The worse news is that in actuality the present national debt when adjusted both for inflation and the rate of interest and when also adding in obligations like Medicare and Social Security which are not considered debt, but should be, really amounts to about $92 TRillion in debt or obligations (for example Medicare right now has $34 TRillion in obligations it can never meet) coming due by 2020.

U. S. Secretary of the Treasury Timothy Geithner Wednesday attempted to sell $43 billion in new U.S. Treasury notes on the market which, if successful would be a single-day record for borrowing. On Thursday and Friday the treasury will attempt to unload yet another $69 billion.  So the United States is hoping to borrow $112 Billion in just three days, quite a pace! On an expanded basis that would amount to roughly $900 Billion per month or $12.8 TRillion yearly. It wasn’t that long ago that Ol’ Rajjpuut remembers less than $100 Billion per year being the nation’s entire borrowing. Now we’re panhandling 12% more in a mere three days  . . . if you didn’t understand the extent of America’s economic troubles before, hopefully now you do.

Secretary Geithner has already borrowed $1.41 TRillion this year, roughly 2.7 times more than the borrowing for the full year in 2008.  Obviously in recent days, the pattern of borrowing has increased markedly. Geithner and Obama’s  third partner in crime: Fed Chairman Ben Bernanke has been running the money printing presses day and night so that we now have fifteen times as many paper dollars in circulation than we had in 2008. The value of your money is shrinking overnight as a result of Washington’s actions since the onset of the Obama administration. According to the Congressional Budget Office (CBO) by 2020 the National Debt should reach 24.5 TRillion. But the facts are a lot scarier than all that . . . .

It appears definite that the American dollar’s place in the world economy as the World’s Reserve Currency is tenuous at best. IF, or when the dollar loses its place as the world’s reserve currency there is no reason to believe it will keep anything but a miniscule part of the present value which is  now 76 on the USDX scale.     If for example, Bernanke’s 15/1 on circulating currency is realized, the possibility of a 2010 American dollar wielding seven cents of the buying power of today’s dollar and hitting 5 on the USDX. If this is to be our economic future: it is bleak.

Ya’all live long, strong and ornery,

Rajjpuut

Platinum Fleecer Award

July, 2009

To honor the memory of the Last Great American Statesman, William Proxmire (Wisconsin Senator for 32 years whose “Golden Fleece Awards” uncovered shameless pork barrel projects and focused media attention on all manner of self-serving, waste, and corruption in the United States government), Rajjpuut has as of June, 2009, begun to award the “Platinum Fleecer” to the elected or appointed official or private citizen most deserving of the title.

The July, 2009 Platinum Fleecer WINNER is: 

Barak Hussein Obama

Barak Obama has earned back-to-back Platinum Fleecer Awards not only for his outrageous spending and inflationary policies but also for the pure chutzpah of his public discourse. Last week President Obama was on Capitol Hill scolding Democratic congressional bedfellows to help him control spending by enacting “pay as you go” legislation. “The reckless fiscal policies of the past administration have left us in a very deep hole,” he said. Mr. Obama has conveniently left out two crucial facts about that “very deep hole”:

            As financial advisor Jimmy Rogers, chairman of Rogers Holdings  puts it: “This guy Geitner’s been wrong for fifteen straight years.  Bernanke? He’s been wrong for 350 consecutive weeks. They really have no idea.  Obama’s got us printing money hand over fist. I can’t say the fundamentals of  Citibank or GM are getting better. No one can get a loan, so manufacturing is stagnant and prices are going up as supply goes down.”   Inflation too will soon make prices jump.

           “Washington is increasing taxes on capital gains and energy, in a recession?  Can you believe it? They’re destroying the economy.” Rogers said the “rally in the dollar” was mind-boggling, “it’s not a stable currency.”

To honor the memory of the Last Great American Statesman, William Proxmire (Wisconsin Senator for 32 years whose “Golden Fleece Awards” uncovered shameless pork barrel projects and focused media attention on all manner of self-serving, waste, and corruption in the United States government), Rajjpuut has as of June, 2009, begun to award the “Platinum Fleecer” to the elected or appointed official or private citizen most deserving of the title.

The June, 2009 and inaugural WINNERS are: 

Bernard  Lawrence Madoff and Barak Hussein Obama

Madoff distinguished himself by avoiding detection of his giant ponzi scheme for over 18 years. Madoff’s con which has been labeled “the greatest fraud ever perpetrated by a single individual in all of history” bilked private investors, charities and other public entities out of $65 billion in that time. To his immense discredit, Madoff confessed and turned himself in to authorities for which he faces possible imprisonment for 150 years and $170 Billion in penalties and restitution.

Item: It took 220 years for the national debt to reach the level it had when George W. Bush left office.

Item: Barak Obama has set in motion fiscal forces that will double the national debt in his first year in office.

Item: Obama has promised us (threatened us with) programs that will double that debt again in roughly nine and a half years.

Item: When Obama took office the public expressed a 45% “VERY favorable” impression of him on surveys and a 15% “VERY UNfavorable” impression. In less than five months he and his administration are now perceived as 35% “VERY favorably” and 32% “VERY Unfavorably.".

Item: The amazing +30% very positive approval gap, the president enjoyed on January 20^th has slipped to a +3%; his honeymoon with the American public  is ending.

Item: Spain like much of Europe was very enthusiastic about green-tech subsidies. The figures from a recent Spanish survey show: each green-tech job costs 2.2 other jobs in the economy; each green-tech job cost $775,000 to implement; only one green-tech job in ten was permanent in the Spanish study.

Item: Barak Obama has promised to create five million green-tech jobs. 

               Very early on in the Obama administration, we’re already seeing signs that things are getting out of control . . .  Even that cretin Franklin Delano Roosevelt is a piker when compared to the Liberal policies of Barak Obama. Obama is the most Liberal American president ever.  The great weakness of Liberal "economic thought" is tied up in four misconceptions and Barak Obama exhibits everyone of these weaknesses, in spades:

B.      A cavalier attitude toward capitalism, business, and the U.S. Constitution (just a piece of paper that often gets in the way of doing “good”) 

C.      A huge disdain for the value of traditional institutions and the people who espouse them

D.      A shocking willingness to ditch the baby with the wash water 

Obama is definitely at the crossroads. For example, if he goes ahead with his planned five million green-tech job creations and it costs eleven million jobs in our already tenuous economy: that’s definitely ditching the baby. He would be saying in effect, “I am all-wise, I know there can be a little pain and sacrifice involved (for you, not me, of course LOL), but I know best and in the long run you’ll lay laurel wreaths on my head as the savior of the economy and designer of a much better Socialist nation.”

Bob

** http://www.thefreemanonline.org/featured/i-pencil/

^^ http://jim.com/econ/chap02p1.html