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Jim Cook



Every once in a while I switch the TV channel from Fox to CNBC to see what the liberals are saying.  After listening awhile I get a deep sense of hopelessness and foreboding for our country.  The most important thing for the left is giving money to people.  They are happy to see the growth of food stamps, disability payments, housing subsidies, free healthcare and all the other welfare benefits.  They utterly fail to see the damage it is doing to the recipients.  Whole cities that once flourished have deteriorated into rotting eyesores populated with shambling hulks of chemically dependent drones.  These people are no longer employable.  They have become incompetent and helpless and the liberals can’t see that it’s their doing.

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The Best of Jim Cook Archive

Best of Bill Buckler
September 10, 2009
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Mr. Obama's Fire Sale Chat:

Like many of his fellow Americans, President Obama has returned from his summer vacation. Unlike increasing numbers of his fellow Americans, Mr. Obama had a secure job to return to.

On September 5, Mr. Obama gave the latest in his weekly series of radio broadcasts to the nation. For most of the northern summer, the number one item on Mr. Obama's agenda has been his $US 1 TRILLION "health plan". This plan is facing mounting opposition from the American people and is facing an uphill struggle in Congress. It is said by the US media to be the "defining issue" of Mr. Obama's fledgling
presidency. One would have expected it to be the subject of his talk.

In the event, the health plan was not mentioned. Instead, Mr. Obama chose to talk about the need for Americans to "save"?! Yes, you read that right. While their government borrows and spends at rates never before approached and while Mr. Obama puts all his considerable rhetorical skills behind yet another $US 1 TRILLION government "program,” the American people are being urged to "save.

But as one would expect in this context, "saving" has a very specific meaning to the US government. Mr. Obama, with Treasury Secretary Geithner and Fed Chairman Bernanke right behind him, wants this saving to be done exclusively by means of "US Savings Bonds" (aka US Treasury debt paper).

The Fed has stated that they will end their program of directly buying US Treasuries with newly created Federal Reserve Notes (US Dollars) next month. It is becoming clearer almost every day that foreign central banks are fast losing their formerly insatiable appetite for Treasuries. Clearly, a new "buyer" must be found - and FAST! Hence, Mr. Obama's fire sale chat to his fellow Americans.

Your Country Needs YOU!!:

Mr. Obama announced a four-pronged plan to induce Americans to increase their "savings". All of these initiatives are covered under the heading of "administrative actions,” which means that they do NOT require Congressional approval. They are apparently scheduled to come into force immediately.

The headline item is a change to US tax forms which makes it possible for any American getting a tax refund to choose to take the refund in the form of a "savings bond". All that is required is to tick a box. White House officials promptly pointed out that there are about 100 million tax refunds a year
in the US which average about $2000 each. We'll do the "math" for you. If everybody ticks the box - that comes to $US 200 Billion - enough to fuel current US federal government spending for about three weeks.

The government won't have to worry about servicing these bonds, something that they do out of future "general revenues" anyway. Treasury "Series I Savings Bonds" are currently "earning" 0.00 percent.

The other administrative actions are along the same lines. The first simplifies creating 401 (k) (retirement) plans for employees of small businesses while making enrollment automatic unless the employee specifically declines. Another automatically increases the amount put into these plans, again
unless the employee specifically declines. The third allows employees to direct unused vacation pay into a retirement account instead of taking it in cash. All of these new "initiatives" are said to be based on the latest behavioural research. This research has come to the not very startling conclusion that people are more likely to "comply" with a proposed course of action if they have to make a decision
NOT to participate. Note here that the one initiative which does not conform to this - yet - is the BIG one, the taking of tax refunds in the form of Treasury debt paper. We wonder how long that will last.

If the Obama administration was confident that they could continue to fund their "deficit spending" by means of foreign and Federal Reserve buying of Treasury debt, these "initiatives" would have been kept in reserve. They have not. These are last ditch attempts to continue to fuel a bankrupt "system

Ó 2009 – The Privateer

(reproduced with permission)


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