Audit The Fed

There have been editorials regarding Congressman Ron Paul’s push to have the Fed audited like every other government department. The opinion was the Fed should be left independent. A little lesson is needed. The Fed was formed by the large banks for one reason – so they could become “too big to fail”. After the government had to borrow from one of those banks, bankers realized they too could fail. The Fed acts as a banker’s bank. They are the lender of last resort. They are also tied directly to the government since the Fed chairman is a political appointee.
The Fed is also tied to the government through the Treasury. The Treasury prints and distributes the money the Fed uses to raise or lower the money supply which determines interest rates and inflation.
The reason banks are not lending to small businesses is because they do not need to. Instead of investing in small businesses they decided to invest back in the government. The bank can borrow money from the Fed at zero interest (the current Fed Fund Rate) and buy a 10 year Treasury which pays 4.5% interest.
Rather than taking a risk with business loan they can get a guaranteed 4.5%. Did you notice the 4.5% is being paid by the same people that loaned them the money in the first place? Did you also notice that 4.5% is being paid with tax dollars and is being added to the national debt?
Did you question how GM could pay back their TARP money while still not making a profit? They borrowed money directly from the Fed to pay back the Treasury. That’s like paying your Mother back with money from your Dad. They still don’t have the money but you got to use it.
That’s why Ron Paul’s bill should have the support of all taxpaying Americans. Where is that transparency we were promised?

Let Their Be New Taxes

One day man made a car – and it was good. Ford begat GM who begat Chrysler who begat Dodge, etc. But, lo – a road was needed. A politician from the mountaintop declared users should pay and a gas tax was born. All paid to the mighty gas tax was to be for roads and bridges to carry ourselves to and fro without the dreaded ruts.
But one day Mr. Politician was in need of re-election and needed money to buy barrels for the pork. No one would know if he just took a little out of the gas tax fund. After all, roads take years to get approved and built and surely another tax will raise the money to pay it back. Let the robbing of the highway fund begin.
One day Mother Nature became angry because we were hurting her air. Mr. Politician in need of campaign dollars declared the Earth in need of our help. More efficient cars will save our resources and clean the air and get him re-elected.
Now cars are more efficient, Mother Nature is happier. But all is not happy. With less gas being bought there is less tax money being paid to the highway fund. Since the money borrowed for other things is not returned, a problem has arisen.
How do we build more roads for more cars needing less gas which provides fewer tax dollars to fund the new highways and bridges and all the other projects that have nothing to do with highways not to mention pad the politicians re-election pockets? I sense a new tax coming.

Global Warming/Cooling/Climater Change, Whatever

While driving to work in the snow I was reminded of a story in our newspaper over the weekend. It concerned the fact that not a single hurricane made landfall this year. This was the year, if you will remember, that climatologists around the world predicted multiple Katrina-like hurricanes as a result of the continual raping of the earth’s resources. Oops, wrong again!!

What I have missed, however, is any mention of the hundreds of emails that have surfaced recently from the same “scientists” that have determined “global warming” is real. The emails are between “scientists” who found “indisputable evidence” (Obama) about the “inconvenient truth” (Gore) that the ozone we use in hairspray on earth is destroying ozone hundreds of miles in space. Common sense would tell you to spray more to clsoe the gap, but I digress.

It appears in the emails that the entire basis of global warming is based on the tree rings of a particular tree in a particular part of the world – sort of. Actually, according to the emails, it was three trees that had a ring structure that “proves” global warming is occurring and mankind is the cause. Please note more trees were examined but only the ones that "proved" the scientific fact were used.

That’s right - three. Out of the hundreds of millions (dare I say “billions and billions” - Sagan) of trees on earth, three have “scientifically proven” manmade causes are destroying the planet as we know it. These “scientists” suggested to one another that they be prepared to alter or destroy their results. No doubt fearing they will reveal the inconvenient truth that this has been a giant hoax.

Once again, if enough people repeat the same lies it will soon become the truth. Just like the “scientific truth” of evolution.

Debate? What Debate?

What is this healthcare debate all about? Is it about the doctors? You know the ones who will amputate the feet of diabetics and cut out tonsils of children just to make more money (said Obama)? Or the doctors who gathered at the White House and had a photo-op because “they are the most trusted group in America” (said Obama).
Or is it about Big Pharma who makes obscene profits (says Pelosi) or Big Pharma who agreed to contribute millions to make ads in favor of the government option in exchange for not having to negotiate drug prices with Medicare?
Or maybe it is the hard-hearted insurance companies who deny coverage just to make more money? Their profit margins are 2.5% while the cardboard industry has profit margins of 5.5%.
Whether Democrat, Republican, Libertarian, conservative, moderate, or liberal where in the U.S. Constitution does it give Congress the authority to make, as a condition of citizenship, the obligation to purchase any goods or services? In fact, if you do not purchase that service you are subject to fines and up to 5 yrs in prison.
Some will respond “we are required to buy car insurance”. Wrong. You are required to prove you can pay for damage you cause others up to $50,000. That could be in the form of a bond or you can buy car insurance – your choice.
The Senate’s bill covers 96% of Americans. What if you go along with this and find out you are part of the 4% left out. Then what?

The Vietnam Effect

I call it the “Vietnam Effect”. Every baby-boomer knows someone who was killed in Vietnam. Maybe a relative, a classmate, a neighbor or the barber’s son. If you didn’t know them directly you know someone who had a relative or friend who was killed and they told you about it. There were approximately 50,000 troops killed in Vietnam.
Why is it when the government tells us, as Harry Reid did, that more than 350,000 people filed for bankruptcy last year as a result of a medical issue, I don’t know a single one of them? If 50,000 affected everyone in the country, why is it everyone doesn’t know 3 or 4 of these 350,000? In fact, I only know one person who filed for bankruptcy in the past year. His reason was business related not medical.
Could it be that a number was used simply to magnify a problem that may not even exist? Could it be a lie? My suggestion is simple. When someone uses a number larger than 50,000 and you personally do not know anyone in the group, ask a friend or two if they do. If they don’t, you have just been told lie.
The hundreds of thousands who have been denied insurance due to existing condition – a lie. The millions who cannot afford insurance – a lie. The millions of uninsured children – a lie.
So, tell me again what problem they are trying to solve?

I Want Some Obama-money

After many months of debating I have decided to change my allegiance and support Obamacare. The reason is simple – they made me an offer I couldn’t refuse. Here’s why the change. I currently pay $784 per month for my health insurance as part of an early retirement package. According the learned economists that could well escalate to over $1,000 by 2013.
According to the current healthcare plan, that is the year all this actually begins (“income” for the plan starts getting “collected” ASAP). In 2013 there will be a $200 fine if you do not have insurance. I would then have a choice, pay $200 fine or $12,000 insurance costs. I’ll simply drop my insurance and pay the $200 fine. If I sick I’ll just go to the ER since the wait will probably be the same when everyone goes to my doctor. If I get really sick, say a heart attack, my wife will know to call our insurance agent to get me signed up on health insurance. Since pre-existing conditions will no longer apply, I could actually get insurance while in the ER waiting for surgery – mmm-mmm-mmm!
In 2014, the fine goes to $250. I’ll drop the public plan and pay the fine. In 2015 I turn 65 and will be on Medicare. I figure I’ll save well over $36,000 over 3 years and pay the paltry $500 in government fines. Meanwhile, all you other schmucks will be paying higher health insurance, higher hospital district taxes, higher income taxes, taxes on medical supplies, higher deductibles on your health insurance, and higher payments to corporations who will be taxed higher.

The State Robs Us Again

In the Oct 4 edition of The Dallas Morning News there were two stories regarding the deregulation of the electric market in Texas. The first was about the poor and elderly whose power had been shut off. One of the elderly died as a result. Of course, the immediate blame is focused on the evil, greedy, profit mongering electric company that knows no compassion for the sick, elderly or poor.
The other article was about the System Benefit Fund. What does one have to do with the other? The System Benefit Fund was established as part of deregulation to subsidize qualified low-income consumers. Every consumer is charged 65 cents per megawatt-hour.
As with all such “Funds” (Social Security, Medicare, Medicaid, tobacco lawsuit settlement, gasoline tax, etc) they somehow get robbed and money diverted to the general fund for other purposes. Of the $1.1 billion raised since 2002, less than half has stayed in the Fund and of that a small percentage has actually been given out.
Here we are again. Another government program designed to take money from everyone to give to another group and no one sees a benefit. So, who’s to blame for the death of that elderly person who had her electricity shut off? I say the same group that said they were going to help her.
When will we learn that our elected officials cannot help anyone except themselves?

Goverments are Not Big Business - Dang It.

Never let the facts get in the way of a good debate. First, we are not the richest country in the world. We simply spend more than anyone else. Go to www.usdebtclock.org to see for yourself. As I write this we are $11.8 TRILLION in debt. That is $38,445 per citizen that has been spent more than the government has already taken from us. We have $59 TRILLION in unfunded liabilities. We are not rich!
Pro-Obamacare folks use the “we already have a public option – Medicare” logic, consider this. From 1970 through 2005 (before the prescription drug benefits) the number of Medicare beneficiaries grew by a factor of 2.1. The economy grew by a factor of 12. Medicare spending grew by a factor of 47!
To put it another way, beneficiaries grew at an annual rate of 2.14% while the economy grew at a 7.4% annual rate and spending per beneficiary grew 11.6%. No matter how you look at it, the cost of our “public health option” has outpaced every category. This is why conservatives do not want another government program. Governments cannot run anything efficiently.
Look no further than “cash for clunkers” where car dealers are still waiting for their money. Or look at our own local water park. The local government officials have said numerous times they knew it would not be profitable! In fact, the deal with DISD is they would reduce the shortfall. How about the water park charge DISD for the actual use. How about the water park be required to make at least $1 in profit!

Denton's "No Tax Inccrease" Budget

When does a fee become a tax? When it is passed on to customers. In the budget the city officials say the rates for utilities will stay the same. Really? Franchise fees came about as a result of deregulation. Anytime a phone company, electric company, or cable company wanted to do business, they paid a fee. It made sense because they were using city rights of way to hook up the customers.
But what sense does it make for the city to charge itself a franchise fee? How can one department be charged by another department and all the employees be on the same payroll – ours?
If transparency is the buss word, why not simply say rates will go up. In this day of politicians and governments being intentionally dishonest, must we get this from our city? If you want to raise the amount of money the city rakes in with it’s monopoly of utilities, be man enough to say it. Do enough people in the city really think we are that stupid?
Of course, since fees are not shown on our utility bills, they may think we don’t know. Anyone who has paid a bill knows that the utility company passes along every fee, charge, surcharge, and tax to the customer.