Peace through Strength

Posted by PITHOCRATES - March 6th, 2014

Politics 101

Bad Guys won’t open their Can of Whoop-Ass if there is a Chance they’ll get their Ass Kicked

Bullies generally pick on smaller and weaker people.  Smaller and weaker people don’t pick on tough guys.  They don’t walk up to a bully and give him a wedgie.  They’d like to.  But they don’t.  Why?  Because if a small and weak person did they’d get their ass kicked.  That’s why.  And people don’t like getting their ass kicked.  But sometimes it’s the tough guys that save the day.

In the opening scene of V for Vendetta Evey was about to get raped by some government thugs.  Then tough guy V came along and kicked their asses.  Saving Eve from a brutal rape.  In Die Hard the evil Hans Gruber was going to kill everyone in that building until tough guy John McClane happened on the scene.  And started killing the bad guys.  Saving the day.  In the movie Patton everyone wanted him thrown out of the Army after he slapped that crying soldier.  But when the Allies’ drive stalled in the Normandy hedgerow country who did they turn to?  That’s right.  Tough guy General Patton.  Who started kicking Nazi ass big time.  Breaking through their lines and advancing in every compass direction while British General Bernard Montgomery was still struggling o take his D-Day objective.  Caen.

People don’t like getting their ass kicked.  But if they are in danger of a good ass-kicking they’d want someone on their side who can kick ass as good as the next guy.  For even bad guys don’t want to get their ass kicked.  And if there is a chance of that happening they’re going to think long and hard before opening their can of whoop-ass.  Especially when someone else’s can of whoop-ass is bigger.

Only the Military Might of the United States could contain Soviet Expansion

The Roman Empire had one mighty can of whoop-ass.  Something her potential enemies understood.  And feared.  So they didn’t cause any trouble.  Because they didn’t want to get their ass kicked.  Which is why from approximately 27 BC to 180 AD there was relative peace in the world.  Pax Romana.  For the Romans had the mightiest military force in the world.  And if you went up against them you were most likely going to lose.  So they didn’t.  Instead, choosing to live in peace.

The British Empire was even larger than the Roman Empire.  And had an even larger can of whoop-ass.  Not only did they have armies throughout their empire which was so large that the sun never set on it.  The Royal Navy ruled the seas.  Which meant if you caused any trouble in the world you could expect an ass-kicking.  Either from her mighty military power.  Or her aid to a smaller and weaker country under threat from an aggressive neighbor.  The bad guys learned.  It wasn’t worth it.  If you tried to break the peace you were going to get your ass kicked.  Which is why from 1815 through 1914 when the British Empire ruled the world there was relative peace.  Pax Britannica.

The United States of America had come of age during the 20th century.  Growing even bigger and stronger than the empire that sired her.  The British Empire.  Who went into decline during the 20th century.  But just as Pax Britannica drew to a close and the world became a more dangerous place the United States stepped in.  Allowing the Allies to defeat Nazi Germany.  And Imperial Japan.  She grew to have the biggest can of whoop-ass in history.  And became the world’s policeman.  Pushing back against Soviet expansion.  In Europe.  The Balkans.  The Middle East.  And Southeast Asia.  The Soviets wanted to conquer the world.  And would have if not for America’s mighty military to counter their threat.  Leading to a period of relative peace following World War II.  Pax Americana.  As only the military might of the United States could contain Soviet expansion.

Vladimir Putin feels that he can put the old Soviet Union back together during the Obama Administration

During a sound check before a radio address President Reagan made a joke.  He said, “My fellow Americans, I’m pleased to tell you today that I’ve signed legislation that will outlaw Russia forever.  We begin bombing in five minutes.”  Reagan had a sense of humor and those present laughed.  The joke leaked.  The Soviets heard it.  And they put their Soviet Far East Army on alert.  You see, they had great respect for the awesome military power of the United States.  And they respected Reagan.  They did not like him.  But they respected him.  And if he said he was going to open a can of whoop-ass on them they got nervous.  For President Reagan may have spoken softly.  But he was not afraid to kick ass.

The Soviets had no such respect for Reagan’s predecessor.  Jimmy Carter.  In fact, they had so little respect for him that they developed a nuclear first-strike plan.  For Carter was gutting the military.  And wasn’t a tough guy when it came to foreign policy.  He was a president who wanted to focus on domestic policy.  A sign of weakness the Soviets could smell.   Anyone who gutted the military to pay for more domestic spending would never pull the nuclear trigger.  At least that’s what the Soviets thought.  Which is why they prepared a nuclear first-strike plan during the Carter administration.  Sure they could win a nuclear war against him.  The Soviets thought no such thing during the Reagan administration.  So instead of a nuclear war (which may have happened in a Carter second term) we had peace.  Because of our strength.

Peace through strength.  If you’re a bad-ass people will leave you alone.  Because no one wants to get their ass kicked.  If you’re hell-bent on beating the crap out of your neighbor so you can take her resources and there is a bad-ass in the world that can bring a world of hurt down on you it will make you think.  And pause.  This is why there was a Pax Romana.  A Pax Britannica.  And a Pax Americana.  Because people respect a bad-ass.  And will not incite it.  They may hate the bad-ass.  But they will respect it.  And not piss it off.

President Obama has a strong domestic agenda.  Like Jimmy Carter.  He doesn’t want to deal with foreign policy.  Like Jimmy Carter.  And he is not respected or feared by the world’s bad guys.  Like Jimmy Carter.  Who is far more inclined to make a speech and threaten action.  But is far less likely to open a can of whoop-ass.  Like Ronald Reagan.  Which is why Vladimir Putin feels that he can put the old Soviet Union back together during the Obama administration.  Because he doesn’t fear the wrath of President Obama.  As no one does.  For he is all bark and no bite.  At least, so far.  Apart from killing a bunch of people that can’t fight back.  Drone strikes.  Bombing Libya (that was no threat to American interests).  And killing Osama bin Laden with a SEAL team.  More of an imperial use of force than acting as the world’s policeman to safeguard liberty and democracy.  So Vladimir Putin has little to worry about during an Obama presidency.  Unlike conservatives in America.

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The Democrats believe Millenials are such Idiots and Floozies that they could fool them into Paying for Obamacare

Posted by PITHOCRATES - February 16th, 2014

Week in Review

It’s no secret that the Democrats benefit by having an ignorant electorate.  People who don’t know history or understand economics will more easily fall for their lies.  Especially when they victimize their base and demonize the opposition.  Republicans.  It’s a winning formula.  And it has won President Obama reelection.  Despite all the warnings from those who know history and understand economics.  Who warned us about what Obamacare was going to do to us.  And the urgency of repealing it before it became too entrenched.  But the naysayers said nay.  Uh-uh.  And your mother is a whore.  Demonizing the opposition with abandon.  And laughing at the snarky little jabs on late-night television.  Of course it’s different now.  As the young and healthy have learned that the Affordable Care Act was predicated on their paying the health care tab for the old and sick.

So Obamacare care went from the fair and just Affordable Care Act to the unfair and unaffordable care act.  Stunned by push back from their normally useful exploitable base the Obama administration pushed back against the pushback.  Warning the Millenials that they risked not being cool if they didn’t buy health insurance (see Obama’s pathetic pitch to millennials by David Pasch posted 2/14/2014 on the New York Post).

How do you market the Affordable Care Act to Millennials? If you’ve got a good answer, tell the White House right away. It’s tried everything to get us to sign up for health insurance on the federal exchanges — and most of its attempts have been off-tune, off-putting, or just downright dumb.

The latest effort involves former NBA star Magic Johnson. Sorry: While Johnson commands respect for his athletic and personal achievements, he’s the not the best candidate to market anything to Millennials. He retired in 1991. Anyone under 23 never even saw him pick up a basketball.

There’s also the “Brosurance” debacle…

The ads depict Millennials as idiots and floozies. One ad shows college kids doing keg stands; another shows a couple about to hook up, with the tag: “Let’s hope he’s as easy to get as this birth control…”

Other campaigns have been weird, sad or both. One print ad urged us to go to healthcare.gov by telling us that “Mom loves her comfy jeans.” So did that kid in college who played World of Warcraft, but he never made me want to buy health insurance. Then there’s the “pajama boy” campaign, which convinced anyone over 30 that Millennials are insufferable. And another ad targets women with a not-so-catchy tune sung by cats and dogs…

To be fair, Millennials aren’t always laughing at the administration’s ads. Sometimes we’re laughing with them — when they feature celebrities and comedians who we’ve actually heard of, like Amy Poehler, Sarah Silverman or Will Ferrell.

But the real joke is on us. ObamaCare just isn’t a good deal for my generation.

The problems start with how much plans cost. Insurance rates have skyrocketed for Millennials since the exchanges opened in October. According to the Manhattan Institute, the average 27-year-old man is facing a 97 percent premium hike and the average 27-year old woman a 55 percent increase.

It is hard to believe that these are the same people who put a campaign together that defeated Mitt Romney during the worst economic recovery since that following the Great Depression.  And the incompetence and cover-up of Benghazi (it was a spontaneous uprising by people angered over a YouTube video who pulled pre-sighted mortars from their back pockets).  One wonders how you go from the 2012 campaign to “Let’s hope he’s as easy to get as this birth control” and “Mom loves her comfy jeans.”  I just don’t see these influencing the electorate to vote Democrat.

Why is the premium hike for men almost twice what it is for women?  Because the Affordable Care Act now forces men to buy insurance to cover a reproductive system they don’t have.  For in the name of fairness women can no longer be charged more than men for health insurance.  So they charge men more.  It doesn’t lower the cost of women’s health insurance though.  For it is still rising 55%.  So where is all that money going?  To pay for the old and sick.

The Democrats believe Millenials are idiots and floozies.  For they have worked tirelessly to dumb down our public schools and higher education.  So they can more easily lie to those they think of as idiots and floozies.  It’s as if you can hear them say, “Look, we gave you free birth control.  Isn’t that worth an extra car payment a month?”  Based on the enrollment numbers of the Millenials, apparently not.

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Minimum Wage, Obamacare and Unintended Consequences

Posted by PITHOCRATES - February 3rd, 2014

Economics 101

The Affordable Care Act greatly increased the Cost of Unskilled and Inexperienced Workers

The Affordable Care Act has changed the employment landscape.  In particular it changed a lot of people from full-time employees to part-time employees.  Especially at entry-level jobs.  Or minimum wage jobs.  Jobs that may be physically demanding but require minimum skill or experience.  Making them ideal for unskilled and inexperienced teenagers entering the workforce.

Not everyone, though, is a teenager in these minimum wage, entry-level jobs.  Some adults find themselves in them, too.  Older adults.  Single parents.  Widows.  Widowers.  People whose circumstances have changed.  And who don’t have the skills or experience for other employment.  So they find themselves struggling to get by on their entry-level, minimum wage job.

Then the Affordable Care Act (i.e., Obamacare) made their struggle more difficult.  For it required employers to offer health insurance to anyone working 30 hours or more per week.  Greatly increasing the cost of unskilled and inexperienced teenagers.  And their other entry-level, minimum wage workers.  So they did the only logical thing.  They cut their hours below 30 hours per week.  Shrinking the paychecks of both teenager.  And those who are struggling to live on their minimum wage paychecks.

The Unintended Consequences of Obamacare changed Full-Time Workers to Part-Time

We call it unintended consequences.  When a government program to solve one problem creates another problem.  In an attempt to give people with insufficient income to buy health insurance Obamacare forced their employers to provide health insurance for them.  This caused employers to cut hours for these employees.  To keep the cost of their entry-level, minimum wage workers from rising.  Thus reducing their insufficient income even further.

The rollout of Obamacare did not go well.  In the effort to give people affordable health insurance a lot of people actually lost the health insurance they liked and wanted to keep.  Another unintended consequence.  (Unless the Democrats designed the Affordable Care Act to destroy the private health insurance industry as many believe then things are going exactly as planned as people may soon start demanding that the government step in and provide national health care).  Causing a bit of a problem for the political party that gave us Obamacare.  The Democrats.  In the upcoming midterm elections.

It’s one thing causing people with individual insurance policies to lose their health insurance that may or may not have voted for you.  But to further impoverish the impoverished working those entry-level, minimum wage jobs was another.  For thanks to endless class warfare the Democrats put the impoverished into the Democrat camp.  So they needed to do something to replace the income they lost when Obamacare changed them from full-time to part-time employees.  And chose further class warfare.  By forcing those ‘rich’ employers to pay their entry-level, minimum wage workers a ‘living wage’.  By increasing the federal minimum wage.

Obama wants to Raise the Minimum Wage to replace Earnings lost when Obamacare made Full-Time Workers Part-Time

In the State of the Union address President Obama said he wanted to raise the federal minimum wage to $10.10.  But why $10.10?  The current federal minimum wage is $7.25.  And if you earned that working 40 hours each week for 50 weeks (assuming you take 2 weeks off over the year for personal reasons, holidays and vacations) that comes to $14,500 per year.  Raising the minimum wage to $10.10 brings those annual earnings to $20,200.  Or $5,700 more at the higher wage rate.  It’s a lot of money.  But probably not enough for someone to quit a second job.  For if someone is working 20 hours a week at a second job that would come to an additional $7,250 a year.  If they work 30 hours a week in a second job that would come to an additional $10,875 a year.  And some people have to work 70 hours or more a week to approach a ‘living wage’ when they don’t have the skills or experience for a job that pays more than an entry-level, minimum wage job.  So raising the minimum wage to $10.10 an hour probably won’t solve everyone’s financial woes.  But it will do something else.

If people who were working 40 hours a week went to working only 29 hours a week after Obamacare they would lose 11 hours of pay.  At the current minimum wage that comes to $79.75 less in their paycheck each week.  A significant amount for someone struggling to make it on something less than a ‘living wage’.  But look at what happens when we raise the minimum wage to $10.10 for those 29 hours.  If we multiply the additional $2.85 per hour to those 29 hours that comes to an additional $82.65 a week.  Which is a little more than the $79.75 they lost when Obamacare cut their hours.  So it would appear that the new push to raise the minimum wage to $10.10 is to put the money the Obama administration took out of these workers’ paychecks back into their paychecks before the fall midterm elections.  So they still won’t be angry and vote Republican because of what the Democrats and their Affordable Care Act did to their paychecks.

They want to sound compassionate to those with insufficient income by wanting to raise the minimum wage to replace what they took away from them with Obamacare.  To give these people a ‘living wage’.  For the current minimum wage is actually worth about 20% less than it was during the Reagan administration.  When it was $3.35.  Wait a minute, you say.  How can $7.25 be worth less than $3.35?  Because of the Democrats’ embrace of Keynesian economics.  The government wants to print money to spend.  To provide economic activity when the private sector is not.  And when President Nixon decoupled the dollar from gold in 1971 they ramped up those printing presses.  And have been depreciating the dollar ever since.  Because they made the dollar worth less and less over the years the purchasing power of the federal minimum wage fell.  Even when people were earning more dollars.  And raising the minimum wage won’t address this problem.  Only voting the Keynesians out of office will.

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Obama’s myRAs are just another way to Transfer Money from the Private Sector to the Government

Posted by PITHOCRATES - February 2nd, 2014

Week in Review

Social Security has failed to provide for our retirement.  So President Obama wants another government retirement program.  So it, too, can fail the American people (see What Americans think about Obama’s myRA retirement accounts by Melanie Hicken posted 1/31/2014 on CNNMoney).

Obama’s new ‘myRA’ retirement accounts aim to help millions of workers begin saving for retirement. The accounts will be backed by the government, charge no fees and you’ll be able to contribute directly from each paycheck…

“Why would anyone consider giving a broke and bankrupt government any more of your money? That’s foolish,” said 62-year-old reader Steve Keller…

[Kathryn Riss] and her husband keep the modest savings they do have in money market accounts, which earn less than 1%. The myRA, on the other hand, will invest in government savings bonds and provide returns of around 2% to 3%, depending on interest rates.

Why can’t people earn more than 1% on their retirement savings in a bank?  Because of the Federal Reserve.  And Keynesian economics.  That focuses on consumer spending with tunnel vision.  It’s the only thing that counts as far as they are concerned.  And keeping interest rates near zero is supposed to encourage people to borrow and spend money.  For they will only lose purchasing power if they don’t.  What with banks only offering something less than 1% interest.  Thanks to the Federal Reserve printing money.  Making it so plentiful that people can borrow it practically for free.  And if they are paying the banks practically nothing to borrow it that’s all the banks can afford to pay their depositors.  Practically nothing.

The government will invest those myRAs into government savings bonds?  Yeah, right.  The government is going to take that money and spend it.  Because they have a voracious appetite to spend.  Which is why the Social Security Trust Fund has nothing but IOUs in it.  Government bonds that the government can’t afford to redeem without printing more money.  The Keynesian source of all our woes to begin with.  Which will only get worse the more ways the government thinks of to transfer money from the private sector to the government.  Taxes.  Service charges, surcharges, fees, etc.  Regulatory fines and penalties.  Treasury bonds and bills.  Medicaid.  Medicare.  Obamacare.  And now myRAs.

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President Obama’s 2014 State of the Union Address

Posted by PITHOCRATES - January 30th, 2014

Politics 101

Democrats offered Enthusiastic Applause for Unsound Policy Proposals that have no Basis in Reality

President Obama’s 2014 State of the Union address was a little longer than an hour.  But if you didn’t look at a clock it felt a lot longer.  For it was the same tripe you hear all the time from this administration.  And the political left.  It was full of misleading statements.  Inaccurate facts and figures.  And some lies.  The usual stuff you expect from the liberal left.  But what was really disturbing was the enthusiastic applause for some really unsound policy proposals that have no basis in reality.  Showing either how clueless these enthusiastic Democrats are about economics, business, national security, etc.  Or how amoral they are in their quest for power.  As they judge and implement policy not by how it will improve the lives of Americans.  But how it will improve their lives in government.

Some Big Reasons why Businesses export Jobs are Taxes, Regulations and Labor Costs

If there was ever an example of what people not to have in power this state of the union theater was it.  Following are excerpts from President Obama’s speech (see FULL TRANSCRIPT: Obama’s 2014 State of the Union address posted 1/28/2014 on The Washington Post).  Comments and analysis follow each excerpt.

And here are the results of your efforts: the lowest unemployment rate in over five years; a rebounding housing market — (applause) — a manufacturing sector that’s adding jobs for the first time since the 1990s — (applause) — more oil produced — more oil produced at home than we buy from the rest of the world, the first time that’s happened in nearly twenty years — (applause) — our deficits cut by more than half; and for the first time — (applause) — for the first time in over a decade, business leaders around the world have declared that China is no longer the world’s number one place to invest; America is.

The total number of people who left the civilian labor force since President Obama took office is 11,301,000 (see The BLS Employment Situation Summary for December 2013 posted 1/13/2014 on PITHOCRATES).  Which means the unemployment rate is meaningless.  The only reason why it’s falling is that the BLS doesn’t count unemployed people who gave up looking for jobs that just aren’t there.  Oil production on private land may be up.  While overall oil consumption is down because of the Great Recession that just won’t end.  Which is helping to keep gas prices down.  Unemployed people just don’t have the money to buy gas.  So they don’t.  Greatly reducing the demand for gas.  Thus reducing gas prices and oil imports.  George W. Bush’s last deficit was $498.37 billion.  President Obama’s first deficit was $1,539.22 billion.  And it was over $1 trillion in 2010, 2011 and 2012.  It fell to $680 billion in 2013 thanks to the sequester.  But the deficit is larger now than when President Obama assumed office.  The only reduction in the deficit is a reduction in the amount he increased it.

Now, as president, I’m committed to making Washington work better, and rebuilding the trust of the people who sent us here.

Really?  You’re committed to rebuilding the trust of the people?  Mr. “If you like your health insurance you can keep your health insurance.  Period.”  Otherwise known as the lie of the year.  You’re going to rebuild the trust of the people?  Good luck with that.  What with your pants on fire and all.

Today, after four years of economic growth, corporate profits and stock prices have rarely been higher, and those at the top have never done better. But average wages have barely budged. Inequality has deepened. Upward mobility has stalled. The cold, hard fact is that even in the midst of recovery, too many Americans are working more than ever just to get by; let alone to get ahead. And too many still aren’t working at all.

Well, finally something Republicans can agree with the president about.  Yes, his economic policies have benefitted Wall Street.  While hurting Main Street.  Finally some bipartisan agreement.

So let’s make that decision easier for more companies. Both Democrats and Republicans have argued that our tax code is riddled with wasteful, complicated loopholes that punish businesses investing here, and reward companies that keep profits abroad. Let’s flip that equation. Let’s work together to close those loopholes, end those incentives to ship jobs overseas, and lower tax rates for businesses that create jobs right here at home. (Cheers, applause.)

There are only a few reasons why businesses export jobs.  And the big three are taxes, regulations and labor costs.  The Obama administration wants to raise taxes.  They’ve increased regulatory costs.  And they support costly union labor.  So everything they stand for encourages businesses to export jobs.

But — but I’ll act on my own to slash bureaucracy and streamline the permitting process for key projects, so we can get more construction workers on the job as fast as possible. (Applause.)

So how’s that approval for the Keystone XL pipeline coming along?  That thing you’ve been studying since 2010?  Which by the laws of arithmetic is approximately 4 years ago.  Is this slashing bureaucracy and streamlining the permitting process?  At this rate it would probably be quicker to elect a Republican president in 2016.  You know, someone who, when it comes to economic activity, walks it while the Democrats only talk it.

We also have the chance, right now, to beat other countries in the race for the next wave of high-tech manufacturing jobs. And my administration’s launched two hubs for high-tech manufacturing in Raleigh, North Carolina, and Youngstown, Ohio, where we’ve connected businesses to research universities that can help America lead the world in advanced technologies.

Universities are in the grant business.  They want as many grants as they can get to help bring money into the university.  And to do so they will study anything the government wants them to.  No matter how wasteful it is.  While some of the biggest high-tech companies started in garages.  Apple, Google, Hewlett Packard and Microsoft.  To name a few.  Yes, there is a lot of university-driven research.  But the big innovation is more entrepreneurial.  Created by people thinking up new stuff no one thought of yet.  Which is the last thing you want government involved in.  That same government that can’t build a website using 1990s technology.

Let’s do more to help the entrepreneurs and small business owners who create most new jobs in America. Over the past five years, my administration has made more loans to small business owners than any other. And when 98 percent of our exporters are small businesses, new trade partnerships with Europe and the Asia-Pacific will help them create even more jobs. We need to work together on tools like bipartisan trade promotion authority to protect our workers, protect our environment and open new markets to new goods stamped “Made in the USA.” (Applause.)

You want to help entrepreneurs and small business?  Get rid of Obamacare.  And slash tax rates.  This will provide incentive.  And allow them to reinvest more of their earnings to grow their business.  Allowing them to create those jobs.

Now, one of the biggest factors in bringing more jobs back is our commitment to American energy. The “all the above” energy strategy I announced a few years ago is working, and today America is closer to energy independence than we have been in decades. (Applause.)

‘All of the above’ as long as it isn’t coal, oil or nuclear.  But if it’s solar power and wind power they are committed to giving more tax dollars to their friends and bundlers in the green energy industry.

Meanwhile, my administration will keep working with the industry to sustain production and jobs growth while strengthening protection of our air, our water, our communities. And while we’re at it, I’ll use my authority to protect more of our pristine federal lands for future generations. (Applause.)

You can’t sustain production and jobs growth by strengthening protection of our air, water and pristine federal lands.  That’s just more regulatory costs.  And raising energy costs by not allowing any oil or natural gas production on those pristine federal lands.  Raising energy costs by restricting supply.  Which raises business costs.  In addition to those new regulatory costs.

Every four minutes another American home or business goes solar, every panel pounded into place by a worker whose job can’t be outsourced. Let’s continue that progress with a smarter tax policy that stops giving $4 billion a year to fossil fuel industries that don’t need it so we can invest more in fuels of the future that do. (Cheers, applause.)

That says it all.  Fossil fuels don’t need subsidies because their costs are affordable.  While solar (and wind power) are so costly that they are unaffordable.  Unless government heavily subsidizes them.

But the debate is settled. Climate change is a fact. (Applause.) And when our children’s children look us in the eye and ask if we did all we could to leave them a safer, more stable world, with new sources of energy, I want us to be able to say yes, we did. (Cheers, applause.)

There is no such thing as settled science.  Only science that has yet to be disproved.  Besides, once upon a time glaciers stretched down from the poles to near the equator.  And then receded back to where they are now.  All without any manmade carbon in the atmosphere to warm the planet.  As we were still simple hunter and gatherers then.  So if the glaciers moved more before there was manmade global warming they’ll move again regardless of what man is doing to warm the planet.

Finally, if we’re serious about economic growth, it is time to heed the call of business leaders, labor leaders, faith leaders, law enforcement — and fix our broken immigration system. (Cheers, applause.) Republicans and Democrats in the Senate have acted, and I know that members of both parties in the House want to do the same. Independent economists say immigration reform will grow our economy and shrink our deficits by almost $1 trillion in the next two decades. And for good reason: When people come here to fulfill their dreams — to study, invent, contribute to our culture — they make our country a more attractive place for businesses to locate and create jobs for everybody. So let’s get immigration reform done this year. (Cheers, applause.) Let’s get it done. It’s time.

Funny how that argument doesn’t apply to birth control and abortion.  The reason we need to “fix our broken immigration system.”  For if we were having babies at the rate when government created the welfare state we could pay for that welfare state today.  But thanks to the Sixties, birth control, abortion and feminism women stopped having babies.  Which is fine if a woman doesn’t want to.  But the progressives designed the welfare state based on them being baby machines.  Creating a greater number of taxpayers with each generation.  So more people pay into the welfare state than collect from it.  The way it must be for a Ponzi scheme to work.

That’s why I’ve been asking CEOs to give more long-term unemployed workers a fair shot at new jobs, a new chance to support their families. And in fact, this week many will come to the White House to make that commitment real.

When you raise the cost of labor (union labor, Obamacare, etc.) businesses tend to look at automating production instead of hiring that costly labor.  They may not be able to do anything about the higher regulatory costs but they can do something about higher labor costs.  Use more machines than people.  If you want CEOs to create new jobs stop making labor so costly.  And you can start with getting rid of Obamacare.

Of course, it’s not enough to train today’s workforce. We also have to prepare tomorrow’s workforce, by guaranteeing every child access to a world-class education. (Applause.)…

Five years ago we set out to change the odds for all our kids. We worked with lenders to reform student loans, and today more young people are earning college degrees than ever before. Race to the Top, with the help of governors from both parties, has helped states raise expectations and performance. Teachers and principals in schools from Tennessee to Washington, D.C., are making big strides in preparing students with the skills for the new economy — problem solving, critical thinking, science, technology, engineering, math.

Yes, more kids are going to college than ever before.  But they’re going there to have fun.  And to facilitate their fun many are getting easy, worthless degrees in the social sciences and humanities.  Costly degrees that universities sold them promising them future riches.  Enriching the university.  While impoverishing their graduates.  For a high-tech company has no use for these degrees.  Which is why a lot of these people end up in jobs they didn’t need that costly degree to do.  And our high-tech companies are using the visa program to get foreigners who have the skills they want.  Problem solving, critical thinking, science, technology, engineering and math.

It requires everything from more challenging curriculums and more demanding parents to better support for teachers and new ways to measure how well our kids think, not how well they can fill in a bubble on a test. But it is worth it — and it is working.

If you want kids to do better we need to champion marriage and family more.  And they should embrace religion a little more.  Instead of encouraging our young women to use birth control and abortion to avoid marriage and family.  And pulling every last vestige of religion from our lives.  Kids growing up in a household with a mother and a father who go to church do far better on average than kids growing up in a single-parent household and don’t go to church (see Strong families steeped in Conservative Values and Traditions do Well in America posted 1/11/2014 on PITHOCRATES).

Research shows that one of the best investments we can make in a child’s life is high-quality early education. (Applause.) Last year, I asked this Congress to help states make high-quality pre-K available to every 4-year-old. And as a parent as well as a president, I repeat that request tonight.

Actually, research doesn’t show that.  Yet they keep saying that.  For it’s like that line in the musical Evita, “Get them while they’re young, Evita.  Get them while they’re young.”  The sooner they can take them away from their parents the sooner they can start turning them into Democrat voters.  Such as teaching them to blame their parents for the manmade global warming that is killing the polar bears as they have no ice to rest on while eating their baby seals.

You know, today, women make up about half our workforce, but they still make 77 cents for every dollar a man earns. That is wrong, and in 2014, it’s an embarrassment.

Women deserve equal pay for equal work. (Cheers, applause.)

Actually, it’s closer to 91 cents (see The White House’s use of data on the gender wage gap by Glenn Kessler posted 6/5/2012 on The Washington Post).  And the small difference is not due to discrimination but personal choice.  When you look at aggregate wages women will make less than men.  Because more women are teachers (with 3 month off without pay) than men are.  Some women work fewer hours at work to spend more time with their children. While men tend to work more overtime.  Men also work the more dangerous and higher paying jobs.  And are more likely to belong to a union.  When you compare childless, single men and women with a college degree some women are actually earning more than men.  Figures don’t lie but liars figure.  And for the contortions the Obama administration did here The Washington Post’s The Fact Checker gave the president one Pinocchio.

Now, women hold a majority of lower-wage jobs, but they’re not the only ones stifled by stagnant wages. Americans understand that some people will earn more money than others, and we don’t resent those who, by virtue of their efforts, achieve incredible success. That’s what America’s all about. But Americans overwhelmingly agree that no one who works full-time should ever have to raise a family in poverty. (Applause.)

In the year since I asked this Congress to raise the minimum wage, five states have passed laws to raise theirs.

You’re not going to have a lot of upward mobility when you pay people more to remain in the jobs they hate.  All the talk about making college more affordable and bringing employers and community colleges together to help give people the skills they need to fill the jobs employers have is all for nothing if they just pay people more for doing an entry-level job.

Let’s do more to help Americans save for retirement. Today most workers don’t have a pension. A Social Security check often isn’t enough on its own. And while the stock market has doubled over the last five years, that doesn’t help folks who don’t have 401(k)s. That’s why tomorrow I will direct the Treasury to create a new way for working Americans to start their own retirement savings: MyRA. It’s a — it’s a new savings bond that encourages folks to build a nest egg.

Once upon a time people opened a savings account at their local bank and they saved to buy a house.  And they saved for their retirement.  That’s how people saved when they didn’t have a pension or a 401(k).  They can’t do that today because of the Federal Reserve destroying the banking industry by keeping interest rates at zero.  If the Fed stopped printing money and let investment capital come from our savings like they did before the Keynesians gave us the Federal Reserve people would be saving like we once did.  And we’d stop having Great Depressions, stagflation and Great Recessions.  Created by their prolonging the growth side of the business cycle.  Which raises prices higher than they normally would go.  Making the contraction side of the business cycle that much more painful.  As those prices have a much longer way to fall than they normally would.  Thanks to the Fed’s meddling with interest rates.

MyRA guarantees a decent return with no risk of losing what you put in. And if this Congress wants to help, work with me to fix an upside-down tax code that gives big tax breaks to help the wealthy save, but does little or nothing for middle-class Americans, offer every American access to an automatic IRA on the job, so they can save at work just like everybody in this chamber can.

You know why they want these MyRAs?  Because they can’t stand people saving money.  They love Social Security.  Because they can borrow from the Social Security Trust Fund.  Which is what they will do with these MyRAs.  They will take this money and spend it.  Filling the MyRA Trust Fund with a bunch of IOUs.  Just like they do with the Social Security Trust Fund.  And then provide a retirement benefit like Social Security.  That is too small to live on.  Whereas if we saved the money ourselves our retirement nest-egg will be much larger.  And it will provide for our retirement.  Unlike Social Security.

And since the most important investment many families make is their home, send me legislation that protects taxpayers from footing the bill for a housing crisis ever again, and keeps the dream of homeownership alive for future generations. (Applause.)

It was Bill Clinton that set the stage for the subprime mortgage crisis with his Policy Statement on Discrimination in Lending (see Bill Clinton created the subprime mortgage crisis with his Policy Statement on Discrimination in Lending posted 11/6/2011 on PITHOCRATES).  Using the heavy hand of government to get lenders to qualify the unqualified.  Then the Fed’s artificially low interest rates were the bait for the trap.  Enticing people to borrow huge sums of money because those interest rates were just too good to pass up.  Even if they weren’t planning to buy a house to begin with. The subprime mortgage crisis and the resulting Great Recession were government made.  If we want to prevent the taxpayers from footing the bill for another housing crisis we need to get the Keynesians out of government.

Already, because of the Affordable Care Act, more than 3 million Americans under age 26 have gained coverage under their parents’ plans. (Applause.)

More than 9 million Americans have signed up for private health insurance or Medicaid coverage — 9 million. (Applause.)

The Washington Post gave this lie three Pinocchios (see Warning: Ignore claims that 3.9 million people signed up for Medicaid because of Obamacare by Glenn Kessler posted 1/16/2014 on The Washington Post).  For they’re counting some 3.9 million who would have signed up anyway for Medicaid regardless of the Affordable Care Act.  Also, the government was counting people who put a health care plan into their shopping cart as if they signed up for it.  Which many couldn’t.  As they haven’t programmed the back end of the health care website yet to actually accept payment or to pass that information on to the insurers.

And here’s another number: zero. Because of this law, no American, none, zero, can ever again be dropped or denied coverage for a pre-existing condition like asthma or back pain or cancer. (Cheers, applause.) No woman can ever be charged more just because she’s a woman. (Cheers, applause.) And we did all this while adding years to Medicare’s finances, keeping Medicare premiums flat and lowering prescription costs for millions of seniors.

That’s right.  Women with reproductive systems that men don’t have won’t pay more for their health insurance than men pay for theirs.  How can they do that?  Simple.  They just are charging men more.  To cover the cost of a reproductive system they don’t have.

Citizenship means standing up for the lives that gun violence steals from us each day. I have seen the courage of parents, students, pastors, and police officers all over this country who say “we are not afraid,” and I intend to keep trying, with or without Congress, to help stop more tragedies from visiting innocent Americans in our movie theaters and our shopping malls, or schools like Sandy Hook. (Applause.)

If you take away guns from law-abiding gun owners that won’t keep dangerous people with mental health issues that want to harm people out of our movie theaters, our shopping malls or schools like Sandy Hook.  For there are other ways to harm people.  Just look at the Boston Marathon bombers.  The people he’s talking about not only had mental health issues but they were also smart.  Many were even college students.  Who probably could think of other ways to hurt people.  And you just can’t take away everything they might use to harm people.  But you can place these people somewhere where they can’t harm anyone.

You see, in a world of complex threats, our security, our leadership depends on all elements of our power — including strong and principled diplomacy. American diplomacy has rallied more than 50 countries to prevent nuclear materials from falling into the wrong hands, and allowed us to reduce our own reliance on Cold War stockpiles.

Since President Obama assumed office he did nothing to support the Green Revolution in Iran.  Which kept the hard-line Islamists in power there.  He gave Egypt to the Muslim Brotherhood by telling Hosni Mubarak that he had to go.  Removing the stable anchor of the Middle East.  And moved Egypt closer to Iran.  (The Egyptian people eventually rose up to overthrow the oppressive Muslim Brotherhood).  He went to war in Libya and helped to overthrow Colonel Muammar Qaddafi.  Who at the time was a quasi ally in the War on Terror.  After the Iraq invasion frightened him into believing he may be next.  President Obama was thanked for his Libyan war by al Qaeda with 4 dead Americans in Benghazi on the anniversary of 9/11.  He waited too long to act in the Syrian civil war.  Which only brought al Qaeda into the conflict.  He failed to attain a status of forces agreement in Iraq.  So he pulled all U.S. forces out of Iraq which has only invited al Qaeda in.  And it looks like this will be repeated in Afghanistan.  He blamed George W. Bush’s wars as recruitment tools for al Qaeda.  While his extensive drone use is doing the same thing.  Especially in Yemen.  The hotbed of al-Qaeda in the Arabian Peninsula.  All that his diplomacy and leadership has done was to make the world a more dangerous place.

American diplomacy, backed by the threat of force, is why Syria’s chemical weapons are being eliminated. (Applause.) And we will continue to work with the international community to usher in the future the Syrian people deserve — a future free of dictatorship, terror and fear.

His diplomacy with Bashar al-Assad in Syria only gave his oppressive regime legitimacy in the civil war he was raging against his people.  Making it easier for Assad to kill Syrians with conventional arms while he gives up a token amount of his chemical weapons.  While also making Russia who brokered the deal the dominate player in the region.

And it is American diplomacy, backed by pressure, that has halted the progress of Iran’s nuclear program — and rolled back parts of that program — for the very first time in a decade. As we gather here tonight, Iran has begun to eliminate its stockpile of higher levels of enriched uranium.

It’s not installing advanced centrifuges. Unprecedented inspections help the world verify every day that Iran is not building a bomb. And with our allies and partners, we’re engaged in negotiations to see if we can peacefully achieve a goal we all share: preventing Iran from obtaining a nuclear weapon. (Applause.)

All Iran is doing is pausing their program.  And chemically altering some of their enriched uranium to meet the requirements of this diplomatic deal.  But this chemical process is reversible.  And they will reverse it once they get what they want.  This deal makes the world no safer.  If anything it makes it more dangerous.  For it does not diminish the Iranian nuclear program in the least.  But gives them more time to work on it as they prop up their regime with much needed supplies thanks to a relaxation of the sanctions against them.

These negotiations will be difficult; they may not succeed. We are clear-eyed about Iran’s support for terrorist organizations like Hezbollah, which threaten our allies; and we’re clear about the mistrust between our nations, mistrust that cannot be wished away. But these negotiations don’t rely on trust; any long-term deal we agree to must be based on verifiable action that convinces us and the international community that Iran is not building a nuclear bomb. If John F. Kennedy and Ronald Reagan could negotiate with the Soviet Union, then surely a strong and confident America can negotiate with less powerful adversaries today. (Applause.)

The sanctions that we put in place helped make this opportunity possible. But let me be clear: if this Congress sends me a new sanctions bill now that threatens to derail these talks, I will veto it. (Applause.) For the sake of our national security, we must give diplomacy a chance to succeed.

The Soviet Union never attacked U.S. soil.  And there was a reason they didn’t.  They were rational.  And knew they would lose a great deal in a war with America.  Especially a nuclear one.  Which is why they never used their nuclear weapons.  But Iran giving a nuclear weapon to a shadowy group that is not a state?  With little to lose in using a nuclear weapon?  If it’s not a nuclear missile there will be no way in knowing where the nuclear bomb came from.  We can have our suspicions that Iran made it and gave it to someone.  But do we nuke Iran over that?  What if there are more nukes in the hands of al Qaeda, Hezbollah, al-Qaeda in the Arabian Peninsula, etc.?  You could nuke Iran back to the Stone Age but it won’t stop those others being used.  The president insists this will not happen as Iran signed an agreement.  The only problem with that is the Iranians are liars.  And they call the United States the Great Satan.   These two facts suggest that replacing those sanctions with a promise not to build nuclear bombs was probably not a wise trade.

But for more than two hundred years, we have put those things aside and placed our collective shoulder to the wheel of progress: to create and build and expand the possibilities of individual achievement; to free other nations from tyranny and fear; to promote justice and fairness and equality under the law, so that the words set to paper by our founders are made real for every citizen.

Use our collective shoulder to expand individual achievement?  The president believes in the former more than the latter.  He didn’t help the Iranians get free from tyranny when he had the chance.  And he turned the Egyptian people over to tyranny.  The Muslim Brotherhood.  Who were oppressing women and Christians.  Fairness and equality under the law?  Ask those Tea Party groups who were targeted by the IRS about fairness and equality under the law.  The Constitution?  That document of negative rights?  The left hates it.  And insists it’s a living document that can evolve over time to suit the needs of an expanding government.  So they can do exactly what the Founding Fathers wrote the Constitution to prevent from happening.

The Left endorses Unsound Policy Proposals with no Basis in Reality to improve their Chances of Winning Elections

The country is more conservative than liberal (see Liberal Self-Identification Edges Up to New High in 2013 by Jeffrey M. Jones posted 1/10/2014 on Gallup).  Which is why liberals want state-funded pre-K to start indoctrinating our children as soon as possible.  To get them away from their parents so they can begin the process of turning them into Democrat voters.  It’s why kids are getting worthless social science and humanities degrees.  To further indoctrinate them.  Because their views are minority views.  So they need to play loose with the facts.  And lie.  Which is easier to do with indoctrinated kids than educated adults.  You’ll even hear Democrats talk about lowering the voting age.  To get a few more years of voting out of these kids before they grow old and wise.  And begin voting conservative.  So they do what they can to dumb down education.  Lie.  Cheat.  And buy as many votes as they can by giving away free stuff.  And the thing they really want to give away is citizenship for illegal aliens.  Who they are sure will be forever grateful.  And show it by voting Democrat.

This explains the enthusiastic applause for unsound policy proposals that have no basis in reality.  For the left is not interested in improving the lives of Americans.  They just want to improve their chances of winning elections.

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Obama Job Approval has Fallen over the Last Year

Posted by PITHOCRATES - January 23rd, 2014

Politics 101

Ten Different Obama Job Approval Polls show Higher Disapproves than Approves

President Obama did not have a good 2013.  Especially near the end.  Because of the Obamacare rollout.  With the website being a disaster.  The enrollment numbers weren’t as projected.  Or needed.  And then all the cancellations in the individual market.  As people learned they couldn’t keep the policies and doctors they liked.  Which gave President Obama the recognition for being the best in at least one thing.  As PolitiFact named “if you like your health care plan, you can keep it” as the lie of the year.

The bad news continued into 2014.  The Obamacare enrollee numbers didn’t improve.  Most of the enrollees are the old and sick.  Not the young and healthy the Obama administration told the health insurers would be enrolling.  Which is breaking the economic model.  Guaranteeing not only that health insurance premiums will rise.  But some health care providers are actually requiring payment up front before providing services.  As they are not sure what the insurers will pay.  Making Obamacare an even bigger disaster.  Which is a big factor in driving President Obama’s job approval rating down (see President Obama Job Approval posted on Real Clear Politics).

President Obama Job Approval R1

The ten polls included in the RCP Average all share one thing in common.  They all have larger disapproval numbers than approval numbers.  With the average disapproval number being 8.4 points greater than the average approval number.  However you look at these numbers they are not good for President Obama.  For they say President Obama has not been good for the United States.

People don’t Trust President Obama and are beginning to Doubt his Past Claims of Accomplishment

Growing numbers of people don’t trust the president anymore.  Including those who were Obama supporters.  Who because of the ‘lie of the year’ don’t look at those other scandals as opposition propaganda anymore.  These scandals (Benghazi, IRS targeting conservatives, spying on journalists, spying on Americans, Fast and Furious, Solyndra, ‘recess’ appointments, executive orders to bypass the will of the people/Congress, etc.) are now just other things not to trust the president about.  The president has been less than honest to get what he wants (power).  While the American people don’t get what they want (jobs, affordable health care, etc.).  And it’s because of this that his job approval has entered a steady decline.

President Obama Job Approval Graph R1

Following a bump during the 2012 election Obama’s job approval has trended down.  The Obama administration lied about what happened in Benghazi to help their reelection chances.  Where the campaign message was that al Qaeda was on the run.  Which is apparently why the State Department under Secretary Clinton denied Ambassador Steven’s request for additional security to combat the resurgent al Qaeda in Libya.  As the recent bipartisan Senate report stated that the killing of four Americans in Benghazi on the anniversary of 9/11 could have been prevented.

Benghazi, the NSA spying on us, the ‘lie of the year’ and the other scandals have had their affect on the American people.  And after the Target point-of-sale credit card hack people are very suspect of the Obamacare website.  Especially when a security consulting firm says there is no security on the Obamacare website yet the Obama administration keeps telling us to trust them.  They’ll keep our data safe.  Even though Target couldn’t.  And they have functioning security systems in place.  Unlike Obamacare.  That has none.  So people don’t trust President Obama.  And they’re beginning to doubt his past claims of accomplishment.  As well as those rosy jobs reports from the Bureau of Labor Statistics.

The Lie of the Year appears to have Broken the Spell Obama held over some of his Admirers

The Democrat’s Keynesian economic policies created yet another housing bubble.  By keeping interest rates artificially low and relaxing credit standards they stimulated the housing market.  And housing prices soared.  But buyers didn’t seem to care.  Because they were borrowing the money to buy these overpriced houses.  Because of those low interest rates.  Even people who couldn’t afford to buy a house were buying a house. Thanks to subprime lending like the adjustable rate mortgage (ARM).  But when interest rates rose so did those monthly payments on those ARMs.  People couldn’t afford their mortgage payments anymore.  And defaulted.  Giving us the subprime mortgage crisis.  Which turned into the Great Recession.

The Democrats blamed the banks for the Great Recession.  Not their Keynesian policies.  Or President Clinton’s heavy hand on lenders to qualify the unqualified for mortgages (see Bill Clinton created the Subprime Mortgage Crisis with his Policy Statement on Discrimination in Lending posted 11/6/2011 on PITHOCRATES).  Not only did they deflect blame for the crisis they used the crisis to implement further Keynesian policies.  A near-trillion dollar stimulus bill.  Much of which went to Obama’s ‘friends’ in the green energy industry.  And to their friends in unions.  The government spent a lot of money.  They kept interest rates artificially low.  And when that didn’t work they used quantitative easing.  Basically printing money.  The Obama administration said their policies were working.  And declared the summer of 2010 ‘Recovery Summer’.  The recession was over.  Since then they highlighted the new jobs created with every jobs report.  While ignoring the number of people who have left the labor force.  Greatly skewing the numbers.  And grossly understating the real unemployment rate (see Wall Street adviser: Actual unemployment is 37.2%, ‘misery index’ worst in 40 years by Paul Bedard posted 1/21/2014 on the Washington Examiner).

Don’t believe the happy talk coming out of the White House, Federal Reserve and Treasury Department when it comes to the real unemployment rate and the true “Misery Index.” Because, according to an influential Wall Street advisor, the figures are a fraud…

…the Misery Index, which is a calculation based in inflation and unemployment, both numbers the duo say are underscored by the government. He said that the Index doesn’t properly calculate how Uncle Sam is propping up the economy with bond purchases and other actions.

“These tricks, along with a host of other dubious accounting schemes, underreport inflation by about 3 percent,” they wrote, adding that the official inflation rate is just 1.24 percent.

“Today, the Misery Index would be 7.54 using official numbers,” they wrote. But if calculations tabulating the full national unemployment including discouraged workers, which is 10.2 percent, and the historical method of calculating inflation, which is now 4.5 percent, ‘the current misery index is closer to 14.7, worse even than during the Ford administration.”

The 1970s were the heyday of Keynesian economics.  With spending out of control Richard Nixon did something that Keynesians longed for.  He decoupled the dollar from gold.  Allowing the Fed to print money like there was no tomorrow.  Igniting inflation.  And when the inflation rate was added to the unemployment rate it gave us a record Misery Index.  Until now, that is.  If you use the real data.  And not the ‘massaged’ data that makes their Keynesian policies appear to be working.  Telling us the recession ended in 2010.  When many feel the Great Recession has never ended.  Which is yet another reason not to trust the Obama administration.  Or not approve of the job President Obama is doing.  As the polls have been showing this past year.  And it’s not just because of Obamacare.  But the ‘lie of the year’ appears to have broken the spell he held over some of his admirers.  Who can now see the king is wearing no clothes.  No matter what his administration and those in the mainstream media say.

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The Obama Recovery is Good for Wall Street but Bad for Main Street

Posted by PITHOCRATES - January 18th, 2014

Week in Review

The December jobs report was pretty bleak.  It showed that the unemployment rate fell to 6.7% and that the economy added 74,000 jobs.  Not great but good enough for some who say that President Obama’s policies are finally working after 5 some years of trying.  Which is ridiculous.  Because that unemployment rate doesn’t tell you how many people lost their jobs.  And how many people disappeared from the civilian labor force as they gave up trying to find work that just isn’t there.  Which hides the number of people who lost their jobs.  Because the Bureau of Labor Statistics doesn’t count anyone as unemployed if they are no longer looking for work.  But if you dig down into the jobs report you’ll find this data.  And see that for every person that entered the labor force about seven people left it in December (see The BLS Employment Situation Summary for December 2013 posted January 13th, 2014 on PITHOCRATES).  Which is anything but an economic recovery.

All during the Obama presidency the Federal Reserve has been stimulating the economy.  Right out of the Keynesian handbook.  By keeping interest rates near zero to encourage people to borrow money to buy things they don’t need.  But few have.  No.  The only people borrowing that money are rich investors.  Who are borrowing this ‘free’ money to spend in the stock market.  Helping Wall Street to do very well during the worst economic recovery since that following the Great Depression.  While Main Street sees their median family income fall.  Still the chairman of the Federal Reserve, Ben Bernanke, thinks he did a heck of a job (see Bernanke Says QE Effective While Posing No Immediate Bubble Risk by Jeff Kearns and Joshua Zumbrun posted 1/16/2014 on Bloomberg).

Bernanke is seeking to define his legacy before stepping down on Jan. 31. During his eight-year tenure as leader of the Fed he piloted the economy through a financial crisis that led to the longest recession since the 1930s. He has tried to bolster growth by holding the target interest rate near zero and pushing forward with unprecedented bond buying known as QE.

“Those who have been saying for the last five years that we’re just on the brink of hyperinflation, I think I would just point them to this morning’s CPI number and suggest that inflation is not really a significant risk of this policy,” Bernanke said, referring to a Labor Department report showing the consumer price index rose 1.5 percent in the past year. The Fed has set an inflation target of 2 percent…

The Federal Open Market Committee (FDTR) announced plans last month to reduce monthly purchases to $75 billion from $85 billion, citing improvement in the labor market. The jobless rate last month fell to 6.7 percent, a five-year low.

The only reason why we don’t have hyperinflation is that everyone has depreciated their currency so much to boost exports and pay for bloated welfare states that all currencies are losing value.  And of all these bad currencies the American currency is the least bad of the lot.  Which is why some foreign nationals will pay to park their money in American banks.  Because the risk of it losing its value is so much greater in their home country.

But that doesn’t mean inflation hasn’t reared its ugly head in the US economy.  Just go to a grocery store and look at a bag of chips.  Or a box of cookies.  Or any packaged item that didn’t seem to get overly expensive during the Obama recession. A bag of chips may be the same $3-4 it was before the recession.  But notice the size of the bag.  It’s gotten smaller.  So, yes, consumer prices have not shown great inflation.  But packaging has gotten smaller.  So instead of paying more for the same quantity we are paying the same price for a lesser quantity.  Which means we may be buying 4 of something in a month instead of 3 of something.  It adds up.  Which is why there are so many more people on food stamps.  The Bernanke inflation is taking more of our paycheck to buy what it once did.

The economy is horrible.  Fewer people are in the labor force with each jobs report.  Our grocery packaging is shrinking.  And once the Fed stops its bond buying the stock market is going to fall.  A lot.  For every time rich investors think the economic data will show solid economic activity what do they do?  They sell their stocks.  Causing a stock market fall.  Why?  Why would investors leave the stock market when the data say the economy is getting stronger?  Which seems to go against common sense?  Because they know there’s been only one thing helping them get rich during the Obama presidency.  That ‘free’ money.  Once that source of cheap money goes away they will sell before those inflated stock prices fall back to earth.

The Obama recovery.  Good for Wall Street.  Bad for Main Street.

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Cairo Speech, Treaty of Rapallo, German-Soviet Non-Aggression Pact, and Operation Barbarossa

Posted by PITHOCRATES - January 14th, 2014

History 101

President Obama’s Cairo Speech of Islamist Appeasement Emboldened our Enemies

Candidate Barack Obama said during the 2008 presidential campaign that he would talk to our enemies.  Without preconditions.  He would discontinue the gunboat diplomacy of George W. Bush.  Instead he would open a dialogue with the people who wanted to kill us.  Find out why they wanted to kill us. And then resolve those issues that caused our enemies to want to kill us.  Which was the core of his foreign policy.  Being nice to our enemies to get them to like us.  And once they did they would stop killing us.

Some say this started with the Obama apology tour.  With his message of appeasement in Cairo in June 2009.  Where he told our militant Islamist foes, those people who have a tendency to kill Americans, we only want to live together in peace.  And that there is a level of conservative Islamism that was acceptable to the United States.  When the Arab Spring began in Iran (a sponsor of anti-American/Western terrorism) in June of 2009 (after Mahmoud Ahmadinejad had won reelection despite reported irregularities) President Obama did nothing to support the Iranian protestors.  And the enemies of the United States took notice.  The Cairo speech of appeasement.  Not condemning the Iranian election results and telling Mahmoud Ahmadinejad that he had to go (as he would tell Egyptian president Hosni Mubarak).  The message was clear.  America’s enemies could do whatever they wanted.  Even become a rogue nuclear power (see Iran: US and others ‘surrendered before the great Iranian nation’ in nuclear deal by Alexander Smith posted 1/14/2014 on NBC News).

Iranian President Hassan Rouhani said world powers including the United States “surrendered before the great Iranian nation” in agreeing an interim nuclear deal with his country, state media reported Tuesday.

Iran reached the deal with the five permanent members of the United Nations Security Council — the U.S., Canada, Britain, China, and Russia– and non-member Germany…

Speaking to a crowd gathered in the oil-rich province of Khuzestan on Tuesday, Rouhani said: “Do you know what the Geneva agreement means? It means the big powers have surrendered before the great Iranian nation.”

Apparently appeasing our enemies only makes our enemies bolder.  And stronger.  Which is probably not a good thing.  North Korea is a rogue nuclear state.  But their need for food and energy make it unlikely that they will launch a nuclear weapon.  They have so far used the threat of doing so just to get what they desperately needed.  Food and energy.  Militant Islamists, though, want to rid the world of anyone who is not a militant Islamist.  Even if they have to die in the process.  Which they don’t mind.  Because for them this world is only the prelude for the far better afterworld.  Whereas the regime running North Korea has no desire to die.  They enjoy living in the here and now.  And know that won’t continue if they launch a nuclear weapon.

Neville Chamberlain opened a Dialogue with a Lying Adolf Hitler who lied to Chamberlain

The Allies blamed Germany for World War I.  And the Versailles Treaty made the peace following the war a difficult one for Germany.  Blame for the war, war reparations, loss of territories, emasculation (severe limits on Germany’s military strength), etc.  It did a number to German esteem.  Especially when they didn’t technically lose World War I.  The war ended in an armistice.  Where the combatants agreed to a cease fire as they were all exhausted by war.  Of course, America’s entry into the war would have most likely led to a German surrender.  For they were not yet exhausted by years of war.  And could extend the conflict indefinitely until Germany did surrender.  But that didn’t happen.  Which made for a lot of angry Germans when the Allies treated them as if they had surrendered unconditionally.  Setting the stage for an Adolf Hitler to come to power.  Which is what happened.

The war left the Germans isolated.   Russia pulled out of World War I before its completion and devolved into revolution.  Bringing the communists to power.  Replacing Russia with the Soviet Union.  These developments left them, too, isolated in the post-war world.  And then these two isolated nations found each other.  Signing the Treaty of Rapallo in 1922.  Renouncing any territorial or financial claims between them from the war.  And becoming trading partners.  Among other things.  Such as using Soviet soil to rebuild German armed forces in direct violation of the Versailles Treaty.  Where they trained for armor warfare.  Built an air force.  And even developed chemical weapons.  This new eastern friendship had another shared interest.  Poland.

 

Germany and Russia lost portions of Poland following World War I.  And they wanted them back.  But Hitler tested the waters first.  To see how the war-weary allies would react.  He marched troops into the demilitarized Rhineland in violation of the Versailles Treaty.  And the Allies did nothing.  Hitler sent an ultimatum to the Austrian chancellor to hand over power to the Austrian NSDAP (i.e., Austrian Nazi Party) or he would invade Austria.  The Austrian chancellor did.  And Hitler’s Wehrmacht marched triumphantly into Austria the following day.  And the Allies did nothing.  Then Hitler turned his eyes to Czechoslovakia.  And the Sudetenland.  Which he wanted to annex into the Third Reich.  And he was willing to do this with an armed invasion.  Something that got the war-weary Allies’ attention.  For the last thing they wanted in Europe was another war.  British Prime Minister Neville Chamberlain met with Hitler.  And opened a dialogue with him.  Finding Hitler to be a reasonable man.  And the Allies agreed to give Czechoslovakia’s Sudetenland to Hitler.  With Czechoslovakia having little say in the matter.  But it was for the greater good.  “Peace in our time.”  And it was the last territorial acquisition he wanted.  He promised.  So Hitler got the Sudetenland.  And within 6 months Hitler took the rest of Czechoslovakia.  Without firing a single shot.  Because the Allies were so eager to appease Hitler that they never considered that he was lying to them.  Which he was.

The Treaty of Rapallo allowed the Nazis to build the War Machine they eventually Unleashed on the Soviet Union

With the southern border of Poland secured thanks to the Allies giving Czechoslovakia to Germany it was time to recover their lost territory in Poland.  All they needed was a little help from their new best friend.  The Soviet Union.  And it came in the form of a non-aggression pact with the Soviet Union.  The Treaty of Non-aggression between Germany and the Union of Soviet Socialist Republics signed August 23, 1939.  Promising that neither would go to war with the other.  Or ally with a nation that does.  As well as the secret agreement to invade and divide Poland.  As well as dividing up Bessarabia, Estonia, Finland, Latvia, Lithuania, Romania, etc.  Then, on September 1, 1939, Hitler invaded Poland.  Launching World War II.  Something they couldn’t have done if it weren’t for their new best friend.  The Soviet Union.

After Poland came Norway.  Then France and the Low Countries.  The British held the Nazis off in the Battle of Britain.  Then came North Africa.  Yugoslavia.  And Greece.  Then came Operation Barbarossa.  Starting on June 22, 1941.  Something Hitler thought about since writing about it in Mein Kampf back in 1925.  Finding Lebensraum (i.e., living space) for the German people.  In particular the Bread Basket of Europe.  The Ukraine.  Which if you know your history, and your geography, was part of the Soviet Union.  Yes, that’s right.  Hitler lied to Joseph Stalin to get what he wanted.  Launching off points for the conquest of the Soviet Union.  A land he viewed as filled with sub-humans he would kill off with famine after taking their food.

The Soviet people paid a dear price for their leader’s treachery.  Enduring hell on earth on the Eastern Front.  With some 20 million dead by the time it was over.  It was these innocent Soviets who won World War II.  Who wore down the Germans with their wholesale dying.  At times 10 Soviets dying for every one German.  None of which would have happened if Stalin had read Mein Kampf.  Or if he didn’t make a pact with the Devil that led to World War II.  The secret agreements in the Treaty of Rapallo.  Letting the Nazis develop the war machine they eventually unleashed on the Soviet Union.  Which just goes to show you that you need to understand who your enemies are.  And once you do you cannot try to make nice with them.  For they will turn on you once you’ve served your useful purpose.  Just like Hitler turned on Stalin.  As Iran will turn on the United States after they served their useful purpose in getting them their nuclear weapons.  And when that time comes the cost of that war will be far greater than it would have been if it was fought before they had nuclear weapons.  With scenes from that war looking more like Hiroshima and Nagasaki than the hell on earth of the Eastern Front

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Our Free Press has become an Extension of the Democrat Party instead of Safeguarding Democracy

Posted by PITHOCRATES - January 9th, 2014

Politics 101

Our Free Press embraced the George Washington Bridge Scandal to ignore Robert Gates’ Autobiography

“The price of liberty is eternal vigilance.”  A quote attributed to Thomas Jefferson, Patrick Henry and Wendell Phillips.  To name a few.  John Philpot Curran may have said it first when he said, “The condition upon which God hath given liberty to man is eternal vigilance; which condition if he break, servitude is at once the consequence of his crime and the punishment of his guilt.”

This is why the Founding Fathers gave us the First Amendment.  And freedom of the press.  Which exercises that eternal vigilance.  To safeguard democracy.  By keeping government transparent.  And making it difficult for government to hide things from the American people.  Especially when those in power use their positions of power for self interest.  Instead of the public’s interest.

So this is the free press as envisioned by the Founding Fathers.  Is it still that noble institution?  Well, you be the judge.  Recently Robert Gates just published a tell-all memoir putting the Obama administration in a very poor light.  Saying things like Vice President Joe Biden has been wrong on every important foreign policy issue.  That senators Hillary Clinton and Barack Obama voted against the surge in Iraq for political reasons.  What was best for them.  Not their country.  And that as much as Candidate Obama said Iraq was the wrong war while Afghanistan was the right war he never believed in the war in Afghanistan.  He didn’t have any interest in winning.  Only in getting out.  Big news.  But now you don’t hear anything about it because someone in Chris Christie’s administration caused gridlock on the roads leading to the George Washington Bridge.

President Obama sacrificed the Americans in Benghazi for the sake of a Campaign Message

The George Washington Bridge scandal has gripped the media.  It’s all they can talk about.  Unlike those ‘phony scandals’ president Obama complained about that the Republicans were creating out of nothing.  Like the ATF Fast and Furious scandal.  Gunwalking to put thousands of weapons on the street.  So the Obama administration could pick them up after they were used in a crime and say, “See?  We need to pass new gun control legislation.”  In Fast and Furious that meant new controls for multiple rifle sales or long guns.  As explained in Demand Letter 3.  One of these guns killed a U.S. border agent.  And countless people in Mexico.  But that was a phony scandal.  Not a real one like the George Washington Bridge scandal.

The Solyndra scandal funneled money to a maker of solar arrays that was bleeding money.  To delay the bankruptcy until after the 2010 midterm elections the Obama administration promised the largest private investor—and Obama donor—to restructure the loan.  To put him above the taxpayers in any bankruptcy filing.  In violation of Section 1702(d)(3) of Energy Policy Act of 2005.  The Obama administration did.  And the taxpayers’ ate the private investor’s loss.  But that was a phony scandal.  Not a real one like the George Washington Bridge scandal.

With the death of Osama bin Laden President Obama said al Qaeda was reeling.  On the ropes.  On the path to being no more.  And he was going to ride this foreign policy achievement into the 2012 presidential election.  Which is why when Ambassador Stevens requested additional security at the Benghazi mission the Obama administration denied his request.  For how would it look if they were beefing up security in the country they just liberated when the threat from al Qaeda was receding?  The problem was that al Qaeda was resurgent in Libya.  It was so dangerous the British pulled out completely after an attack on their people.  But President Obama sacrificed the Americans in Benghazi for the sake of a campaign message.  And after four Americans died President Obama, Hillary Clinton and Susan Rice blamed their deaths on a spontaneous protest that turned deadly due to an obscure anti-Muslim video no one had heard of in Benghazi.  A spontaneous protest where people had rocket propelled grenades.  And mortars that were pre-sighted on their targets.  Things few people normally carry on them.  The administration lied and they stonewalled Congress over Benghazi.  Hiding the truth.  Of how politics trumped the lives of four Americans.  But that was a phony scandal.  Not a real one like the George Washington Bridge scandal.

Our Free Press is NOT exercising that Eternal Vigilance that safeguards Democracy

CBS correspondent Sharyl Attkisson was one of the few in the media to investigate the Obama administration.  Breaking stories on Fast and Furious.  And Benghazi.  Someone hacked into her computer in late 2012.  Someone sophisticated who was searching for something on her computer.  And knew how to cover their electronic tracks.  Well, almost.  The Obama Justice Department denied any involvement.  But they did spy on reporters at the Associated Press.  And Fox News journalist James Rosen.   Attorney General Eric Holder even personally signed an affidavit naming him a potential criminal for doing his job.  And then lied under oath when asked in Congress.  Saying he didn’t get involved with the prosecution of journalists for doing their jobs.  Even though he had.  But these were phony scandals.  Not a real one like the George Washington Bridge scandal.

And then there was the IRS scandal.  Which targeted enemies of the Obama administration.  Holding up tax-exempt status for Tea Party groups.  Hindering their ability to fund raise and exercise their free speech during the 2012 presidential election.  And conservative donors faced punitive IRS audits.  Dissuading others from donating.  Further hindering fund raising and free speech.  The Obama administration said that those responsible were low-office holders in the Cincinnati office.  But when the head of the tax exempt division, Lois Lerner, appeared before Congress she pleaded the Fifth Amendment.  For the paper trail led to her.  And possibly into the White House.  For she was an active Democrat supporter.  And wasn’t above breaking the law to help her party.  Such as violating Section 6103 of the Internal Revenue Code.  Forbidding her to disclose income tax return information to anyone.  Even another governmental agency.  Which she did.  And now we learn that the Justice Department lead investigator for the IRS scandal is a Democrat donor.  But the IRS scandal was a phony scandal.  Not a real one like the George Washington Bridge scandal.

Of all of these scandals which one are you most familiar with?  Probably the George Washington Bridge scandal.  Because our free press is NOT exercising that eternal vigilance that safeguards democracy.  They have become an extension of the Democrat Party.  Putting politics above the wellbeing of the people.  Helping the Democrats to advance their agenda.  While hiding their scandals.  To destroy what the Founding Fathers gave us.  Liberty.  And expand one-party rule.  Putting us on the road to servitude.  Just as John Philpot Curran warned.

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FT198: “Obamacare will fail because you can’t incentivize people to make their lives worse.” —Old Pithy

Posted by PITHOCRATES - November 29th, 2013

Fundamental Truth

Stores used the Incentives of Black Friday to get People to do what they Wanted

A belated happy Thanksgiving.  And a belated happy Black Friday.  We say belated because Black Friday was already here by the time Friday woke from its sleepy slumber.  No more waiting in line Friday morning for those stores to open.  No.  Today if you snooze (i.e., spend Thanksgiving with the family at home) you lose.  Because it’s first come first served.  Which means if you wanted to get some of those deep discounts before they run out you didn’t let anything silly like celebrating Thanksgiving with the family get in your way.

Now everyone loves a bargain.  It’s why we scan the Sunday sales papers.  And search online for the best price.  But in the Obama ‘recovery’ there isn’t a whole lot of spending going on.  As there isn’t a whole lot of employment going on.  Since President Obama assumed office his policies have destroyed some 10 million jobs.  And one thing about unemployed people.  They definitely want a bargain.  Especially if they want a good Christmas for their family during the dark times of the Obama presidency.

But there is a greater lesson Black Friday can tell us other than President Obama is a bad president.  Especially in things economic.  Why are stores opening on Thanksgiving?  Because they’re cruel and evil forcing their workers to slave away during a holiday?  No.  It’s not that.  In fact, some employees love working on a holiday.  For they get paid more working on a holiday than they normally would.  Allowing them to earn extra money to give their families a good Christmas during the dark times of the Obama presidency.  As it turns out shoppers and workers alike like Black Friday.  For it allows each to have more for less.  And that is the great lesson of Black Friday.  Getting people to do what you want by offering them something they want.  Or, in other words, offering them an incentive.

The Kansas–Nebraska Act of 1854 pitted Northern Republicans against Slave-Owning Southern Democrats

Slaves working in the planter South had no desire to be slaves.  Yet they were slaves.  Why?  There weren’t slaves in the North.  Only in the South.  The blacks in the north chose not to be slaves.  While those in the South had no choice.  The planter elite in the South, the ‘Old World’ planter aristocracy, used force.  And having a larger force in Washington than they normally would have (thanks to the Three-Fifths Compromise that counted slaves as three-fifths of a person for representation in Congress) they were able to use the force of government to continue to force blacks into slavery.  The Southern Democrats (i.e., the ‘Old World’ planter aristocracy) were able to keep the black man enslaved until the mid 19th century.  Even using the power of the federal government to override states’ rights in the North.  Using the Fugitive Slave Act to force northern states to return fugitive slaves to their Southern Democrat owners.  The ‘Old World’ planter aristocracy.

This is coercion.  This is how you get people to do what they don’t want to do.  Using the power of the federal government the Southern Democrats kept their slaves in bondage.  Also, using the power of the federal government they forced those in the North who wanted to help ‘fugitive’ slaves to stay free return their slaves or else.  That ‘or else’ being the full weight of the federal government coming down on them with extreme prejudice.  But when the North became more populated control of the House of Representatives favored the larger populated North.  Despite the Three-Fifths Compromise.  Which left the Senate.  And as each state got two senators how the new states entered the union mattered.  For the planter elite to hold their power over the United States.

The Missouri Compromise of 1820 was an early attempt to put slavery onto the path of oblivion.  Those in the North did not want it.  The planter elite in the South did.  So they compromised.  Slavery could remain in the South to appease the planter elite but the compromise prohibited slavery in the new Louisiana Territory that Thomas Jefferson purchased above the 36°30′ parallel (about the southern border of Missouri).  Except in the state of Missouri.  Then came the Kansas–Nebraska Act of 1854 and the idea of popular sovereignty.  Throwing the Missouri Compromise of 1820 out the window.  These two states were both above the 36°30′ parallel.  The Kansas–Nebraska Act of 1854 said the first people into the fledging states could choose for themselves if they would be a slave-state or a free-state.  Which led to a mad rush to Kansas.  And a bloody civil war there.  That eventually led to the American Civil War.  To settle once and for all the issue of slavery in America.  Would the Southern Democrats prevail and keep the black man in bondage?  Or would the Republicans free the slaves?

Obamacare is less like Black Friday and more like Slavery

Even if you flunked your history class you should know the answer to this.  Abraham Lincoln and his Republicans defeated the Southern Democrats and won the American Civil War.  Freeing the slaves.  Of course, the Southern Democrats were not good losers.  They gave us the KKK.  Then the Jim Crowe Laws.  The separate but equal nonsense that didn’t exist in the Republican North.  The old southern aristocracy were not huge fans of the Declaration of Independence or the Constitution.  All they wanted was privilege.  They wanted the Old World in the New World.  And the planter elite fought bitterly to keep that.  Well, not them as much as their fellow southerners they lied to about states’ rights.  Getting them (most of who were too poor to own a single slave) to fight and sacrifice their lives to maintain the institution of slavery.  To maintain the privilege of the southern aristocracy.

So there you have examples of incentive and coercion.  Black Friday incentivized people to hire in for seasonal jobs during the holiday season.  And brought people into stores with deep discounting.  Everyone got something they wanted.  And so they did what the store owners wanted.  People worked for them on Thanksgiving.  And people came into the stores on Thanksgiving.  Both of their own free will.  Now contrast that to slavery.  Where there was no free will.  Only the coercion of the federal government.  Where fear and intimidation compelled slaves to remain slaves.  And their only incentive was to obey their masters to avoid physical harm.

With the Supreme Court ruling the penalty of Obamacare became a tax.  Allowing the federal government to compel people to buy health insurance or suffer the consequences.  A ‘tax’ that will grow in time.  Buy insurance or else.  With that ‘or else’ being the full force and fury of the IRS.  Something most people would find more unpleasant than a colonoscopy.  Without any anesthetic.  No, a letter from the IRS is something no one wants to see in their mail.  For few things will fill you with fear and dread more.  This is the enforcement mechanism of Obamacare.  Which they need because people otherwise wouldn’t spend more for less.  Higher insurance premiums to cover things they will never need (a gay man will never need prenatal care).  And sky-high deductibles that will be like having no insurance.  As everything will be out of pocket until you reach that sky-high deductible.  Which few people will reach unless they have a catastrophic illness or accident.  This is why people are NOT signing up for Obamacare.  Because Obamacare ain’t no Black Friday.  Obamacare is offering nothing the people want.  At prices higher than they ever had to pay for health insurance before.  Leaving them with less to spend on their family.  Forcing them to cut out things they once enjoyed.  Which is why Obamacare will fail.  Because you can’t incentivize people to make their lives worse.  No, to do that you need the fearful power of the state.  Just like the Southern Democrats used to maintain the institution of slavery.

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