Greetings from Hawaii…having a fabulous time…I recommend it highly.
I am writing this in two parts…with the first part being written on Friday December 28th and the second part Sunday evening the 30th.
I would rather be talking about markets but at this point, they are so rigged, so manipulated and so controlled by just a few con men, that there is not much to say. Bernanke realized $45 billion of printed dollars every month was not working any more…so just up it to $85 billion. This move continues to expand what I consider to be the biggest bubble in history…the bond market. Prices and yields are disjointed, dislocated and mispriced as this boob prints…prints and prints. Of course, Wall Street says nothing as they are the beneficiary…until they are not. Just remember, bubbles pop…and the bigger the bubble…the bigger the pop. Cannot go further without mentioning Uncle Timmy…yes…Mr. Geithner, the defender of our treasure…says we need more debt…more debt…more debt…higher taxes…higher taxes and more higher taxes. Yup…the defender of our treasure.
It is now in the last few minutes of Friday’s action and it looks like no deal. Markets are plunging into the close. The incompetent bast–ds on both sides still cannot get anything done…just amazing. The Dems continue to try to bankrupt this country and shrink the size of the economy while exploding the government and the Republicans just say blah blah blah. So we enter the weekend with the market definitively under pressure…but don’t fret kids…it is a mortal lock that some sort of deal gets done. I suspect the market will have some sort of a “pop” on any day. Yippee yeah yeah. Thus the con continues.
It is now 6 pm December 30…the family is now in Las Vegas to spend New Years. I must say, Vegas looks like it is packed. Good to see. But getting serious, here is the problem with all of the noise.
IT IS ONE GIANT CON GAME. Do you not get it? Have you noticed that under this leadership, time and time again, they let the sand out of the hourglass in order to BS you that there is a crisis and it must be fixed now…or else. How many times are you going to fall for it?
First off, we are here at this moment in time because of Barack Obama, because of Harry Reid, because of Nancy Pelosi, because of John Boehner, because of Mitch McConnell, because of Ben Bernanke, because of Tim Geithner and because of every politician that has been around for the past decade whose votes turned this country’s debt into a $16 trillion and counting nightmare…in easier words, the next 6 years of taxpayer dollars have already been spent. But it gets worse. This is what my President had to say on that wonderful watchdog of a show “MEET DISTRESSED” hosted by another fawning fan David Gregory.
“The only thing I would caution against, David, is I think this notion of, “Well, both sides are just kind of unwilling to cooperate.” And that’s just not true. I mean if you look at the facts, what you have is a situation here where the Democratic Party, warts and all, and certainly me, warts and all, have consistently done our best to try to put country first.
And to try to work with everybody involved to make sure that we’ve got an economy [that] grows. Make sure that it works for everybody. Make sure that we’re keeping the country safe. And does the Democratic Party still have some knee-jerk ideological positions and are there some folks in the Democratic Party who sometimes aren’t reasonable? Of course. That’s true of every political party.
But generally if you look at how I’ve tried to govern over the last four years and how I’ll continue to try to govern, I’m not driven by some ideological agenda. I am a pretty practical guy. And I just want to make sure that things work. And one of the nice things about never having another election again, I will never campaign again, is I think you can rest assured that all I care about is making sure that I leave behind an America that is stronger, more prosperous, more stable, more secure than it was when I came into office.”
I could not believe my ears. While my President continues to blame everyone else…while my President takes no blame, here are the facts…not opinion…facts.
Deficits are up almost $6 trillion under his watch. Just about all of this is from the $850 billion stimulus bill which was added to the baseline budget. This was not created by Bush…even though we all know Bush is to blame for the bubonic plague, the Chicago fire and the sinking of the titanic.
My President had unfettered power for 2 years as the Dems controlled both houses. He put through everything he wanted to put through. He increased the spending on purpose. Democrats have failed to even vote on a budget for the last 4 years, and as stated, 2 of those were when they controlled both houses and the oval office.
My President has increased spending from the mid 2s to the mid 3s…that’s trillion…accounting for almost all of the deficit. In fact, revenues into the government are back to near the highest ever. Thus the whole problem we face is a spending problem, not a tax problem.
I can go on about my complaints and my sarcasm…but I have made my point. I was taught to never argue with numbers but the sycophants in the media have spent 99.9% of the time addressing higher taxes and almost nothing on the increase in our government.
All these facts yet the Republicons remain scared of their own shadow. I am hardly hearing any defense of any of these facts that are in plain sight. I am hearing no answer when my President says he is a tax cutter and Reps just want to raise taxes. I hear nothing about the culprits in the massive run-up of these deficits. All I hear is a bunch of squeamish, worried about their next election, whimpering politicians that refuse to act on principle. Government runs because of us…because of our sweat, our toil, our smarts, our time, our tenacity, our knowledge…but somehow the mantra is that without government, we cannot survive. I have news for you, I wouldn’t let any of these con artists run my kid’s lemonade stand. Harsh? Yes it is…but facts are facts, they are running this country into the ground and in plain sight. You cannot expand government by 33% and expect good things to happen. You cannot raise taxes into the high 50s in some states and expect good things to happen…but that is exactly what is going on…and amazingly, in places like California, the people are voting for all this. For what? To give these mis-allocators of our capital more money?
Raising the highest tax rate to 39% will do nothing for the massive deficits that are now being run. It will be a pimple on an elephant’s ass…and a small pimple at that. The goal is to start the ball rolling. Let them raise it once…and watch what happens next? There are already back door taxes in Obamacare (no pun intended). There will be much more to come. Any deal is a scam…a con…a sleight of hand. In 4 years, the deficit will be in the 20s. In 4 years, taxes will be much higher. In 4 years, the potential for the economy will continue to face mounting headwinds as government interferes even more in our daily life. So far, markets have only pulled in nominally, but in this man’s opinion, this is because of the trillions of dollars of money printing in order to sustain all this nonsense. Will we get to a day when the market has finally had enough? I will keep my fingers crossed…but all bubbles pop. We have had two mothers of all bubbles since just the year 2000. I cannot help but believe another one is just ahead as it has become the norm that debt must continue to go higher…just ask Uncle Timmy.
I would have loved to write a happier report as we enter the New Year…but I have to face the facts that are smacking us square in the face. Unfortunately, other countries now believe Mr. Bubble is onto something as Japan is now crushing their own currency, Europe is now printing in a big way and monetary easing and printing of money is the norm around the globe.