American Political Orphan

Shenanigans’ Geithner the Fed and AIG

Bloomberg Secret Banking Cabal Emerges From AIG Shadows: David Reilly

The idea of secret banking cabals that control the country and global economy are a given among conspiracy theorists who stockpile ammo, bottled water and peanut butter. After this week’s congressional hearing into the bailout of American International Group Inc., you have to wonder if those folks are crazy after all.

Wednesday’s hearing described a secretive group deploying billions of dollars to favored banks, operating with little oversight by the public or elected officials.

We’re talking about the Federal Reserve Bank of New York, whose role as the most influential part of the federal-reserve system—apart from the matter of AIG’s bailout—deserves further congressional scrutiny.

Yet when unelected and unaccountable agencies pick banking winners while trying to end-run Congress, even as taxpayers are forced to lend, spend and guarantee about $8 trillion to prop up the financial system, our collective blood should boil.

Heck of a business model. AIG takes huge risks and when thing are good they take their profit. When things go bad they are ‘too big to fail’ and get bailed out by the American taxpayer.

As Reilly says ‘our collective blood should boil.’

Friday, January 29, 2010

Quote of the Day

I think the human race has no future if it doesn’t go into space.

British Theoretical Physicist - Stephen Hawking

Wednesday, January 27, 2010

Obama - Axe to NASA Workers

And you thought he wanted to save jobs! Yeah, right, Obama is all talk, no action!

Orlando Sentinel - Obama aims to ax moon mission

NASA’s plans to return astronauts to the moon are dead. So are the rockets being designed to take them there — that is, if President Barack Obama gets his way.

When the White House releases his budget proposal Monday, there will be no money for the Constellation program that was supposed to return humans to the moon by 2020. The troubled and expensive Ares I rocket that was to replace the space shuttle to ferry humans to space will be gone, along with money for its bigger brother, the Ares V cargo rocket that was to launch the fuel and supplies needed to take humans back to the moon.

There will be no lunar landers, no moon bases, no Constellation program at all.

Tuesday, January 26, 2010

Quote of the Day

There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.

Ludwig von Mises

Sunday, January 24, 2010

Obama Eyes IRAs and 401(k)s

Business Week - Retiree Annuities May Be Promoted by Obama Aides

Bloomberg - Americans Oppose Proposals to Limit 401(k)s, ICI Says

The U.S. Treasury and Labor Departments will ask for public comment as soon as next week on ways to promote the conversion of 401(k) savings and Individual Retirement Accounts into annuities or other steady payment streams, according to Assistant Labor Secretary Phyllis C. Borzi and Deputy Assistant Treasury Secretary Mark Iwry, who are leading the effort.

According to the article, as of mid 2009 there was 3.6 trillion dollars in IRAs and 401(k)s. Thats a tempting sum to the Obama Administration and the Democrats when they are pilling up an unsustanable level of debt. They want to sieze it and convert it to annuities so that retires will receive “steady payment streams.”

Karl Denninger at The Market Ticker has a different take on this idea and it is rather ominous. 401k/IRA Screw Job Coming?

Let me tell you what this is - it is an attempt to prevent the collapse of the Treasury market!

Forcing people into Treasuries as an “annuity” is exactly what Social Security allegedly is.  Except that Treasury stole the money that was collected in FICA taxes and spent it!

Guess what?  They’ll do that here too - you’re going to “invest” in Treasuries which of course are effectively a CALL option on the future taxing ability of the government.

Read the rest of Karls article HERE

Let’s see if I understand this. The government takes your IRA / 401(k) and gives you an IOU. Then they pay you back in inflated dollars in equal monthly payments until you die. Haven’t they done this already with the generational ponzi scheme called Social Security?  I wonder if they have hired Bernie Madoff as a consultant?

A Quote to Ponder

The budget should be balanced, the Treasury should be filled, public debt should be reduced, the arrogance of officialdom should be tempered and controlled, and the assistance to foreign lands should be curtailed lest Rome be bankrupt. People must again learn to work, instead of living on public assistance.

Marcus Tullius Cicero, 55 BC

Quote of the Day

All tyranny needs to gain a foothold is for people of good conscience to remain silent.

Thomas Jefferson

Friday, January 22, 2010

McCain-Feingold Unconstitutional

The United States Supreme Courts upholds the intent of the Founding Fathers and rules against the McCain-Feingold Campaign Finance law. The Cato Institute explains it well.

The Democrats are railing against the decision as ‘Judicial Activism.’ Barack Obama, who seems to hold the Constitution of the United States in contempt said, he would ‘work immediately’ to develop a ‘forceful response.’

This is a major victory for free speech and the lefties hate it.

Dems In Trouble!

Politico - Dems fret: ‘Every state is in play’

The Republican victory in Massachusetts has sent a wave of fear through the halls of the Senate, with moderate and liberal Democrats second-guessing their party’s agenda — and worrying that they’ll be the next victims of voters’ anger.

When you force your will on the American people and rule against their wishes you will pay the price.

Be cautious America, the Democrats will change and make you think they have reformed. Don’t be fooled. They will do anything to get re-elected. My guess is they under-estimated the reaction of the American people. Now they will find out what it is like to receive their wrath.

Hey Sarah! What Are You Thinking?

Politico - Palin to hit 2010 trail

Sarah Palin will announce today that she’s hitting the campaign trail for Republicans—including her former running mate John McCain.

John McCain calls himself a maverick but I have another word for him - RINO (Republican in name only). As much as I like Sarah Palin, Sarah should remember how McCain’s staff treated her and tell McSame to take a hike.

Come on Sarah, what are you thinking? John McCain represents everything that is wrong with Washington DC. He needs to go!