If they were wrong before, could they be wrong now?

According to the BBC News, "The Federal Reserve has suggested that the worst of the US recession is over." I know that prices across the board for homes have risen on average a little bit, but that only means the foreclosed homes are finally being removed from the inventory list. I still have much concern about inflation since the Fed has printed so much money this year.

Peter Schiff, owner of Euro Pacific Capital, is running against Chris Dodd in Connecticut. I'd vote for him if I lived there. He writes in an article entitled "Experts" Never Learn,

"There is an inexplicable, but somehow widely held, belief that stock market movements are predictive of economic conditions. As such, the current rally in U.S. stock prices has caused many people to conclude that the recession is nearing an end. The widespread optimism is not confined to Wall Street, as even Barack Obama has pointed to the bubbly markets to vindicate his economic policies. However, reality is clearly at odds with these optimistic assumptions.

In the first place, stock markets have been taken by surprise throughout history. In the current cycle, neither the market nor its cheerleaders saw this recession coming, so why should anyone believe that these fonts of wisdom have suddenly become clairvoyant?"

In an earlier article he responds to the "positive" news that recession is showing signs of ending with "Since we have learned nothing from past mistakes, we are condemned to repeat them. As if we have not already suffered enough as a consequence of the Bush/Greenspan stimulus, Obama/Bernanke are giving ever larger doses, which will prove lethal to any recovery. The recession is over; long live the depression!"

Keep in mind that this is the gentleman that was laughed at and mocked as a doomsayer in 2007 when he predicted our current economic crash. Should we laugh at him again? I don't like reporting bad news, but in order to fix problems, we must not only acknowledge there is one, but understand why it is so. The economic problems are caused by government policies that artificial stimulate the economy and never face the reality of bad monetary policies.

Alcoholics must not only admit they have a problem, but have to face the fact that they are responsible for it. And when they go through withdraws for the booz, do we give them a drink to ease their pain? Absolutely not! Funny how the government disagrees with your common sense.

Another side thought, although I enjoy drinking, did you know that alcohol is a poison and that is why you get inebreated? Well, if you drink alcohol enough you develop a tolerance to it's negative effects. In all actuality, the poison is still there, but you don't feel it anymore. Perhaps, our country has been drinking the cool-aid long enough to not feel the pain anymore. The poisonous monetary policies are still there, but we don't feel it anymore. And when the pain emerges of our bad habits, we just drink more to dull it away for a later date.

It's time to toss the cool-aid and return to a healthy economy.

Obama confirms GM bailout yesterday, Conservatives across America say, "I told you so."

Yesterday, GM and Obama released speeches and information relating to the Chapter Bankruptcy filing of General Motors. You can watch Obama's press release here, but if you apply this formula, you will already know what he said. The formula goes like this:

Assumptions:

• I inherited this problem, it is not my fault.
• It's a crisis we have never seen and can only be fixed by government help.
• Not only can I help, but I can fix it because what I am about to do you have never seen.
  
• My solution requires everyone to sacrifice.

Assuming these 4 things, we'll label as "ASSumptions", makes it very easy to accept the formula:

If we add Obama to ASSumptions, then a New Utopia (New U) will result naturally.

The beauty of this liberal formula is that we can substitute anything for the ASSumptions, sit on it a while and feel the comfort that Obama brings. For example, insert Health Care and you get the New U. In fact, maybe if we put the old you into the formuala, let's see what happens.

Obama + Old You = New U. Wow, this formula is magic. We'll let's see what happens when you put me in the formula.

Obama + Rusty Pang, Awesome Asian = Rusty Pang, Adolescent Asian. Hmmmm...What happened? Why did I revert to my pubescent days of idealism and impracticality? Oh, because back then I didn't use my brain. I made decisions based upon my feelings. Kind of like modern liberals today, the more developed ones anyway.

When are we going to learn that the real formula of life is Government + Anything = innefficiency and self-growth. If this wasn't true, please explain to me why TARP has not worked and lending is still restricted. If government involvment was the solution, can someone please tell me why GM is declaring bankruptcy? I thought that Obama + GMC = Jobs, stability, andgoodness.

So then you say, "Rusty, why did you not warn us of this earlier?" This is to which I reply, I did.

Here's the link to my commentary on the idiocacy of the Stimulus Bill.
When I railed against government spending click here.
My predictions for the effects of the socializing privatized business can be found here.

Ultimately, I'm not saying anything new. When you pause and think like an adult, it makes sense. We joke about government jobs and how cush they are. Never, do we ever credit the government with any brains, nor efficiency. So, my question is why did we think that it was a good thing for Congress to get into the car business?

I know Obama says he doesn't want to run GM, but I am more concerned with what he does. And what he has done is fire the CEO, require increased CAFE standards, mandated vehicle price increases, and the closure of dealerships across America. Don't fall for it. They are "just words, just speeches.

Here's what's going to happen to GM. Obama and the democratic congress is going to come in with their Kangaroo courts and portray GM leadership as devils since they have to close dealerships across America. As they emerge out of bankruptcy, GM will be 60% owned by government, effectually controlling GM. This means that Obama successfully nationalized a private car company. This is also referred to as SOCIALISM, which is a stepping stone to COMMUNISM. Read the Communist Manifesto.

Once this is complete, Obama (no car or business experience) will begin to tell CEO's of a major automotive manufacturer how to do it right. In what world does that make sense? Apparently, in ours it does.

Anyway, as GM's value plummets because consumers aren't buying their vehicles, more money will be required to be sent to this company because "they are too big to fail." Once again, the infusion of cash will require more printing of money, therefore, sending our inflation up again.

This will lead to another recession, or at least prolong this one. Mark these words, because I'm not trying to be a doomsday dude. I'm just trying to tell it like it is.

Inflation, recession, and unemployment numbers are on the rise people. This administration and our state governments are trying to fix problems using broken tools and I am not going to sit here and take it. What about you?