The “Obama Line”

This chart compares the progress of unemployment levels for recessions prior to 1948 by using the nadir of unemployment as the zero point in time for each depression. Thus one can compare the relative progress of employment loss and subsequent employment recovery for each different recession. Notice the lowest line,which I call the “Obama Line”,shows the current recession is far worse than any since 1948 in terms of both depth of employment loss,as well as duration. In fact,the duration trend is extremely frightening,because unless something dramatic changes,we are unlikely to return to current employment levels for at least another decade.

The “Obama Line” thus starkly illustrates the destructive economic policies promulgated by the Democrat-Marxist-Progressive-Socialist-Obammunist ideologues have been wildly successful in promoting their stated and desired goal of “shared sacrifice”for we,their subjects,instead of shared prosperity for everyone. But then that’s the reality of socialism laid bare:history has repeatedly shown that “shared sacrifice” is the best any socialist economy can aspire to. Never once in the history of mankind has a socialist economy brought sustained and increasing prosperity for generation after generation.

Unfortunately,for those of us peasants who actually live on the Obama Line,Obama’s job-killing policies are an abject failure and cause for soul-destroying misery. Even worse,there is no chance for improvement until the Obammunist leadership is replaced,because no one in their right mind is going to invest inU.S.economic growth as long as Marxists are in charge of the economy.

It makes no sense to take additional risks to try to increase profits if those profits are simply going to be stolen by Obama and “redistributed”;whether such redistribution occurs via Obamacare,increased taxes,increased regulation,deliberately increasing energy prices,deliberate destruction of the currency via insane inflationary policies,or deliberate destruction of the Constitution and rule of law by simply ignoring them.

Those are the real reasons our economy is in the crapper today. And it will remain in the crapper until leadership is elected who will actually promote an economic environment conducive to job creation rather than merely pretending to think about it,while in reality deliberately killing U.S. economic power like the Obammunists have been doing every day since they came into power.

Read More at Coach is Right by Coach Collins, Coach is Right

Marco Rubio flays ‘incompetent’ Obama

U.S. Sen. Marco Rubio, R-Fla., believes Barack Obama is an incompetent president leading America into a “significantly worse” situation in every measurable regard.

Making an appearance this afternoon on Rush Limbaugh’s top-rated radio program, Rubio flayed Obama’s quest for another term after a dismal performance thus far.

“He wants a four-year extension to his contract to be president of the United States. So we have to measure him,” Rubio explained.

“And how do we measure him? Unemployment is significantly higher than when he took over. What about the value of people’s homes? The value of people’s homes are down. How about the national debt? The national debt is up, significantly higher with no solution in sight and none offered by him. By every measure that you can measure a president by, things have gotten worse, and significantly worse.”

Rubio indicated Obama and members of his administration have a flawed ideology “that takes us away from the things that have made America exceptional.”

Read More at WND by Joe Kovacs, WorldNetDaily

From Gunrunner to Gun-Grabber

On June 30th, Maryland Democratic Congressman Elijah Cummings assembled gun confiscation advocates and Second Amendment foes from across the nation to approach the Project Gunrunner/Fast and Furious debacle by doing what the Left does best: changing the subject.

As it is not in the nature of liberals to allow truth to interfere with their agenda, the Congressman decided to ignore the fact that members of the Obama regime’s ATF had directed the sale of thousands of weapons to drug cartel straw buyers and assisted in trafficking those guns across the Mexican border.

Instead, Cummings claimed that “no legitimate examination of [drug cartel violence and illegal firearms trafficking] will be complete without analyzing our nation’s gun laws, which allow tens of thousands of assault weapons to flood into Mexico from the United States each year.”

It apparently escaped the Congressman’s notice that it was President Obama’s ATF and DOJ that fractured those gun laws and caused a flood of weapons across the border in the first place.

So, with the embarrassing facts of Project Gunrunner properly shoved under the table, the Cummings Forum offered the following recommendations to halt the flow of arms across the border:

Increase the penalties for illegal straw purchases;
Enact a dedicated firearms trafficking statute;
Implement a multiple long gun sales reporting requirement.The unabridged Federal Guide to Gun Laws is 400 pages long. Everything illegal about gun manufacture, import, purchase, use, ownership or sale is already “on the books.”
For example, lying on the federal form required to purchase a weapon carries a penalty of “not more than 5 years” in prison. A straw purchaser can be sentenced to 5 years for EVERY gun he purchases and then delivers to someone else for their use. (3)

Read More at Floyd Reports by Doug Book, Floyd Reports

Geithner says hard times to continue for many

Treasury Secretary Timothy Geithner says many Americans will face hard times for a long time to come.

He says President Barack Obama rescued the United States from a second Great Depression and will keep working to strengthen the economy. But Geithner says will be some time before many people feel like the country is recovering.

Geithner tells NBC’s “Meet the Press” that it’s a very tough economy. He says that for a lot of people “it’s going to feel very hard, harder than anything they’ve experienced in their lifetime now, for a long time to come.”

Read More at Yahoo News:

Analyst: Even Dollar Stores Struggling In ‘Obama Depression’

More stores across the U.S. that offer deeply-discounted products are seeing their sales decline after years of growth amid America’s “Great Recession” — and one analyst said on Monday it’s another sign of even deeper downturn.

While the demand at stores like the 99-Cent Store or Dollar Tree is still relatively high, the biggest chains in the nation have fallen short of Wall Street’s expectations for several months, a trend that may prove even more ominous for the economy at large.

“I think what’s going on in those stores is that we are in a depression for 80 percent of Americans,” top retail analyst Howard Davidowitz told KNX 1070.
America’s three largest discount chains — Dollar General Corp., Family Dollar Stores Inc. and Dollar Tree Inc. — all recently missed their quarterly earnings targets.

Davidowitz pointed to the weakness of the dollar and a gloomy consumer outlook as some of the factors behind the stores’ slump.

 Read More at CBS Los Angeles

Republican Deals With Obama Are Killing Us

Writing a syndicated column in 2011 is night and day different from when we started writing for publication in the 1990′s. The overriding change is the volume and immediacy of feedback. In the 1990′s we would receive the occasional letter applauding or challenging our thesis, facts and motives. Today we find our email inbox and comment sections so full it is difficult to read it all.

We take our readers seriously, and even if we don’t personally respond, we read and ponder their many times insightful thoughts. Ironically, as hard as we work to provide clarity through our own words, sometimes they fail to accurately convey our passion and hopes for America.

After last week’s column was posted, we were accused of hoping for the collapse of the country. We couldn’t be more misunderstood by a reader. We see collapse coming, and like Paul Revere we ride the countryside in the hope that the country will mobilize to meet the dangers.

Here are three reasons we are frightfully concerned about the future of the economy and country:

The first is the dedication of John Boehner to cutting deals with Barack Obama. The Republican majority wasn’t returned to Congress so that they could strike a mega-deal to balance the budget on the backs of the people. The growth of government must be stopped before it consumes what meager wealth the country has left. The current grand scheme as reported would increase taxes in exchange for budget cuts someday off in the future. We have seen how this bargain works. Taxes go up, but spending never goes down.

Read More at Floyd Reports by Floyd and Mary Beth Brown, Floyd Reports

Rick Perry is running

Recently, I wrote about how someone not currently in the race for the Republican nomination who could beat Barack Obama in 2012 with one television ad campaign.

That’s Rick Perry, the governor of Texas.

Maybe I convinced him, because, from what I hear, he’s going to jump into the GOP presidential sweepstakes very soon.

Now, I want to be clear. I am not endorsing Perry. I think he’s a great candidate who can beat Obama. But there are several others running who are great candidates who can also win the presidency. I’m not one of these people who thinks Obama is invulnerable or unbeatable – far from it. The fact that an unnamed Republican candidate beats Obama in the polls today suggests he is all but toast right now.

But let me say this about Rick Perry: His entry into the race will change the dynamics of the Republican primary season.

Read More at WND by Joseph Farah, WorldNetDaily

Feds Force State & Local Government Insolvency

 

Overview

The eventual insolvency of many or most state and local governments in the United States, as well as of many major corporations, can be relatively easily shown to be the necessary mathematical byproduct of current US federal monetary and economic policy.

For decades, state and local governments were encouraged to make binding pension promises which relied heavily upon the (deeply flawed) academic theory that the lucrative compounding of investment wealth over the long term was close to guaranteed. Employee and sponsor contributions by themselves have never been enough to pay pensions, and unless investment profits deliver most of the money, then pension assets come up woefully short of being able to meet pension obligations.

However, Federal Reserve and United States government policy for the last ten years has been to knock interest rates down to near historic lows, even while propping up the prices of investment assets. This policy has simultaneously knocked out both of the mathematical pillars that long-term pension fund investments relied upon (as well as destroying the heart of conventional individual retirement planning). Because investment yields have been driven so low by the government, the pension plans are already in dire straits.

Public employees have enjoyed a guaranteed retirement age, and the numbers of boomers reaching retirement age is rapidly increasing. This means financial pressure is also building rapidly, and in order to avoid insolvency, state and local government pension plans must radically increase investment yields. The problem is that current federal policy is to effectively make these higher yields near mathematically impossible for the states to obtain, at least while following conventional strategies. And, as we will cover herein, this is likely to lead to a massive transfer of even more power from the state to the federal level, as states must meet the requirements of federal level politicians in order to avoid insolvency.

Pension Fund Mechanics: Contractually Promising The Future

The central absurdity underlying traditional (defined-benefit) pension funds is the assumption that economists and financial professionals know the future, and that they know it with such certainty that society can legally guarantee it. Governments and major corporations hire financial analysts and actuaries, and these professionals estimate that “x” will be the money coming in, they estimate that “y” will be the investment rate, they estimate that “z” is how long people will live after retirement, and then they run the equations and say that everything covers. Then the states, cities, school boards and major corporations of the United States – and their equivalents overseas – contractually obligate themselves to make payments to their pensioners that are based on these estimates.

Read More at GoldSeek.com by Daniel R. Amerman, GoldSeek.com

Will Obama Go Fascist on the Debt Ceiling?

Barack Obama has sometimes been fond of branding his Republican foes “hostage-takers,” but officials in his administration have found a new hostage in their negotiations over raising the debt ceiling: the U.S. Constitution. The president’s advisers and several “unbiased” media outlets are suggesting if Congress refuses to raise the debt ceiling, Barack Obama can force the nation to continue borrowing money. The Founding Fathers required all expenditures originate in the House of Representatives, but Obama officials are wrapping his actions in the 14th Amendment. For the first time in living memory, the president is threatening to commit an impeachable offense if he does not get his way.

CBS News has reported the debt ceiling impasse leaves “the option of a congressional end-run by President Obama a possibility.” Reporter Whit Johnson said, “The stalemate in Washington has some asking if President Obama could simply bypass Congress and order the Treasury to keep borrowing.” Obama or his spokesman Jay Carney has been asked twice about the possibility and, despite an incredibly misleading headline from the Associated Press, neither rejected the possibility. (Carney merely said, “I don’t think that I want to get into speculation about what might happen if something does or doesn’t happen”; Obama replied, “I don’t think we should even get to the constitutional issue.”) MSNBC’s Powerwall dared the president to carry it out, claiming it would be smart politically.

Treasury Secretary Timothy Geithner, who has never shown much regard for financial laws, claims the president has this power under the Fourteenth Amendment. The fourth clause states:

The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned.

Geither made his comments at a “Playbook Breakfast” hosted by the online publication Politico, which has previously urged Obama to rule by decree. In December, John F. Harris and James Hohmann wrote, “Republican gains in Congress make it essential for him to use new avenues of power.”

Geithner is not alone in his inversion of the Constitution. Economist Bruce Bartlett intoned, “Given that the Supreme Court in recent years has been unusually deferential to executive prerogatives – I feel certain President Obama would be on firm constitutional ground should he challenge the debt limit in order to prevent a debt default.” What began as too-clever-by-half musings on left-leaning websites quickly filtered into the administration’s talking points.

Read More at Floyd Reports  by Ben Johnson, the White House Watch