The Truth About Obama’s Jobs Bill

National Inflation Association

On Thursday evening, President Obama gave a speech to a joint session of Congress discussing the jobs situation here in America. The purpose of Obama’s speech was to convince the American public and their elected representatives in Washington to support Obama’s new $447 billion ‘American Jobs Act’, which has a cost that is 49% larger than the $300 billion act most people were expecting. NIA believes this bill will do nothing to reduce unemployment in America and that it is nothing but another stimulus bill in disguise that will add to our budget deficits.

Obama’s bill proposes a $4,000 per employee tax credit for businesses that hire somebody who was previously unemployed for 6 months or more, at a cost of $8 billion. At the same time, Obama wants to extend emergency unemployment compensation (EUC), which allows Americans who have exhausted standard unemployment benefits that last for 26 weeks to continue receiving them for between 20 and 53 additional weeks. EUC benefits are set to expire at the end of 2011 and continuing them through the end of 2012 will cost U.S. taxpayers $49 billion.

It is totally absurd for Obama to give employers money to attempt to hire people he is simultaneously paying to stay out of work. What makes this even more outrageous is that employers have an incentive not to hire recently laid off workers, when only those unemployed for 6 months or more will bring them a $4,000 check. If this bill is passed it will make the unemployment situation in America far worse than it already is.

NIA has heard from members who own farms and have positions on their farms available, but can’t find anybody interested in working for them and filling the available positions. Every time they hire somebody to work on their farm, the worker purposely does a poor job and tries to get fired. Their sole purpose of getting a job is to convince their local unemployment agency that they are trying to find employment so that they can keep receiving unemployment benefits, when in reality they are trying to take advantage of the system.

Obama is right that any future recovery will be driven by our businesses and our workers, but if Washington wants to make a positive difference the only step it should take to improve our people’s lives, is get out of their lives. It is impossible for any piece of legislation including Obama’s ‘American Jobs Act’, to improve the employment situation here in America. Obama needs to remove any government programs already in place that interfere with the free market. NIA believes that if the U.S. eliminated all unemployment benefits and also got rid of the minimum wage, it would cause the unemployment rate to return to healthy levels.

U.S. employees earning up to $106,800 annually currently pay a 4.2% payroll tax that is scheduled to revert back to 6.2% in 2012. Obama not only doesn’t want employee payroll taxes to raise back up to the historical level of 6.2%, which went into effect in 1990, but he wants to further reduce them to 3.1% for 2012. The annual cost of this employee payroll tax reduction is estimated to be $175 billion. In an attempt to help small businesses, Obama also wants to cut employer side payroll taxes in half from 6.2% to 3.1% on the first $5 million of payroll, while eliminating employer side payroll taxes for new hires. The annual cost of this employer side payroll tax reduction is estimated to be $65 billion.

NIA believes all payroll taxes should be eliminated. Americans who make payroll tax payments today are paying for other Americans to receive entitlement programs that they will never receive. Social Security and Medicare are already on the verge of insolvency. By the end of this decade, NIA believes Americans receiving Social Security checks will be receiving checks that don’t have any purchasing power and aren’t worth cashing. Americans would be much better off if they were able to use the money they currently spend on payroll taxes to accumulate physical silver instead. Only Americans with enough savings in physical gold and silver will be able to retire in the future.

Obama’s bill also provides $35 billion in state and local government aid, $50 billion in infrastructure repairs, $10 billion for a national infrastructure bank, $30 billion for school modernization and repairs, and $15 billion in housing expenditures. Unfortunately, the jobs Obama’s bill will create for construction workers, teachers, veterans, and the long-term unemployed, are only temporary jobs that will vanish after the bill expires, and the money printed to pay these workers will steal from the purchasing power of American workers who already have jobs today. There is no doubt about it that America’s infrastructure is decaying and we need to build new roads and bridges, but this is something that we can’t afford to do until we return to an economy that is based on production instead of consumption.

We need to return to a trade surplus and begin paying off our debt before we can afford to make investments into infrastructure. China can afford to build newer airports and faster railroads because they have a $254 billion trade surplus and $3.2 trillion in foreign exchange reserves that they are better off spending on infrastructure improvements than keeping parked in U.S. dollars that will soon be worthless.

Obama says that everything in his bill will be paid for, but NIA wonders how? The government is claiming this isn’t another stimulus bill and Obama didn’t mention the word stimulus once during his speech. The truth is, NIA believes all of the measures in this bill will have to be paid for by borrowing and printing money, which will increase our budget deficit, expand the money supply, and lead to massive price inflation.

The jolt that Obama is trying to give to the economy he admits has stalled, is the same economy he tried to jolt with the American Recovery and Reinvestment Act of 2009, which put the U.S. $787 billion deeper into debt. NIA said at the time this stimulus bill was passed that when it failed to produce the results the government said it would, instead of admitting that stimulating the economy failed and reversing course, they will say the stimulus didn’t work because it wasn’t big enough and attempt to pass further stimulus bills by making new false promises.

Obama is lying to the public just like Congress recently did in regards to its bill to raise the debt ceiling. Congress deceived Americans into believing that in return for raising the debt ceiling so that the government can continue operating as it is today, “spending cuts” would be made to lower future budget deficits. These so called “spending cuts” turned out to be minor reductions to very large spending increases, with even these minor reductions not beginning until early 2013. Government spending is set to rise every single year until the dollar doesn’t have any purchasing power left.

Obama said in his speech last night that, “while corporate profits have come roaring back, smaller companies haven’t.” The reason this is true is only the largest banks and the companies they do business with have direct access to the Federal Reserve’s cheap and easy money. If the Fed didn’t bail out all of the banks on Wall Street that made risky leveraged up bets with other people’s money for the sole purpose of paying their employees huge bonuses, smaller banks would have acquired their assets in bankruptcy court for pennies on the dollar and be prospering today. Instead, small banks that made sound decisions were punished for doing the right thing. The Fed has made it even more difficult than ever for them to compete with the large banks that should be out of business.

If the Fed and Treasury didn’t bail out Wall Street, the world wouldn’t have come to an end like former-Treasury Secretary Henry Paulson conned everybody into believing. The truth is, we would be better off today because the bad assets would have been liquidated. The bad assets that caused the financial crisis of late-2008/early-2009 still exist today. The main difference between back then and now is, the size of the Fed’s balance sheet has doubled to $2.862 trillion due to the toxic assets they purchased, and the world is now flooded with excess liquidity of U.S. dollars.

It is impossible for the U.S. not to feel the consequences of the money we squandered fighting wasteful wars in Iraq and Afghanistan, and maintaining military bases all around the world. It is impossible for the U.S. not to feel the devastating effects of interest rates that have been left artificially low for way too long. When you have an artificial boom, that boom will eventually go bust and the more that is done to prop a phony economy up that is built on U.S. consumers spending money they don’t have, the harder the economy will fall in terms of high unemployment, high inflation, and a total lack of purchasing power that will cause a permanent decline in the U.S. standard of living.

The fact that Obama felt the need to demand that Congress pass his bill 17 times in 1 speech, shows that nothing positive will come out of this bill for the average American citizen. The only people who will benefit from this bill are bankers on Wall Street who are in line to earn huge fees on the infrastructure deals that get funded by the new national infrastructure bank. While the official U.S. Bureau of Labor Statistics (BLS) unemployment rate in August was 9.1%, down from its peak in October of 2009 of 10.1%, the real rate of unemployment including both short and long-term discouraged workers is now 22.8%, up from 22% in October of 2009 and a new high since the Great Depression in 1933. By further impeding the free market, Obama’s bill will further misallocate what little resources Americans still have left before hyperinflation arrives.

It is important to spread the word about NIA to as many people as possible, as quickly as possible, if you want America to survive hyperinflation. Please tell everybody you know to become members of NIA for free immediately at: http://inflation.us


Police Say Deadly Shooting at Bus Station on Eve of 9-11 Anniversary Was Random, But Was It Really?

By: Bob McCarty
Bob McCarty Writes

EDITOR’S NOTE: Political correctness dictates that one should just accept the official line and forget about this story, but I’m not politically correct.

Mohamed Dawod, a 25-year-old man from Glendale, Ariz., faces a murder charge today, accused in the shooting death of Justin Hall, 32, of Mt. Vernon, Ohio, at a Greyhound bus station in Springfield, Mo., late Thursday night. Whether or not this was a case of terrorism, however, remains up in the air after officials in the Southwest Missouri community were quick to say the shooting appeared random, according to a report in the Springfield News-Leader. But was it really?

Witnesses featured in two television news reports, however, seem to reveal more than the “official” story lets on about the deadly incident that involved a man with a Muslim name and Middle East appearance shooting someone he did not know less than 48 hours ahead of the 10th anniversary of the Sept. 11 attacks on the United States.

Read more at Bob McCarty Writes…


American Jobs Act and Raccoons

By: T F Stern
T F Stern’s Rantings

President Obama’s jobs speech wasn’t much different than rhetoric used to bilk American tax payers on stimulus packages before. Obama said, “Let’s pass this jobs bill right away,” even though it hasn’t been written or presented to Congress as yet. This morning I recognized the similarities to something in my back yard, an empty container of cat food. You read right, an empty container of cat food made me think of Obama’s call to pass a piece of legislation which nobody has read; this might take some explainin’.

Our garage has become a rest haven for Hobo Kitties along with an occasional skunk, opossum and raccoon. These critters wander around the neighborhood and spot the Hobo’s X painted on the garage door, stop in for a drink of fresh water, a free meal and a safe place to hide if the elements are threatening. Those animals which act half way civil to each other are permitted to stay while those who become “problematic” usually leave in a black plastic body bag.

The day starts by filling three bowls of cat food intended for the Hobo Kitties which lasts most of the day. The huge communal water bowl doubles as a bathtub for opossums and raccoons each night so it has to be cleaned and replenished each morning or it looks more like a mud wrestling pit.

At one time we kept a pair of five gallon heavy duty plastic containers filled with dry cat food in the garage; that is until the raccoons figured out how to unscrew the lids. We came out one morning and they’d emptied both containers and eaten every last morsel. Ten pounds of food “vanished like a fart in the wind;” a line the Warden used from the movie Shawshank Redemption that fit the situation. From that day on we stored the large containers in the house, not exactly a Martha Stewart moment; it’s worked for better than a year now. Once a week we transfer from the five gallon containers to more manageable containers which are lighter and have snap on lids that allow for pouring the dry food much easier.

Last night after pouring half rations into the bowls, half rations so the Hobo Kitties will leave them completely empty and not encourage unwanted visitors like skunks, opossums and raccoons; I set the small container down and got distracted with some chore in the back yard. This morning I went to feed the Hobo Kitties but the container was no where to be found, at least it wasn’t in the kitchen nook where it was supposed to be. I looked out the back window and saw the lid sitting in a planter box where our tomato garden used to be and the empty container on the other side of the back yard; the raccoons had a party and had emptied a weeks worth of food in one sitting.

Do you see a similarity between raccoons raiding Hobo Kitty food stores and spending policies of the Obama administration? Regardless of how much is put away for the future, it all gets used up if given half a chance and the next day, when the sun comes up, a cry goes out for more to end the new crisis.

Arizona Sen. Jon Kyl, the No. 2 Republican in the Senate had this to say, according to an article at Fox News:

“Faced with the reality of historic unemployment rates and record federal debt, I had hoped that President Obama, by now, would understand that even more government spending doesn’t create jobs,” he said. “Rather than offer a new roadmap for recovery and reform, he merely dusted off a tired agenda of old ideas wrapped in freshly partisan rhetoric.”

In the same article:

“The president’s so-called jobs plan is to try those very same policies again and then accuse anyone who doesn’t support them this time around of being political or overtly partisan, of not doing what’s needed in this moment of crisis,” Senate Republican leader Mitch McConnell said. “This isn’t a jobs plan. It’s a re-election plan.”

Obama wants to throw money away, money we don’t have, claiming it will go toward job creation; but jobs are not created by government, that part of the economy requires a growing economy based on supply and demand.

The reason we’re in a recession is complex and won’t be solved by throwing money in the air for a few to grab up. Folks who run businesses have good reason to be cautious as government places mandates and restrictions on the market place. This isn’t the time to expand or hire new employees because nobody knows which part of the free market system government will destroy or take over next.

Don’t let Obama have another chance at raiding the treasury; it’s already been emptied. Economic recovery, long term investments and job growth will have to wait until the raccoon has left the White House.

This article has been cross-posted to The Moral Liberal, a publication whose banner reads, “Defending The Judeo-Christian Ethic, Limited Government & The American Constitution.”


‘Operation Fast and Furious’ Coverup Not Unique

By: Bob McCarty
Bob McCarty Writes

Documents obtained exclusively by Fox News Channel suggest a third gun linked to “Operation Fast and Furious” was found at the scene of Border Patrol Agent Brian Terry’s murder, according to the network’s exclusive report today. Further, those documents appear to contradict earlier assertions by federal agencies that police found only two weapons tied to the federal government’s now infamous gun interdiction scandal, and network sources say emails support their contention that the FBI concealed evidence to protect a confidential informant. But is this a unique occurrence? One man says, “No.”

Jesse Trentadue has seen similar behavior during his investigation of the Oklahoma City Bombing, an effort he hoped would lead to the truth about the death of his brother, Kenneth Trentadue several months after the bombing while in custody at the U.S. Bureau of Prisons Federal Transfer Center in Oklahoma City.

Read more at Bob McCarty Writes…


Mayor Verner kicks the Otto Zehm death cover up down the road again

Ron The Cop

I attended this press conference this morning in front of the side entrance to the City Hall. The Mayor delivered her prepared speech expressing sympathy to the Otto Zehm family and acknowledging the citizens have a right to transparency in this investigation. The Mayor said their hands were tied until after the federal criminal case concludes. The Mayor and Council will then appoint an commission that will both internally and thoroughly investigate this incident. The Mayor would not take any questions. KHQ has the Mayor’s speech and press handout she gave to the media.

Please forgive me if I thought the the Mayor’s words were disingenuous. There has been an active cover up of Zehm’s death since the night of the incident that has been condoned and aided and abetted by high level police officials including the City Attorney’s Office and the Office of the Mayor. Please see my previous post of what is the most practical means of doing this investigation that will not cost the City a nickel:

Mayor, City Attorney and Police Chief now implicated in Zehm death cover up (Spokane, WA)
Councilman Bob Apple was obviously steamed as he did not receive the notification of this press conference that was sent to the media at about 8:30 PM last evening. Councilman Apple to his credit took questions from the media and dropped several bombshells. As quoted by the S-R in its preliminary article:

But after the mayor’s briefing, City Councilman Bob Apple addressed reporters with harsh words for the city and police. Apple, who said he wasn’t notified of the mayor’s briefing, said the federal trial of Thompson will be “an indictment” on the city’s policies and procedures.

Read more at Ron The Cop…