it adds a lot credibility to growing chorus of analysts who believe the U.S. system is headed for another, more devastating, leg down this fall. I hope everyone is buying gold and silver while it's still cheap and readily available."

 

The jig is up.  The rest of the world is figuring out that the US dollar is a paper tiger and will start to sell this useless "asset" in greater and greater quantities.  But aren't green shoots afoot?  Look at this chart.

 

 

 This shows the railroad car cargo on a weekly basis.  Notice the uptick on the red line?  Green shoot?  Well not really because if you look at the previous years, there is a seasonal jump at this time of the year.  What is more important is the absolute level.  That level is down over 20%.  I don't think that cargo is going to come back anytime soon.  We could be looking at a permanent change in consumption.  That will be very bad for any potential recovery. 

But wait, what's this?  A bounce in housing?  Sweet!:  (from GATA)
 
 
"Dave from Denver:

New home sales number is a farce

The Commerce Department released new homes sales for June today and the spinmeisters on CNBC et. al. were gleefully exalting the 11% rise over in "estimated" new home sales for June. But let's examine the "caveat" footnote that accompanies the release:

"* 90% confidence interval includes zero. The Census Bureau does not have sufficient statistical evidence to conclude that the actual change is different from zero" (emphasis is mine)."

 
Oops.  Confidence level includes zero?  So the "estimated" sales increase could be zero?  Can you say scammed?  But as long as the stock market likes it, it's all good, right?  You know what this country needs more of?  Loans for more than a home is worth.  That'll solve everything:

 

"Fannie Mae Moves Up Start Date for 125% LTV HARP Loans

By AUSTIN KILGORE
July 20, 2009 9:16 AM CST

Fannie Mae (FNM: 0.59 +1.72%) will accept mortgages refinanced through the Home Affordable Refinance Program (HARP) with loan-to-value (LTV) ratios between 105.01% and 125% on August 1, one month earlier than previously announced.

“We are providing this advance ability for whole loan committing to address lenders’ needs to obtain secondary market pricing information so they can establish their own pricing for loan originations,” the government-sponsored enterprise said in a statementFriday.

The announced also said Fannie will start accepting whole loan and mortgage-backed securities deliveries with the new, higher LTV on September 1.

The HARP is an Obama Administration initiative aimed at helping borrowers refinance their underwater mortgages. Loans owned or serviced by Fannie Mae or Freddie Mac (FRE: 0.62 +1.64%) are eligible for the program.

Loans modified through the program are required to either lower a borrower’s monthly payment or move them into a more stable mortgage, i.e. going from an adjustable-rate mortgage to a fixed-rate loan. Loans with LTVs above 105% are required to be 30-year fixed rate mortgages".

 
Isn't this the type of crap that got us into trouble in the first place?  The powers that be are desperate to keep the carousel turning, because if it stops, party over.  The big problem here is that all this nonsense won't work.  It may prolong the fall, but gravity will win out, it always does.  Make sure you have some physical gold and silver to break the fall.