From the Bear’s Corner: A Question asked on Twitter

When will Barack Obama call for the Middle East to stop clinging to their guns and religion? – Unknown

h/t: Instpudit

Quote of the Day 10/03/12

“By giving the government unlimited powers, the most arbitrary rule can be made legal; and in this way a democracy may set up the most complete despotism imaginable.” – Friedrich August von Hayek (1899-1992), Nobel Laureate of Economic Sciences 1974

Can we get back to talking about the economy? By the Bear

The “Great Recession” started in the 4th quarter of 2007 and come December 2012 it will mark the 5th year of what I call the never ending recession. By definition a recession is two straight quarters of minus economic growth (GDP), but the untold story of this recession is consumer perception and confidence level.

The average recession in America last about 16 months and is usually followed by above average growth rates (5,6, 7%), right now the country is in the 57th month since the recession started and counting, with no growth in sight.

By the numbers, supposedly the recession ended in the summer of 2009 and at that time there where 15 million unemployed Americans looking for a job. I have always maintained that unless you factor in consumer perception and confidence into the equation, you will get false positive result.

Here is why…

The consumer represents about 70% of the GDP and if the consumer see gas prices going through the roof,(when Obama took office in 2009 the average gas price was $1.84 /gal….and what did you pay the last time you filled up?), inflation in the grocery store, they have seen the value of their homes depreciate by 30% or more depending on location, and their buying power reduced as median household income dropped by 8% to $50,054.00 per year, I doubt that the consumer sees the economy as anything but worrisome and I would venture to say that most average American families do not have any discretionary money to spend. You cannot have recovery without consumer spending and right now the average consumer is worried about the day after tomorrow. Can you blame them?

Before I continue on with my tirade here is an article you should read at your leisure:

    Gary North who is a credible econominst with the Mises Institute, he quotes a study that refers to the unfunded liabilities of the government by Professor Lawrence Kotlikoff of Boston University

    His most recent report says that total unfunded liabilities went from $211 trillion a year ago to $222 trillion this year.

    The biggest source of future red ink will be Medicare. In second place is Social Security.

Most of the reports I have read say the unfunded liabilities of the United States is about $120 trillion dollars, at this point if it is a $100 trillion or $200 trillion it doesn’t matter because there is not enough money in the world to cover this debt.

To put things in perspective the largest buyer of U.S. securities is China in the amount of $1 trillion dollars. The net worth of all the people in the United States is about $54 trillion dollars and that includes their home, savings accounts and everything, including the kitchen sink.

So where is Uncle Sam going to get this money? From whom, what, where? They can’t and default looms on the horizon.

The implications of an unfunded liability of $222 trillion are so comprehensive, so stupendous, and so frightening that voters ignore the story and so does Washington. But if you are rational thinking adult with some common sense, you should be concerned.

We are in the midst of the worst economic recovery since the “Great Depression” with no signs of things getting any better, if anything probably worse.

We have an administration in Washington that can’t figure out who the enemy is and an economic team in the White House that is totally clueless as to what excessive debt can do to a country.

The White House has declared “war” on coal, fracking, oil, gas, electricity, drilling but has yet to admit that there is a “War on Terrorism” ongoing. All of the above has hampered our economy and job creation. Pretending that we are not at “War” with Islamic extremists is not an option and only leads to higher body counts.

Yes, America, we have been sold out by Washington and the political establishment for decades, they have created TWO AMERICAS, one for them as they live on the dole and the other pays for it. The have lied to us for years, they hide the truth and distort the facts, for if it be known, walking plank would be in order.

They have squandered our birthright to live as ‘free people’ and sold off our inheritance in their quest for power. The major concerns of this country remain unaddressed and relegated to bottom of the pile and the reason being, the problems are so great that people who are running Washington are more interested in the dole than the country and have no clue as to solving the problems that they created.

And with an election five weeks away and what are we talking about in this country? Mitt’s effective tax rate, and who eats dog and who’s dog pissed on the roof of the car. All this is, is trivia to distract the uniformed from the real serious issues facing the country.

If we don’t solve our economic problems, deficit spending and jobs, jobs, jobs, little else will matter.

But one thing I do know for sure, we can’t continue on this way.

Benghazi Worse than Watergate by Roger L Simon

For over forty years now, the Watergate scandal — the June 1972 break-in at the Democratic National Committee headquarters and the subsequent cover-up by the Nixon administration — has been the sine qua non of American political malfeasance. It has been followed by myriad other “gates” affecting both parties but has never been superseded.

Until now.

Benghazi or Benghazigate, as some call it, is worse. Far worse. Incomparably worse.

Watergate caught numerous public officials lying, including the president of the United States, but Benghazigate has all that and more.

It involves the terrorist murder (not an electorally irrelevant burglary) of government officials, their reckless endangerment, the undermining of the Bill of Rights and free speech by our own administration in response to Islamist threats, and, ultimately, the complicity of that same administration, consciously or unconsciously, in the downfall of Western civilization.

Meanwhile, the mainstream media function as their more-than-willing accomplices in this downfall, in essence as Obama’s court eunuchs.

Sound excessive?

Hear me out.

But first a word from Democratic pollster Pat Caddell, who evidently feels the same way:

    First of all, we’ve had 9 days of lies.…If a president of either party…had had a terrorist incident and gotten on an airplane [after remarks] and flown off to a fundraiser in Las Vegas, they would have been crucified…it should have been, should have been, the equivalent, for Barack Obama, of George Bush’s “flying over Katrina” moment. But nothing was said at all. Nothing will be said. […] It is [unacceptable] to specifically decide that you will not tell the American people information they have a right to know. [The MSM] has made themselves the enemy of the American people. It is a threat to the very future of the country; we’ve crossed a new and frightening line on the slippery slope, and it needs to be talked about. (h/t: The Anchoress)

Read more from PJ Media

Obama and Congress Are Choosing to Cause a Recession by Amy Payne

President Obama recently said, “The most important lesson I’ve learned is you can’t change Washington from the inside.” That’s demoralizing to hear when a recession is bearing down on the economy—and it’s an inside job.

The Congressional Budget Office has forecasted a fresh recession to hit next year if Taxmageddon, a nearly $500 billion tax increase, hits the nation and Congress and the President drive us off the “fiscal cliff.” President Obama has done nothing but ignore this warning.

In a new report, Heritage’s J.D. Foster explains that the very fact that we can see a recession coming is shocking. “Economic forecasters almost never forecast recessions,” he says. “Those few who do forecast recessions do so with great frequency and belong to the doom-and-gloom school of economics.” Yet we can see this one a mile away:

    What makes this recession different, and predictable, is that the disruptive force is Washington policies and, even more, Washington behaviors—policies and behaviors for which the nation can thank the Congress and especially President Obama. The policy is Taxmageddon. The behavior is intentional, insistent inaction. The consequence is recession. The response should and will be outrage.

The problem is extremely clear. Congress has left town and isn’t scheduled to return until after the November election. With every day that passes, the economy drags, as the uncertainty of January 1 looms.

Read more from, Foundry blog