Timmah! Geithner opens mouth, kills markets

Timothy Geithner, at the Council on Foreign Relations today, said the U.S. is "open" to a proposal from the governor of the China's central bank to create a new global currency to replace the dollar. Looks like Timmah! sees no need for the United States to maintain sovereignty over its own currency. While Timmah! Hedged by comparing what China proposed as an evolution to the IMF’s special drawing rights, the Communist Chinese proposal was clearly one designed to replace all national currencies with a global currency.

"We’re actually quite open to that suggestion – you should see it as rather evolutionary” said Geithner.

As a results, the dollar took a nosedive in currency trading, and the US stock market indices moved into negative territory after enjoying a modestly good morning.

Stalinist Quote of the Day

“We need resolution authority to go in and be able to change contracts, be able to change the business model....” White House press secretary Robert Gibbs explaining why Obama is seeking greater power to nationalize US Companies.

A "transformative" President must destroy all that came before him, including free market capitalism.

GOP members voting for a 90% marginal tax rate

The following Republican members of the House of Representatives voted in favor of HR 1586. The bill imposes a 90% federal income tax on any bonus paid to any employee of any company that has received over $5 Billion in taxpayer "rescue" funds. The tax would only apply to people with total joint incomes over $250,000 or single individuals with income of only $125,000. When combined with some state income taxes, the total taxes can exceed the income.

Many of the members of Congress who voted for this bill are typically well reasoned conservatives. Several of them were using this vote to play politics over the whole notion of federal takeover money.

Conservative principles associated with the federal “bailout” or “rescue” funds is as follows: businesses should be allowed to fail, taxpayer money should not be used to prop up any failing business, the Federal Government has no business ever dictating how much income someone is allowed to make, and confiscatory tax rates are ALWAYS to be opposed.

The essence of a RINO is one who abandons principle to play politics. As a result, these folks have all earned the name RINO.

Aderholt
Alexander
Barton (TX)
Biggert
Bilbray
Bilirakis
Blunt
Bono Mack
Boozman
Brown (SC)
Brown-Waite, Ginny
Buchanan
Calvert
Camp
Cantor
Cao
Capito
Cassidy
Castle
Crenshaw
Davis (KY)
Diaz-Balart, L.
Diaz-Balart, M.
Duncan
Ehlers
Emerson
Fleming
Forbes
Fortenberry
Frelinghuysen
Gallegly
Gerlach
Goodlatte
Guthrie
Heller
Herger
Hoekstra
Johnson (IL)
Jones
Kirk
Lance
Latham
Lee (NY)
Lewis (CA)
LoBiondo
Manzullo
McCaul
McClintock
McHugh
McMorris Rodgers
Mica
Miller (MI)
Moran (KS)
Petri
Platts
Putnam
Rehberg
Reichert
Roe (TN)
Rogers (AL)
Rogers (KY)
Rogers (MI)
Rohrabacher
Rooney
Ros-Lehtinen
Roskam
Royce
Ryan (WI)
Schmidt
Schock
Shimkus
Smith (NJ)
Smith (TX)
Stearns
Tiberi
Turner
Upton
Walden
Wamp
Whitfield
Wittman
Wolf
Young (AK)
Young (FL)

Obama's Liberty Crushing Idea of the Day

B. Hussein Obama, meet Hugo Chavez. Obama plans to bring legislation to the Congress this week to expand the government’s power to seize financial companies other than banks. The plan would seek “broad” oversight of any financial-related business of whatever nature whose failure could, in the opinion of the Anointed One, disrupt the “broader” economy. The range of “oversight” could include guaranteeing the firms losses with taxpayer dollars, taking an ownership interest in the firm with taxpayer dollars, voiding the firms contracts, limiting salaries and wages of firm employees, and seizing the firm outright.

In other words, this is a naked power grab against all financial institutions.

Here is another Obama idea to nationalize the financial industry while at the same time fleecing taxpayers.

This guy is a Socialist juggernaut, generating a new liberty-crushing idea every day.

Geithner and Obama Fail Economics 101

Today, Treasury Secretary Timothy Geithner is proposing a new program that will allow banks and finance houses to sell upside-down mortgage-backed investments to a "private-public partnership" entity. In this deal, Geithner says that the private sector must take "risks." Of course, the public part of the "private-public partnership" is taxpayers.

Geithner must have failed Economics, or Geithner and Obama intend to blackmail the "private sector" and rip off taxpayers.

Banks can make loans only to the extent they have assets to back the loans. For years, banks made loans based on the present value of a bundle of mortgages. When the housing prices fell, the mortgages became less secure, and thus less valuable. As a result, the banks were losing asset value, and with their asset base value diminished, their ability to loan money was likewise diminished.

Geithner and Obama's proposed plan today has the stated goal of removing "toxic" assets off the books of the banks, so that they can start making loans again.

Here is the problem with that: the "toxic" assets are not valueless. Merely taking these assets off the books of the banks is not going to free up one nickel in available loan capital; in fact, it lowers it. The only way loanable capital is increased for these banks is if the “toxic” assets are purchased by this “private-public partnership” at greater than the present market value.

Do Obama and Geithner expect savvy private investors like hedge fund operators will pay greater than market value for “toxic” assets? Market value already factors in the “risk” Geithner wants the private investors to take, so who in their right mind would do so?

This might occur in two ways:

First, as a sweetener, the public part of the partnership - the taxpayers - could give interest-free loans to these private investors who would then purchase “toxic” assets. This means playing with house money and betting on the come. The assets may improve their value over time to cover or exceed the loan value, and if they don’t, you just bankrupt the entity receiving the loan and walk away. Either way, Geithner’s promotion to Treasury Secretary pays handsome dividends to his Wall Street buddies at the expense of the taxpayers.

Second, Obama could use the various regulatory arms of government to threaten/blackmail healthy financial institutions to purchase some of these toxic assets at greater than market value, and these institutions might do so chalking up the government shakedown as a cost of doing business.

While some of the first two options will undoubtedly occur, the biggest part of the “toxic” asset removal will be the third route: the public part of the “partnership” - the taxpayers - will buy the lion’s share of these bank assets. Thus Geithner and Obama (on your behalf, of course, since you don’t know how to spend your own money wisely) will own and control a solid hunk of the real estate market. And why would Obama seek to maximize that investment for the taxpayers when ACORN would like to use those houses for “underprivileged” families who just need a little hand up?

Under this plan, you would not just be paying other peoples’ mortgages; you would be buying their entire house for them.

Welcome to Obama’s Socialist Utopia.

Obama's First Hundred Days

So we are about eight weeks into the B. Hussein Obama presidency. In his first hundred days:

- Obama has crashed the stock market (losing more value than the 9/11 attacks caused)

- Nominated a bevy of tax evaders to cabinet positions

- Proposed a budged that will create budget deficits four times greater than the combined deficits of all prior Presidents

- Asked for $900 million to be given to Arab terrorist organizations, while

- Proposing that our injured war veterans pay for their medical treatment out of pocket.

- In the middle of the worst recession since Jimmy Carter, Obama has proposed the economy-killing cap and trade scheme and sent the bumbling Timothy Geithner to Congress to argue for it

- Announced a scheme by which hard working taxpayers pay the mortgage payments of people who should never have been given a mortgage in the first place

- Announced another scheme by which hard working taxpayers absorb all the bad debt held by banks

- Supported a new marginal tax rate of 92%

- Has openly spoken of regulating the salaries of bankers like some Stalinist dictator.

For the benefit of this nation, Barak Hussein Obama’s term as president cannot end soon enough. God save the United States from this radical Communist.

Socialism on the March

I had no idea when I started this blog that we were just a few short months to the most naked socialist bailout of Democrat supporters who prospered and screwed up under the complete lack of Democrat oversight -- Wall Street financiers.

The 700 billion dollar bailout of these elitist Democrat donors on the backs of the middle class is naked, blatant, undemocratic, socialism of risk and loss. The bill foisted upon the American taxpayer by the politicial elite shall be the real damning legacy of President George W. Bush. Bush has been poorly served by his Secretary of the Treasury Henry Paulson, an unworth successor to Alexander Hamilton.

Where is the American leader who will stand up for free markets and personal/corporate responsibility? Where is the American leader who will prevent the raping of the middle class? Will the American public have the brains or fortitude to throw all these bums out of office?