Coffee Talk Shop…

The debt ceiling debate is providing plenty of opportunity for political theater in Washington. Proponents of raising the debt ceiling are throwing around the usual scare tactics and misinformation in order to intimidate opponents into accepting more debt and taxes. It is important to distinguish the truth from the propaganda.

First of all, politicians need to understand that without real change default is inevitable. In fact, default happens every day through monetary policy tricks. Every time the Federal Reserve engages in more quantitative easing and devalues the dollar, it is defaulting on the American people by eroding their purchasing power and inflating their savings away. The dollar has lost nearly 50% of its value against gold since 2008. The Fed claims inflation is 2% or less over the past few years; however economists who compile alternate data show a 9% inflation rate if calculated more traditionally. Alarmingly, the administration is talking about changing the methodology of the CPI calculation yet again to hide the damage of the government’s policies. Changing the CPI will also enable the government to avoid giving seniors a COLA (cost of living adjustment) on their social security checks, and raise taxes via the hidden means of “bracket creep.” This is a default. Just because it is a default on the people and not the banks and foreign holders of our debt does not mean it doesn’t count.

Politicians also need to acknowledge that our debt is unsustainable. For decades our government has been spending and promising far more than it collects in taxes. But the problem is not that the people are not taxed enough. The government has managed to run up $61.6 trillion in unfunded liabilities, which works out to $528,000 per household. A tax policy that would aim to extract even half that amount of money from American families would be unimaginably draconian, and not unlike attempting to squeeze blood from a turnip. This is, unequivocally, a spending problem brought about by a dramatically inflated view of the proper role of government in a free society.

Perhaps the most abhorrent bit of chicanery has been the threat that if a deal is not reached to increase the debt by August 2nd, social security checks may not go out. In reality, the Chief Actuary of Social Security confirmed last week that current Social Security tax receipts are more than enough to cover current outlays. The only reason those checks would not go out would be if the administration decided to spend those designated funds elsewhere. It is very telling that the administration would rather frighten seniors dependent on social security checks than alarm their big banking friends, who have already received $5.3 trillion in bailouts, stimulus and quantitative easing. This instance of trying to blackmail Congress into tax increases by threatening social security demonstrates how scary it is to be completely dependent on government promises and why many young people today would jump at the chance to opt out of Social Security altogether.

We are headed for rough economic times either way, but the longer we put it off, the greater the pain will be when the system implodes. We need to stop adding more programs and entitlements to the problem. We need to stop expensive bombing campaigns against people on the other side of the globe and bring our troops home. We need to stop allowing secretive banking cartels to endlessly enslave us through monetary policy trickery. And we need to drastically rethink government’s role in our lives so we can get it out of the way and get back to work.

July 20, 2011

LewRockwell – Dr. Ron Paul is a Republican member of Congress from Texas.

Ron Paul is Correct…

The US Secretary of State Hillary Clinton is proceeding on her 11-day foreign tour. The geography of the tour is amazing and meant to demonstrate the firm US grip on international politics. From Turkey and Greece to Bali and Hong Kong with stops in-between.

But, in fact, if the tour demonstrates anything ше is only the fact that the US is LOSING its grip instead of RETAINING it. As “The Guardian” columnist Simon Tisdall has put it, “Clinton’s round-the-world tour is likely only to highlight how impotent the United States has become.”

Let’s start from the beginning. Turkey was the first stop of Ms. Clinton’s tour. There she took part in a conference of 40 countries’ representatives supporting the NATO-led campaign in Libya. Did that end up in any breakthrough in Libya? Of course, not. Instead, against the background of the stalemate that NATO has found itself in, Ms. Clinton again had to listen to complaints from its allies that the US is not doing enough.

The visit to Greece seems even more ridiculous. The country is struggling to get out of its serious economic problems and to reduce the national debt. Could it expect any assistance from Washington? Under the ordinary course of events, of course it could. But now it is the turn of the US to make a desperate cry to the international community for help in order to save not only its national economy but the whole global financial system resting on the dollar anchor as well. Of course, there was nothing but empty statements heard from Athens during Ms. Clinton’s visit.

Probably, the most important part of Ms. Clinton’s visit was connected with her current visit to Delhi. But there, again, as most observers have noticed, the devil does not lie so much in what he says, but rather in what is omits. Ms. Clinton came to India only a week after the Mumbai terrorist attack. And that gave her a comfortable opportunity to say a lot of good words without really saying anything. The global threat of terrorism is universally acknowledged, and therefore, by reiterating the need of coordinated struggle against the threat, you cannot stumble into anything wrong, but, at the same time, such declarations do not lead to anything. So, what the Indians did not hear, is the future of the US policy in the region where India did play an important role at the time of George W. Bush tenure, but has been by and large neglected during the tenure of Barack Obama as President and Ms. Clinton as the Secretary of State.

Next stop is going to be Bali, Indonesia, where Hillary Clinton will attend a security conference. As in the case of South Asia, the greatest concern of US foreign policy there is the growing Chinese influence. During the last several months the tension in the South-East Asian region has grown due to a number of bilateral issues between China and its neighbors concerning the area of the South China Sea. The US and personally Ms. Clinton did warn China on the issue as far back as last year, before the escalation of tension, but apparently to no effect.

And the culmination of the 11-day tour is going to be Hong Kong, where Ms Clinton is going to talk on protectionism. Again, the message is clearly meant for China, but as an old saying goes, “before looking for culprits, first look at yourself in the mirror.” The level of protectionism in the US is really unrivaled by any foreign competitor.

Two and a half years ago, when the newly elected President Obama, well aware of his inexperience in foreign policy matters, was trying to form his team, he chose Hillary Clinton as his Secretary of State. But the flops of US foreign policy since she took charge of it have proved that Ms. Hillary is much more successful when it comes to meddling with her infidel husband’s affairs than when it comes to solving any crucial matter of really global importance.

http://english.ruvr.ru/2011/07/19/53439582.html

Teachers and principals erased and corrected mistakes on students’ answer sheets.

Area superintendents silenced whistle-blowers and rewarded subordinates who met academic goals by any means possible.

Superintendent Beverly Hall and her top aides ignored, buried, destroyed or altered complaints about misconduct, claimed ignorance of wrongdoing and accused naysayers of failing to believe in poor children’s ability to learn.

For years — as long as a decade — this was how the Atlanta school district produced gains on state curriculum tests. The scores soared so dramatically they brought national acclaim to Hall and the district, according to an investigative report released Tuesday by Gov. Nathan Deal.

In the report, the governor’s special investigators describe an enterprise where unethical — and potentially illegal — behavior pierced every level of the bureaucracy, allowing district staff to reap praise and sometimes bonuses by misleading the children, parents and community they served.

http://www.ajc.com/news/investigation-into-aps-cheating-1001375.html

http://theeconomiccollapseblog.com/archives/number-one-20-not-so-good-categories-that-the-united-states-leads-the-world-in

A lot of people that write articles like this have a deep hatred for America.  But that is not the case with me.  I love the United States.  I love the American people.  America is like an aging, bloated rock star that has become addicted to a dozen different drugs.  America is a shadow of its former self and it desperately needs to wake up before it plunges into oblivion.

If you do not believe that America is in bad shape, just read the list below.  The following are 20 not so good categories that the United States leads the world in….

#1 The United States has the highest incarceration rate in the world and the largest total prison population on the entire globe.

#2 According to NationMaster.com, the United States has the highest percentage of obese people in the world.

#3 The United States has the highest divorce rate on the globe by a wide margin.

#4 The United States is tied with the U.K. for the most hours of television watched per person each week.

#5 The United States has the highest rate of illegal drug use on the entire planet.

#6 There are more car thefts in the United States each year than anywhere else in the world by far.

#7 There are more reported rapes in the United States each year than anywhere else in the world.

#8 There are more reported murders in the United States each year than anywhere else in the world.

#9 There are more total crimes in the United States each year than anywhere else in the world.

#10 The United States also has more police officers than anywhere else in the world.

#11 The United States spends much more on health care as a percentage of GDP than any other nation on the face of the earth.

#12 The United States has more people on pharmaceutical drugs than any other country on the planet.

#13 The percentage of women taking antidepressants in America is higher than in any other country in the world.

#14 Americans have more student loan debt than anyone else in the world.

#15 More pornography is created in the United States than anywhere else on the entire globe.  89 percent is made in the U.S.A. and only 11 percent is made in the rest of the world.

#16 The United States has the largest trade deficit in the world every single year.  Between December 2000 and December 2010, the United States ran a total trade deficit of 6.1 trillion dollars with the rest of the world, and the U.S. has had a negative trade balance every single year since 1976.

#17 The United States spends 7 times more on the military than any other nation on the planet does.  In fact, U.S. military spending is greater than the military spending of China, Russia, Japan, India, and the rest of NATO combined.

#18 The United States has far more foreign military bases than any other country does.

#19 The United States has the most complicated tax system in the entire world.

#20 The U.S. has accumulated the biggest national debt that the world has ever seen and it is rapidly getting worse.  Right now, U.S. government debt is expanding at a rate of $40,000 per second.

Source: http://theeconomiccollapseblog.com/archives/number-one-20-not-so-good-categories-that-the-united-states-leads-the-world-in

Hi everyone! I am a typical American.

I graduated high school but didn’t want to go to university or study foreign languages.
I demand to be able to own a home on a cul-de-sac for a very low price and very low property taxes
But I expect full services from my community and no one can build unless I say I like the color.
I demand to be HOME by five and lifetime employment earning more than my neighbors.
I don’t know anything about the web, computers, engineering, operations, but I can do touch type.
I don’t want to further my education with all that hassle.
I know a 5th grade Chinese kid knows more about math and geography than I do.
I never read. It is cable T.V. for me. Because I can learn a lot from local news and CNN.
I love low prices. I can get more.
I have two children from three possible fathers.
I think I have a right to .50 cent gasoline that never changes.
I want a new car every two years and a big home with a five car garage.
I go to the salon every week but I am 250 lbs and never go to the gym
I don’t deserve what I get , didn’t earn it, but if I don”t get it I will raise hell if I can remember to vote.
I like to have totally free medical care with a private room, specialists, and free pharmaceuticals of the latest kind and a second opinion.
But if it doesn’t work out I will sue for billions.
I get weird diseases like neck pain, back pain, carpal tunnel , and fibromyalgia even though I can’t prove it.
I want the first parking spot and no waiting at any location or restaurant.
The weather should always be 70 degrees
I should have a 2%30 year fixed mortgage but want a 25% for a risk free CD at the bank every three months.
I want a smartphone and I like to text while driving.
I deserve six weeks vacation from my job paid + 12 weeks paid for FMLA plus free daycare.
I should not have to push hard or feel stress.
If it was a good idea I would have had it already.
I am an American and these are the privileges I expect. If I don’t get it I will be mad.
I like 20 times income of my neighbors but no inflation.
I don’t understand why why why I have to pay anything for medical care.
I should pay 5 dollars a year on my home insurance but get 150 % full replacement for all my undocumented belongings and rebuild of my home if there is trouble.
Air fares should be no more than 50 dollars and I should be able to take 10 bags for a weekend trip.
My husband should get 125% of his pay even if the company fails for a period of 10 years taxes paid.
Cable TV should be 3 dollars a year.
I don’t want to understand how my taxes work.
After I retire, I should get 20,000 dollars a month from the government social security and pay no taxes plus continue on with free, unlimited medical care with no copay’s and no limits.
I demand to spend 10,000 dollars for Xmas.
I don’t have a passport and can’t speak English well or write.
There should be no waiting at the grocery store and the butcher should have my order ready.
I think I should be able to mail anything of any weight for 41 cents.
Other people should pay for power plants and pollution control but not me.
My electric bill is 5 dollars a year
I should earn 250,000 dollars and work 35 hours a week + I want overtime because I am non-exempt
I don’t like competition. It’s not fair because I cannot pass even the SAT.

That about covers 90% of all Americans. The rest of us are working hard and busting hump.

American

Coffee Talk!

Wall Street is having a hard time figuring out what to do now that the U.S. economy appears to be sputtering and yields are so low, Peter Yastrow, market strategist for Yastrow Origer, told CNBC.

“What we’ve got right now is almost near panic going on with money managers and people who are responsible for money,” he said. “They can not find a yield and you just don’t want to be putting your money into commodities or things that are punts that might work out or they might not depending on what happens with the economy.

“We need to find real yield and real returns on these assets. You see bad data, you see Treasurys rally, you see all bonds and all fixed-income rally and then the people who are betting against the U.S. economy start getting bearish on stocks. That’s a huge mistake.”

Stocks extended losses after the manufacturing fell below expectations in May and the private sector added only 38,000 jobs during the month.

“Interest rates are amazingly low and that, thanks to Ben Bernanke, is driving everything,” Yastrow said. “We’re on the verge of a great, great depression. The [Federal Reserve] knows it.

http://www.cnbc.com/id/43236764

Coffee Talk!