Entries Tagged as 'Bailout'

Understanding the Bailout

From Big Dog:

Once upon a time a man appeared in a village and announced to the villagers that he would buy monkeys for $10 each.

The villagers, knowing there were many monkeys, went to the forest and started catching them. The man bought thousands at $10 and, as supply started to diminish, the villagers stopped their effort.

He then announced that he would buy monkeys at $20 each. This renewed the villagers efforts and they started catching monkeys again.

Soon the supply diminished and people started going back to their farms. The offer increased to $25 each and the supply of monkeys became so scarce it was an effort to even find a monkey, let alone catch it! The man now announced that he would buy monkeys at $50 each! However, since he had to go to the city on some business, his assistant would buy on his behalf.

The assistant told the villagers, “Look at all these monkeys in the big cage that my boss has already collected. I will sell them to you at $35 and when my boss returns, you can sell them to him for $50.”

The villagers rounded up all their savings and bought all the monkeys for 700 billion dollars.

They never saw the man or his assistant again, only lots and lots of monkeys!

Now you have a better understanding of how the WALL STREET BAILOUT PLAN WORKS.

Popularity: unranked [?]

And Another Bailout

This time, it’s the steel industry. After all, if the government wants steel for all its make-work construction projects next year, they’re going to have to have a steel industry. And if Nucor goes out of business, it’s the end of the world, right? I mean, if you don’t buy your steel from Nucor, then you just can’t buy steel. In fact, it appears likely that if Nucor is allowed to go out of business; if Nucor doesn’t receive at least $10 million from the government in the next week; then steel itself will likely cease to exist. There will be no steel! And that means that there will be no classrooms for the children. You don’t hate children, do you? If you oppose writing a blank check of $100 million to Nucor TODAY, then you hate children.

Popularity: 3% [?]

Basic Economics

So, Pelosi and Obama want to spend $1 trillion to “save jobs” and “create tax cuts” for special people. I’m amazed at how many people support this action and think it’s a good idea. And yes, most of those who support it will financially gain from it. But at the same time, this absolutely directly conflicts with reality.

Where does government get the $1 trillion? You do realize that government does not create anything. It’s literally not possible for government to create. They can’t do it. Only people independent of government can create. Government can only destroy and take. And the ONLY possible way for government to get $1 trillion is to take it from people who work and earn it.

So, in order for government to get the $1 trillion to create new jobs and hire people, they’re going to have to take it from other people who work. So now the people who are already working will have less — creating an economic problem because when people have less money, they spend less money. But all the new government employees will have more money, right? Except, of course, there will be less money to pay them with since there’s less money — which means the only way government will be able to pay these new government employees is to print more money.

And that creates another new problem. When government prints more money, they don’t create wealth - instead they make the money in circulation worth less. So this action will have two direct, immediate effects — people will have less money because the government will be taking more of it AND the money that people have will be worth less. Then, when that happens, what do you suppose government will do? They just do this again.

Then what happens? Just ask Zimbaubawe. Government just keeps printing more and more money and soon a loaf of bread costs $100,000 — and people don’t have the money.

What the Democrats are proposing is a disaster to anyone who likes freedom in any way, shape or form. Then again, for those who like total government control of everything, like Democrats, this is a great idea. Keep in mind that IS the purpose behind politicians who support this — it gives them more control. And you can bet that not one of them will be suffering like the rest of Americans.

All hail communism, those who brought it to us, and our saviors from ourselves!

Popularity: 3% [?]

Next Bailout: Newspapers

After all, government claims:

Connecticut lawmaker Frank Nicastro sees saving the local newspaper as his duty.

Under what Constitution does Mr. Nicastro serve? I’m not sure I’ve read one that says the job of government is to ensure that newspapers are profitable. In fact, what Mr. Nicastro is proposing is even worse — he says that he, and only he, will not only determine that you WILL have a newspaper, but HE will decide WHICH newspaper you will be forced to have. What a selfish bum.

I just wish there were less people who wanted to force me to do things that they want me to do. Mr. Nicastro wants to force me to work and provide my earnings to him, so that he may have a newspaper business. And he has the nerve to claim it’s his duty. How is that any different than Hitler’s duty to make a strong and powerful Germany at the expense of other nations? I think it’s exactly the same thing, only on a smaller scale. If people resisted Hitler, he destroyed their country. If I resist Mr. Nicastro and his personal opinions, he will jail me or kill me.

Why can’t people be free? Why can’t Mr. Nicastro allow people to be free? Why does he insist on making slaves of people? Why is he so opposed to the free market? Is there anything that he will not do to ensure some people have jobs that he likes?

And no, that doesn’t even go into the main opposition of people to this action — that any newspaper that’s getting government handouts, bailouts, tax breaks, economic incentives, training funds, financing incentives, or anything else you want to call cash from government to the once-private business; is not going to oppose government.

I really, really wish there were somewhere that people could go to be free — where people could be free to keep the fruits of their own labors. Imagine a land of economic freedom where companies could be formed and people could produce things and sell them without a heavy-handed government stepping in to decide what companies will succeed and what companies will fail. I wish there were a place where people actually ran the government instead of being opposed to government and unelected government agents and bureaucrats that live for money and power. Imagine a place where people are free to make a business and businesses are actually free to fail when they produce things that people simply don’t want. And a place where businesses that DO produce things that people want aren’t punished for earning “too much” money by a government that cannot produce anything. Wouldn’t that be a nice place?

Popularity: 5% [?]

Obama’s Tax Plan

obamataxplan

Popularity: 7% [?]

Pro-Inflation Government Propaganda

This one is for those who trust and believe things that the government tells them. This is a government video telling you how wonderful inflation is. And much of it shadows what will happen in 2009…

Popularity: 6% [?]

New Deal II

publicworks

Popularity: 8% [?]

Good Unemployment News

unemployment

Popularity: 9% [?]

Unemployment: Always Bad?

Recently, I was taken to task by a group of communists and liberals regarding a recent post of mine, where I dared to mention that the world might not end today. Well, when I say “taken to task,” it was actually more of a name-calling festival and quibbling about completely unrelated points. So I’m not completely sure if they were just “disagreeing” with my post because they don’t like me, because they don’t like anyone who opposes communism, or they honestly didn’t understand. Therefore, I’ll try again, on a much smaller scale.

Currently, in America (and around the world), there is much discussion about how bad things are and how only the government can save us. One area listed as a problem is unemployment. I would suggest that some unemployment is not only good, but actually required. Because what’s the alternative? Full employment?

How about the 95-year old woman who doesn’t have the strength to lift her body out of a bed? What employment will she be forced by the government to do? What about the 65-year old who worked his whole life to retire at 65? Which government agency will be in charge of forcing him to go back to work? How about the 28-year old who just got lucky in Vegas and won a $2 million lottery? Which government job will he be forced to do against his will? How about the 20-year old who wants to tour the country on foot and “find himself?” And no, you can’t ignore these examples. If you insist that unemployment is bad, then you NEED government to force people to work who do not want to.

Now perhaps you don’t want forced full employment. Perhaps you’re the version of person who thinks that, “Well, gee, those people can be unemployed by choice, but no one else who WANTS a job should be unemployed.”

Think about that one for a moment if you will.

First, how are you going to employ that many people? Under Obama’s apparent plan, he’s going to create millions of “make work” jobs. These are horrible to the economy in the long-term. Sure, for the next few months, things will be nice because lots of people will have jobs and they will have cash to spend. But where did they get the money? From government. And if government doesn’t take the money from working people, they just print it. Hello massive inflation (Side note: government jobs do not help the economy because they are primarily make-work jobs — they give people something to do, but those people don’t actually create things that can be used and consumed by others. Roads are nice, but they aren’t something people can buy. Fancy schools and internet wiring is neat, but they don’t help the economy move anywhere).

Next, what incentive will anyone have to work if they have guaranteed employment? After all, if I’ve got a job no matter what, I don’t even have to show up to work, much less do a good job. If you think customer service is bad now, wait until employees can’t be fired for any reason. If there is no threat of unemployment hanging over any employee, the incentive to work hard or do a good job (because there’s no reward) has been removed.

Next, think about the tens of millions of illegals. If every person in the country is guaranteed a job and a paycheck, how many MORE tens of millions will come in? Every unemployed person on the planet will be headed to America because they’d get free cash for showing up for work (and not actually doing anything). And again, think about where that cash would have to come from.

So I’m not trying to have a party and celebrate if the auto industry goes belly up. I’m not breaking out the cupcakes if auto workers find themselves unemployed. But I AM saying that instead of sitting around complaining about the job loss, perhaps people could use it as an opportunity to do something else. Instead of demanding that I, personally, as a taxpayer pay for these people to not work, maybe they could start making other plans.

Maybe, since Detroit is suffering so bad economically, that if the auto industry fails, the people will move somewhere else and that area will be affected in a good way. Maybe someone who is working in an auto plant has a great idea for a new type of car that runs on water, but they don’t have time to develop it because they’re working 60 hours a week, and when they lose their job, they’ll actually make that car. Maybe some younger kids in Michigan will decide to join the military and get paid training because they don’t see a future in the auto industry.

All I’m trying to say is that things could be a lot worse than they are now and perhaps a few more people looking at the bright side of things instead of always looking for the worst would help out a lot of other people. Gee, I wonder how many other names I’ll get called for this one…

Popularity: 9% [?]

More Government Responses

So, what’s government doing to solve the economic problems they claim that exist (and that they themselves have DIRECTLY created)?

Well, they’re trying to create fiat money out of thin air. Every last time this method has been used, it create a temporary bubble that comes crashing down to earth (dot-coms, savings and loans, banks, commodities). In other words, it absolutely fails every time they try this, so they’ll just try it again.

They’re rewarding the irresponsible by giving cash to people who haven’t paid their taxes. Gee, if I knew that sort of deal was waiting in the wings, I would have stopped paying my taxes years ago!

And they’re massively raising taxes because they claim that since Wall Street has screwed up, everyone else should pay the price. And if you read that article carefully, you’ll notice that while New York is increasing taxes to the tune of hundreds of millions of dollars to spread out the pain, there’s one group who refuses to suffer: The New York Budget Increased. Yes, to make it very clear: the Democrat New York governor wants everyone to pay their fair share, reduce, and suffer — EXCEPT government. They will continue to spend at will.

Know what? I hope these rumors about a Constitutional Convention are real. Since we’re not using our Constitution, I want a new one. And if I don’t like it, I think I’ll find more people like me who will the feel more free to openly revolt. I don’t see any other way out of this mess.

Popularity: 9% [?]

Taxpayer Bailout

HR 7309 REALLY should get a lot of support. I can’t imagine anyone in their right mind opposing this bill. And as a note of full disclosure (unlike Congressmen), I will point out that I will get zero cash benefit from this bill. This bill, in case you haven’t heard of it, uses part of the multi-billion dollar bailout to actually bailout THE TAXPAYER!

Yes, instead of sending tens of billions to wall street, or banks, or billionaire car manufacturers, this bill actually bails out THE WORKING MAN. The bill would instantly give every working person about a 6.2% raise in their paycheck. In addition, it would give each business an increase in working capital of that same amount. This would help EVERY working person and EVERY business (with employees) regardless of size!

So how could anyone oppose this bill? Oh, right, it doesn’t give Congress enough control over the cash. It doesn’t nationalize any industry. It doesn’t allow government to expand and create more government jobs. Those are the only reasons one can give to oppose this bill. Oh, and it was proposed by a Republican.

This bill, as of this writing, is languishing in committee. Since it was proposed by a Republican, and it doesn’t expand government, I don’t see it going anywhere. But I thought you, the good reader, might like to know that it’s out there. At it’s base, it’s sort of stupid, because it’s using taxpayer cash to give money to the taxpayer — but it sure beats giving more bailout cash to billionaires.

Popularity: 9% [?]

US Economic Problem

So, if you read the news at all these days, you understand there’s a massive economic problem in America, and that only government can solve the problem. But today I’m going to ask you to think. I’m going to make a statement, and I want you to think before you comment. After you think, go ahead and comment, if you like. Here’s the statement:

There is no problem in America today.

I’m serious. I’m not even going down the road to show that not only is there nothing government can do to solve any “problem,” nor is it any of their business. I’m not convinced there is a problem.

What’s the “problem?” Is it that the automobile manufacturers are going out of business? Why is that a problem? Companies go out of business all the time in this country. Sure, people will be unemployed, but people are always unemployed in this country. Oh, a LOT of people will be unemployed? Well there’s already a lot of people unemployed. Can we live without Fords? Well, I don’t have a Ford, and I’m not dead yet. What if all the “big 3″ go out of business? Maybe a better company will appear that will build even better cars! Perhaps government saving of those three will actually make things WORSE because other, better manufacturers cannot show up.

Is the “problem” that banks are going out of business? Why is that a problem? Again, companies go out of business every day in America. Just because an official bank isn’t lending money doesn’t mean that there’s no money. I just lent my sister $10, and I’m not a bank. And again, if the current dinosaur behemoths go out of business, so what? Do you honestly think that no one will borrow money if there’s no Wachovia next week?

Is the “problem” that house prices are falling? Again, why is that a problem? People who aren’t currently trying to sell their houses won’t even know anything has happened if they didn’t read the news. On a daily basis, it makes no difference to people if their house is worth $500,000 or $1 — as long as they have the house, who cares what someone else will pay for it or how much you paid for it? If you have a roof over your head, you shouldn’t care how much someone else will buy it for today.

Is the “problem” that many people are not paying for their homes and going into foreclosure? Why is that a problem? That’s been happening since people first started borrowing money to buy houses. Perhaps these people had bought homes that were too expensive in the first place and never should have bought them. And by losing their houses, perhaps these people will be learning valuable life lessons about spending and borrowing money. Or perhaps if they lose their home they will give others business by moving to a new place that wouldn’t have happened otherwise.

Is the “problem” that media outlets are failing? Maybe they are failing because people don’t want to use them any more. Forcing them to continue would require forcing other people to do things they don’t want to do. Again, when a company fails, perhaps there is a good reason for it to fail, and perhaps that by failing, that will open up more opportunities for progress and new ideas to show up in the marketplace. In a marketplace where no businesses ever fail, there can be no progress and no new ideas or inventions.

Is the “problem” that “too many” people are unemployed? Says who? Once again, there are benefits to being unemployed. Do you know how many great inventions and discoveries were made by people who were unemployed? Microsoft was founded by an unemployed kid in his garage! I think that if unemployed people tried a little harder, perhaps we would all be a LOT better off. And no, I’m not disparaging the unemployed, I’m just trying to explain that we would all be a lot worse off if everyone were actually employed and doing things (especially for the government) because we would lose a lot of innovation!

Is the “problem” that too many people don’t have health insurance? How is that a problem? Is there some rule that says that everyone should have every medical ailment taken care of without issues? Is there someone in charge that claims that there should never be any suffering anywhere in America? Again, I’m not putting down that people are in pain, I’m just saying that pain is supposed to be a part of life and no one ever said that life would be fair — nor should it be.

So again I say, there is no problem in America. Do you disagree?

I think the only problem in America is government. I think government is claiming that all the above is a problem — so that they have a purpose. You see, if none of the above were problems, then the government wouldn’t really have a lot to do, would they? Sure, they could work on national defense and law enforcement against violent criminal activity, but that wouldn’t enable government to spend nearly enough money, nor give them near enough control over people.

Popularity: 10% [?]

Congressional Responsibility

I wish people had the guts do actually do this:

Popularity: 8% [?]

New Engine Power

Popularity: 7% [?]

Obama’s New Cabinet

As president, you can expect a number of new positions to be created. I estimate that these will all be cabinet-level positions because Obama’s not going to be paying their salary. And after all, he needs to get started on personally creating those 2 billion new jobs. And I really do expect to see most of these actually be created.

Secretary of Automobiles and Motor Carriers
Secretary of the Internet and related Technologies
Secretary of Islamic Affairs
Secretary of Chicago Politics
Secretary of Job Creation
Secretary of Information and Media
Secretary of Banks and Savings and Loans
Secretary of Higher Education
Secretary of Unions and Manufacturing

And others you can think of? And again, I’m serious about these. They might not be secretary-level jobs, but they will all pay salaries over over $200,000 and they will all control billions in taxpayer cash. Want to bet?

Popularity: 8% [?]

Blacks Pray For Slavery

So, did you see the news headlines yesterday? I never thought I’d see the day, but it just happened. A large gathering of predominantly black people gathered together this past weekend to pray for slavery. Oh, don’t worry, they’re not praying for slavery for themselves, they just want everyone ELSE to be in slavery.

And yes, they are actually thinking that when they get their wish, it will be God granting it. Then again, God might grant that wish for them. But when they are in slavery, you can bet they won’t remember asking for it and they will blame everyone but themselves.

Maybe these folks should actually sit down and read the Bible some time. Maybe they should consider what they’re asking for before they ask for it. Maybe they should think about the damage that slavery does to people. Perhaps someone should give them a lesson so that they understand what it’s like to be slaves — because perhaps if they knew what it was like, they wouldn’t be so quick to ask God to make others slaves. And maybe they should stop and think that if they get their wish, not only will others be made into slaves, they will also be slaves.

Of course, you can bet the leader of the church will be the slave with the most money, so I guess he’s okay with that.

Popularity: 8% [?]

Unions: We Have A Right To Your Cash

The message from the unions is quite clear: They honestly believe that they have a direct right to any and all cash that the government has taken from taxpayers. No, they don’t have to earn it. No, they don’t have to work. No, they don’t have to produce anything. They are simply claiming that they should receive taxpayer cash because they’re union members.

What ever happened to hard work and freedom? Does anyone know? 50 years ago, these greedy bums would have been told to go get a job and work for a living. 100 years ago, government didn’t have the capability to take enough money from working people to even consider paying people for doing nothing. And 200+ years ago, the founding fathers actually had the foresight to see that greedy people would try and use government force to make slaves of others and tried to create a Constitution that would protect people from an oppressive government.

As long as the people held the government to the bounds of the Constitution, that worked. But today, the Constitution has nothing to do with government, and government quite literally has no boundaries and nothing to stop it from making slaves of others — which is exactly why the union is claiming they have a right to cash taken by force from taxpayers by the government and why they actually have the gall to claim that they have a “right” to such cash, despite not working nor doing anything productive.

Popularity: 7% [?]

Auto Ideas

Do you think the UAW will ever adapt to new times?

Popularity: 6% [?]

Financial Industry Lobbyists

Have you heard the “wonderful” news? The Financial Industry, nice people that they are, always looking out for the working people, want lower rates from the government. See, then all those poor people who paid “too much” for loans can refinance. Isn’t that wonderful of them?

Of course, if you realize how home mortgage loans work, you also realize this is nothing but a gigantic pile of cash for the financial industry. You see, when you start paying a mortgage, nearly all of your monthly payment is cash into the bank’s pocket, literally. Mortgage payments are set up so that the bank earns all it’s money in the early years of the mortgage, while the homeowner pays the loan down very little. That’s why so many people find themselves without equity in their homes in the first 5 years of ownership — you simply haven’t paid back the loan, you’re just paying interest.

So, if the financial industry lobbyists can get government to allow them to charge insanely low rates, they’re betting that most of the home-owning public is dumb enough to refinance all their home mortgages. That will take more cash straight from the homeowner and send it directly to the bank, without the government middle man! And homeowners who take advantage of this who have been paying down their loans for more than 5 years will suddenly find themselves in even worse shape because not only will their house be worth less, but the loan due on the house won’t be decreasing, either.

But hey, America today is all about today, and not tomorrow, right? Who cares if you’re giving the bank a few hundred thousand dollars extra tomorrow, as long as you get $100 lower house payment today so you can buy the new plasma HDTV, right? Why does government even need to be involved? If government weren’t in the business of regulating money, this wouldn’t be an issue, and people would just be free to make agreements on their own. Wouldn’t that be neat? Oh, how I yearn for freedom.

Popularity: 7% [?]

The New Crash Dummy

Popularity: 7% [?]