Saturday, May 21, 2011

The Village Idiot

Right now we have political unrest in the Arab world. Our President tends to interpret it as a move towards Democracy. Last month Obama pumped 100 missiles into Libya to speed up the process. The people in Libya don’t want Democracy; they want to be rich like the American tourist who visits their country. Wealth is Democracy to them. Expect nothing more than a regime change, there is no middle class to sustain a Democracy. If we really wanted to to exercise our military might in a constructive way, why not in Somali? That country has a thriving Pirate and hostage program (600 hostages and growing). Our country is paying millions in ransom fees and here we attack a country doing nothing more than selling us oil?

There is one true Democracy in the Middle East, Israel. A country with a population of about 7.5 million people, surrounded by 40 million Muslims and Arabs who want the Jews dead or gone. Here our President stands up, and tells Israel “return the land to the Arabs.” The Grand Wizard has spoken. Israel is our only true ally in the Middle East. What is macho Obama thinking?

The Arabs want a piece of our Democracy, just like everyone else; a Mercedes and several young wives and that is as far as it goes. The Muslims offer the “Pilgrim Economy Package,” an explosive vest and 70 virgins in the afterlife. The plan has been pretty successful; sex sells, people are going to pieces over it. The Arabs negotiate using the principle “What’s mine is mine, and what’s yours is up for discussion.” Real compromise isn’t an option using that modus operandi. Obama's going to give the Middle East Democracy (yawn) (rah! rah! rah!).

The President’s foreign policy has been defined by a lack of direction. Oddly enough, the news media has kept silent. They give him air time and offer no hint of criticism. Here is a guy blaming our problems on 100 dollar a barrel Arab oil when the problem is a government printing too much currency. Our 14 trillion dollar national debt is what makes gas four dollars a gallon. I guess the press figures that they will document how deep Obama can dig this hole.

His domestic solutions are part of our present financial crisis. Government health care is a noble concept, but there is no way, we as a nation can afford it. Social Security and Medicare have grown to an unmanageable size. Now Congress is haggling over increasing the debt limit by 2 trillion dollars just for this fiscal year. The size of the increase is mind boggling, but I guess that is of no concern to the media, it’s not news.

I get the feeling when listening to Obama that he is talking down to us. We are children that need his guidance. This beet-head needs to be called out on the carpet. His policies are incredibly expensive and poorly thought out, considering the current economic conditions. How can he presume that government has access to unlimited resources?

I saw a license plate frame the other day. On top it said “Your village called.” And on the bottom it said “Their Idiot is missing.”

Receiving the Nobel Peace Prize for winning a Presidential election, should have been a clue. We can put our minds at ease now; the idiot is no longer missing (and that’s only the good news). Our newspapers are curiously silent, apparently Obama can do no wrong.


dearieme said...

But he's really no worse than W, is he? And he was no worse than Slick Willie. Your last grown-up President was Bush the Elder. If a democracy is to last it has to be capable of surviving a whole bunch of duds in a row. Whether any democracy could survive dud presidents, dud and corrupt congresses and a Supreme Court like yours, is another matter. To everything there is a season.

Jim in San Marcos said...

Hi Dearieme

No argument from me, but when the others stepped out of line, the newspapers had a field day. That is conspicuously absent. The media will run the Republican point of view, but the editorial non partisan commentary is just not there.

We bombed North Viet Nam for years with no effect. The bombing of Libya is kind of like throwing a hand grenade in your neighbors yard because the dog is always barking. You have pissed him off and he has the dollars to get even.

In the past, we had questionable leaders that had excellent people under them that kept things from getting out of hand. This guy is pulling all the strings and has done some incredibly stupid things. Pushing health care through Congress the way he did has turned Congress into a non functioning body.

As a whole, the previous presidents you mentioned continued the foreign policy objectives begun by previous administrations. It wasn't uncommon for a foreign dignitary to get a lecture behind closed doors, but to do it in front of the press was uncalled for.

IMHO Obama needs his ego cut down to size.

Anonymous said...

Obama Bin Laden is a one termer for certain. Good riddance.

Who cares that a "man of color" became president. Big deal. If he was a man of principle and character and was a true leader who understood what was truly best for America, then he would've been a champion for the "people of color" and for all of us.

He is just another puppet. Another automaton that will not make a difference.

Jim in San Marcos said...

Hi Anon 5:47

I wouldn't cross Barack Obama off the list just yet. Greek theater reveled in the hero's rise to power and then the tragic fall from grace. We will probably pay to see the second act.

Your referral to "Obama Bin Laden" suggests that history may have problems separating the two men.

Anonymous said...

Maybe the history will read something like this:

America, as the ideal country and government created by our founders, was anathema to both Barack Obama and Osama Bin Laden

Anonymous said...

if obama is reelected it really would be time to pack your things, take whats left of your money, and become an expatriate.

Jim in San Marcos said...

Hi Anon 8:42 8:46

I'm not sure on your usage of the word anathema.

But it won't be that bad. Maybe someone will give Muammar Gaddafi a copy of photoshop and he can print out his own American birth certificate and run as a the Republican candidate for President in the next election. The more promising Republicans have dropped out of the running. Newt might select him to be his VP;>)

Anonymous said...

Israel is not our ally...not even our friend. They take our money…spy on us…they even attacked a US Naval vessel. They have long been in violation of a UN resolution to return land to the Palestinians. They treat the Palestinians like dogs. They steal their land…bulldoze their homes…deny them access to water…and regularly kidnap and murder them. The Muslim world hates us for supporting this behavior…that and our oil wars.
I hear criticism of Obama in the media all the time…mostly in the form of GOPer rants. I don’t like his handling of the financial crisis or his Afghan policy…in those respects he may as well be a Republican.
No politician will step up and do the right things…it would be political suicide. As usual…we’ll wait until things are completely out of control. Then either a real leader will step up…or some lunatic will. As ignorant as this country is…my money’s on the lunatic.

Jim in San Marcos said...

Hi Anon 6:48

Can't really argue with you about Israel. I guess instead of ally, we could call them a paid mercenary.

Israel is an example of new world change. The Arabs enjoy the old ways. On top of that you have a religious war Jews against Muslims. The young are totally confused, do they want an Ipod and a cell phone or a religious bible?

Even the WSJ carried an article on the irrigation water being cut off to some Arab farms. We could see the same thing happen here in California. We grow a lot of rice which is a water intensive crop right in the middle of a semi arid desert.

The book of Revelations describes the end of the world and the location fits. Israel could be the trigger.

The political situation at home here is rather unique. There have only been three times in this country's history where the party in control of Congress had a President in power also. FDR Johnson and Obama, all Democrats. Right now our government can't pay the bills and they will certainly have a problem when the health care bill falls due, conveniently after the next election.

You kid about lunatics, but there is some truth to it. There are no job qualifications for political office

Joseph Oppenheim said...

Obama: Grade B, so far:

Much better since he took office. Was in deep recession, now in a recovery (growing GDP) about 2 years, stocks in bull market, bond market still healthy.

Much better than when he took office. Much less casualties, on track to winding down Iraq and Afghanistan, cutting costs. Better commander-in-chief. Libya - shows wisdom in letting UN, etc share in action. Israel/Palestine: stay tuned, no worse than before - remember with Bush, Israel lost its first war.

A true top mind. President of Harvard Law Review shows top legal mind. To be a top legal mind requires the ability to understand all sides of an issue. Taught Constitutional Law at U. of Chicago, a right wing university. Being an expert on constitutional law is a pretty good criteria for running a government. Notice, business people make lousy presidents (Hoover and G.W. Bush). Plus, now has 2 1/2 years experience as president of US, including passage of a lot of major legislation.

Anonymous said...

Wow! What planet are you from?

michael said...

Well, if you step back and look at the big picture in a neutral way: If W could get reelected, why not O.
And Joseph Oppenheim gives us a prime example of the self-delusion necessary to do that.

Jim in San Marcos said...

Hi Michael

I think that the Republicans are thinking twice about running in 2012. Things are not getting better and who ever is in office for the next term, certainly won't be re-elected.

Obama is going to have some issues, the black vote will be hard to hustle with all of the unemployment, plus he just alienated most of the Jewish population. The way it looks now, he needs a third party candidate to run, to split the vote, in order to win. And that could happen.

Anonymous said...

Does anyone agree that looking to politicians to handle our problems is a futile action?

Most all of them don't understand economics or how to make a country run properly. And they are all focused on only doing what will contribute to their re-election and avoiding anything that might compromise their position and the status quo.

This system doesn't work.

Jim in San Marcos said...

Hi Anon 8:38

I agree, but there are 80 million voters out there that don't know anything about economics either.

I look for things to get worse, so it will take some skill for these politicians to get re-elected.

The system will work,but it may may not function the way it was originally intended to perform.

Anonymous said...

The system may work but it is going to be broken by crisis very soon.

The USA is just like the cartoon character, Wile E. Coyote. It doesn't yet know that it is walking on air 3,000 feet above the canyon floor.

When the smelly stuff hits the fan it is going to be a long fall and a mortal accident (the USA isn't a cartoon).

USA is a bug in search of a windshield.

The Fed keeps printing and quantitatively easing, the government keeps borrowing, spending and increasing deficits and finally the bond vigilantes will increase interest rates.

With all the costs of our welfare/entitlement obligations, a crumbling infrastructure, military overseas costing a fortune, healthcare kicking in and costing a fortune and so on the state and fed government will be in desperation and will raise taxes into the sky. They'll eventually default on all of this debt by devaluing the USD to almost nothing.

We're all in the back seat of a car playing cards while our driver (Bush, Obama and the next two or three presidents) is speeding us towards a brick wall. Impact at 120 mph. DOA.

Anonymous said...

Dear dearieme,

Contrary to popular progressive fokelore, the United States is not a democracy.

"I pledge allegiance to the flag of the United States of America, and to the Republic for which it stands, one nation under God, indivisible, with liberty and justice for all."

I can still remember placing my little hand as a child over my heart and proudly reciting this simple pledge while facing our beautiful flag in class.

If your unclear what the difference between a Repubic and a Democracy is, please look it up.

Dear Jim,

Been years since I visited your blog. Ever since the fruad was voted into office, I've been focused on "other" issues. Seems you have kept the candle burning while Iv'e been gone.

As it has become cristal clear that not only does the MSM carry O's water for him, but throws buckets of it in the face of any 2012 chalenger. It looks like we'll be stuck yet another 4 years with this "new and improved" village idiot.


Anonymous said...

The circus has come to town.

Anonymous said...

What happens when you have a republic that has been turned into an oligarchy (banks and major corporations are the power elite that now control this and other governments);;; and when your legislative branch is composed of effete politicians that are controlled by special interests, are involved in cronyism and who's main goal is re-election and maintaining the status quo;;; and when your judicial system has lost all integrity and any concept of the constitution;;; and when Congress and the Treasury are aided and abetted by the Federal Reserve to borrow and spend the country into total bankruptcy;;; and when we are in 3 unwinnable wars and have military garrisons all over the world cost us trillions of dollars that we don't have;;; when the amount of our debt is about to surpass our GDP;;; when we have a housing market that is dying;;; when you have a healthcare program that doesn't work;;; a social security program that doesn't work;;; trillions in unfunded obligations;;; printing money and creating credit so as to destroy the meager purchasing power of the USD;;; and so on and so on.

Isn't this just like the Roman Empire? As Yogi Berra would say, "Deja vu all over again".

Can anyone deny that we are in a tailspin and there is no way that we won't crash and burn?

Jim in San Marcos said...

Hi Angry Tax Payer

It's been a while since you visited last, welcome back.

With a strict definition, in a Democracy the the majority rules and the minority gets the shaft. Whereas in a Republic, the minority is protected with rights. The trouble is, the two words have been murdered and abused by dictatorships and communist states. The "Democratic Republic of Korea" comes to mind.

I think your point illustrates that what we say is often interpreted by the listener differently than it was intended by the speaker.

I tend to agree with you that we may be stuck with Obama another 4 years, but look what happened to Bush-Clinton election. The Arkansas Chicken promoter making 30K a year became president.In the next race, the big name Republicans like Huckabee are dropping out of the race. I guess they figure they have a better chance of winning against a contender without "experience," four years down the road.

The next election could prove disappointing no matter who wins.

Jim in San Marcos said...

Hi Anon 10:27

I don't think your list missed anything and your right it doesn't look good.

The crash and burn phase is where your savings go up in a puff of smoke. It will be painless and quick. The world could be back to business inside of 6 months with a new monopoly game.

The older you are the more difficult retirement will be for you. I would suspect the elderly might want to take a Congressman or two with them when they die. It's so reassuring to see old people think of other before they think of themselves;>)

The only good thing I see is a massive collapse of government bureaucracy and regulation. Our government employment could shrink 60 to 80 percent.

If you want to be ahead of the crowd, pick out a nice shopping cart with good wheels now, before the rush, you'll need it later.

Jim in San Marcos said...

Hi Anonn 10:53

I liked your imagery: "USA is a bug in search of a windshield"

I'm sure someone from "No child left behind," will find a windshield to fit the occasion.

Thank you for your comments

Anonymous said...


You wrote;;;

"The crash and burn phase is where your savings go up in a puff of smoke. It will be painless and quick."

Again I scream YIKES!!!

Seriously now;;;

what can a person do to prevent or avoid their savings going up in smoke when inflation hits hard, they create a new currency or whatever is done to devalue my saving?

There has got to be a solution. Really smart, financially savvy guys who've studied economic history must know a way to avoid losing their wealth or nest egg.

When the time is right, switch your savings into gold? switch it into another currency? switch it into rental properties? switch it into a small business?

There has to be an answer or solution for this from some people who avoided it in the past, wouldn't you think?

I can't face the fact of all of my hard earned money that I've saved becoming worthless after all the work and plannning I've done to amass it.


WHAT DO WE DO!?!?!?!?

Jim in San Marcos said...

Hi Anon 4:00

It is hard to really answer your question. The loss of savings was about 90% from the financial bank failures of the Great Depression. In the financial collapse of 2008, our losses were probably about the same, but the Treasury printed dollars to keep the banks whole. The absurdity of how much they printed or are committed to still print, in the future, hasn't quite soaked in yet.

What we face is inflation on a grand scale. And NO, the decrease in housing prices is not deflation, we built too many and there aren't enough buyers at the present prices.

What we are trying to accomplish, is to convert our cash savings into stable assets that would survive a currency collapse.

A home if it is paid off, is a stable asset and has an equivalent gold value of about 175 ounces. Rental real estate has a high tax profile and your renters might not be able to come up with any rent for several months. Rentals under a new currency issue could bankrupt you, the banks won't have any cash to loan until they have deposits.

Stock certificates are shares of a company. If you take delivery of the shares, you can't be Bernie Madoffed by a bankrupt stock brokerage. The brokerages are privately insured by the SIPC, but it would only take two brokerage houses collapsing to trash the insurance company. At that point, you have to calculate what companies would survive a financial collapse. Railroads, Oil and Mineral mining seem to fit the bill. Maybe utilities as well. The question you have to ask is, are they fairly valued right now and do they pay a reasonable dividend. In most cases, the answer is no, it is kind of like buying gold at $1500 an ounce--too rich for me.

Buying a new car, helping the kids buy a new home, take that vacation you always wanted--there is no reason to save, the Federal government is borrowing your savings and spending it.

I am tempted to buy one more rental, but the prices are high in this area, so I'm holding off for now. I'd like to buy some stocks, but the prices are not to my liking. Plus that market could drop dramatically. I could be wrong here, it could take off to reflect our loss of purchasing power. We are skating on thin ice here.

The only tip I can give you is to buy what nobody wants, you'll get a good deal, and a year or two down the road, they will want it back.

I hope this somewhat answers your question.

Anonymous said...

Anon 4:00

I feel for you. I'm have the same concerns.

The torch is being passed from the West to the East. The West will no longer be where the Financial Capital of the World will be, nor will it be where the largest economy is. It will be China and India. The torch is coming back to them.

I can see how the currency, gold, real estate and stocks are very risky here in the USA. You could lose big time.

Maybe it would be smart to own commercial or residential income properties in stable cities in the East.

Then again, there is the question--- will these emerging countries also collapse when the USD and Euro collapse? If so, your income properties could go up in smoke there too.

We are all looking for a practical exit strategy. Yet, in these circumstances, maybe there isn't one.


Anonymous said...

Jim --

What rate of inflation do you think we will see over the next several years?

Also, if your projections about the dollar come true, isn't it likely that gold could reach $5,000? If so, isn't $1500 still a reasonable price to pay?

Jim in San Marcos said...

Hi Anon 5:03

I think we are presently looking at inflation in the range of 8 to 14 percent. And since Congress has tied Cola's to inflation--guess what, there is no inflation!

A guide to the price of gold is wages. In historical terms, one weeks wages has been close to the value of one ounce of gold.

An issue not realized in hard times is that people tend to raise cash selling their best assets first and the dogs last. The reason being, they're hoping the dogs will come back to what they paid for them. So gold has room to drop back to about $600 an ounce in the short term. If our government went on the gold standard, it would probably have to be valued between $5,000 and $8000.

At this point you say, oh goodie I'm rich. Well, no your not, your weekly paycheck will now be between $5,000 and $8,000.

If gold was to jump in value from $1,500 to $5,000 in a span of one year even the village idiot would figure out that no one wants paper dollars. All paper currencies are based on faith, destroy the faith and you lose your paper currency.

Don't look at gold as an investment, it pays no dividends. It is an emergency lifeboat for hard times.

If this sounds confusing, I apologize, the 20 dollar gold piece of the 1880's was real and it is still real today. You can blame our government's uncontrolled spending for the present price of gold.

You can't print gold. And the population can't connect the dots when it comes to inflation.

Anonymous said...

You are wrong.
Obama is not the village idiot.
He is the village criminal.
He is public enemy #1 and he is wanted.
If you see him call 911.

Anonymous said...

I think I've got the solution!

Here is your exit strategy Anon 4:00

Sell everything you have and take all of your money and buy Exon stock for dividends and capital gain. Live off the passive income. (Buy a little gold and junk silver too and store it away.)

Buy yourself a good tent, a sleeping bag and coleman stove and some cooking gear. Now you are mobile and will always have a roof over your head (stay in the warm weather states).

Doesn't matter what happens to the economy now. You'll just float right through it all.

Anonymous said...

Replace that tent with a motor home that runs on biodiesel and also has a solar panel on the roof and you might have a good idea. You've got me so that I'm actually considering this sort of arrangement now.

Motor home
(owned free and clear, with low fuel costs due to bio-diesel)
Passive income
(dividend stocks from oil companies)
Some gold and silver
(store of wealth)
Some guns, ammo and pepper spray
(and the training on how to use them)

Not fixed in a geographical position (not a target). Not trapped by the American Nightmare (a home with a mortgage, property taxes, insurance and maintenance costs). Flexibility and mobility. Can make a quick get away from trouble or civil unrest. Can follow the warm weather, etc.

I'm gonna think this one through some more.

Jim in San Marcos said...

Hi Anon 3:38

Your planned lifestyle sounds great. if you are under 70.

I see many people plan retirement, and it's not what they expected. Bad health can ruin many a dream.

But these mobile homes could be the new "Granny Flat" that used to be built on your property next to your home. Sure beats retirement home living costs. You kick the parents out of the "Motor Home" when you want to go on vacation, and let them babysit the house and the dog.

Maybe that's where we are headed.