FAKE SUPERCOMMITTEE FAILS TO MOVE ON FAKE DEFICIT CUTS

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So who were they trying to kid? Oh yeah…you the voters. Yes…these same people who created the deficits…now tell you they care about the deficits. If it wasn’t so serious, I would be laughing at them. But this is serious. I have written several reports over the past couple of years…all with the same title: ‘IF THEY DON’T STOP, EVENTUALLY THE MARKET IS GOING TO STOP THEM!” In our case, our money printing fed has been able to stanch any bleeding. The question is just how long this charade will go on before the markets really act up.

To my amazement, the people in power refuse to learn any lessons of the past few years. Lehman, Bear Stearns, Wachovia, Countrywide, Merrill Lynch, Washington Mutual and others did not learn their lessons. They did not go out of business. The market put them out of business. MF Global? One man who used to run New Jersey and Goldman Sachs did not learn any lesson. The market also put them out.

We are now seeing many countries around the globe that did not learn their lessons see their bond yields skyrocketing. Italy, France, Spain, Greece and many others are now seeing the downside of massive, over-the-top, unaccountable government spending. Very simply, the markets are talking over there. They will eventually wake up over here.

One would think that all these disasters would leave an imprint in the minds of our politicians. Except for a few, nothing doing. It is the same old…same old. It is the people that created the problem chosen to come up with solutions to the problem. It is the people that have no respect for the taxpayer dollar in charge. It is the people that have exploded the deficits claiming that now we must do something about the deficit. MEMO TO ALL THESE PEOPLE: It is now the late innings of this sham.

There is just no way we can continue to print money and think things are going to be ok. There is just no way that the next 7 years of taxpayer dollars have already been spent and think things are going to be ok. There is just no way they have, on purpose, raised the deficits for the next 10 years to the tune of $5-10 trillion and now want to cut only $1 trillion and everything is going to be ok. This committee was a failure from the start. This committee was a fraud from the start. This committee was just more of the Washington shell game from the start.

This sham, this scam, this joke must stop. The destruction of the economic potential of this country brought on by out of control politicians must end. They are kidding themselves that the Fed will be able to control our bond yields forever. They are kidding themselves that investors will buy into our debt when there is no physical possibility of paying back that debt.

There is 300 million of us and only 535 of them plus an administration run amok. We do have the numbers. Someone had better look at the numbers and sooner rather than later, hold these failures accountable for what they have done. They have shown complete disregard for the taxpayer and it has to stop.  I have stayed quiet on this recently, but now I must say, to watch this President, who on purpose, added $5-plus trillion to the deficit in only 3 years and now blames it on everyone else…to read about inside trading and corrupt land deals by many of these politicians…to see that they have rules for themselves that are different from ours…to see many of them leave politics to become high paying lobbyists…all leave a bad taste in my mouth. This dictatorship of our dollars has to stop or the markets are definitely going to stop them.

Gary Kaltbaum owns Kaltbaum Capital Management, LLC (“KCM”), an investment adviser registered with the U.S. Securities and Exchange Commission. The opinions expressed herein are those of Mr. Kaltbaum and may not reflect those of KCM. The information offered in this publication is general information that does not take into account the individual circumstances, financial situation or individual needs of an investor. The information herein has been obtained from sources believed to be reliable, but we cannot assure its accuracy or completeness. Neither the information nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Any reference to past performance is not to be implied or construed as a guarantee of future results.