Time to Throw Da Bums Out!

I had promised to give the new Congress & Administration one year to settle in and ‘get the hang of things’. But the more fumbling international diplomacy I see, the bigger the spending bills get, and the more entitlement plans that are presented, I just don’t think we can afford to wait anymore. Let’s get them all out! - Out of office and out of D.C.
Members of Congress were never meant to have tenure; the more anti-Federalist of the founders wouldn't have wanted a government that required full-time, much less lifelong, service. Lawmakers usually pitched in for a few years upholstering the work of the framers, then went back to their plantations or law practices. This model of the citizen-legislator held for about 100 years, until government began to expand after the Civil War and the realignments of the 1890s made for safer seats where lawmakers could tuck in for a long ride.
Maybe it is time to kick all the incumbent ‘good ole boys and girls’ out and start over with some fresh faces and ideas. While we are at it, let’s get them out of the beltway and put them back into the states and districts were they are from. Why do we need them in D.C.? With all the technological marvels we have to today they can teleconference, blueberry, phone, fax, mutilate and staple to their hearts content. And they can stay where the people who put them in office have access to them and have the ability to keep an eye on them. You know, like are they really showing up for work, and who is that going into the office continually?
They could eliminate having to buy or rent homes ‘away from home’, and we could turn all the perks like the Congressional Golf Course, dining rooms, and other facilities over to public use. Nancy wouldn’t even need the Gulfstream on a weekly basis. How many billions could be saved?

A man's got to know
his limitations!

Obama orders cuts by Cabinet

Boston Globe - ?5 hours ago? AP And Globe Staff / April 21, 2009 Convening his first Cabinet meeting yesterday, President Obama ordered his agency chiefs to join many American families in penny-pinching, but acknowledged that slicing at least $100 million in administrative costs ...

President Obama has asked his cabinet to come up with 100 million in savings over a 90 day period. This sure sounds good on the surface, until you realize our budget is running around 200 billion per month or 600 billion in 90 days. If this is broken down to be understandable to most of us, it looks like this: 600,000,000,000/100,000,000 To put it another way it amounts to one dollar in savings for every six thousand spent.
Wow, I feel better already!
President Obama promised the country a sharp knife in dealing with the budget, but it seems like he got the butter knife out instead.
"To put those numbers in perspective, imagine that the head of a household with annual spending of $100,000 called everyone in the family together to deal with a $34,000 budget shortfall," Harvard University economist N. Greg Mankiw, a Bush administration official, wrote on his blog. "How much would he or she announce that spending [be] cut? By $3 over the course of the year -- approximately the cost of one latte at Starbucks. The other $33,997? We can put that on the family credit card and worry about it next year."

I predict future happiness for Americans if they can prevent the
government from wasting the labors of the people under
the pretense of taking care of them.
Thomas Jefferson

Mortgage Primer 101

President Obama has just released his latest plan to keep people in their homes. I have a flash for his cast at Treasury.
PEOPLE WANT TO SELL THEIR HOMES! We went down this road of 0% down 125% financing thanks to Bill Clinton, Chris Dodd and Barney Frank. We had to close the housing gap! There were people out there who could not afford to buy a house! Of course more affluent people used the plan to buy a $730,000 dollar home when they could only afford maybe a modest little $600,000 dollar home.
The point is that three or four years down the road, they still have no equity and are still upside down on the mortgage. They are upside down because they took that extra 25% and paid off credit card debt or other personal debt or maybe added a pool to their new digs that they couldn’t afford in the first place.
Now, in order to sell, they have to find someone willing to take on that extra mortgage amount. Even if we were in the housing market of the last decade, the homes value would not have appreciated enough to make up that 25%. We do not need a plan to re-write these mortgages and “keep people in their homes”. We need a plan to bring liquidity and mobility back in the market. That will only happen if we return to the basic premise that equity builds value. Let’s get the intellectuals and social engineers out of business.

LAYOFFS AND DOWNSIZING....

Has anyone out there ever been laid-off or downsized?

I can tell you one group that never has suffered this indignity. Our ELECTED REPRESENTATIVES!!

When a company falls on difficult times, one of the things that seems to happen is they reduce their staff and workers. The remaining workers need to find ways to continue to do a good job or risk that their job would be eliminated as well. Wall street, and the media normally congratulate the CEO for making this type of "tough decision", and his board of directors gives him a big bonus.

Our government should not be immune from similar risks.

Therefore: Reduce the House of Representatives from the current 435 members to 218 members and Senate members from 100 to 50 (one per State). Also reduce remaining staff by 25%.

Accomplish this over the next 8 years. (two steps / two elections) and of course this would require some redistricting.

Some Yearly Monetary Gains Include:

$44,108,400 for elimination of base pay for congress. (267 members X $165,200 pay / member / yr.)

$97,175,000 for elimination of the above people's staff. (estimate $1.3 Million in staff per each member of the House, and $3 Million in staff per each member of the Senate every year)

$240,294 for the reduction in remaining staff by 25%.

$7,500,000,000 reduction in pork barrel ear-marks each year. (those members whose jobs are gone. Current estimates for total government pork earmarks are at $15 Billion / yr)

The remaining representatives would need to work smarter and would need to improve efficiencies. It might even be in their best interests to work together for the good of our country?

We may also expect that smaller committees might lead to a more efficient resolution of issues as well. It might even be easier to keep track of what your representative is doing.

Congress has more tools available to do their jobs than it had back in 1911 when the current number of representatives was established. (telephone, computers, cell phones to name a few)

Note:
Congress did not hesitate to head home when it was a holiday, when the nation needed a real fix to the economic problems. Also, there were 3 senators that were not doing their jobs while on the campaign trail for 18+ months) but were still accepting full pay. These facts alone support a reduction in senators & congress.

Summary of opportunity:

$ 44,108,400 reduction of congress members.

$282,100, 000 for elimination of the reduced house member staff.

$150,000,000 for elimination of reduced senate member staff.

$59,675,000 for 25% reduction of staff for remaining house members.

$37,500,000 for 25% reduction of staff for remaining senate members.

$7,500,000,000 reduction in pork added to bills by the reduction of congress members.

$8,073,383,400.00 per year, estimated total savings. (that's 8-BILLION just to start!)

Big business does these types of cuts all the time.

If Congresspersons were required to serve 20, 25 or 30 years (like everyone else) in order to collect retirement benefits there is no telling how much we would save. Now they get full retirement after serving only ONE term.

IF you are happy how the Congress spends our taxes, then just ignore this post. IF you are NOT at all happy, then I assume you know what to do.

Next Week: The Administration! What we might call the CEO and Staff!

A.M.

YOU'RE FIRED!

BANK BAILOUTS...

Big bailouts for 'higher-ups' anger left-out middle class
Santa Rosa Press Democrat - ?19 hours ago? The massive government bailouts and Obama's housing rescue plan have stirred passions across the nation as people debate whether such help is necessary or ...

Bank Bailouts and Trust Preferreds: Still Too Much Risk Here
Seeking Alpha - ?5 minutes ago? With the statements and actions of the Fed and Treasury continuing to show favoritism toward maintaining the solvency of financial institutions

Treasury details "stress test" for banks looking for bailouts
Consumer reports - ?Feb 25, 2009? The two-part "Capital Assistance Program" will give banks access to the remainder of the government's $700 billion bailout fund. One part of the plan

Northern Trust under fire for lavish parties
ABC7Chicago.com - ?Feb 24, 2009? Kerry plans to introduce a bill this week to end what he calls extravagant spending practices of banks that receive taxpayer bailouts. ...




“Hell, back in 1990, the Government seized the Mustang Ranch brothel in Nevada for tax evasion and, as required by law, tried to run it. They failed and it closed. Now we are trusting the economy of our country and our banking system to the same nit-wits who couldn't make money running a whore house and selling whiskey!"

....Elliott

DIPLOMACY Or CAPITULATION??

China expresses relief over Clinton visit:
1 hour ago

BEIJING (AFP) — Hillary Clinton's trip to Beijing has come as a relief to China after the US secretary of state steered clear of human rights and other sensitive issues to focus on cooperation between the world powers.

Just before arriving in the Chinese capital, Clinton told reporters that while she would press concerns over human rights: “Those issues can’t interfere on the global economic crisis, the global climate change crisis and the security crisis.”

Hillary Clinton is redefining herself to some extent (again?). After going to Beijing in 1995 as first lady to deliver an impassioned speech on women’s rights, Mrs. Clinton has sidelined human rights on this trip, saying she does not want the topic to interfere with central issues like climate change or the economic crisis.

Here are the words of U.S. Secretary Of State Hillary Clinton in April of 2008 less than one year ago. "These events underscore why I believe the Bush administration has been wrong to downplay human rights in its policy towards China. ...

But this year we get this:

Clinton: Chinese 'human rights can't interfere' with other crises

Dissidents held during Clinton Beijing visit

Clinton focusses on selling US treasury bills to China

China still sure of US bonds: Clinton

Clinton says America and China must work together

Clinton: US to 'deepen and broaden relationship' with China


Ahhh, the Fresh Face of Diplomacy!

REGONOMICS vs OBAMANOMICS

With regards to:

Peter Ferrara
Director, Entitlement and Budget Policy, Institute for Policy Innovation

President Reagan’s economic recovery plan included four specific components on which he explicitly campaigned over and over and then implemented once elected.

These were:
1. Reductions in tax rates to restore incentives for economic growth. This consisted of, first, a reduction in the top income tax rate of 70% down to 50%, and then a 25% across the board reduction in income tax rates for everyone. The 1986 tax reform then reduced tax rates further, leaving just two rates, 28% and 15%. Reagan also cut corporate income tax rates and capital gains tax rates
2. Spending Reductions. The reductions included a $31 billion cut in spending in 1981, close to 5% of the federal budget then, or the equivalent of about $150 billion in spending cuts for the year in 2008. In constant dollars, non-defense discretionary spending declined by 14.4% from 1981 to 1982, and by 16.8% from 1981 to 1983. Moreover, in constant dollars, this non-defense discretionary spending never returned to its 1981 level for the rest of Reagan’s two terms! By 1988, this spending was still down 14.4% from its 1981 level in constant dollars. Even with the Reagan defense buildup, total federal spending declined from a high of 23.5% of GDP in 1983 to 21.3% in 1988 and 21.2% in 1989. That’s a real reduction in the size of government relative to the economy of 10%
3. Anti-inflation monetary policy to restrain money supply growth.
4. Deregulation. Reagan’s deregulation plan has now saved consumers an estimated $100 billion per year in lower prices. Reagan’s first executive order, in fact, eliminated price controls on oil and natural gas. Production soared, and the price of oil declined by over 50%.
The results were spectacular. These four components produced a 25-year economic boom from 1982 to 2007. In their new book, “The End of Prosperity,” Art Laffer and Steve Moore call the these years “the greatest period of wealth creation in the history of the planet.” They note that — adjusted for inflation– more wealth and income was created during this Reagan boom than in any other prior period in U.S. history. That’s right, than any other entire period dating from President George Washington all the way up to Ronald Reagan.
But Barack Obama is doing exactly the opposite on each of these four points:
–He is still promising tax rate increases, at least by letting the Bush tax cuts expire.
–He just passed the greatest increase in government spending in the history of the planet.
–He is promising massive increases in regulatory burdens, including global warming cap and trade regulation that would cost the economy another trillion dollars a year.
–The Fed is already furiously reinflating the money supply, sowing seeds of further havoc in the future.
Even the Obama tax cuts do not follow the Reagan economic recovery plan because they are not reductions in tax rates, which is what drives the incentives that govern the economy.
A reduction in tax rates increases incentives by allowing people to keep a higher percentage of what they earn from productive activity. But Obama’s tax cuts are all based on tax credits, which do nothing to improve incentives. They are really just the same as his government spending in terms of their effect on the economy, just like sending more welfare checks out to everyone.
At AmericanSolutions.com, former House Speaker Newt Gingrich has proposed an updated version of the Reagan economic recovery program for today. It includes, among other items, a reduction in the federal corporate income tax rate from 35% to the 12.5% rate that over the past 20 years has lifted the standard of living in Ireland from the bottom of the EU to the top. It would eliminate the capital gains tax to match rates in China, Singapore, and other international competitors — a move that would entice capital investment from the world over to America. It would provide middle class tax relief by reducing the 25% income tax bracket to 15%, establishing a flat rate tax of 15% for close to 90% of American workers. Gingrich also proposes that a cut in the payroll tax by 50% for 2 years. He also proposes that our government work to control government spending to balance the budget, something Gingrich himself achieved when he was Speaker of the House. Under his plan, the United States would also adopt a real, comprehensive energy program that would allow production of domestic U.S. oil and natural gas, as well as nuclear power, clean coal, ethanol, and renewable fuels.
Obama keeps saying he is only interested in what works, not ideology. So why doesn’t he include any of the above components that have a proven track record of effectiveness? Why is our president ignoring what works and insisting on embracing an ideology that will simply expand big government?

Why indeed?

TORONTO PRESS CONFERENCE

TORONTO PRESS CONFERENCE

The Associated Press - 2 hours ago
WASHINGTON (AP) - Barack Obama's first foreign trip as president - a down-to-business visit with an essential economic ally, Canada - is light on time but loaded with touchy matters.

Mr. President! Mr. President! “I have a question!”
“Uh, Uh, oh very well, what is your name, newspaper and your question sir?” I don’t believe you are on my posed question list!”
“Joe Schmoo from the Northern Plains Dealer, Mr. President.
In light of the following world news stories, the American people would like to know who is tracking these items in the Administration
and what the plans are to act on them?”

COLOMBO (AFP) — The United Nations humanitarian chief John Holmes held talks with leaders in Sri Lanka on Thursday over the fate of thousands of civilians trapped in the island's war zone.

CNN International - 55 minutes ago
(CNN) -- Kyrgyzstan parliament has voted to close a base the US military uses as a route for troops and supplies heading into Afghanistan, a government spokesman said Thursday.

Aljazeera.net - 44 minutes ago
The United States says it plans to press Nato allies to deploy more troops in Afghanistan for securing the troubled country. Speaking ahead of a Nato meeting in Poland starting on Thursday, Robert Gates, the US secretary of defence, said Washington was ...

JAKARTA, Indonesia — Secretary of State Hillary Rodham Clinton visited a development program in a working-class Jakarta neighborhood and spoke about her decision to work for the man who defeated her for the presidential nomination, on her second day in Indonesia before flying to Seoul. Mrs. Clinton said she put aside the disappointment of the election to take Mr. Obama’s job offer because, she said, “We have so many of the same views of what we should do in the world.”

The Associated Press - 2 hours ago
SEOUL, South Korea (AP) - North Korea stepped up its war rhetoric Thursday, saying its troops are "fully ready for an all-out confrontation" with South Korea ahead of a visit to Seoul by US Secretary of State Hillary Rodham Clinton.

GAZA, Feb. 19 (Xinhua) -- Israeli forces on Thursday wounded and arrested a Palestinian near the border in southeast Gaza Strip, Israeli sources said.

BBC News - 1 hour ago
The leader of the far-right Israeli Yisrael Beiteinu party has said he backs Likud leader Benjamin Netanyahu to form the next Israeli government.

“Joe, I appreciate your question. Of course this is being watched at all levels of this Administration. While Secretary Clinton, Speaker Pelosi, others, including myself are out of the country at the moment, we are not out of communication. All world situations are being monitored. Having said that, I have to spend the rest of this month curing the problems we have in this country. We have to act now and without hesitation. Once we have these problems solved, we will move onto the rest of the world next month. I hope that answers your question Joe.“ “Thank you!

(Robert, Let’s make sure this guy never gets inside the press room again. Now I have to change)

John Deere Wins New Contract!!!!

Despite the cozy relationship that this Administration has with Caterpillar it has awarded it's first agricultural contract for new machinery to rival John Deere.
In his promise to "work smart and make government work smart", President Obama has chosen John Deere to build new machinery needed for the Tax Stimulus Plan.
"We have had a lot of proposals that involved new design and manufacturing, that would only push up the cost of the equipment needed. The good folks at John Deere have come up with a plan to inexpensively modify an old piece of equipment with readily available parts. This is American ingenuity at work, and the kind of forward thinking all of us need to be doing!"
When asked what he thought of the first test run with the prototype the President stated:
"Actually I just kind of teared up looking at it".

John Deere has renamed it's 1941 Manure and Compost Spreader and promised to retro fit all existing equipment as a way of helping this Administration "Work Smart for the American People".
What we will see with the Tax Stimulus Plan;

Workers who make less than $75,000 a year (or married couples who make $150,000 or less) will receive $400 tax credits in 2009 and 2010. Those who make more will receive reduced amounts. But instead of mailing out checks, as the Bush administration did with its stimulus plan last year, the government will withhold a little less -- leaving average workers with perhaps $8 extra per week.

Health insurance subsidies for the unemployed could also have a direct effect, but even with the federal help many may find it hard to afford continued coverage. Workers who lose their jobs must arrange with their employers to continue the coverage and must pay the premiums themselves -- a hefty outlay even with the government now picking up 65% of the cost for nine months for individuals earning up to $125,000 a year ($250,000 for couples). Of course we have already extended the length of time that benefits can be collected.

The federal government will deliver $54 billion in aid to cash-strapped states, with some of the money available to prop up state budgets, help maintain services and keep employees on the job.

Other money could help keep teachers and day-care workers on the payroll. That alone could save or create hundreds of thousands of jobs nationwide, Democrats say.

Counties, cities and municipalities that receive a chunk of stimulus money are expected to green-light so-called shovel-ready projects, using workers and equipment that otherwise might sit idle. The U.S. Conference of Mayors has projected that such projects could yield 1.6 million jobs by the end of next year.

It is pretty obvious that 'creating and saving' jobs means government jobs!

This is known in the business world as more overhead.

Obama sets executive pay limits

Obama Lays Out Limits on Executive Pay

"For top executives to award themselves these kinds of compensation packages in the midst of this economic crisis is not only in bad taste — it’s a bad strategy — and I will not tolerate it as President. We’re going to be demanding some restraint in exchange for federal aid — so that when firms seek new federal dollars, we won’t find them up to the same old tricks".
--Barack Obama

The plan, which represents the most aggressive assault on executive pay by federal officials, includes salary caps of $500,000 for top executives at firms that accept "extraordinary assistance" from the government.

Sounds good doesn’t it? Let’s punish those bad boys and make ‘em
Hurt! But is there any teeth to this pay cap or is it just empty rhetoric?

Let’s look at how the new plan will affect James Owens, one of the members of President Obama’s Economic Recovery Team.

"The board will be chaired by former Federal Reserve Chairman Paul Volcker. Its members include Jeffrey Immelt, chief executive of General Electric, and James Owens, chief executive of Caterpillar. Both companies have strong sales around the world, though both are coping with hard times amid the slowing global economy; Caterpillar said last month that it would cut 20,000 jobs".

According to Forbes, this is James Owens compensation package for
2007. Now personally, I don’t care how much any CEO or Executive
Makes. I think that is between them and the shareholders. But, just for the heck of it, let’s see how this ‘salary cap’ will affect him.

$ 1,512,504.00 Salary
$ 300,000.00 Bonus
$ 0.00 Other Annual Compensation
$ 0.00 Long term incentive plan payouts
$ 918,626.00 Restricted stock awards
$ 0.00 Security underlying options
$ 221,307.00 All other compensation
$ 7,136,911.00 Option awards $
$ 4,442,998.00 Non-equity incentive plan compensation
$ 2,575,395.00 Change in pension value and nonqualified deferred
compensation earnings
$17,107,741.00 Total Compensation

So at first glance, it appears that Mr. Owens would lose $1,012,504.00.
Or would he? Might he just put oh, lets say $200,000 into his bonus plan and $800,000
into the item labeled 'Other Annual Compensation'?
Even if he did take the 1 million dollar pay cut, does it really hurt him? Of course not. CEO
salaries are nothing more than 'walking around money, for many of them.
I am all for CHANGE and a better method of doing things,but I firmly believe that I don't appreciate being misled by meaningless DoubleSpeak.

Where's the beef?

Air Force One to Williamsburg??

Obama takes first Air Force One trip to Williamsburg

Let me see if I have this correct. Obama takes his first Air Force One trip to Williamsburg?
Williamsburg, Virginia? The town that is 152 miles from Washington, DC?
Did he just need to take a ride and try out his new 'wheels'?

Are you kidding me?

Has anyone thought to calculate what it cost to fly Marine Corp One to Andrews Air Force Base?
Then load up on a 4,000 square foot flying office and travel to Virginia? (152 miles)
How many military people and staff did this require?
Did the C-141 cargo jet that carries the Presidential Limo and staff cars make the trip as well?
Was the Air Force AWACS plane flying overhead?
Was the military and air traffic control on special alert because the President was in the air?
How many millions did this cost?

Are you kidding me?

Is this the same person who criticized the ‘Big Three’ CEO’s for taking a corporate jet to Washington from Detroit?
Is this the President that is calling for personal responsibility and a ‘new way’ of doing business?
Is this the President who has promised accountability and transparency?

Is this the President who is asking for a Trillion dollar spending plan?

Are you kidding me?

Are you kidding me?

Lets just hope he doesn’t take it to Camp David next week!

...Bill

A plea to Congress and a Fractured Fable

THE SILVER SCREW

Once upon a time, a young lad was born without a belly button. In its place was a silver screw. All the doctors told his mother that there was nothing they could do.
Like it or not, he was stuck with it . . . He was screwed.
All the years of growing up were real tough on him, as all who saw the screw made fun of him. He avoided leaving his house . . . And thus, never mde any friends.
One day, a mysterious stranger saw his belly and told him of a swami in Tibet who could get rid of the screw for him. He was thrilled. The next day, he took all of his life's savings and bought a ticket to Nepal .
After several days of climbing up steep cliffs, he came upon a giant monastery. The swami knew exactly why he had come. The screwy guy was told to sleep in the highest tower of the monastery and the following day when he awoke, the screw would have been removed. The man immediately went to the room and fell asleep.
During the night while he slept, a purple fog floated in an open window. In the mist floated a solid silver screwdriver. In just moments, the screwdriver removed the screw and disappeared out the window.
The next morning when the man awoke, he saw the silver screw laying on the pillow next to him. Reaching down, he felt his navel, and there was no screw there! Jubilant, he leaped out of bed . . . . And his butt fell off.
The moral to this is:
'Don't screw around with things you don't understand -- You could lose your ass.'
---- Congress is noted for screwing around with things they don't understand - like the economy. That's why we are all losing our asses!

....Padroo

How the Stock Market really works...

This is a must view if you are confused about the present economy.
How could these British comedians get this so right, so long ago?
Stick around to the last sentence!

Copy and paste!

http://www.brasschecktv.com/page/187.html

0 money down and a 125% mortgage? - NO PROBLEM!

Personal Tax Stimulus Plan

2009 STIMULUS PLAN

(FAX OR MAIL TO YOUR CONGRESSMAN)


The Honorable ______________________
https://writerep.house.gov/writerep/welcome.shtml

Dear Sir/Madam

As an American tax payer of long standing, I would like to apply for
my own personal bail out program.

I request $1,000,000.00 to be spent over the next 10 years to bring
our economy back to life.

I pledge to use this money exclusively in the following manner.

1. Paying off my home mortgage and all personal bills.

2. Buying new cars, and boats as needed.

3. Travel at will to all possible vacation spots in the United States, only.

4. Diner, dancing, generous tipping and events at the above locations.

5. Golfing, fishing and other recreational passtimes as suits me.

6. Investing 10% up front in a long term mutual fund.

If we can do this for every taxpayer in the U.S. we will all retire and let
others who have not been able to find jobs in their lives take over the
work load.

The purchases and investments will get our troubled economy back on
track and solve the unemployment crisis.


ECONOMIC PROBLEMS SOLVED!!

SIMPLE!