The Berenstain Bears learn about sound economic policy

I knew it!  I just knew that I hadn't imagined this.  A cartoon from 37 years that I saw only once ago and I still remember it!

Around the mid-Eighties there was an animated series based on the beloved Berenstain Bears children's books.  The show ran on Saturday mornings on CBS.  It was pretty good as I seem to recall.  And often quite humorous.

Well, the other day one of the episodes sprang to mind as I was reading the news about the latest attempt to avoid a government shutdown.  It involved the Bear kiddies learning all about money.  How those little green pieces of paper don't have value on their own.  Instead they must be backed up by something with real tangible worth.  In the bears' world this happens to be the purest honey in existence.  Without that backing, as the kids' father puts it there would be total chaos.

In other words: fiat currency is a very terrible thing for a society to have.

This is wise economics from a nearly forty year old animated cartoon made for youngsters.  Even a child can understand the enormity of it.

If only more people had grasped the concept.  This country would not be headed toward the disaster it is hellbent on achieving.  It is indeed chaos and there is not going to be any avoiding it.

Here is the episode: "Raid On Fort Grizzly".  Well worth watching.

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Think Switzerland is the world's most secretive place for banking?

According to the Tax Justice Network based out of Great Britain, the most secretive financial jurisdiction on Earth is actually... the state of Delaware.

Yeah, that Delaware: on the eastern seaboard of these United States! $2.6 trillion was deposited in this country by non-resident citizens and corporations in 2007, with Delaware leading the way...

The survey of laws, practices and size of inflows in 60 jurisdictions found Delaware coming in first, followed by Luxembourg and then Switzerland. The Cayman Islands and the United Kingdom round out the top five.

"While the U.S. has been jumping up and down and saying 'Aha, bad, wicked Swiss banks,' the U.S. is doing exactly the same things as far as non-resident bank account holders," said Sarah Lewis, executive director of the group, based in the U.K.

Switzerland has been the poster child for financial secrecy over the past year. The United State sued Swiss global banking giant UBS AG, which paid a $780 million fine to settle a lawsuit against it by the government. As part of the deal, UBS admitted it actively helped Americans evade U.S. taxes.

The ranking is based on a composite of total offshore activity and measures such as whether a jurisdiction obtains beneficial ownership information about companies and the degree of cooperation in turning over requested financial information.

Delaware is attractive because it does not tax profits realized outside the state and does not require companies to be physically present, according to the Tax Justice Network.

So if I ever win the lottery or write a best-selling novel, I'll know now that I don't need to fly to Europe or the Bahamas to stash my money: I can just drive a few hours north and put it in Delaware :-)

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House "health care" bill: Death panels and trial-lawyer protection

The guys at Flopping Aces have gone through the 1,990 page abomination that House Speaker Nancy Pelosi has introduced as the House of Representatives(?) version of the health scare "reform" bill.

Yah you read that right: one thousand, nine hundred and ninety pages.

It's calculated to cost $1.28 trillion.

So what's in this... thing?

Abortion funding.

The so-called "death panels" that we have been told repeatedly were just a figment of some people's imagination.

And... get a load of this one:

"Pelsoi inserted a provision which would punish state governments who attempt any kind of law suit abuse reform that would impact lawyers fees."

What. The. Hell. ???

So it's not enough that Congress has decreed that pharmaceutical firms are to be protected from lawsuits stemming from any injury or death that even untested vaccines might cause. Now our "lawmakers" are shielding trial lawyers from tort reform... by way of "health care" legislation?!

Who the hell do these people think they are?

I know what they are not. They certainly do not qualify to be our "representatives". With the exception of possibly two or three people that I can readily think of that are in Washington today, the members of the House and Senate and the Obama White House are so detached from the reality outside the Beltway that they have no understanding or empathy at all with the American people. Pardon my French folks, but these idiots don't have a f#&@ing clue at all about the lives of the people they allege to be "serving".

Do you think Nancy Pelosi gives a flying rat's ass about you or me or anyone else? "Let's hear it for the power!" she cried out when she became Speaker of the House. And that's all that matters to these bastards.

We don't have a government of the people, by the people and for the people anymore, friends and neighbors. Sane people are incapable of even desiring to write up nearly two thousand pages of legislation that will take away personal liberty and put their children's grandchildren into hopeless hock.

So what kind of person is capable of such a thing?

Mull that one over in yer gray matter...

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Stimulus jobs are $160,000 each?!?

That's what Jake Tapper at ABC News has reckoned. Figuring that the Obama administration is boating of anywhere between 640,000 and 1 million jobs saved or created because of the "stimulus" package, and that $159 billion was allocated by Congress and President Obama for such purpose, then the most conservative estimate has each rescued job worth $160,000.

The White House economists are calling these figures "calculator abuse". Wish I'd have thought of that one during those many times that I struggled with algebra in eighth grade!

Pssst... hey, President Obama. Wanna really use the government to create jobs and bolster the economy? It's very very simple:

CUT TAXES
AND
CUT SPENDING!!!

NO country in history has ever spent itself into prosperity. America can not possibly be any different.

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Russia watches American "Self Immolation"

'Tis painfully ironic that these observations are being made in Pravda, of all places. Stanislav Mishin writes...

It can be safely said, that the last time a great nation destroyed itself through its own hubris and economic folly was the early Soviet Union (though in the end the late Soviet Union still died by the economic hand). Now we get the opportunity to watch the Americans do the exact same thing to themselves. The most amazing thing of course, is that they are just repeating the failed mistakes of the past. One would expect their fellow travelers in suicide, the British, to have spoken up by now, but unfortunately for the British, their education system is now even more of a joke than that of the Americans...

(snip)

That brings us to Cap and Trade. Never in the history of humanity has a more idiotic plan been put forward and sold with bigger lies. Energy is the key stone to any and every economy, be it man power, animal power, wood or coal or nuclear. How else does one power industry that makes human life better (unless of course its making the bombs that end that human life, but that's a different topic). Never in history, with the exception of the Japanese self imposed isolation in the 1600s, did a government actively force its people away from economic activity and industry.

Even the Soviets never created such idiocy. The great famine of the late 1920s was caused by quite the opposite, as the Soviets collectivized farms to force peasants off of their land and into the big new factories. Of course this had disastrous results. So one must ask, are the powers that be in Washington and London degenerates or satanically evil? Where is the opposition? Where are the Republicans in America and Tories in England?

Twenty years ago communism collapsed under its own weight and today the people of the former Soviet Union get to watch the same thing happen to the United States, slowly but surely. Those folks know of what they speak probably better than most anyone else on the planet.

There's plenty more harsh truth in the rest of Mishin's essay.

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FDIC without adequate funds until 2012 (at least)

The Federal Deposit Insurance Corporation is in the red, and it's going to stay that way for another two years.

Meanwhile the ninety-ninth federally-insured bank this year has gone under.

Looks like I'm gonna have to begin stockpiling some more "breadlines" photos to use...

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Bev Perdue giving lottery money back to North Carolina schools

Bev Perdue - who for as long as she is Governor of North Carolina will be referred to on this blog as "WORST GOVERNOR EVER!" - is returning $38 million to the school construction proceeds from the North Carolina Education Lottery, which she raided back in February

(However there's still $50 million from the lottery's reserve funds that Perdue isn't paying back yet).

Does Bev Perdue have any clue at all about the mess she has caused for this state's public schools? Probably not. Here in Rockingham County plans to build four much-needed new schools were thrown into turmoil because the construction funds earmarked from the lottery were swiped by Perdue so that she could play games with the state's budget problems. Many other school systems across North Carolina were also hit by Perdue's monetary mayhem.

I would imagine that in the greater scheme of things, Perdue's unwise fiscal planning has cost the state more than whatever financial pain North Carolina may have eluded in the short term. And it will likely as not fall to the local governments and school systems to deal with the ramifications of the fault of state officials in Raleigh.

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1,000 banks to fail across America?

That's what John Kanas of BankUnited is now saying. Kanas believes that a thousand banks - mostly small, privately-run institutions - will go belly-up during the next two years.

Ordinarily I'm automatically inclined to disregard this kind of statement as extreme alarmism (like how I never take any "climate experts" from the United Nations seriously). But given the number of banks and more than a few of those being larger ones that have gone down in just the past year, I do have to think this is something that merits serious credence.

But hey: if worse comes to worst, I guess the Federal Reserve only has to inject another five trillion dollars or so into the economy and thinks will be fixed. Right? Right?!?

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National sales tax? Yes. In addition to income tax? SCREW THAT!

At long last, some in Washington are saying that it's time to have a national sales tax, which is something that I've been advocating for years.

The problem is that these same people want the sales tax in addition to the pre-existing income tax.

Common around the world, including in Europe, such a tax -- called a value-added tax, or VAT -- has not been seriously considered in the United States. But advocates say few other options can generate the kind of money the nation will need to avert fiscal calamity.

At a White House conference earlier this year on the government's budget problems, a roomful of tax experts pleaded with Treasury Secretary Timothy F. Geithner to consider a VAT. A recent flurry of books and papers on the subject is attracting genuine, if furtive, interest in Congress. And last month, after wrestling with the White House over the massive deficits projected under Obama's policies, the chairman of the Senate Budget Committee declared that a VAT should be part of the debate.

"There is a growing awareness of the need for fundamental tax reform," Sen. Kent Conrad (D-N.D.) said in an interview. "I think a VAT and a high-end income tax have got to be on the table."

This is fiscal insanity without any clarity of vision.

Here's what should be done: scrap the income tax completely. Doing so would boost the economy in ways that hardly anybody can possibly imagine. It would free up a massive portion of the individual and small business sectors to re-engage in private enterprise. Then have a national sales tax, which is equitable across the board and with no regard to "income brackets". And for good measure, slash corporate tax rates so that more American businesses will be enticed to bring their industries back to the United States.

If those things are done, there will be a domestic financial renaissance the likes of which has not been seen in recent memory.

But to pile new taxes upon those which are already too burdensome for most Americans is to invite inevitable disaster.

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United States poised for Zimbabwe-style economic collapse, sez governor

If the United States keeps "spending a bunch of money we don't have", it faces a collapse of its economy much like what has happened in Zimbabwe, South Carolina Governor Mark Sanford predicts.

In case you haven't heard, the financial hyper-inflation which has rocked Zimbabwe has led that country to issue a one trillion dollar bill as part of its currency. For one of those legal tender notes, you can currently buy a hamburger or two.

Sanford gets what's really going on. Too bad there doesn't seem to be many other elected officials who are likewise calling for fiscal sobriety right now.

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FDIC may become insolvent (Uh-oh....)

"Gloom, despair, and agony on me.
Deep dark depression, excessive misery."

The Federal Deposit Insurance Corporation - the government agency which makes sure that the money you keep in the bank will still be there if the firm goes bust - is running out of money for its fund and risks insolvency, FDIC Chairman Sheila Bair has told bank CEOs. A lot of banks have gone under in the past several months and its depleted the FDIC's coffers.

The FDIC is now looking to shore up the fund with new banking fees, and is projected to raise $27 billion.

Will that be enough at all to keep scenes from yesteryear like the one depicted above from happening again?

In my opinion: not likely.

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Santelli is right: Time to show the American government who's boss

It's become "The Rant Heard 'Round the World": CNBC's Rick Santelli on the floor of the Chicago Mercantile Exchange two days ago, blasting President Obama's mortgage bailout plans and calling for a new "tea party"...

Santelli's impromptu screed alarmed the Obama Administration enough that Press Secretary Robert Gibbs attacked Santelli during the daily White House press briefing yesterday.

Most of y'all who read this blog on a regular basis know what I'm gonna say already: that Rick Santelli is absolutely correct. That the American government is rewarding "bad behavior" and consequently is punishing those who are striving to play fairly by the rules.

At every level, government in the United States is out of control. It has "gone rogue". Our government is no longer of the people, by the people and for the people. It is now an entity unto itself, existing for its own sake, and proven willing to do whatever it deems necessary to maintain its tenuous grasp on the status quo.

This can not go on forever. Sooner or later, it will come crashing down. History is replete with examples of ruined empires that buckled and gave in under their own weight. And at this point, I don't know if it can be avoided, that the United States is on the same track.

But that's why I also find Rick Santelli's rage to be so heartening. Santelli demonstrated sincere vigor and rage at what is happening to this country. His sentiments have resonated so strongly across the blogosphere, that it's not hard at all to see a real movement coalescing around this fury at our government.

Heck, if you ask me, Rick Santelli is showing more real leadership than anyone in the Obama Administration right now. That by itself is reason to be of good cheer! :-)

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President Obama signs "stimulus" into law

The $787 BILLION package is now enacted legislation, as President Barack Obama signed the bill at a ceremony in Denver.

There might be another "stimulus" coming soon, believe it or not.

And on the day of this esteemed occasion, the Dow dropped 297.81 points, -3.79%, to close at 7,552.60.

And on a somewhat related note, I've been hearing some curious rumblings about stuff going down in the Eastern Europe markets, that might bear watching for the time being.

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Les Misérables: Gold teeth for sale in New Orleans

From Mish's Global Economic Trend Analysis...

The person who submitted the photo writes...

"Got the photo from a friend. The white sign that has been blacked out used to be the Toy Center. The biggest & best toy store in New Orleans in the late 50's early 60's. The Coca Cola bottling plant & Tulane Shirt Company were just to the left on S. Jefferson Davis Parkway. Times have changed."

I remember back in the early Nineties when Haiti was being torn apart following the military coup that overthrew Aristide. People there became so hard-up for money, that they had resorted to looting cemeteries: digging up graves to steal jewelry, gold teeth and even silk casket linings to sell. That's the kind of desperation that whenever I see a picture like this or hear somesuch else so similar, I have to wonder how far we really are from the edge of that abyss.

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Why has Old Dutch Galaxy Food Center apparently pulled out as an advertiser on WGSR Star 39?

Could it possibly be because of a certain anti-Barack Obama sign that WGSR general manager Charles Roark devoted obscene amounts of airplay and screentime to this past Friday afternoon, and then again on Monday?

The answer to that question is, evidently, "yes".

Old Dutch Galaxy had been a major advertiser for WGSR. A chain of four grocery stores around the Danville and Chatham area in Virginia, Old Dutch Galaxy had been running updated commercials every week (on a station that was still running spots for the Reidsville Christmas parade last week, mind ya...).

But the word from our friends around south-central Virginia, is that Roark's constant harping about a sign calling Obama a "bastard" and his mother a "slut" was way over the top and into the realm of completely inappropriate behavior.

I doubt that this lesson will be anything but lost on Charles Roark, who has abandoned responsible broadcasting ethics for tabloid-style trash that caters to the least common denominator.

Except now, WGSR has lost one of its bigger clients because of Roark's reckless behavior.

But I'm pretty confident that Roark won't care, and he probably even told the Old Dutch Galaxy guys as much when they pulled out, since cult leader Johnny Robertson can always be relied upon to make up for the loss via all those thousands of dollars coming in from "the Mysterious Texans"(tm).

Seriously though: I've been arguing for awhile that the image conveyed by WGSR's management is a detriment to the commerce of this area. Does anyone now doubt the veracity of that contention?

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Some random musings on things...

A few months ago George W. Bush proposed wasting hundreds of billions of dollars of our money and it was called "bailout" and some politicians approved it. Today Barack Obama is proposing wasting hundreds of billions of dollars of our money and it's being called "stimulus" and those same politicians deride it as unacceptable.

I would like to quote "Oceania is at war with Eurasia, Oceania has always been at war with Eurasia" to the Powers That Be, but sad to say, they most likely wouldn't get it.

And now that he's President, doesn't Obama have better things to do than to get into the proverbial "pissing contest" with a radio commentator who is nothing more than a shameless shill for the "other side"?

Don't we have better things to do than to even care about such a non-story involving two men with apparently arrested development?

Pat Buchanan is right: we have become an unserious people in a serious time.

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A glimpse of what's coming to America?

Riots erupt in Reykjavik, Iceland after the citizens of that country, feeling more than a little ticked-off now that their country has gone bankrupt, vent their rage against their government (which has now collapsed)...

Mash down here for more about what's going down over there.

I've never been to Iceland, but I've met enough folks who have visited the place to know that the people there are a pretty hardy and patient lot: it takes a lot to get 'em riled up, especially this bad. The country's banks have failed miserably, and its coalition government has now finger-pointed itself into oblivion.

Gotta wonder if we might see this same sorta thing happening on our own side of the pond in the not-too-distant future...

(Thanks to Phillip Arthur for passing along the link.)

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CNN broadcasting I.O.U.S.A. this weekend

On Thursday I received the following from Elizabeth Wilner, Director of Public Affairs at the Peter G. Peterson Foundation, who asked if I could pass it along to this blog's readers...

It wasn't long ago that the idea of an American fiscal crisis was considered speculative at best. Most everyone - the government included - seemed to be living on credit with no end in sight. But recently, the debtors have come calling. Now we're living in an America where lending institutions have collapsed, more than 1 million homes have entered foreclosure, and the federal deficit has reached unprecedented numbers.

In response to public demand for information about the scope of the country's financial challenges, the Peter G. Peterson Foundation is proud to announce that CNN/U.S. will air the television premiere of our documentary I.O.U.S.A., together with an unscripted panel discussion with policy leaders about various economic solutions. I.O.U.S.A. uses candid interviews, archival footage, and economic data to tell the story of America's mounting debts, and offers suggestions for how best to recreate a fiscally sound nation for future generations.

This exclusive televised event will air on CNN/U.S. on Saturday, January 10 at 2:00 p.m. EST and on Sunday, January 11 at 3:00 p.m. EST, and will be hosted by Ali Velshi and Christine Romans, co-anchors of CNN's Your $$$$$, the network's weekend business roundtable program.

When you tune in to CNN, you'll get more than just the U.S. broadcast premiere of I.O.U.S.A. The two-hour program will also feature Velshi and Romans engaging a distinguished group of panelists, including the Peter G. Peterson Foundation's own Pete Peterson and Dave Walker; Alice Rivlin, noted economist and former Director of the Office of Management and Budget; and Bill Bradley, a managing director of Allen & Company and former U.S. Senator and Democratic presidential candidate. Together, they'll discuss issues raised in the film and their ties to current economic events.

So please join us for this exclusive televised version of I.O.U.S.A., and feel free to let your readers know about it too. The Peter G. Peterson Foundation is thrilled that, through its U.S. premiere on CNN, the film will get the chance to inspire even more Americans to make fiscal responsibility a priority.

I.O.U.S.A. has been playing on the festival circuit, and has received rave reviews for its sobering message about fiscal irresponsibility in America. I shall certainly be tuning in to catch it and if you want more information here's the film's official website.

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California may use IOUs for tax rebates

Cash-strapped California - which in my opinion has already collapsed financially and at this point is merely putting lipstick on a pig - is seriously considering issuing IOUs for rebates to taxpayers.

Maybe the good people of California should consider reciprocating the favor by paying their taxes in IOUs.

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New York State budget: craziest taxes ever?

Governor David Paterson has revealed his $121 billion budget plan for New York State and it includes proposals that actually trump California's "snack tax" of the early Nineties in terms of utter lunacy. There are 88 suggested new taxes and fees, including for digital downloads of songs for iPod and other music devices, beer, soft drinks, cable and satellite television services, movie tickets, and massages (?!?).

This reminds me of 1993, when then-President Clinton was trying to pass a retroactive tax increase (which passed in Congress). I called my Representative in the U.S. House, who at the time was Steve Neal. Never got through to him personally (but then since when does a citizen ever get through to his or her Rep?) but I asked his staff numerous times: "When was the last time that a government taxed itself to prosperity?" They couldn't give an answer. Neither is Governor Paterson going to be able to provide one to the citizens of New York. If anything, these taxes are going to drive away people and businesses, making a dire situation for New York that much worse.

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