Monday, July 20, 2009

USDA Defends Purchases and Stimulus Spending


Statement from Agriculture Secretary Tom Vilsack

"Through the Recovery Act, the U.S. Department of Agriculture has made $100 million available to the states for The Emergency Food Assistance Program (TEFAP), which acquires food that is distributed to local organizations that assist the needy – including food banks, food pantries, and soup kitchens.

Read Full Statement...

Wondering where your 'Stimulus' dollars are going?

Here is a small example of your tax dollars 'hard at work'...Just a bunch of Pork!

Sorry..bad pun...

RECOVERY.GOV // AWARDED: $2,531,600 FOR 'HAM, WATER ADDED, COOKED, FROZEN, SLICED, 2-LB'

RECOVERY.GOV // AWARDED: $1,191,200 FOR '2 POUND FROZEN HAM SLICED'

RECOVERY.GOV // AWARDED: $351,807 FOR 'REPLACE AND UPGRADE THE DUMBWAITER'

RECOVERY.GOV // AWARDED: $1,562,568 FOR 'MOZZARELLA CHEESE'

RECOVERY.GOV // AWARDED: $5,708,260 FOR 'PROCESS CHEESE'

RECOVERY.GOV // AWARDED: $16,784,272 FOR 'CANNED PORK'

RECOVERY.GOV // AWARDED: $1,444,100 FOR 'REPAIR DOOR BLDG 5112'

RECOVERY.GOV // AWARDED: $541,119 FOR 'INSTALL TRAFFIC SIGNAL'


Come on! Your not really surprised....are you!?!

White House Delays Release of Budget Update




















Jul 20 11:02 AM US/Eastern
By TOM RAUM


WASHINGTON (AP) - The White House is being forced to acknowledge the wide gap between its once-upbeat predictions about the economy and today's bleak landscape.

Read article...

Sunday, July 19, 2009

Ronald Reagan addresses Socialized Medicine

For those of you who think Universal Healthcare is a fairly new idea, listen to my boy Ronnie address the subject as a private citizen back in 1961.

Feds to set wages

Thomas Lifson

The long battle of the statists to set wage levels may be near realization, thanks to a skillful use of rope-a-dope tactics by the Obama administration. The latest version of the notorious card check legislation reportedly drops the feared card check provision, but includes a Trojan Horse provision that lets the feds set wages and other contract terms. Jennifer Rubin spotted it, and Mickey Kaus picked it up from her, commenting:

Read entire article..

Obama & Co. see current Majority as "opportunity" to force Socialized Healthcare

Obama: "We might not have this opportunity again for generations"

Friday, July 17, 2009

Socialist America sinking

By Patrick Buchanan
Posted: July 16, 2009

























After half a century of fighting encroachments upon freedom in America, journalist Garet Garrett published "The People's Pottage." A year later, in 1954, he died. "The People's Pottage" opens thus:

"There are those who still think they are holding the pass against a revolution that may be coming up the road. But they are gazing in the wrong direction. The revolution is behind them. It went by in the Night of Depression, singing songs to freedom."

Garrett wrote of a revolution within the form. While outwardly America appeared the same, a revolution within had taken place that was now irreversible. One need only glance at where we were before the New Deal, where we are and where we are headed to see how far we are off the course the Founding Fathers set for our republic.

Taxes drove the American Revolution, for we were a taxaphobic, liberty-loving people. That government is best that governs least is an Americanism. When "Silent Cal" Coolidge went home in 1929, the U.S. government was spending 3 percent of gross domestic product.

And today? Obama's first budget will consume 28 percent of the entire GDP; state and local governments another 15 percent. While there is some overlap, in 2009, government will consume 40 percent of GDP, approaching the peak of World War II.

Tell Congress to stop spending America into the ground! Sign the WND petition demanding lawmakers stop the bailouts, stimulus bills and march toward socialism and national destruction.

The deficit for 2009 is $1.8 trillion, 13 percent of the whole economy. Obama is pushing a cap-and-trade bill to cut carbon emissions that will impose huge costs on energy production, spike consumer prices and drive production offshore to China, which is opting out of Kyoto II. The Chinese are not fools.

Obama plans to repeal the Bush tax cuts and take the income tax rate to near 40 percent. Combined state and local income tax rates can run to 10 percent. For the self-employed, payroll taxes add up to 15.2 percent on the first $106,800 for all wages of all workers. Medicare takes 2.9 percent of all wages above that. Then there are the state sales taxes that can run to 8 percent, property taxes, gas taxes, excise taxes and "sin taxes" on booze, cigarettes and, soon, hot dogs and soft drinks.

Comes now national health insurance from Nancy Pelosi's House. A surtax that runs to 5.4 percent of all earnings of the top 1 percent of Americans, who already pay 40 percent of all federal income taxes, has been sent to the Senate. Included also is an 8 percent tax on the entire payroll of small businesses that fail to provide health insurance for employees.

Other ideas on the table include taxing the health benefits that businesses provide their employees.

The D.C.-based Tax Foundation says New Yorkers could face a combined income tax rate of near 60 percent.

In the Declaration of Independence, Thomas Jefferson called George III a tyrant for having "erected a multitude of new offices, and sent hither swarms of officers to harass our people and eat out their substance."

What did George III do with his Stamp Act, Townshend Acts or tea tax to compare with what is being done to this generation of Americans by their own government?

While the hardest-working and most productive are bled, a third of all wage-earners pay no U.S. income tax, and Obama plans to free almost half of all wage-earners of all income taxes. Yet, tens of millions get Medicaid, rent supplements, free education, food stamps, welfare and an annual check from Uncle Sam called an Earned Income Tax Credit, though they never paid a nickel in income taxes.

Oh, yes. Obama also promises everybody a college education.

Coming to America to feast on this cornucopia of freebies is the world. One million to 2 million immigrants, legal and illegal, arrive every year. They come with fewer skills and less education than Americans, and consume more tax dollars than they contribute by three to one.

Wise Latina women have more babies north of the border than they do in Mexico and twice as many here as American women.

As almost all immigrants are now Third World people of color, they qualify for ethnic preferences in hiring and promotions and admissions to college over the children of Americans.

All of this would have astounded and appalled the Founding Fathers, who after all, created America – as they declared loud and clear in the Constitution – "for ourselves and our posterity."

China saves, invests and grows at 8 percent. America, awash in debt, has a shrinking economy, a huge trade deficit, a gutted industrial base, an unemployment rate surging toward 10 percent and a money supply that's swollen to double its size in a year. The 20th century may have been the American Century. The 21st shows another pattern.

"The United States is declining as a nation and a world power with mostly sighs and shrugs to mark this seismic event," writes Les Gelb, president emeritus of the Council on Foreign Relations, in CFR's Foreign Affairs magazine. "Astonishingly, some people do not appear to realize that the situation is all that serious."

Even the establishment is starting to get the message.

Sunday, July 12, 2009

The Fed Must Be Stopped



July 12, 2009


Written by: Ron Paul

Our country currently finds itself in the midst of the worst economic crisis since the 1930s and, as during all economic crises, people search for the answer as to why this has happened. Not only have large financial firms been affected, but also mainstays of American industry such as GM and Chrysler, all the way down to the Mom & Pop stores on Main Street. The easy way out is to blame the traditional scapegoats: foreign governments, fraudulent businessmen, and greedy speculators. But the real villain is far more sinister; the organization entrusted with maintaining a stable dollar and touted as the guarantor of economic stability – the Federal Reserve.

In the United States, monetary policy has been the domain of the Federal Reserve since its inception in 1913. Since that time we have had a number of cyclical recessions, each one following a boom caused by the Federal Reserve's loose monetary policy. The problem with the Federal Reserve is that it interferes with market pricing functions. Interest rates are a price just like any other and arise because of the fact that people prefer to consume in the present rather than in the future. The extent to which people defer present consumption is reflected in interest rates, which in a free market are determined by the spontaneous interactions and decisions of millions of people.

Fed intervention to set prices throws markets and interest rates out of equilibrium. When the Federal Reserve pushes interest rates below what the market rate would be, everyone wants to borrow money for long-term projects. Shortages of loanable funds would occur, except that the Federal Reserve has the ability to create bank balances out of thin air. The Fed can create a bank ledger on paper, or on a computer, establish a balance of millions or billions of dollars, and then spend these dollars out into the economy.

Loans become cheap, and the result of these lower interest rates is an economic boom which eventually manifests itself as a bubble. Beginning in 2001, the Federal Reserve pushed interest rates to as low as one percent, which after adjusting for inflation meant that the real interest rate was negative, so businesses were actually making money by taking out loans. This was the fuel for the housing bubble and the reason there are 19 million empty houses today.




















Because of this awesome power to create money out of thin air, the Fed has jumped in to stabilize ailing financial firms by pledging over $7 trillion through various guarantee programs and credit facilities. This is equivalent to over half of the entire nation's GDP. Over $1 trillion of this is already in play, propping up banks and other institutions that should be allowed to fail. All of this has taken place with no oversight by Congress. The Fed was created by Congress, and it is unconscionable that we have allowed it to act in such a way without our oversight. Currently the Federal Reserve's credit facilities, open market operations, and agreements with foreign governments and central banks are all exempt from any sort of audit or oversight. Earlier this year I introduced the Federal Reserve Transparency Act, HR 1207, that would remove all restrictions on Federal Reserve audits and call for a f ull audit of the Federal Reserve System to be completed by the end of 2010. At this writing, 245 of my fellow Congressmen have cosponsored this bill and we hope to have hearings in the near future. In the Senate, Republicans Jim DeMint, Mike Crapo and David Vitter have cosponsored S. 604, companion legislation introduced by Bernie Sanders. I am very encouraged by the tremendous growing momentum on Capitol Hill.

Our Founding Fathers never intended for a single entity such as the Federal Reserve to have this much power. In fact, there is no authority in the Constitution for the federal government to create a central bank, to enact legal tender laws, or to print paper money. The Tenth Amendment is quite clear that “The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.” The states themselves are prohibited from emitting bills of credit, i.e. paper money, arising from the Founders' negative experiences with paper money during the Revolutionary War. Cheap, un-backed, easily counterfeited paper money nearly lost the Revolution, until the government returned to minting gold and silver coins. Unfortunately, like too many other lessons learned by the Founders, the painful experiences of paper money have been forgotten by those living in the pres ent. We even ignore the experiences of Germans in the 1920s, Argentines in the 1980s, and Zimbabweans over the past decade. The Fed doubled the monetary base last fall in a matter of months, and God help us if any of this high-powered money begins to make its way through the economy.

An audit of the Fed is only the first step towards returning to where our Founders intended this country to be. The Founders knew that paper money could ruin a country, and drafted the Constitution in such a way that they thought would ensure sound, commodity-backed currency. Unfortunately, the Constitution was dispensed with long ago, and we find ourselves now suffering under an unconstitutional regime of un-backed paper money. Until we abolish the Federal Reserve and return to a stable currency that is not able to be manipulated to create boom and bust cycles, we will continue down the path of economic ruin.

Congress Ron Paul serves the fourteenth district of Texas and is honorary chairman of Campaign for Liberty. His new book, End the Fed (Grand Central Publishing) will release on September 16th and is available for pre-order on Amazon.