Greg’s Newsletter 10/14/2012

Folks, I haven’t written a newsletter in a while because one, there is so much political stuff being spewed everywhere in the media and two, all the ugly economic news. So I decided to take some time off and give all of you a break from more negative economic news from me. I ran across this article and thought it was, needless to say, interesting. Maybe, just maybe some good news for all of us.
The USA going back to the “Gold Standard?” OMG could this be true??? Here is one website thinking we just might be (If it’s a conspiracy thing, well at least it’s a good one).
If we do go back to the gold standard I have many questions but I believe will be one of the most important, “What will be the value of the gold?” The market value or the government’s value of $42 an ounce? (The US Treasury’s official accounting still values our nation’s gold in Fort Knox at $42 per ounce.)
Whether they are correct or not, it gives some hope because the excessive printing of fiat money cannot continue. If it does continue, there will come a day when hyper-inflation will hit our economic system as it has never seen and it will be ugly. I will continue to follow this.

Greg Goodwin

A Short illustr…

A Short illustration lesson on the national budget




This is a non-partisan video produced by an accountant, Hal Mason, retired after 27 years with IBM. He looks at the budget, its revenues and expenses, and very simply illustrates the problem. Amazingly, we get all the media talking heads blathering and shouting for hours and never get clarity. This guy does it in a couple minutes. 

Click below to view the video.

 Green Jobs Co…


Green Jobs Cost Taxpayers $6.7 Million Per Job (So Far)

These are examples of why government should not be in the business of creating private sector jobs.  Simply giving firms money to develop or make something the government likes does not work.  The government can and should support research and development of technologies that have legitimate potential.  But, giving private industry taxpayer backed money to build stuff the government likes is not its role.  The government does not create demand for products, the free enterprise market does.  Likewise, governement does not create consumer based civilian jobs, private enterprise does that.  The current (and past) administration’s attempts to create jobs and solve problems by intruding into free market commerce prove the point.  Despite government efforts to do both the unemployment rate has been above 8% for the last 43 months and little improvement in the oeverall economy can be found.  An admittedly over simpliflied description of the goverement’s role in the economy is:  Assure that private enterprise operates on a level playing field for the benefit of “all” American citizens/tax payers/consumers and the country.

 George Burns

Some Dishearten…

Some Disheartening Facts


by George Burns

Below are some random items I have accumulated over the past several months.  These are among the more disheartening ones.  I think you will agree. 
1.  As recently as 24 January 2011, the National Council on Aging reported that a government analysis found that one in six elderly Americans were living at or below the federal poverty level.  Given the state of the economy that number has most likely increased since.
2.  A 17 September 2012 article reports that the Social Security Administration recently released data showing that as of this month 8,786,049 American workers are collecting federal disability payments, a new record and an 18,108 increase over the August figures.  The number of workers receiving disability payments has quadripled over the past 45 years relative to the actual number of workers.  
3. In January 2012 Investers Business Daily reported that over the past four decades government direct payments to individuals has been on a gradual upward spiral.  However, the last three years have seen a 32% increase totaling $600 billion.  Given current projections another increase of $500 billion will occur by 2016.  At that time direct government payments to individuals will consume two-thirds of all federal spending.
4.  According to the most recent Bureau of Labor Statistics (BLS) numbers the nation’s unemployment rate has been above 8.1% for the past 43 consecutive months.  In contrast during the 60 years between 1948 and 2008 the monthly unemployment ratetopped 8% only 39 times.  Further, we learn from Donald Lambro that the BLS numbers show that over the past four years unemployment has increased in 26 states.  In addition, BLS numbers reveal “that the number of working Americans shrank last month as payrolls fell in 21 states, the result of tens of millions of discouraged workers who have stopped looking for a job and are no longer counted.”

 A Dismal Stat…

A Dismal State of Affairs

by George Burns


Lately there has been a lot of chatter about the economy, government spending and jobs.  Let’s take a look at some numbers to see what they say.


Nicholas Eberstadt’s recent Wall Street Journal  article points out that the full range of 2010 entitlement spending for programs such as Medicare, Medicaid, disability insurance, food stamps, subsidies, etc. at all levels of the government amounted to $2.2 trillion.  That equals about $29,000 for a family of four, or $7,200 for every man, woman and child in the country.


According to the Census Bureau one out of every two households now receive benefits from at least one government entitlement program.  Given our declining economy and the rapidly aging of the baby boomer population government benefit pay-outs will continue to balloon, not to mention the cost of international diplomatic and military excursions.


All wage earners making up to $110,100 per year pay required FICA taxes of 4.2 percent for Social Security and 1.45 percent for Medicare with employers paying the balance due of 12.4 percent for Social Security and 2.9 percent for Medicare.  Self employed workers must pay the entire amounts due for both programs.  Meanwhile only 51 percent of wage earners pay the income taxes that fund all other government expenditures.


Because of the malfeasance of both major political parties and their private sector collaborators/financiers we face at least two guaranteed futures: 1) non-stop growth of our national debt and its associated interest payments, and 2) ever increasing taxes.  Put another way, The Congressional Budget Office estimates that absent corrective legislation to slow/arrest government spending, taxes will consume two-thirds of the income of middle income families by 2050 as well as 90 percent of those with higher incomes.  To paraphrase Margaret Thatcher, governments inevitably collapse when taxpayers run out of  money.  That her observation is relevant to our current situation was reinforced on 14 September 2012 when the Egan-Jones credit rating agency announced that it would reduce the US credit rating from AA to AA-.  They made this announcement because of the Federal Reserve’s decision to implement a third round of quantitative easing which, Egan-Jones believes, is nothing more than further monitization of the US debt – a continuation of increasing the amount of national debt and dollars in the economy which has the effect of reducing the value of each dollar in circulation.  The consequence will be a continuing rise in the prices of goods and services which will further stress the overall economy.


Consider this observation by Tim Philips.  Starting 10 September 2012 and “for the remaining 108 days of the year, every single dollar the federal government spends, roughly $10.5 billion per day, goes on our collective credit card called the national debt. You and I, our children and their children are of course responsible for paying that debt.  Every single second of the day our government spends over $12,000.”  Philips adds that about every five minutes our government spends $3.6 million. “It takes four seconds for the government to spend what the average American earns in an entire year.”

The current state of the economy and the most recent jobs numbers do not offer hope for any improvements mitigating the sad reality summarized in the previous paragraphs.  Here are a few more cogent facts.


     The US population is now 8.8 million larger that when President Obama took office; but, there are 86,000 fewer people with jobs.  Yet he claims to have created 4 million jobs during his tenure.  He should, instead, be reporting that despite the 4 million jobs added there are still 86,000 fewer people with jobs than when he took office.


     The number of people employed or seeking work has dropped to 63.5 percent, the lowest level since September 1981.


     Last month 568,000 people stopped looking for a job. Only 96,000 jobs were added.  And the US population increased by 212,000. reported that the Department of Labor found that in August a  record high 88,921,000 Americans were no longer in the civilian labor force.  In July the total work force was 155,013,000 but that number fell to 154,645,000 in August.


When President Obama took office the national price of gas averaged $1.85 per gallon.  Today it is nearing $4.00 per gallon.  Throughout his time in office his administration has either shut down or hindered extraction of domestic oil supplies in favor of expensive and failing alternative fuel initiatives. reports that “Shortly before he became President Obama’s energy secretary, Steven Chu declared, ‘Somehow we have to figure out how to boost the price of gasoline to the levels in Europe’ — which were around $8 per gallon at the time.”


During a Senate debate about opening up domestic offshore oil drilling sites then Senator Ken Salazar, now Obama’s interior secretary, objected to an increase in offshore drilling even if it meant the price of a gallon of gasoline would cost $10 or more.

That President Obama agrees with both Chu and Salazar was confirmed when he closed down the Green River Formation, the world’s largest oil field located in three western states.  It is estimated to contain 3 trillion barrels of oil, eight times the amount in Saudi Arabia.  In a report titled GAO To Obama: More Oil Than Rest Of The World, the Government Accountability Office told Congress that the Green River Formation contains “an amount about equal to the entire world’s proven oil reserves.”  What then are we to make of Obama’s often repeated lie that “We cannot drill ourselves out of the oil crisis, we only have just 2% of the world’s oil.”?  Harvesting domestic oil resources would be a huge boost to the economy (business expansion, jobs, increased tax revenues) but the current administration will not permit it.


And we haven’t even touched upon the housing market, the looming student loan debacle, declining manufacturing, too big to fail financial institutions, expanding oversees committments, balooning government regulations, government waste and the list goes on and on.  Presidential candidates are laying out their positions and making promises.  But, promises are easy.  Not so delivering on those promises as the last four years proves.  Whoever wins in November faces major challenges.  It is up to voters to decide whether a change in management will make a difference.  I can hope but I’m not so sure it will.






Additional Items.

Obama the Capit…

Obama the Capitalist?

We traveled to the RNC and DNC to see what occupy thinks of the political parties. It seems the Occupy movement and unions are not happy with President Obama. It seems he is not far enough to the left. The video is below.

Watch video.

Campaign Medicare Debate

by George Burns

Several topics in this year’s presidential campaign grab the headlines – some important, some not.  Charges and counter-charges are hurled about by the candidates, their surrogates and the media with each side assuring the public that what candidate A says is right while candidate B is wrong or vise versa.  The result is a bewildering array of propaganda mixed with truths and half-truths.  And, on occasion, outright lies.  So, absent trustworthy facts on which to base decisions too many votes will be cast for the wrong reasons (good looking, good speaker, nice smile, agreeable promises, etc.) or trusting the lesser informed opinions of others.  Consequently, the only way to cast an informed vote is to fact check credible sources ourselves.

One of the more contentious issues in this campaign is Medicare, including the status of $716 billion taken from Medicare over the next decade to fund portions of Obamacare.  First, two relevant facts.  Medicare is in financial distress. The Medicare Board of Trustees in their 2012 Annual Report estimate that Medicare will only be able to pay 87 percent of expected benefits starting in 2024.  After that the “expenditures that can be financed with HI [health insurance] dedicated revenues will decline slowly to 67 percent in 2045, and then rise slowly until it reaches 69 percent in 2086.”  These projections are based on an uncertain future.  Thus, they are more likely to decline than improve.  Second, over the past 30 years Medicare has doubled as a share of the nation’s GDP and will double again in the next 30 years.  It is the second largest item in the entire federal budget and growing rapidly.  The pace of Medicare growth when coupled with Medicaid, Social Security and debt interest payments will consume the “entire” federal budget by 2025.  This means either dramatic cuts in government spending or huge tax increases will be required.

FED: A private …

FED: A private banking cartel established by Congress

by George  Burns

For those who believe the FED (a private banking cartel established by Congress) is an organization benefiting the welfare of our country and its citizens, this short piece should cause you to rethink your position.  Contrary to its established purpose, the audit clearly establishes that the FED, instead of ours, looks after domestic and international banking interests.  It’s charter says that it is suppose to look after the interests of the American economy, stabilize the value of the dollar, and among other things protect us against recessions and depressions.  On all accounts it has failed but has done a good job, to our detriment, looking after domestic and international banking intrests.  What we all need to understand is that the FED used taxpayer funds to do its nefarious deeds.  We can thank both the FED and the federal government for the nation’s debt and sticking us (the hapless taxpayers) with the bill.

Candidate Obama To President Obama: Abortion

Obama Campaign Promises in 2008
Opposes any constitutional amendment to overturn the Supreme Court’s decision in Roe v Wade. Disagreed with Supreme Court ruling to uphold the “Partial Birth Abortion Ban Act.” Did not cast a vote on Prohibiting Funds for Groups that Perform Abortions amendment in 2007.
As President Obama 2009-2012
FactCheck: Obama Campaign Misleading About Romney, Abortion

‘Pro-Choice’ Obama Forces Religious Institutions to Pay for Abortion Drugs


Obama Says He’s “Pro-Choice” on Late Term Abortion

Obama Democrats Offer No Refuge for Moderates on Abortion

The Fiscal Cliff of 2013 That America Faces
by Samuel E Burns

Just finished reading an article that warns of the Fiscal Cliff that America faces on January 1, 2013. It is a far greater crisis than previously believed, said the Congressional Budget Office (CBO). According to the CBO, this looming crisis will trigger a greater rise in unemployment than originally predicted and further implying a deep recession next year.
The CBO now says that the U.S. economy will weaken even if Congress is able to delay some of the tax increases and spending cuts. The CBO numbers that are released each month, have to be revised and it is usually for the better. It furthers asks the question, whether the CBO has become political or pressure has been applied.
The article went on to say that the economy is far weaker than the CBO predicted earlier this year, even before the brunt of the Fiscal Cliff begins to hit.
In addition to the largest tax hike and spending cuts in history, consider this: Extended unemployment benefits and other emergency measures will also expire at the end of this year, dealing another deadly blow to the U.S. economy.
Companies and consumers are cutting back on spending in preparation for the crisis, a factor that’s already having an impact on industry and will continue to be felt in the months ahead.
It is time to look for new leadership and not people looking to get reelected. The election in November is even more important now to America and it future. Lets not make this about a popularity contest, likeability, speeches or looks but on policies and which candidate will get the job done.