Will Barack Obama's administration be able to reverse the nation's economic downturn?

No

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by American Citizen

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Considering the nation's economic downturn has a great deal to do with massive, unchecked, unaccounted for, wasteful spending, it's only logical to realize that Obama is jackhammering the final nails in America's economic coffin.

I'll put this in the simple context in which I read it. Say two people are living in one house. Each earns $50,000 annually, so the household income is $100,000. One day, person A claims need of an additional $20,000. Either persuasively or coercively, person A takes the $20,000 from person B. Person A now has $70,000. Person B has $30,000. The combined household income is unchanged at $100,000, but one person is poorer than the other.

This is precisely how a national economy works as well. If we replace person A with American Taxpayers and replace person B with Federal Government, the nation is neither richer nor poorer. The money has simply been redistributed from individuals' pockets to the government's coffers. The people are poorer and the government is bigger.

Now, the people have less purchasing power whether prices of commodities and services rise or fall (they are rising). The government is the entity with purchasing power. But our federal government doesn't spend only what it takes in tax revenue. It also borrows. It has borrowed from the Superfund Trust, the Highway Trust, the Social Security Trust, the Medicare Trust and likely every other trust that it is supposed to provide fiduciary responsibility for.

You would really need to count the dollars taken from you in taxation to start to get ANGRY AS HELL. Gasoline, cigarettes, property, turnpike tolls, bridges, tunnels, marriage licenses, permitting fees, traffic fines, income taxes (this is completely unlawful. see http://www.supremela w.org/sls/31answers. htm, www.freedomtofascism .com, books "The Federal Zone: Cracking the Code of Internal Revenue", "The Law that Never Was", "The Creature from Jeckyll Island"), the list goes on ad nauseum.

What's particularly interesting is that the amount of income taxes collected by the IRS is equal to the interest payments on our national debt. Not a cent goes towards national public programs and services. Now, the national debt interest is increasing over $1.2 billion PER DAY. That's JUST INTEREST. If you have a credit card with a balance, you know interest goes towards absolutely nothing that benefits you. That interest goes to the Federal Reserve Banks, from whom the US Treasury borrows money in order to print dollar bills, which are notes evidencing a debt. Read your money. It'll tell you. Federal Reserve Note. The signatures of the Treasurer of the United States and the Secretary of the Treasury (yes, they are separate federal entities) promise repayment to the Federal Reserve. Then they issue T-bills, notes and bonds to investors to raise cash to pay the Federal Reserve, and in turn pay interest to the bondholders. Meanwhile, where is the nation's gold held? At the federal reserves. Why? Not entirely sure, but I believe our nation's gold is being held as collateral against the debt for the privilege of printing US currency. Absurd, isn't it? I sure hope you're angry enough to do something!

Bond traders know what "note" means. Mortgagors should know what a note is also. But most don't. This is sad. The mortgage is a piece of paper that the borrower gives to the bank, making the borrower the mortgagor (one who gives a mortgage) and the bank the mortgagee (one who receives a mortgage). The NOTE is the promise to pay the mortgage. The mortgage collateralizes the underlying property in case of note payment default. Read your household documents, and you'll be clear on debt and debt terminology.

But now I'm off-topic. The ALARMING POINT in thinking the federal government is going to create jobs with our money is stupidity repeating itself. The government is a bureaucracy that has no interest in increasing production or efficiency. It will pay more than market prices. It will pay when contractors run over schedule. It will pay when contractors run over budget. If its purpose is to create jobs, it will accomplish this best by employing the least efficient means. When it takes 10 workers to do the work of 1, that's job creation government-style. This isn't good. It makes our products and services less competitive in the marketplace.

When these infrastructure and energy projects get completed, who will receive the revenue? The government, of course. There will be tolls and fees and surcharges. The projects' users will pay those excise charges. And all the taxpayers will be paying the newly-levied income taxes for the original government borrowing in order to get the projects started. Hello, liberals and Democrats! Are you seeing the underlying fallacy of your job-creation programs? This is making the government the nation's employer (like Cuba, like the Soviet Union, like Communist China). Less money in your pocket means less money for shopping/saving/inve sting. And when all those private companies start going belly-up because you're not buying, the government will swoop in again. And again and again until we are the former Soviet Union. Even Putin suggested that Obama is going down the dangerous road toward a proven failure of an economic system http://www.americant hinker.com/blog/2009 /02/putin_warns_us_t o_eschew_socia.html.

Either the bureaucrats are inept or they're criminals. I suspect it's the least favorable mix of the two.

AMERICA PLEASE WAKE UP!

I suggest reading the books I've mentioned already. But for those who want to understand economics in a VERY FUNDAMENTAL WAY, I strongly recommend Henry Hazlitt's "Economics in One Lesson: The Shortest and Surest way to Understand Basic Economics". It's entirely relevant to today and it's a fairly easy read. For more, see www.mises.org, http://www.endthefed .us/, http://www.lewrockwe ll.com/paul/paul53.h tml., www.lp.org, www.aynrand.org, www.cato.org, WORLD'S SMALLEST POLITICAL QUIZ - http://www.theadvoca tes.org/quizp/index. html

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