Do you know where the money comes from?

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I have listened recently to a lot of uninformed people say that all the government has to do to solve all of our so called money problems is Print More Money! To these folks I say... Do you know where the goverment gets their money from? Economics 101. When the goverment floods the market with dollars, the value of the dollars goes down. Just like all other markets the currency market operates much the same way. If the oil market has excess oil available on the market, then the value of the oil is less because there is more oil available. The oppisite is also true, less oil available makes it more valuable and thus the price is higher.

The goverment derives all of it's budget from the power to levy taxes and borrowing on it's credit. For many years now it has been the borrowing part that has gotten us in so much trouble. During the Nixon years, President Nixon took us off the gold standard. At the time the country's debt had exceeded the amount of gold that we held in the reserves.

As for the Federal Reserve, The Federal Reserve act was passed in 1913, the act which created a central banking system.

President Woodrow Wilson before leaving office actually apologized to the American people for the laws passage claiming that he had been duped into supporting it.

A popular misconception is the the Federal Reserve is part of the Federal Government. It is not, The President appoints the Fed Chairman who is confirmed by the Senate, but the Reserve is not an actual arm of the Government.

Among other things, the Fed establishes the interest rate that it charges other banks to borrow money. the cheaper it is for the other banks to borrow money, the cheaper it should be for the consumer (we the people) to borrow money. This is why when the Fed Chairman speaks the stock market moves. Investors want to know if it will be cheaper for them to borrow money for there investments. Remember, the first rule of business is always use (OPM) Other Peoples Money.

The Goverment gets all of it's revenue from taxes (we the people) and tarriffs and of course borrowing.

The borrowing part is a loan and as such must be paid back. (By we the people) via taxes

which will have to be raised. Of course, that means less money for us in our pockets.

Remember, in the history of the world, no country or people have ever taxed themselves into prosperity ever.

So what actually spurs economic growth? Cutting taxes! it has been proved over and over again! Putting more money into the hands of the people who earned it always spurs economic growth. People with more money start businesses and invest,

 and take risks. which causes people to be hired. Then, unemplyment goes down which causes the tax base (the amount of people paying taxes) to increase substantially. which means... more money in the treasury!!

Economics 102 rasing taxes slows economic growth. Cutting taxes spurs it!

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Well now, it was announced today that even though most of the big banks took TARP money, (which was intended to loosen up the credit markets and help the banks make more loans.) It seems that the banks took the money but are now making fewer loans?  How can this be? Simple, I submit that the banks never needed the TARP money in the first place. I suggest that the problems that have been caused by the current recession are not and was never as bad as we are being led to believe. Are more people out of work? Yes, without question.

 

However, the Wall Street elite saw an opportunity for free tax payer funds and took it, simple as that.

 

Just like the other industries, when the Government starts offering bail outs, everyone suddenly needs one, whether they actually need one or not.

Housing market, AIG, the auto industry, the list goes on and on. Think of it this way, If President Obama were to stand in the middle of your town square and or city handing out $100 dollar bills, how many people would go to see if they could get one? Does anyone think that it would matter if it was actually needed by the person trying to get it?  The only thing that might keep some people away would be the huge crowds of people that would be there trying to get the “free money”. I think that even if you told people that if they took that $100 dollars now it would actually cost them $500 in the future, the crowds would still be too large to count.

 

This is a simple fact of the human condition, does anyone remember before the election, the woman that was all over T.V. telling everyone who would listen that she intended to vote for Obama because he said he would pay her mortgage and put gas in her car?

 

I wonder if she ever got a check from the White House?

Would a true Christian forsake Jesus Christ?

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After considerations of the statements that have come from the White House in recent days with regard to the President's speech at Georgetown University. As a Christian, I really only have one question, would a true Christian foresake Jesus? If the answer is no, then the next question that you must ask is, is our President a Christian?

I know that during the campaign the President went out of his way to convince we the people that he was in fact a Christian. I also remember that during the campaign he referred to his "muslim faith" twice. Frankly, most Christians that I know would have done everything they could have to keep the picture of Jesus displayed. Also, could there have been a better opportunity for the President and the White House to bolster the claims that the President is Christian? Especially when you consider that a segment of the voting public believes he is a Muslim. To me, it is pretty simple. True Christians would never make the mistake of referring to any other faith it simply would not happen. However, someone who is pretending to be Christian just may slip up in public, twice, while running for President. Could it be that the voting public has been duped? Only time will bear out the answer but keep a close eye, I fear that this is not the only thing that we are going to find where we have been duped.

Can Obama Dance?

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The Potomac Two-Step

 

I like to give credit when it is due. President Obama made the correct call when he gave the go ahead to take out the Somali terrorists who had hijacked an American flagged ship last week. The President was right when he gave a green light to allow Navy sharp shooters to take down the hijackers, if it was determined that the Captains life was threatened. The Capitan is truly a hero as he offered his life in exchange for his crew, and certainly the Navy Seals deserve credit for their role.

 

If you have been around politics as long as I have, every thing that happens in Washington gives you reason to pause and reflect. And I grew up learning to identify the Potomac two-step when I see it. Simply put, the two-step goes like this,

 

The President takes credit when the results are good and finds someone else to blame if things go badly. This is certainly not a new thing. All presidents have learned to dance at one time or another. During this crisis, the White House made a concretive effort to downplay the Presidents role in the situation. Administration officials would say that while the President was being kept advised of the situation, he was not commenting and was letting the commanders close to the situation make the calls.

 

This was by design and I saw it almost immediately, the two-step was in full effect. Thankfully, it all turned out well, we can be happy for the Capitan and his family. And we should all be proud of the training and skill of the navy seals that were able to make a very bad situation turn out as well as it could. For those of you who may be thinking, but people died… I say, the only good terrorist is a dead terrorist. But I digress,

 

Only after the results were in and the crisis was over, did the White House suddenly switch gears and because of the success of the operation, played up the Presidents role, almost as if he were standing on the bridge of the battleship and had given the direct order to take the terrorists down. (Sorry, I forgot we are not allowed to call them terrorists anymore).

 

While I am sure the President authorized the use of deadly force, and correctly so, had the operation turned out badly, the White House would have certainly claimed the President had a very limited role and would have placed the blame for the failure of the operation at the feet of the commanders on the ground.

 

Obama is learning to dance very well already.

 

Don’t worry if you didn’t see the two-step happening this time, unfortunately, there will be other opportunities.