HERE COMES STAGFLATION

Will there be stagflation? There's almost certainly going to be stagflation, without a quick "about-face" in economic and monetary policy.

Since there has been a massive attack by the federal government on the private sector in just the past nine months, I honestly don't understand how anyone except true faith-filled believers in Marxism can be seeing any "green shoots."

Consider that in the spring of 2008, President Bush pushed through a so-called stimulus tax cut that was worth a little more than $150 billion. Do you remember that at the time, this was considered a gargantuan sum of money? Analysts on CNBC and other mainstream press complained about the future impact on the budget deficit and interest rates.

Well President Obama's Porkulus stimulus package amounts to a whopping $787 billion in money we don't have, and the expected federal deficit this year is approaching $2 trillion, or 4X the worse annual budget deficit in history (2008).

The CBO projects that the federal debt as a share of the economy will DOUBLE over the next decade, from about 41% last year to 82% by 2019.

Both federal spending and the money supply have increased at unprecedented rates over the past year (notice 2010 in the chart provided).

The money supply is measured several different ways. They all show alarming increases. The monetary base (coins, currency and bank reserves) has doubled over the past year. It is increasing at a rate 12 times the average since 1981. M1 (the monetary base plus checking deposits) increased last year by roughly 16 percent, a near record and three times faster than average since 1981. M2 (M1 plus most savings deposits and money market funds) increased 9 percent in the past 12 months (a rate more than 50 percent higher than the average since 1981).

The demand for money is relatively stable and generally increases in proportion with economic activity (although precautionary motives play a role). Given the huge increases in the money supply and credit, future inflation is virtually ensured. Money supply will outstrip money demand, and the excess money will cause prices to be bid up.

Inflation isn't caused by the actions of private citizens, but by governments, by an artificial expansion of the money supply required to support deficit spending. No private embezzlers or bank robbers in history have ever plundered people's savings on a scale comparable to the plunder perpetrated by the fiscal policies of Barack Obama.

So there you have it, the perfect environment for stagflation (stagnation + inflation), a weak, slowing economy with little, if any economic growth, combined with above average inflation -- the worst of both worlds -- something the Keynesian economists thought impossible prior to Jimmy Carter.

WHAT MARK SANFORD SHOULD HAVE SAID

Here's what Mark Sanford should have said following the announcement of his affair:

1) "I've had an extramarital affair"

2) "This is a private matter between my wife and I"

3) "I've apologized to her and we are working on restoring our marriage," PERIOD.

In other words, he should have went Democrat on them, pulled a Bill Clinton, no whining, no convulsions, elaborations, details, or excuses -- just the facts, Ma'am.

I remember all of the reverberations from the Dems during the Lewinsky affair that "it was only sex," and that "it's his private life" and that "it doesn't affect his job performance." Well, if this is true, then why is it only true for Democrats?

When Democrats have affairs, they rarely if ever resign. In fact, as Rush Limbaugh would say, they are "resume' enhancers". Republicans, being the party that is supposed to have some scruples, gets caught up in this perfection accusation and needs to admit that while they have ideals and principles, they are no more perfect than their fellow human beings on the other side of the isle.

Recent affairs, like the Sanford episode, remind us of this imperfection. It should not paint the whole Republican party as a bunch of hypocrites, any more than Bill Clinton's should paint all Democrats as perjurers in sexual harassment cases.

BOEHNER STATEMENT ON PRESIDENT'S ENERGY REMARKS

House Republican Leader John Boehner (R-OH) today issued the following statement after President Obama delivered remarks at the White House in support of Speaker Pelosi’s cap-and-trade national energy tax:

“Americans need real solutions to create jobs, lower energy prices, and clean up the environment, but Speaker Pelosi’s national energy tax is a recipe for driving up prices for middle-class families and small businesses and shipping more American jobs overseas. The President repeated his claim that this bill will create jobs, but independent analysts suggest it’s a job killer, while one of his prominent supporters, Warren Buffett, calls it a huge, regressive tax.

“Republicans believe there is a better route to more jobs, reliable energy, and a cleaner, healthier environment. Our all-of-the-above plan will increase American energy production in an environmentally-safe way, encourage the use of alternatives such as nuclear and clean-coal energy, and promote new technologies and efficiencies. Unfortunately, Democrats in Congress and the Administration have chosen to go it alone with their costly, jobs-killing national energy tax scheme. Middle-class families and small businesses struggling during this recession won’t support it. It’s time for Democrats to work with Republicans on real solutions to create jobs and pave the way for a cleaner, more reliable energy future.”

DEMS BACKTRACK, SCRAP PLANS FOR PROBE INTO SCANDAL-TARNISHED ACORN

WHO ARE THE “POWERS THAT BE” THAT BLOCKED THIS CONGRESSIONAL INVESTIGATION?

June 29, 2009 | House Republican Leader John Boehner (R-OH)

As questions mount about the scandal-tarnished Association of Community Organizations for Reform Now (ACORN) – a group that has received millions from the federal government, in spite of accusations of voter fraud and other illicit activities – House Democrats have abandoned plans for a bipartisan investigation into the left-wing “community organizing” outfit. Last week the Washington Times reported that Committee Chairman John Conyers (D-MI) confirmed such an investigation would not happen, explaining that the “powers that be decided against it.” Who exactly are the “powers that be”? House Speaker Nancy Pelosi (D-CA)? Other Democratic leaders? The Administration? As the plot thickened, these questions were highlighted in a Fox News Special Report segment last Friday: Click HERE for Full Video HOST BRET BAIER: “House Judiciary Committee Chairman John Conyers no longer plans to investigate the association of community organizations for Reform Now, known as ACORN.” “The Michigan Democrat bucked party leaders when he called for hearings on voter fraud accusations against ACORN. ‘The Washington Times’ reports Conyers now says, quote, ‘The powers that be decided against it.’” “He did not say who those powers are, however. A spokesman for House Minority Leader John Boehner says Conyers, quote, ‘has a responsibility to explain who is blocking this investigation and why. Is it Speaker Pelosi, others in the Democratic leadership? Who in Congress is covering up ACORN's corruption?’ A Conyers’ spokesman later said Conyers had been referring to him as the powers that be.” With a bipartisan investigation shelved by Democrats and accusations of voter fraud still unanswered, House Republicans – led by the House Census Task Force – are sounding the alarm about ACORN’s attempts to play a role in the 2010 Census. The Wall Street Journalreports: “Some Republican members of Congress want the U.S. Census Bureau to end a 2010 Census partnership with Acorn, the community organizing group that was hit by accusations of voter-registration fraud in the 2006 and 2008 elections.” “Acorn, the Association of Community Organizations for Reform Now, signed up in February with the bureau to be a ‘2010 Census Partner,’ which includes, among other things, identifying job candidates, encouraging its members to participate in the count and distributing literature explaining the importance of the census.” “But in the wake of accusations that some former Acorn employees engaged in voter registration fraud in the 2006 and 2008 elections, the partnership isn’t sitting well with some Republicans on Capitol Hill who worry that Acorn could skew results. There’s a lot at stake since the census is used to dole out money to states and localities and to allocating seats in the U.S. House of Representatives.” As ACORN seeks to play a role in the critical 2010 Census, don’t taxpayers deserve a full look into how this group has operated and used taxpayer dollars in the past, particularly in light of serious accusations against it? Don’t the American people deserve to know who killed the bipartisan ACORN investigation – and why?

WHAT YOU MAY NOT KNOW ABOUT SPEAKER PELOSI'S NATIONAL ENERGY TAX

More Mandates, More Regulations, and More Costs Than Ever Before Speaker Pelosi’s national energy tax is going to raise electricity prices, increase gasoline prices, and ship American jobs overseas to countries like China and India. This, we know. It would be a bureaucratic nightmare overseen by a confusing web of government agencies that would take and redistribute trillions of dollars from family budgets and workers payrolls. This, we also know. Even Agriculture Committee Chairman Collin Peterson (D-MN) admitted in the Washington Post this morning that: “The truth is, nobody knows for sure how this is going to work.” How encouraging. But what don’t we know? Here are some facts you may not know about Speaker Pelosi’s national energy tax: Homebuyers Beware. Trying to save up for a new home? You may have to save up a little longer for your purchase. The Democrats’ bill would dramatically increase new home costs by mandating California’s expensive new building codes for the entire nation. Immediately upon enactment, the Democrats’ bill would demand a 30 percent increase in energy efficiency for new construction. A couple of years later, the Democrats’ bill would require an additional 50 percent improvement. These numbers were chosen with no concern for cost to consumers or feasibility in implementation. Homebuilders Beware. The Democrats’ bill imposes new mandatory regulations and civil penalties for homebuilders. If your state refuses to accept the stringent and costly California building codes, the federal government may assess penalties. And don’t get too comfortable with the new mandatory regulations because the Democrats’ bill allows for “consensus-based” codes to supplant those outlined in the bill. So, as soon as you’ve invested your hard-earned money to comply with the bill’s mandates, the rug could get pulled from underneath you. Translation? You’ll pony up more and more money. Home Sellers Beware. Having a hard time selling your home? Here’s one more hurdle to jump: all homes sales are conditioned upon an energy audit and a new energy rating assessment and energy labeling program for your home that’s outlined in the Democrats’ bill. And if you thought you could improve your property with a fresh coat of paint and some granite counters? Think again! Now your home will be subjected to a new energy rating assessment and energy labeling program that will penalize you for older windows, original fixtures, and dated appliances. So the Democrats’ bill would bring down the value of your home! New Lights No Matter the Cost. As early as 2012, the Democrats’ bill eliminates all existing lighting technology used in many outdoor lighting fleets (parking lots, stadiums, secured facilities like power plants and factories). Just as an example, switching to the mandated technology in the bill will cost one small utility about $30 million in annual revenue. So you now have to comply with the new mandates for new lighting? Hold the phone. It is not clear that a feasible alternative technology is available for every existing lighting application – regardless of cost – which could force some businesses to close. The consequences of Speaker Pelosi’s national energy tax for families and small businesses are real. It will drive up energy costs, send millions of jobs to countries like China and India, and place an especially heavy burden on rural America. There is a better way. House Republicans have proposed the American Energy Act, legislation that represents the fastest route to a cleaner environment, lower energy costs, and more American jobs. The legislation would: Increase environmentally-safe energy production on remote lands and far off our shores; Promote the use of alternative fuels that will reduce carbon emissions, such as nuclear, clean-coal, and renewable energy technologies; and Encourage increased efficiencies and cutting edge technologies to maximize America’s energy potential. The recent vote on Speaker Pelosi’s ill-advised national energy tax will have consequences for every American. It is a bad deal for America. And the American people will remember how their Members of Congress vote.

BOEHNER: CLIMATE BILL A 'PILE OF S--T'

Minority Leader John Boehner (R-Ohio) had a few choice words about House Speaker Nancy Pelosi's (D-Calif.) landmark climate-change bill after its passage Friday.

When asked why he read portions of the cap-and-trade bill on the floor Friday night, Boehner told The Hill, "Hey, people deserve to know what's in this pile of s--t."

Using his privilege as leader to speak for an unlimited time on the House floor, Boehner spent an hour reading from the 1200-plus page bill that was amended 20 hours before the lower chamber voted 219-212 to approve it.

Eight Republicans voted with Democrats to pass the bill; 44 House Democrats voted against it.

Pelosi's office declined to comment on Boehner's jab. But one Democratic aide quipped, "What do you expect from a guy who thinks global warming is caused by cow manure?"

Even though Sen. Majorty Leader Harry Reid (D-Nev.) holds the bill's fate in his hands, House Republicans intend to hammer Speaker Pelosi's signature climate-change measure over recess.

And GOP Conference Chairman Rep. Mike Pence (Ind.) said "we have only just begun to fight” as he left the Capitol Friday night.

Pence encouraged GOP rank-and-file lawmakers to hold energy summits in their districts over the Independence Day recess. In the recess packets sent home with members, he even included directions on how to organize energy summits.

The goal of holding an energy forum is to “educate your constituents about the Democrats’ national energy tax legislation and let them know what 'all of the above' solution you support.”

READ THE REST FROM THE HILL

MICHAEL JACKSON AND RONALD REAGAN: THE THRILLER AND THE GIPPER

In 1984, Ronald Reagan invited Michael Jackson to the Oval Office to receive the Presidential Public Safety Communication Award. The award was given for his support of charities that helped people overcome alcohol and drug abuse. He was also being recognized by the Gipper for allowing the song "Beat It" to be used in a public service campaign against teen drinking and driving.

Reagan's comments that day were peppered with Michael Jackson song references:

"Well, isn't this a thriller? . . . I know why you're here, and with good reason – to see one of the most talented, most popular, and most exciting superstars in the music world today – Michael Jackson. And Michael, welcome to the White House," said Reagan.

"I hope you'll forgive me, but we have quite a few young folks in the White House who all wanted me to give you the same message. They said to tell Michael, 'Please give some TLC to the PYTs.' Now I know that sounds a little 'off the wall,' but you know what I mean. And, Michael, I have another message from our fans in the Washington, D.C., area. They said, 'we want you back.' So when you begin your greatly awaited cross-country tour, will you please be sure to drop off here in the Nation's capital?"

Jackson only spoke a total of 13 words at the event: "I'm very, very honored. Thank you very much, Mr. President and Mrs. Reagan."

Later in his remarks, Reagan said, "Michael Jackson is proof of what a person can accomplish through a lifestyle free of alcohol or drug abuse. People young and old can respect that. And if Americans follow his example, then we can face up to the problem of drinking and driving, and we can, in Michael's words, beat it."

How ironic, and sad. R.I.P., M.J.

HOUSE GOP: “THE AMERICAN PEOPLE HAVE A RIGHT TO KNOW” ABOUT THE DEMS’ “BIGGEST JOB-KILLING BILL”

HOUSE GOP: “THE AMERICAN PEOPLE HAVE A RIGHT TO KNOW” ABOUT THE DEMS’ “BIGGEST JOB-KILLING BILL”

June 27, 2009 | House Republican Leader John Boehner (R-OH) | Permalink

The American people deserve to know what’s in the legislation their representatives in Congress are voting on. That was the fundamental principle behind House Republican Leader John Boehner’s (R-OH) hour-long speech on the floor of the House last night, in which he read portions of a 300-plus page amendment Democrats added in the dark of night to Speaker Pelosi’s already 1,200-page national energy tax legislation. The legislation is going to raise electricity prices, increase gasoline prices, and ship American jobs overseas to countries like China and India. It also will be a bureaucratic nightmare overseen by a confusing web of government agencies that will take and redistribute trillions of dollars from family budgets and workers’ payrolls. Following is just a sampling of the national media’s coverage of Boehner’s unprecedented speech – and the House GOP’s stand against the Democrats’ costly, jobs-killing national energy tax:

• Buffalo News: "Rep. John Boehner, the House Republican leader, used an extraordinary one-hour speech shortly before the final vote to warn of unintended consequences in what he said was a 'defining bill.' He called it a 'bureaucratic nightmare' that would cost jobs, depress real estate prices and put the government into parts of the economy where it now has no role."
• Associated Press: “‘But when you file a 300-page amendment at 3:09 a.m., the American people have a right to know what’s in this bill,’ [Boehner] intoned.”
• Reuters: “House Republican leader John Boehner called the measure ‘the biggest job-killing bill that has ever been on the floor of the House of Representatives.’”
• Washington Post: “And then came the fili-Boehner. House tradition allows the speaker, the majority leader and the minority leader to ignore the usual time limits on floor speeches. So, at the end of four hours of debate, Boehner opened a binder containing the 300-page amendment. ‘Don’t you think the American people expect us to understand what's in this bill before we vote on it?’ Boehner said, to cheers from Republicans. He read numerous passages – highlighting items such as credits for Fannie Mae-financed efficiency measures and plans for grants to study consumer behavior on energy use – and offered critiques.”
• Politico: “‘This is the biggest job killing bill that’s ever been on the floor of the House of Representatives. Right here, this bill,’ said House Minority Leader John Boehner. ‘And I don’t think that’s what the American people want.’ Donning reading glasses, Boehner then delayed the roll call vote by reading page-by-page through a 300-page managers’ amendment Democrats added at around 3 a.m. on Friday. Boehner seemed to relish the hour-long stunt, picking out the bill’s most obscure language and then pontificating about what it might – or might not – mean. Republicans laughed along with him and roared with applause when he was done.”
• San Francisco Chronicle: “Republican leader John Boehner of Ohio [used] his privileges as a leader to spend more than an hour ridiculing page after page of the bill and delaying the final vote until well into the evening.”
• Wall Street Journal: “House Minority Leader John Boehner lambasted the Democratic bill for more than an hour Friday evening before the final vote. He mocked provisions covering everything from energy-efficient loan standards for Fannie Mae and Freddie Mac to the definition of ‘renewable biomass’ to the establishment of ‘green’ banking centers. "Is there anything we're not regulating in this bill?’ he said.”
• Dow Jones: “Republicans warn it could cripple the economy. ‘This is a tax on anyone who drives a car, buys an American-made product, or flips on a light switch,’ said Minority Leader John Boehner, R-Ohio. ‘It will drive up energy costs and send millions of American jobs to countries like China and India, and place a real heavy burden on rural Americans.’”
• Fox News: “Filibusters are not allowed in the House. They’re a province of the Senate. But House Minority Leader John Boehner (R-OH) may have figured out a way to get around that prohibition Friday as the House inched closer to voting on a controversial energy and climate change bill. Overnight, House Democrats tacked onto the bill a 300-page amendment. So when Boehner took his time to speak against the package at the end of the debate, the Ohio Republican then decided to peel through major portions of the bill and read them aloud before his House colleagues. ‘Is there anything we aren’t regulating in this bill?’ Boehner asked, leafing through the pages. He wondered if the community group ACORN qualified for certain grants. He asked why an energy and climate bill was ‘trying to solve the problems with Fannie (Mae) and Freddie (Mac).’”

BOEHNER: AMERICA HAS THE RIGHT TO KNOW THE CONSEQUENCES OF SPEAKER PELOSI'S NATIONAL ENERGY TAX

House Democrats didnt want the American people to understand the true impact of Speaker Pelosis 1,500-page national energy tax. So House Republican Leader John Boehner took to the House floor and read portions of it to the American people, explaining how it would to raise electricity prices, increase gasoline prices, and ship American jobs overseas to countries like China and India.

House Democrats didnt much like it either, and they tried to shut him down. But Boehner asked Chairman Henry Waxman (D-CA) and other Democrats: Dont you think the American people expect us to understand whats in the bill before we vote on it?

THE EIGHT REPUBLICANS WHO VOTED FOR CAP AND TRADE (NATIONAL ENERGY TAX) COMPLETE WITH PHONE NUMBERS

The eight Republicans who voted for cap and trade in the House were:

Bono Mack (CA) 202-225-5330

Castle (DE) 202-225-4165

Kirk (IL) 202-225-4835

Lance (NJ) 202-225-5361

Lobiondo (NJ) 202-225-6572

McHugh (NY) 202-225-4611

Reichart (WA) 202-225-7761

Chris Smith (NJ) 202-225-3765

The bill passed 219-212 with 218 being the magic number for passage. The bill now moves along to to the Senate for consideration after the 4th of July break.

Final, complete, vote results for the American Clean Energy and Security Act