Friday, July 31, 2009

The Depression Has Been Canceled

I think President Hoover ran on a slogan “A chicken in every pot and a car in every garage.” So with the new car rebate program in full force, it’s just a case of which comes first the car or the chicken. We have an old 1995 Dodge Caravan that qualifies. I can’t sell it for $2,000 because no one has two grand lying around. Now the government wants to give me $4,500 for the Caravan so I can buy a new car.

The odd thing, this program is to replace clunkers that get bad gas mileage. The damn thing is, the Caravan gets 25 miles to the gallon which is 3 better than my newer fuel efficient Mazda 626. I guess this is where the chickens come in. If you are stealing them, you want to make as little noise as possible. I wonder if Volkswagen is on the clunker list?

Then we have the meeting of the big three; The President, a Harvard Professor, and a police officer. The Harvard Professor was instructing Obama how to kick in the door if he gets locked out of the White House. And the cop was suggesting what not to add to the word “mother” when greeting a police officer, answering a burglary call. Going to the White house for one can of beer has to be some sort of punishment.

It could be just my imagination, but have you noticed that Obama is always standing in front of one or more American flags? It kind of reminds me of a little man who wrote Mein Kampf, he always had a flag behind him. Plus the President’s face is popping up on every magazine I subscribe too, why?? Let the girl he married enjoy his face; give me and my magazines a break.

If we travel back to the Hoover administration and also to FDR; Government did not get us out of the depression. They made it last longer. They raised the taxes of every worker with the promise of Social Security retirement. There was no income tax back then for the masses.

When the government calculates who pays taxes it always comes out to be the rich, Social Security isn’t even considered, that’s a “retirement plan.” They have been spending this non tax for regular government and handing IOU’s to the Social Security Fund. This new health care will be the same sort of tax. Most people from the age of 20 to the age of 60 will end up paying $5,000 a year into it and maybe have a boil lanced or a cut stitched up. Free medical will raise about 1.5 trillion a year for the government to spend if everyone is working.

With this new clunker rebate program, it looks like we will all be working for a car company.I don’t think that the guy managing the rebate plan for clunkers could get a ride on the short bus, they might be dumb but they’re not stupid. We are financing more debt unless the purchaser can pay cash for the balance. This plan works for all the wrong reasons. It’s a little like mixing Viagra and Ex-lax. The results are guaranteed, the order isn't.


Anonymous said...

Good Post Jim

Here in Canada Here in Canada The major National Magazine MacLean's recently did a similar cover story proclaiming the Recession/Deprresion is over. Also The Governor of Bank of Canada and Finance Minister are trying to convince the unwashed masses of this as well. I guess if you try hard enough to wish for something it will come true. It worked for Alice for a little while but that was the movies. It looks like the same thing is going to happen in real life now until we get a chance to peak behind the curtain. For now everyone gets to play in sandbox with their toys not realizing they don't have a pot to pee in.

Rob in NS

Jim in San Marcos said...

Hi Rob

I agree, three years ago you couldn't convince anyone that the party was ending. They didn't know what was going on then, and now they're still in the same boat without a paddle.

The next few months could be very interesting, if not down right ridiculous. Maybe we'll be offered a burial plan to go with the health care.

Anonymous said...



Then you'll be in same boat as us Canucks!

frakrak said...

Hi Jim, it is of interest that all western economies are experiencing the same spectacular upturn in confidence isn’t it? All these economies are experiencing quite different circumstances, but according to the spin we’re all about to experience a warm fuzzy feeling before our plane parks its ass on the tarmac!
Obviously our governments have employed the same PR Company to apply the lipstick to the pig!!

For instance our economy had NO government debt a year ago and fifty Bill in the piggy bank, now we have spent up to 14% of GDP! And treasury forecasts say that it will take up to 20 years to pay it off! Where does this place the UK at 100% of GDP and for that matter America? In paying this money back what effect will this have on growth?

You mentioned a few months ago the difference in the depression of the 30’s investment into the stock market and the nature of investment now, being, we have enormous institutional (involuntary) investment now feeding into these markets, where previously it was mostly the individual. You could count on the market going up to some extent under these circumstances. There will be a tipping point when employment will not be able to buoy these markets continually. Our retirement funds appear to have become the mother of all ponzi schemes!

Would like to believe the spin but have no intention of sticking my head up my ass as a consequence ….

MiTurn said...

President Hoover ran on a slogan “A chicken in every pot and a car in every garage.”

Try Huey Long. . . .

Jim in San Marcos said...

Hi Frakrak

Thank you for your comments

I think the thing we need to keep in mind is, perspective. A majority of the people on the planet, have no idea of the mess we are in. Life goes on as usual. It's like a wall switch. It is either off or on. The switch gets turned off when you lose your job.

In the past, everyone who protested for some cause had a good job some money and some spare time.

The new protester that is emerging has no job, no home, no money and a lot of spare time. Obama won by 1.5 million votes. That's about the number of people running out of unemployment benefits in the next 3 months.

As you suggested, the government's solution is "use a bigger shovel." And that solution stops working at some point.

Jim in San Marcos said...

Hi MiTurn

I tried nailing that quote down a while back and couldn't. The closest I came was that it was part of an ad put out by the Republican Party.

This time the Democrats are going one up on the Republican campaign phrase. You get a house with a garage to put the car in. Such a deal!

Thank you for your comments.