Articles that Missed this Week's Edition of Newsweek

With all of the hub-bub about the Newsweek cover story calling Obama's critics dumb, I asked what stories didn't make the issue due to timing, missed deadlines, or lack of space.  Newsweek was kind enough to send me these articles.

Dear Leader Visits Florida, Brings Sunshine

Dear Leader Obama, is planning a short trip to Disney World.  He plans to share his wisdom on topics from immigration to his control of the weather.  Out of loving concern for all of his comrades, he shall bring the sun out that day.

This mastery of the weather is reminiscent of his pre-election speech where he spoke of healing the planet, providing jobs, and receding the ocean.

We thank the Maximum Overlord, Obama, for his weather control, gentle hand, and firm discipline, guiding us to prosperity!

Our Wise Leader Explains Why Congress is Reckless and Foolish

As our Dear Leader leads us into ever greater prosperity as individuals, and as a nation, he reminds us that the scurrilous and lazy Congress wishes only harm to our great nation.  In explaining how his March to Prosperity requires more spending, he wisely spoke of the running dog Republicans and their profligate spending:

The fact that we are here today to debate raising America’s debt limit is a sign of leadership failure. It is a sign that the U.S. Government can’t pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our Government’s reckless fiscal policies. … Increasing America’s debt weakens us domestically and internationally. Leadership means that “the buck stops here.” Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt problem and a failure of leadership. Americans deserve better.

We at Newsweek congratulate the People's Hero Obama for using his wisdom to guide our nation to a more responsible pattern of spending and borrowing.

Finally, we have this human interest piece.


With Literacy the Goal, Our Wise Leader Corrects Long-Held Errors

A long running joke is that Great Britain and the US are separated by a common language.  Additionally, with the variety of regionalisms and dialects, it is no surprise that the language of our former Imperialist Exploiters needs to be corrected for a more harmonious sound and pleasing character.

To that end, Dear Brother Obama has made this corrections, to be implemented immediately.

The military term, corpsman, will now be pronounced "corpse man."


Additionally, this correction will be monitored in all 57 states.

Also missing from the Conventional Wisdom page is this gem:

Obama - Genius
Those who oppose his benevolence - Racist idiots.

To the last 50 subscribers of Newsweek, I hope you are getting your money's worth.

Proof that Al-Qaeda is a Bunch of A-holes

In case you weren't sure, Al-Qaeda is now officially a bunch of A-holes.

CBS News reports that the recent attempt on the life of Saudi counter-terrorism chief, Prince Mohammed Bin Nayef, used a technique from drug smugglers, though novel to homicide bombers.

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"Taking a trick from the narcotics trade - which has long smuggled drugs in body cavities - Asieri had a pound of high explosives, plus a detonator inserted in his rectum. This was a meticulously planned operation with al Qaeda once again producing something new: this time, the Trojan bomber."

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Although this is a humorous take on a very serious subject, notice that the enemy is changing his tactics. While Al-Qaeda continues to be a bunch of cowards, they now reduce themselves to the level of drug smugglers to commit murder.

Should you be concerned? Damn straight! Unless and until the world community crushes this heinie-stuffing goon squad, more bloodshed will occur. Call on your political leaders to use not just force, but overwhelming force to crush this enemy now.

President Teleprompter, listen to your theater-area commanders and send the necessary troops to finish the job.

Government Knows Best You Dummies!

In case you didn't know it, "The American public…just like your teenage kids, aren’t acting in a way that they should act." Thank you for the insult and condescension Secretary Chu!

Dr. Steven Chu, Secretary of the Department of Energy, made the statement above, quoted in the Wall Street Journal, at a Smart Grid conference. His remarks mirror the Democrat party line which is that government knows best, and citizens should just sit down and shut up.

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What has this to do with economics? Simply, everything! From the moment you wake until the moment you sleep, you make economic decisions. Whether it is turning the light on in the middle of the night when going to the bathroom, or having a midnight snack, those decisions have economic consequences.

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Would you be willing to let a bureaucrat mandate no lights may be turned on between 10:00pm and 6:00am? Would you be willing to pay a tax for opening your refrigerator after 1:00am? Of course not! As an adult, you reserve the right to make your own decisions. However, the current ruling party in the US believes you lack the intellect and knowledge to make the "right" decisions.

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While I generally support energy conservation through proper insulation, caulking, and other low-dollar, high-return solutions, I don't believe anybody has the right to force me to do it. Economic common sense and simple arithmetic demonstrated I should put in higher efficiency HVAC units when I remodeled my house, as well as Energy Star doors. I didn't put up solar panels, nor did I install a windmill, because they didn't make economic sense.

When government thinks it is smarter than its citizens, it is doomed to make poor decisions with horrific consequences. Consider Sen. Max Baucus's "health care" plan. Buy insurance or we will tax you $3800. Were I a 23 year old male, with excellent health, I may not want to buy health insurance and the government has no business telling me I must. In short, all citizens must have the freedom to make their own economic decisions.

I will leave you with a quotation to help distill in your mind what the current Congress and President are thinking:

"We are going to take things away from you on behalf of the common good."

Was that: (A) Joseph Stalin, (B) Ronald Reagan, (C) V.I Lenin, or (D) Hillary Clinton?

If you want to be secure in papers, property, and person, it is incumbent upon you to speak up! Contact your representatives in Congress and remind them of your right as an adult to make up your own mind, and that includes whom you vote for in the 2010 elections. If you like bureaucrats making decisions for you, stick with President Teleprompter and his gang. If you like making up your own mind, consider an alternative.

A Different Point of View on Unemployment

Another 216,000 jobs lost, but the employment picture is brighter? Only Joe Biden thinks the recession is over with 15 million people out of work!

In the United States, current unemployment, as reported by the Department of Labor, stands at 9.7% (ending August, 2009), the highest unemployment rate in 26 years, and expected to rise to 10%.

Approximately 15,000,000 people are out of work, yet we hear from many politicians that the economy is picking up, or that the employment situation is settling down.

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I have a different point of view. What the unemployment numbers tell us is companies continue to shed jobs, maybe at a slower rate, but they not hiring folks in any great numbers. Factory inventories are about empty and order rates for goods and services are seriously down, thus no demand for increased production. Further, the likelihood of a major market correction becomes more likely as unemployment continues to rise.

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The American consumer is aware of the untenable amount of leverage they have taken on, and are adjusting to lifestyle of diminished spending. Further, great concerns about a dramatic increase in taxes, both from Cap and Trade, as well as the end of the "Bush Tax Cuts", and the potential destructive force of Obamacare are crushing consumer optimism and a willingness to invest in capital goods.

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What this means, is that until a period of reasonable certainty and stability returns, we are in for a very long ride. While credit markets may be easing, US home prices are still far below their highs, which is actually a good thing. Additionally, with decreased overall demand for goods and services, companies are in no hurry to hire. Without a marked increase in employment, don't count on the American consumer to go back to its spending habits.

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The only bright spot in this dismal period of unemployment is the potential for entrepreneurial growth. Usually, periods of high unemployment lead to smart, out of work people getting together to come up with goods and services adjusted for the new economic reality. While I hope this is the case, I think the fear around major tax increases are somewhat depressing interest in "going it alone." The lesson to take from all of this is the lesson of history. Left wing parties, regardless of country, always bring in high taxes and anti-business agendas. Productive capacity is taken from the private sector and put in the hands of inefficient governments. Forget power to the people, it becomes domination by the state.

Government Health Care is Rationed Health Care!

If the government runs health care, it will ration it. Bureaucrats will set the quantity and price of care, limiting what can be consumed. This is also known as a command economy.

For those of you not familiar with command economies, they currently exist in Cuba, China, and North Korea. Command economies for health care exist in most of Western Europe, Japan, many other states.

If much of the developed world relies on a system of government-owned and operated health insurance/delivery, why shouldn't the US?

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Simply stated, the US is the most demand-driven economy in the world. The understanding of liberty and personal freedom in the US means citizens spend their money on the goods and services they demand, in the quantities they demand, with the government butting out. While this statement isn't 100% accurate, it is pretty close.

In 2009, most US citizens have health insurance, and most are satisfied with it. There is a dispute about how many residents don't have health insurance, yet US law requires equal treatment of all patients, regardless of the ability to pay.

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Americans recoil, rightly, when they read about rationed care in Canada, namely this story out of the Vancouver Sun:

Vancouver Coastal — which oversees the budget for Vancouver General and St. Paul’s hospitals, among other health-care facilities — is looking to close nearly a quarter of its operating rooms starting in September and to cut 6,250 surgeries, including 24 per cent of cases scheduled from September to March and 10 per cent of all medically necessary elective procedures this fiscal year.

So, if you were one of the 6,250 cases to have waited for surgery between September '09 and March '10, well, sorry about that. Perhaps you should get in your car and drive to Seattle and get the surgery you need tomorrow. While I am not going to relate every horror story from socialized medicine, such as the case of the women delivering on a sidewalk due to no ambulance, or the case of Oregon paying for assisted suicide, but not cancer treatment, rather, it is to highlight the loss of liberty in socialized medicine.

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As I have stated above, in socialized medicine, the government, who delivers the service, also sets the quantity to be consumed, and must pay for it. Government will set the budget based on political constraints, and not on the medical needs of individuals. Government also becomes free to regulate other elements of people's lives in the name of "health care." In short, socialized medicine is overwhelming regulation of human behavior and destruction of personal liberty.

To help you better understand this point of view, let late President Ronald Reagan explain it to you. This speech, given in 1961, is critical to understanding what is at stake in today's socialized medicine debate.

A Dose of Reality with those Unemployment Numbers

Hooray, only 247,000 lost their jobs in July 2009! What terrific news! Woo hoo! As one of those 247,000 people, give me a break.

People are so eager to see an improved economy that they are willing to accept such a figure as good news. I say, "rubbish!" Look at the facts, despite the fact that unemployment is a lagging indicator of the economy, it should tell everyone that companies don't think the worst is over.

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Additionally, this number should tell you that both demand for goods and services continue to decrease, and employers are not willing to start hiring again.

Here is some of the cheer leading being reported by the Wall Street Journal:

"The economy is at the turning point from the recession as the labor market is starting to heal," said Chris Rupkey, economist at Bank of Tokyo-Mitsubishi."

But recent data suggest GDP will start growing again this quarter. The Institute for Supply Management manufacturing index ticked higher in July and is now consistent with GDP growth of a little over 2%.

Sorry to be a party pooper, but recent data show 247,000 lost their jobs in July! If that isn't bad enough, from the SAME article,

U.S. gross domestic product contracted 1% at an annual rate during the second quarter. That was the fourth-straight quarterly decline in GDP -- the first time that's happened since the government started keeping track in 1947.

When marginally attached and involuntary part-time workers are included, the rate of unemployed or underemployed workers was 16.3% last month, down slightly from June.

Do you see that things are still pretty lousy and that our economy is bleeding jobs? So why all this "glass half full" optimism? A simple way to answer this question is ask who benefits.

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If I were a politician, I would tout these numbers as positive to demonstrate I was "doing something" about the economy. If I were a CEO of a public company, I may want to discuss these numbers positively to encourage optimism and boost my share price. If I just couldn't take that our economy is in shambles and government programs are making things worse, I might just accept the positive spin to sooth my broken spirit.

However, I am a realist. As I have written in the past (Financial Crisis Primer), we are suffering the effects of market distortion of the credit markets and the aftermath. Financial positions are being unwound. Companies are de-leveraging, and lenders are beginning to remember risk management not merely as an academic pursuit, but a requirement to stay in business.

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Will the economy recover? It should, provided that Congress and President Teleprompter don't pass this crushing ObamaCare abomination. It should recover, provided tax policy doesn't punish small business and success. In other words, the market will heal itself if the government keeps its' hands out of it. The inflation damage will soon be with us, since the quadrupling of the national debt beginning in January of 2009.

To all of you who have lost your jobs, I am with you and pray you find new, meaningful work soon. To all of you with a job, keep working hard, but be ready for a double-dip recession. Finally, to all US citizens, contact your members of Congress and strongly urge them to reject ObamaCare.

How Quickly We Forget

Well, well, well. It seems like President Teleprompter can't take a little public ridicule. The Daily Mail, out of the UK, has an article stating that Obama backers call the image "...mean-spirited and dangerous." I guess the "tolerant" left just can't abide by dissent. Chuck Norris wants YOU to get into shape! - Total Gym® Official Store. Try Total Gym® for 30 Days for only $1 - FREE Shipping.

How quickly they forget, however, that on July 29, 2008, Vanity Fair posted a piece of art depicting then President George W. Bush as none other than, you guessed it, the Joker. Cheap? No. 100% Free. Trade stocks for free on Zecco.com. The Free Trading Community. www.zecco.com

Huh, how about that? I don't recall anybody, especially the left, calling that image "mean spirited and dangerous." What I did see in the comments are these gems of kindness and adult conversation:

"I'm saying Bush is just an idiot thug who has been used by Dick Cheney to meet his ends." - Posted 7/30/2008 by deadaluspark

"Bush is obviously the antithesis of this. He can't even construct a freaking sentence without sounding like an idiot." - Posted 7/30/2008 by deadaluspark

"I should add that .....no further evidence of dubya's psychopathology is needed after yesterday's final appalling press conference." - Posted 1/13/2009 by something

I hope everyone has enjoyed this trip down memory lane and the love that comes from the left. Includes 300 FREE Fax Pages per month

Please also note, on a different topic, that the White House wants you tell them if somebody is emailing or talking in opposition to ObamaCare. Here it is, with the link:

There is a lot of disinformation about health insurance reform out there, spanning from control of personal finances to end of life care. These rumors often travel just below the surface via chain emails or through casual conversation. Since we can’t keep track of all of them here at the White House, we’re asking for your help. If you get an email or see something on the web about health insurance reform that seems fishy, send it to flag@whitehouse.gov.

Wow, rat out the dissenters! Resistance is futile! Tell on your neighbors! When is Hillary going to stand back up and say:

I'm sick and tired of people who say that if you debate and disagree with this administration, somehow you're not patriotic. We need to stand up and say we're Americans, and we have the right to debate and disagree with any administration.

I also wonder if any late night, or any comic for that matter, is going to start making fun of Obama? He's had almost 8 months of media and comic immunity. Maybe this poster will loosen them up. Have some fun. Even Bill Clinton was a good sport.

One Single Dime? More Like Thousands!

"...you will not see any of your taxes increase one single dime."

Does anybody remember the flowery rhetoric of Candidate Teleprompter and his claims of tax stability? Lest you still believe the nonsense coming off the Presidential teleprompter, perhaps you should listen to what Treasury Secretary and tax cheat Tim Geithner has to say.

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Geithner, in an interview with George Stephanopoulos, refused to rule out tax hikes. Rather, he stuck with the rhetorical flourish of, "We’re going to have to do what’s necessary.”



CBS5 explains it this way:

President Barack Obama's treasury secretary said Sunday he cannot rule out higher taxes to help tame an exploding budget deficit, and his chief economic adviser would not dismiss raising them on middle-class Americans as part of a health care overhaul.

One more time America, Obama and his enablers in the Congress are tax and spend liberals! Obama has definitely gotten the spending part down, now he is moving in for the taxes. Whether it is his ObamaCare albatross, "stimulus" package, or "Cash for Clunkers," this administration and Congress have spent this nation into the ground. What's worse, is that they are foolish enough to believe they can tax their way out of this spending crater.

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When American consumers have less money with which to consume, the economy suffers and revenue to the US Treasury decreases. Their no disputing that fact. When Americans are engaging in economic activity, whether it is spending or investing, the economy grows. When the economy grows, tax receipts grow.

However, when taxes are increased, economic activity decreases, as does revenue to the Treasury. No amount of government spending or "stimulus," can replace the multiplier effect of the American consumer. Keynesian economics just doesn't work.

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If you are serious about reducing the budget deficit, contact your elected representatives. Tell them to quit spending like drunken sailors (apologies to drunken sailors)! Also tell them to keep their hands off of the best health care system in the world. Finally, register to vote, if you are legally eligible to do so. The 2010 elections are just a year away. Do you have a message you want to send?

It's Good to Be the King

When it comes to socialized medicine, President Teleprompter will be using private doctors, thank you very much.

Although I didn't watch the Obamacare infomercial on ABC, I did read some incredibly elitist statements by the Dear Leader on abc.com. Great fares to India on Air France!

Here is the relevant quotation:

"Devinsky asked the president pointedly if he would be willing to promise not to seek such extraordinary help for his wife or daughters if they became sick and the public plan he's proposing limited the tests or treatment they can get. The president refused to make such a pledge, though he allowed that if "it's my family member, if it's my wife, if it's my children, if it's my grandmother, I always want them to get the very best care. "

OK, so the rest of us would suffer under Peasant Care, while the elites enjoy the best treatment. Boy, that sounds strangely similar to dictatorships of yore, or the IRS special treatment of Charlie Rangel and Timothy Geithnerof! Compare Long Term Care Insurance Quotes and Save!

Here is the proof that President Teleprompter has absolutely no clue how government competing with private business will destroy private business.

"The president rebuffed that, arguing that "we can set up a public option where they're collecting premiums just like any private insurer and doctors can collect rates," but because the public plan will have lower administrative costs "we can keep them [private insurance companies] honest."

Isn't it nice that he believes private insurance is dishonest? Funny how he also thinks a government-run program will have lower administrative costs. That is hilarious! Perhaps my tin foil hat is on just a little too tight, but perhaps his plan is to have socialized medicine, and this is just the first step to run out private insurance. Cheap? No. 100% Free. Trade stocks for free on Zecco.com. The Free Trading Community. www.zecco.com

Dear readers, if you wish to stop this free fall into socialized medicine, you better call your elected representatives today and register your complaints. You should also consider voicing your opposition to this cap and trade nonsense.

Support Liberty and Peace in Iran!

***WARNING - GRAPHIC IMAGES***



As there has been no meaningful statement of support from President Obama, I am making the one on behalf of freedom-loving Americans.

People of Iran,

May God's peace be upon you in your struggle for liberty and peace!

America and Americans support you! Stay strong and courageous!

Liberty is the right of all people, as well as peace. Sadly, your ancient nation has suffered at the hands of tyrants and radicals in recent years. As you struggle to assert your dignity and God given rights, know that America and all Americans support you! May peace and liberty come to your land. May you be safe in your homes and places of worship, free from terror and oppression.

In the final words of one of our beloved, patriot songs:

From every mountain side, LET FREEDOM RING!

The Truth about Chrysler's Nationalization Comes Out

If it weren't already clear that President Teleprompter wanted to run Chrysler into the arms of the UAW and Fiat, the "Wall Street Journal" ran a front page piece on June 6, 2009 that clearly spells it all out.

The article, titled "U.S. Pushed Fiat Deal on Chrysler" discusses emails that show Chrysler and its advisers were very concerned about off-balance sheet joint ventures Fiat was involved with, as well as a lack of financial disclosure on the part of Fiat. Cheap? No. 100% Free. Trade stocks for free on Zecco.com. The Free Trading Community. www.zecco.com

The emails, which you can read for yourself, demonstrate beyond a shadow of a doubt the level of personal involvement of President Teleprompter. Here is just a taste:

"Its over. The President doesn't negotiate second rounds."

Absolutely breathtaking. These emails came to light in discovery as the Indiana pension funds sought to stop the nationalization plan. As of June 8, 2009, the federal Appeals Court has allowed the nationalization to continue, though it is delayed to allow Indiana's lawyer, Tom Lauria, who Treasury refers to as a "terrorist," to file with the Supreme Court. Gift Cards - Jeep Parts & Accessories

In the end, the issue is whether bankruptcy law in the United States will be followed or if the President to exercise extra-constitutional duties. As is clearly the case, the rule of absolute priority is not being followed in Chrysler's case. The failure to abide by the rule of law is destroying trust in the economic system of the United States.

Did Bondholders Learn from Chrysler?

The Wall Street Journal ran a front page story on their May 27, 2009 edition titled "GM-Union Deal Raises U.S. Stake."

Although the piece deals largely with the U.S. government getting a 70% share of GM, with the UAW taking a reduced, 17.5%, it mentioned that bondholders could reject a debt-for-equity swap ($27 billion in unsecured debt for 10% of the company).

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It turns out that the bondholders did reject the swap and now GM is highly likely to enter bankruptcy on or around June 1, the government deadline for restructuring.

Although I have written about evils of the nationalization of auto industry here, here, and here, the GM bankruptcy process has been somewhat different.

In the now-failed deal, the senior creditors were to be made whole with $6 billion. Sounds good so far. The union, according to the Wall Street Journal, reduced their stake because they "...were concerned about GM's prospects..." also sounds pretty sane. However, GM's bankruptcy is more complicated because it is so large and has no single buyer in the wings. People who switched to Allstate saved an average of $396 per year. Quote Now!

These conditions will make for a good court fight. Why is this a good thing when the consequences are so bad for so many? It is good because it serves as a reminder to the current Legislative and Executive branches that government has no business trying to run the auto business. A good court fight will allow the stake holders to duke it out and have the market best decide the fate of a failing company. Try RingCentral Fax FREE for 30 days

Further, this bankruptcy will show all future lenders to U.S. companies that the business climate of the U.S. is transparent and operates under the rule of law. This concept has been put in grave doubt by President Teleprompter's interference with Chrysler and GMAC.

Finally, a long bankruptcy will put the brakes on the socialism express this country has been on since January, 2009. If free markets are to succeed, no company can be sacred, and no industry too important.

Tax the Economy to Health, yeah Right!

Nothing reduces consumption faster than rising prices. Lower consumption leads to lower overall economic growth. So what idiot would propose raising prices to "avert fiscal calamity?"

According to Lori Montgomery of The Washington Post, the idiot(s) would be:

"... a roomful of tax experts pleaded with Treasury Secretary Timothy F. Geithner to consider a VAT."

A VAT, or Value Added Tax, is sales tax, usually a fixed amount added to the purchase price of any good or service sold. Ms. Montgomery continues that the poor are most hurt, but should promote a VAT because:

"VAT advocates say those negatives could be offset by using the proceeds to pay for health care for every American -- a tangible benefit that would be highly valuable to low-income families."

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Ahh, now I understand, to add health care to the list of nationalized industries, President Teleprompter needs some extra cash. Is it not clear to the 50% of us who pay income tax that even darker economic times are yet to come??

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Let me provide the fastest and easiest way to get this country out of its economic trouble, REDUCE GOVERNMENT SPENDING!!! Additionally, reduce fees and regulatory burdens on business, as well as eliminating the death tax and capital gains tax. Did I mention eliminating corporate taxation?

Lest anyone forget, this VAT being discussed is ON TOP OF existing federal income tax, and will likely be raised, just like state sales taxes are. Again, higher prices equals less consumption. Less consumption leads to lower industrial and economic production. Lower production leads to unemployment and economic degradation. Stop this VAT nonsense!

Buy Your People's Car with a Loan from the People's Bank!

When you thought it couldn't any worse, President Teleprompter is going to take over GMAC, thus vertically integrating the manufacture, sale, and financing of cars in the United States. It is hard to believe this is actually happening.

In previous posts, "Killing Chrysler," "The Rule of Law is an Absolute Priority," and "Goodbye GM, Hello People's Car," I wrote about the gross aggregation of financial power by President Teleprompter, and his control over a large portion of the U.S. economy. By the way, nationalizing health care is next (socialized medicine), but I digress. Executives & Professionals: Changing Jobs?

The Wall Street Journal reports in the May 21 edition:

"The Treasury Department is poised to inject more than $7 billion into GMAC LLC, the first installment of a new government aid package that could reach $14 billion,... The GM plan being devised by President Barack Obama's auto task force calls for the government to emerge with a majority stake."

This move vertically integrates the production, marketing, sales, and financing of cars in the United States. This is a frightening thought. The government is using a large portion of industrial productive capacity to promote a political agenda, pay back union backers, and hope to modify consumer behavior. Guard against ID Theft with 15 Points of Protection from TrustedID, including our $1,000,000 Warranty. Click Here!

What makes this behavior worse is:

"Many of the loans to GM and Chrysler are likely to be written off, administration officials say. Other programs, such as the government aid to auto suppliers, are essentially a revolving credit line that is meant to be replenished."

In other words, this becomes a state-run, money-losing, union payback, with little hope of returning to private hands. While this may sound hyperbolic, I can't help but coming to the conclusion, based on the evidence.

Good Bye GM, Hello People's Car!

**Be sure to read the follow up articles here and here.**

"Let me be clear. The United States government has no interest in running GM. We have no intention of running GM" - President Teleprompter, March 30, 2009.

Nobody ever accused President Teleprompter of truthfulness, or accuracy. However, his fits of reverse psychology are beginning to create a pattern. Whether the issue is nationalizing Chrysler and GM, or so-called "torture photos," the President says the opposite of what he truly means. Executives & Professionals: Changing Jobs?

Reuters reports on 19 May 2009 the following:

"NEW YORK, May 19 (Reuters) - General Motors Corp's (GM.N) plan for a bankruptcy filing involves a quick sale of the company's healthy assets to a new company initially owned by the U.S. government, a source familiar with the situation said on Tuesday."

Huh, not wanting to run GM, right... So, President Teleprompter has made it clear for months that Americans should drive the cars that he wants us to drive, not what we want. To realize his dream of econobox hybrids for everyone, he has nationalized GM with over $15.4 billion of U.S. taxpayer money! Includes 300 FREE Fax Pages per month

To add insult to injury, Reuters continues:

"The government's plans include giving stakes in the new company to GM's union and bondholders, although the ownership structure of the company is still being negotiated, said the source who is familiar with the company's plans."

Great, another union give away, just like Chrysler. Americans, are you starting to see a trend?? The rule of law is being destroyed before our very eyes! President Teleprompter has created the largest patronage system in modern history, all using taxpayer money. Protect your Medical Identity with TrustedID. $1,000,000 Warranty & Great Customer Service

If you are a GM bond holder, you better be screaming louder than you have ever screamed to stop this madness. Bankruptcy laws in this country, especially the principal of absolute priority, make large-scale commercial lending possible. I warned you about this in "Killing Chrysler."

Americans, open your eyes to the trend! Whether banks, health care, or cars, President Teleprompter and his cronies in Congress want there hands on everything. This country can not continue to exist unless this madness stops. Exercise your legal rights in bankruptcy courts, voting booths, and writing your Senators and Representatives. American capitalism is truly on the verge of collapse.

The Rule of Law is an Absolute Priority

**Be sure to read the follow up post, "Good Bye GM, Hello People's Car!"**

I thought all was well with the world when the senior creditors told President Teleprompter to see them in court. What I should have remembered was that Chicago bare-knuckle politics now rules the day.

In my two posts, "Killing Chrysler" and "He Who Has the Gold Makes the Rules, Or So He Thinks," I wrote how bankruptcy law would win the day. Boy, was I wrong.



It appears that President Teleprompter's goons strong-armed the TARP-compromised creditors, then demonized the hedge funds and others. When that didn't work, the threats started rolling in about audits, etc. I fear we are becoming a banana republic, and not the store with expensive khakis. Cheap? No. 100% Free. Trade stocks for free on Zecco.com. The Free Trading Community. www.zecco.com

In the Wall Street Journal, Todd Zywicki writes an editorial about this mess and how the Contracts Clause of the U.S. Constitution and the principle of Absolute Priority should have prevailed. Instead, the senior creditors were muscled into taking $0.30 on the dollar, while the junior creditor, the UAW (surprise surprise), ended up getting $0.50 on the dollar, which is 55% of the company.

Constitutionally, what President Teleprompter did was violate the contracts between the senior creditors and Chrysler as well as casting bankruptcy law into confusion (from Professor Zywicki's article),

The Contracts Clause of Article V of the Constitution, which prohibited states from interfering with the obligation to pay debts. Hence also the Bankruptcy Clause of Article I, Section 8, which delegated to the federal government the sole authority to enact "uniform laws on the subject of bankruptcies."

Regarding Absolute Priority,

The absolute priority rule is a linchpin of bankruptcy law. By preserving the substantive property and contract rights of creditors, it ensures that bankruptcy is used primarily as a procedural mechanism for the efficient resolution of financial distress... Violating absolute priority undermines this commitment by introducing questions of redistribution into the process. It enables the rights of senior creditors to be plundered in order to benefit the rights of junior creditors.

In other words, the "orderly bankruptcy plan" was really just a ploy to take from the senior creditors and give to the politically-connected UAW. This risk of government interference and confiscation is going to have a negative effect on ALL business in need of credit, especially those who have politically-favored unions. If you are a senior creditor of GM, you should be afraid, very afraid. Guard against ID Theft with 15 Points of Protection from TrustedID, including our $1,000,000 Warranty. Click Here!

America, consider very carefully if this type of government interference and control is the hope and change you voted for. Consider if you want drastic government control over business. Consider if you want to see the world's largest economy collapse under the weight of uncertainty. If you don't, call your representatives and demand the U.S. Constitution be upheld, and the rule of law maintained. If not, expect the worst!

He Who Has the Gold Makes the Rules, Or So He Thinks

As I wrote in my most recent post, "Killing Chrysler," bankruptcy might be the best thing for debt holders. While I generally don't care for bankruptcy, it does happen, and the rights of both parties should be respected by law. However, with President Teleprompter and his union goons in office, what should be and are vary greatly.

The Wall Street Journal reports indirectly, in a piece titled, "Chrysler Pushed Into Fiat's Arms" (May 1, 2009), that TARP-backed banks were pressured to encourage other debt holders to accept the government's deal. People who switched to Allstate saved an average of $396 per year. Quote Now!

What becomes clear, as the story reports:

"The administration had repeatedly said it has no plans to run Chrysler or dictate its business plans. ... The pact allows the government and UAW to reorganize the company's top management."

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Interesting, President Teleprompter wants to reward the UAW goons with control over the third largest automaker, and then tell them what cars to make. Sounds crazy? Also from the article:

"Moreover, the government said it would use the agreement with Fiat and Chrysler to encourage fuel-efficient cars."

Didn't it seem strange to anybody that the President of the United States was announcing the bankruptcy of a publicly traded company? Have you wondered why the federal government is getting its nose and your money into these businesses and not just letting them fail naturally, under existing bankruptcy law?

Clearly, this is about political power, and the socializing of the U.S economy. Consider how President Teleprompter speaks about the debt holders seeking enforcement of their contractual rights and relief from the courts:

They "decided to hold out for the prospect of an unjustified, taxpayer-funded bailout," Mr. Obama charged. Were that not enough demonization, Cogressman for Life, Rep. Dingell (D. MI) calls the debt holders, "...'rogue hedge fund' and 'vultures' and said in a statement that they 'will now be dealt with accordingly in court.'

Wow, name calling, threats of court? This is just business, right? Not really, as this is really just a push to control as much industry as possible. Guess what GM, you're next!

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In less than 100 days, the federal government now owns 85% of one of the world's top insurance companies (AIG), and has its claws in the top banks via TARP. GM is next, and after that, health care. If this isn't stirring just a bit of worry in your mind, it better!!

My sincerest hope is that when the debt holders get to court, they plead their case, and the judge pays the secured debt holders their due. Further, I hope the judge pays each aggrieved party all they are entitled to under the law, and leaves President Teleprompter's dreams of industrial domination in the dirt.

President Pwnd by Pesky Pirates

Since the founding of the Republic, the United States has been fighting pirates. The U.S. Navy was founded in 1794, just a few short years from the successful conclusion of the American revolution. As such, the U.S. was suffering from an enormous debt load and didn't have a fighting navy to speak of.

From 1784 until 1804, the U.S. Congress paid the Barbary pirates to not attack ships and take hostages. While not an abysmal failure, the tribute only encouraged the Pasha (Basha) of Tripoli to demand more money. In 1804, under the leadership of President Thomas Jefferson, the U.S. refused to pay tribute any longer and began a military campaign on both land and sea. The campaign was successful and attacks against U.S. ships stopped.

Fast forward to 08 April 2009. The Maersk-Alabama was hijacked by Somali pirates. Ultimately the mostly-American crew repelled the boarders, however, the Captain, Richard Phillips was taken hostage. In what could have been a foreign policy coup for President Teleprompter, turned into a failure. Emergency Radios

While President Teleprompter could have ordered the near immediate retaking of Captain Phillips, he didn't. He dithered until he had signed two different orders to allow the U.S. Navy to protect and defend her citizens. President Teleprompter also failed to retaliate in a manner to further dissuade the pirates from ever attacking U.S. citizens. He could have ordered the USS Bainbridge to attack the land positions of the pirates. He could have ordered an immediate blockade of the port of Mogadishu. He could have ordered the immediate boarding of all non-commercial vessels and seizure of all weapons. He didn't. He is bringing the lone pirate back for trial.

Why is this a failure? Because of instead of taking immediate and forceful action, he sat back and watched. Instead of ordering the military to act without haste, the situation was prolonged at the risk of the life of Captain Phillips. Instead of clearly demonstrating overwhelming force and determination, President Teleprompter has now encouraged the pirates to act more vigorously against U.S. interests. Protect your Medical Identity with TrustedID. $1,000,000 Warranty & Great Customer Service


Joe Biden in his stopped clock moment, said that President Teleprompter would be tested within 6 months of his inauguration. He has, first by North Korea, which fired its missile brazenly and now by the Somali pirates. In each case, his lack of forceful action has shown him the neophyte, instead of the leader of the most powerful nation in the world. It should come as no surprise that he spent his week in Europe apologizing for America's greatness, and bowing to King Abdullah of Saudi Arabia. President Teleprompter, you got pwnd.

Allow me to express gratitude and praise to the men and women of our Armed Forces, most especially the United States Navy SEALS. You have proven again your courage and warrior spirit. May you continue to strike fear into the hearts of our enemies and be strengthened by the appreciation of the nation. As a former military officer, I salute you!