The IUSB Vision Weblog

The way to crush the middle class is to grind them between the millstones of taxation and inflation. – Vladimir Lenin

Archive for March 19th, 2009

This is bad: Federal Reserve Buys $1 Trillion in Treasury Bonds …..this is why it hurts you. – UPDATED!

Posted by iusbvision on March 19, 2009

UPDATE – Glenn Beck gives this analysis and I must say he did a great job. By the way, when the stack goes from $1 Billion to $1 Trillion, the stacks of money go from single stacked to double stacked. If they stayed single stacked that field of palets of money would be doubled in size.

We have all heard of an IOU, well this is an IO-Me. The dollar fell fast and gold shot up.

When the Federal Reserve/government sells debt they do it with bonds. China, you , me, investors, other banks etc buy these bonds and earn modest interest on them. They have just bought their own bonds which creates money out of thin air. They are taking an ‘IO-Me’ out of one pocket, use that to print up the money and put that money in their other pocket to use and spread around.

This is usually seen in markets as a panic move and makes the dollar worth less.

Bloomberg News:

March 19 (Bloomberg) — The dollar weakened beyond $1.37 against the euro for the first time since January on bets the Federal Reserve’s plan to buy Treasuries will push down yields on U.S. assets and prompt investors to seek returns elsewhere.

The U.S. currency dropped to the lowest versus Norway’s krone since October and depreciated to a two-month low against the Australian dollar as the Fed began flooding the market with greenbacks. Goldman Sachs Group Inc. raised the target on a bet against the dollar to $1.40 versus the euro a day after the greenback fell the most since the single currency’s 1999 debut.

UPDATE II – China calls for new reserve currency (drop the dollar).

Financial Times of London:

China’s central bank on Monday proposed replacing the US dollar as the international reserve currency with a new global system controlled by the International Monetary Fund.

In an essay posted on the People’s Bank of China’s website, Zhou Xiaochuan, the central bank’s governor, said the goal would be to create a reserve currency “that is disconnected from individual nations and is able to remain stable in the long run, thus removing the inherent deficiencies caused by using credit-based national currencies”.

Analysts said the proposal was an indication of Beijing’s fears that actions being taken to save the domestic US economy would have a negative impact on China.

“This is a clear sign that China, as the largest holder of US dollar financial assets, is concerned about the potential inflationary risk of the US Federal Reserve printing money,” said Qu Hongbin, chief China economist for HSBC.

Posted in Chuck Norton, Government Gone Wild, Mortgage Crisis, Obama and Congress Post Inaugration | Leave a Comment »

A very personal look at how Obama’s policies can cause a depression.

Posted by iusbvision on March 19, 2009

Here are two letters from business owners that are seeing some circulation on the net and were sent to the military blog The Foxhole. This is why socialism destroys wealth and innovation and spreads poverty.

Letter number one:

Dear Employees,

As the CEO of this organization, I have resigned myself to the fact that Barrack Obama is our President and that our taxes and government fees will increase in a BIG way. To compensate for these increases, our prices would have to increase by about 10%.

But since we cannot increase our prices right now due to the dismal state of the economy, we will have to lay off six of our employees instead. This has really been bothering me, since I believe we are family here and I didn’t know how to choose who would have to go.

So, this is what I did. I walked through our parking lot and found six ‘Obama’ bumper stickers on our employees’ cars and have decided these folks will be the ones to let go. I can’t think of a more fair way to approach this problem.. They voted for change, I gave it to them.

I will see the rest of you at the annual company picnic.

Letter number two:

To All My Valued Employees,

There have been some rumblings around the office about the future of this company, and more specifically, your job. As you know, the economy has changed for the worse and presents many challenges. However, the good news is this: The economy doesn’t pose a threat to your job. What does threaten your job however, is the changing political landscape in this country.

However, let me tell you some little tidbits of fact which might help you decide what is in your best interests.

First, while it is easy to spew rhetoric that casts employers against employees, you have to understand that for every business owner there is a Back Story. This back story is often neglected and overshadowed by what you see and hear. Sure, you see me park my Mercedes outside. You’ve seen my big home at last years Christmas party. I’m sure; all these flashy icons of luxury conjure up some idealized thoughts about my life.

However, what you don’t see is the BACK STORY :

I started this company 28 years ago. At that time, I lived in a 300 square foot studio apartment for 3 years. My entire living apartment was converted into an office so I could put forth 100% effort into building a company, which by the way, would eventually employ you.

My diet consisted of Ramen Pride noodles because every dollar I spent went back into this company. I drove a rusty Toyota Corolla with a defective transmission. I didn’t have time to date. Often times, I stayed home on weekends, while my friends went out drinking and partying. In fact, I was married to my business – hard work, discipline, and sacrifice.

Meanwhile, my friends got jobs. They worked 40 hours a week and made a modest $50K a year and spent every dime they earned. They drove flashy cars and lived in expensive homes and wore fancy designer clothes. Instead of hitting the Nordstrom’s for the latest hot fashion item, I was trolling through the discount store extracting any clothing item that didn’t look like it was birthed in the 70’s.

My friends refinanced their mortgages and lived a life of luxury. I, however, did not. I put my time, my money, and my life into a business with a vision that eventually, someday, I too, will be able to afford these luxuries my friends supposedly had.

So, while you physically arrive at the office at 9am, mentally check in at about noon, and then leave at 5pm, I don’t. There is no “off” button for me. When you leave the office, you are done and you have a weekend all to yourself. I unfortunately do not have the freedom.

I eat, and breathe this company every minute of the day. There is no rest. There is no weekend. There is no happy hour. Every day this business is attached to my hip like a 1 year old special-needs child.

You, of course, only see the fruits of that garden – the nice house, the Mercedes, the vacations… you never realize the Back Story and the sacrifices I’ve made.

Now, the economy is falling apart and I, the guy that made all the right decisions and saved his money, have to bailout all the people who didn’t. The people that overspent their paychecks suddenly feel entitled to the same luxuries that I earned and sacrificed a decade of my life for.

Yes, business ownership has is benefits but the price I’ve paid is steep and not without wounds.

Unfortunately, the cost of running this business, and employing you, is starting to eclipse the threshold of marginal benefit and let me tell you why:

I am being taxed to death and the government thinks I don’t pay enough. I have state taxes. Federal taxes. Property taxes. Sales and use taxes. Payroll taxes. Workers compensation taxes. Unemployment taxes. Taxes on taxes. I have to hire a tax man to manage all these taxes and then guess what? I have to pay taxes for employing him. Government mandates and regulations and all the accounting that goes with it, now occupy most of my time. On Oct 15th, I wrote a check to the US Treasury for $288,000 for quarterly taxes. You know what my “stimulus” check was?

Zero. Nada. Zilch.

The question I have is this: Who is stimulating the economy? Me, the guy who has provided 14 people good paying jobs and serves over 2,200,000 people per year with a flourishing business? Or, the single mother sitting at home pregnant with her fourth child waiting for her next welfare check? Obviously, government feels the latter is the economic stimulus of this country.

The fact is, if I deducted (Read: Stole) 50% of your paycheck you’d quit and you wouldn’t work here. I mean, why should you? That’s nuts. Who wants to get rewarded only 50% of their hard work? Well, I agree which is why your job is in jeopardy.

Here is what many of you don’t understand … to stimulate the economy you need to stimulate what runs the economy. Had suddenly government mandated to me that I didn’t need to pay taxes, guess what?

Instead of depositing that $288,000 into the Washington black-hole, I would have spent it, hired more employees, and generated substantial economic growth. My employees would have enjoyed the wealth of that tax cut in the form of promotions and better salaries. But you can forget it now.

When you have a comatose man on the verge of death, you don’t defibrillate and shock his thumb thinking that will bring him back to life, do you? Or, do you defibrillate his heart? Business is at the heart of America and always has been. To restart it, you must stimulate it, not kill it. Suddenly, the power brokers in Washington believe the poor of America are the essential drivers of the American economic engine. Nothing could be further from the truth and this is the type of change you can keep.

So where am I going with all this?
It’s quite simple.

If any new taxes are levied on me, or my company, my reaction will be swift and simple. I’ll fire you and your coworkers. You can then plead with the government to pay for your mortgage, your SUV, and your child’s future.

Frankly, it isn’t my problem any more.

Then, I will close this company down, move to another country, and retire. You see, I’m done. I’m done with a country that penalizes the productive and gives to the unproductive. My motivation to work and to provide jobs will be destroyed, and with it, will be my citizenship.

So, if you lose your job, it won’t be at the hands of the economy; it will be at the hands of a political hurricane that swept through this country, steamrolled the constitution, and will have changed its landscape forever. If that happens, you can find me sitting on a beach, retired, and with no employees to worry about….

Posted in Chuck Norton, Energy & Taxes, Obama and Congress Post Inaugration | 1 Comment »

Breaking: More Pay to Play. AIG Gave NY Democrats $100k before historic loan!

Posted by iusbvision on March 19, 2009

WNBC:

New York campaign finance records show American International Group donated $100,000 to the state Democratic Committee just before Democratic Gov. David Paterson and his insurance superintendent launched marathon sessions to prop up the embattled insurer.

The contribution was made Aug. 29. Insurance Superintendent Eric Dinallo started negotiating with AIG and federal officials within about two weeks.

On Sept. 16, Paterson announced the “great news” that New York officials helped the giant insurer strike a historic loan deal with the Federal Reserve to keep AIG afloat.

Spokesmen for the state Democratic party, Paterson, Dinallo and AIG had no immediate comment Thursday.

The state’s effort is credited with giving AIG time to survive.

Posted in Chuck Norton, Government Gone Wild, Mortgage Crisis | Leave a Comment »

Nation’s worst school principals will get bonuses

Posted by iusbvision on March 19, 2009

Via The Voice for School Choice (Hat Tip Ed Morrissey at Hotair.com)

In the last year, public schools in South Carolina have endured $360 million in state budget cuts.

While many classroom teachers are fearing for their jobs, there are legions of consultants, bureaucrats and administrators who continue to cash-out from the $11,480 per child public school spending.

Just as the budget crisis worsens, parents are getting more bad news about public school performance. Unlike the budget crunch, which began in November of last year, low test scores, growing race- and wealth gaps, a 55% graduate rate and a surge in the number of failing public schools are a long term trend in South Carolina public schools.

In the latest round of bad news, parents were shocked to learn that according to a nationwide study, 11 of the country’s worst performing public schools are located in South Carolina. Of those 11 persistently failing schools, 4 are located in Charleston South Carolina.

Now it appears that principals at 2 of those schools will receive salary bonuses this year!

Get the rest of the details HERE.

Posted in Campus Freedom, Indoctrination & Censorship, Chuck Norton | Leave a Comment »

Thought of the day!

Posted by iusbvision on March 19, 2009

You can try to be nice to people, but some people just do not respond to nice. So I have a saying:

Some will, some won’t, so what….. Next!

Sometimes you just need to ignore people and just move on.

Posted in Chuck Norton, Culture War | Leave a Comment »

Dodd lied – CNN and Fox all over him. Geithner lied – elite media getting wise.

Posted by iusbvision on March 19, 2009

Update – Newt Gingrich and others are confirming that Treasury and Geithner knew about the bonuses in November. The lies are unfolding fast.

Senator Chris Dodd told CNN that he knew nothing about inserting the provision to specifically allow the AIG and other bonuses and as we reported yesterday Dodd has taken massive amounts of cash from AIG and so has President Obama.

Now that the evidence is out, Dodd tells CNN that he was responsible for the language, but Treasury (Tim Geithner) told him to do it.

Now it has come out that Geithner knew about the bonuses 10 days before he said he knew about them. It looks like he is busted too.

Fox News– Sen. Dodd Admits Adding Bonus Provision to Stimulus Package.

In a dramatic reversal Wednesday, Sen. Chris Dodd, D-Conn., confessed to adding language to a spending cap in the stimulus bill last month that specifically excluded executive bonuses included in contracts signed before the bill’s passage.

Dodd told FOX News that Treasury officials forced him to make the change.

 On Tuesday, Dodd told FOX News that he didn’t add the exemption. 

Video: CNN telling GOP leader that Dodd claimed the porson who put the language in is a mystery

CNN’s video and transcript of Sen. Dodd caught flat out in the lie heard round the world at Hotair.com – LINK

Time Magazine and Hotair.com – “Treasury [Geithner] knew about AIG bonuses 10 days sooner than thought” – LINK

Instapundit:

CHRIS DODD spills the beans.

UPDATE: Dodd Facing Fresh Political Firestorm.“Dodd just admitted on CNN that he inserted a loophole in the stimulus legislation that allowed million-dollar bonuses to insurance giant AIG to go forward – after previously denying any involvement in writing the controversial provision.”

The country’s in the very best of hands. . . .

ANOTHER UPDATE: Stephen Spruiell;“Look, it’s hard to have any sympathy for Dodd – the sweetheart mortgage deals, the Irish cottage, the self-righteous grandstanding, etc. And as for the policy at hand, I agree more with Geithner and Summers than Dodd. But as for the politics, this AIG thing is blowing up in Obama’s face, and it looks an awful lot like his administration is trying to make Dodd the fall guy. I’m not so sure Republicans (or conservatives) should help.”

Plus this:“Ed Liddy sized up this situation when he got to AIG and came to the conclusion that the best course for taxpayers and for the financial system was to pay the bonuses. This gets back to something I wrote earlier: If Obama disagrees with Liddy’s decision, he should either A) fire Liddy, or B) fire the guy who hired Liddy (Tim Geithner). What he should not do is go along with this Kabuki outrage, in which official Washington pretends it had no idea that big financial institutions – especially failing ones – might need to keep paying their top employees competitive salaries.”

.

Posted in Chuck Norton, Government Gone Wild, Mortgage Crisis, Obama and Congress Post Inaugration | Leave a Comment »

Roundup of News You Missed Because of the AIG Media Distraction

Posted by iusbvision on March 19, 2009

It is just like we told you and Shep says in this video; this AIG story is a BS distraction.

Obama took half a million dollars for a book deal a few days before the inauguration. – LINK. Remember how upset the Democrats and the media got over Newt Gingrich’s book deal? –

Rush Limbaugh is polling higher than Nancy Pelosi  – LINK.

More babies were born in the United States in 2007 than any year in the nation’s history, topping the peak during the baby boom 50 years earlier, federal researchers reported Wednesday. 40% out of wedlock. – LINK
[I think that once you are married you should have lots of babies. This leftist population control stuff is nonsense. If you want to fight about it bring it on in comments. – Editor]

Karl Rove: The Obama Administration’s actions are giving the GOP an opening. – LINK

DEBATE: Is Bush the worst president in the last 50 years? Karl Rove and Bill Kristol debate two lefties on NPR in front of an audience who votes for the winner. Rove and Kristol win the vote. The audio, which is VERY enlightening is here – LINK

Video: Democrat Speaker Nancy Pelosi says that enforcing immigration laws is “un-American” – LINK

SEIU union is firing union employees and replacing them with temps from a staffing agency. – LINK

The Huffington Post calls on the FCC to censor media they consider to be conservative. Of course MSNBC is right down the middle…. – LINK. Like all too many college administrators and other far left Democrats the First Amendment only counts for speech they like.

MSNBC questions Karl Rove’s manhood and claims that VP Cheney was the mastermind of an assassination ring. LINK and LINK. Yup stright down the middle….

Secularists trying to get St. Patrick’s day renamed to “Shamrock Day” – LINK. Haven’t people had enough of these God-O-phobes yet?

Good video of some of the local Tea Party coverage that is being ignored by the national elite media.

Richard Cohen at the Washington Post has a great column defending Jim Cramer. While Jon Stewart attacked Cramer for believing that Bear Stearns and AIG were good buys before the collapse, so did 80% of the rest of the profession. – LINK

As NewsBusters reported Sunday, “with the exception of Fox News and CNN, no major television outlet has covered even one of these events except the original proposed by Santelli on February 19.” – LINK.

Good Morning America tosses softballs to Michelle Obama, yet lectured and grilled Laura Bush. – LINK.

This guy is a bit upset –

ACORN is taking more heat for …..well these guys are a pinata of illegal and thuggish activity. – LINK.

Explorers On Global Warming Expedition Stranded by Cold Weather – LINK.

Joe the Plumber sues Democrat public officials and the State of Ohio for illegally leaking his private information. – Link. This is the party that wants your medical records online for them to look over. The same party that obtained and leaked Michael Steele’s credit report. The same party that leaked Linda Tripp’s Department of Defense file. The same party that used private investigators as a secret police force. The same party that obtained 900 secret FBI files and used them illegally. The same party that wants control of your health care. Yup, you can trust them.

Congressman Maxine Waters and her own little culture of corruption? –  Link

“My Imam father came after me with an axe” – LINK

General Dr. David Petraeus for president? – LINK

Our best ally in Latin-America says that the Democrats slapped them in the face – LINK

Social Workers in England helping to make sure that Muslim women who are beaten by their fathers/husbands are beaten again by notifying the community Sharia Law pseudo authorities in the Muslim communities…… oh its true… – LINK

Its here. The automated mosquito hunter-killer laser gun. No this is not a joke. – LINK

The deficit may be up to a trillion more then current projections.  – LINK

Obama made $2.5 million in book royalties last year. – LINK

Posted in 2012, Chuck Norton, Journalism Is Dead, Leftist Hate in Action, Obama and Congress Post Inaugration | Leave a Comment »

Elite Media Fails to Mention Party Affiliation for Jailed Democrat (Again)

Posted by iusbvision on March 19, 2009

This is always fun to report. It happens so often that we don’t even report them all.

It goes like this, if a Republican gets in trouble or even something that can be made to look like trouble, the ‘Republican’ party affiliation is mentioned many times in the article. But if said person on trouble is a Democrat, the party affiliation is usually left out.

We have reported on this phenomenon HERE and HERE and HERE.

News Busters has a little fun with this story:

Name That Party: Top NM Dem Sentenced, Party Affiliation Deep Sixed

By Warner Todd Huston
March 19, 2009 – 02:59 ET

Manny Aragon was one of New Mexico’s most powerful law makers and power brokers. A former Senate president, Aragon was this week convicted and given a 67 month sentence for lining his pockets and that of his co-conspirators with millions in fraudulently billed state contracting money.

While his “iconic” status is mentioned and his long standing position as a “Senate leader” is dutifully chronicled, his status as a Democrat doesn’t seem to make the cut of a large portion of the stories on his sentencing.

The Associated Press misses the fact in two versions of the story (here and here), so does the New Mexico Independent. KRQE News 13 doesn’t mention the party of Agagonor his co-conspirator Raul Parra. McClatchy’s Albuquerque Journal also skips party mention in this story of reactions to the sentencing.

And, in an amusing side note, the supposedly non-partisan Citizens for Responsibility and Ethics in Washington (CREW) also do not mention Aragon’s party affiliation. This, of course, is hardly surprising because the folks that run CREW are a little less “non-partisan” than they claim with board members and operations staff rich with Democrat Party activism, ACLU experience and one with a past job history with the left-wing group Media Matters — a group funded in part by George Soros. One of its board members is well-known left-wing legal activist, law school dean and radio guest Erwin Chemerinsky. There isn’t a single Republican oriented member of this “non-partisan” group to be found.

In any case, we have one of New Mexico’s most powerful Democrat lawmakers headed for the hooskow, yet his party seems to go un-indicted by the Old Media. Imagine that?

News Busters is a site you should visit every day.

 

UPDATE: Speaking of News Busters….

Jack Murtha, who is the king of trading earmark pork in exchange for campaign contributions was the subject of a report by CBS news where they failed to mention his party identification – LINK.

PA Senator Fumo found guilty on 137 counts. NBC fails to mention he is a Democrat. – LINK.

Posted in Chuck Norton, Journalism Is Dead | Leave a Comment »