Trillions spent for what?

Obama and his cronies in Washington are going to spend trillions of dollars in "stimulus" in an effort to jump start the economy. Are they for real? These people have no idea what they are doing. The shortsighted outlook of our political leadership is what created this mess to begin with. Now, we are going to invent a bigger problem in the future by making stupid decisions today.

I decided to give you all a bit of a lesson since most seem to be educated by our ineffective school system. I am going to give you a website which I suggest you bookmark and return to frequently. It will allow you to converse about economic and financial matters somewhat intelligently. This will separate you from the masses since most get their economic ideas from the slobbering blowholes on television.

If you think that you are going to have a tough time making ends meet now, wait until we experience an inflation rate in the high teens. This is what we will see as a result of all these bailouts and stimulus packages. The government, in their infinite wisdom, is going to try to spend their way out of this mess. Unfortunately, it does not have the money to do so.

I want you to go to this link and read about inflation.

Notice what it says:

"If the money supply has been increased, this will usually manifest itself in higher price levels - it is simply a matter of time."

Where do you think the government is getting all this money? They are printing it. I imagine the money supply is increasing as quickly as they print it. That is what it means when they say "they are injecting the markets with capital". Simply, they are printing money.

We saw the effects of inflation on our pocketbooks when the gas prices shot up last year. While this was not due to inflationary pressures, the result was the same. People had less purchasing power because they had to spend more on a basic necessity. In effect, it cost people double to drive to work each day. They realized no more benefit for the extra money, only a higher cost.

I am preparing you for what is coming. The policies of those in Washington are going to create a similar situation. The rapidly growing money supply sets the standard for inflation to escalate when the economy does recover. Thus, any recovery will be sabotaged by inflation. This pushes the Fed to combat that animal by raising interest rates which stifles spending. And, we are in the cycle all over again.

People fail to learn from history. I am amazed that Obama is so naive for such an intelligent man. He claims to be a student of men like FDR yet he is following their same failed policies. Huge government investment has never worked in any country around the world. If it did, Russia (or other communist nations) would have economies that are roaring. Instead, their economies topple every couple of years. This is the model that Obama is following.

Now you have no excuse for being naive about these matters. The next time some meathead mentions how the government is going to spend our way out of this, ask him or her what they are going to do about the hyberinflation which will result.

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Maybe We Need To Hang The Judges

As many of you are now aware, today the members of Congress received $4,000+ salary increase. The Congress is given automatic raises without even requiring a vote. That was instilled 20 years ago under "ethics" legislation (someone will have to explain that one to me). Now, it seems that judge's panties are in a ruffle at not receiving a similar increase.

(You will love reading this article)

The disputed increase is under the COLA program that raises federal employee's pay to keep pace with inflation. It seems that Justice Roberts is upset that the judges were overlooked in this matter. He is irked that Congress is allowing the pay of judges to "steadily erode". Is he serious? They make between $169,000-$218,000. And they are concerned about having their income eroded? Maybe they should take a look around at what the average person is experiencing.

Here is a prime example of how detached the people in power really are. A cost of living increase is a total bunch of garbage to start with. Why do these employees deserve more money when the price of things goes up? People in the private sector are not afforded the same benefit? In this economy, people are having to take pay cuts to survive. Yet, those in power feel they are entitled to more money.

As for the judge's argument that they deserve it by comparing themselves to professors or deans, that is also horsecrap. If you dont like it, go become a law professor somewhere. Nobody forced him to become Chief of the Supreme Court. Of course, he will talk about the "sacrifice" he made to be in public service. Let us really look at this: lifetime appointment with no way of being fired and retirement with full pay at 65 if serving 15 years on the bench. How is that a sacrifice?

The only thing I can say is that perhaps we need more rope.

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What Is Our Government

We initially were established as a democracy which means "rule by the majority". This might be true back when the Founding Fathers created the new government. Sadly, we are a long way away from this now. Recent events reveal exactly the form of government which exists.

An oligarchy is "rule by a few". This is definitely the case in the era. The other day I wrote how the Federal government is run by 536 people (read here). This clearly shows that the fate of 300 million people is in the hands of an elite few.

However, there is another level that needs to be looked at. There is a classification of oligarchy which is termed "plutocracy". This is "rule by the wealthy". Take a look at the members of Congress and you quickly realize how true this is. Also, with all the money required to get into office, it is impossible for the "average Joe" to get elected. Even a state seat requires hundreds of thousands of dollars.

Another characteristic of a plutocracy is that the degree of economic inequality is high while social mobility is low. The idea of upward mobility is advertised as being available to everyone but, in reality, only a few can do this. Look at the black race. They were poor generations ago and are still in that same situation. As a culture, they really did not ascend in social standing. The same is true of most born into poverty.

We hear a lot about the separation between rich and poor. Inflation is increasing at an astounding rate (do not believe the 2%-3% crap the government claims; 7%-9% is more accurate). This affects the lower income people more than those who are well off. Also, someone with 1/10 the money to invest will need to get 10 times the return to keep pace with the wealthy. Thus, the separation of rich and poor is increasing.

This is the situation as it is now. If you are one who is holding out that you are living in a democracy, wake up. The government is run by the wealthy. We are starting to see the government take over the resources of the country. Our financial system is owned in part by the Feds. Do you think they will ever give up that control? Also, since they are so irritated with the oil companies, I can envision the government getting involved there. Of course, they will sell this by telling us how it is to protect us from "corporate greed". The control of natural resources by the government is another aspect of plutocracy. It is here folks. Accept it!!!

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