Warren Mosler Right On The Money

Warren is a brilliant economist, at first I doubted his wisdom because it has all the attributes of a cruel paradox. Then I realized that Warren is spot on. Our deficit does not matter because it has "NO VALUE" our Dollar is nothing more than paper and ink and our debt could be eliminated by losing electricity and having those computer digits die in the circuits that created them.

Money is nothing more than a tool to allow our government to exchange something of no value (Paper and Ink) for something that has value your goods and services of which the government wants. The purpose of the Fiat monetary system is to use the money supply M3 as a counterweight to the demand for money of which the government can create at will with the stroke of a computer number pad.

Some believe that this is immoral, because they (like me) object to the Government (possibly corrupt) having absolute control and power over money creation, especially when that money is used as a means to expand the government with impunity over the rights and will of the people. Some feel that having a bit of a monetary challenge to the government would be good for our republic, or in other words require the government to have money backed by something of value like a commodoty of sorts. This will guarantee that the people of America will also benefit from new money creation not just the swiss press and paper & ink industry.

Pesonally I believe and have confidence that Warren can make the current FIAT system work and I agree with Ron Paul that our government (through its incompetence) should be forbidden from abusing the currency through erratic inflation, deflation and its induced economic booms and busts like we are experiencing now.

I think Warren is one of the only people I know that can restore balance to our economic system that deperately needs to be "papered over" properly. If any of you are worried about your money being worth anything remember that you can buy Gold, Silver or some other rapidly appreciating commodoty you need not be "Papered up" yourseves. The wealthy elite do this frequently because they (unlike the masses) know (and laugh at) paper money when regarded as something of value. To them it is little more than a permission slip or for lack of a better description "casino points or credits" that can be used for merchandise.

Warren has also indicated that the IRS places so little importance on cash as money that if you dare pay your taxes in cash, they will carefully count it, give you credit (a reciept), and after you leave drop the entire pile in their shredder. Those shreds are then happily resold to tourists visiting Washington D.C.

Milford's Peter Schiff Challenges Obama Recovery

In recent months, GDP numbers have rebounded - primarily as a result of record low interest rates reliquifying the credit market and government stimulus jolting consumer spending. Although the "positive growth" has delighted Obama's economic brain trust, it has done little to boost the fortunes of Main Street. As I have said many times, GDP largely measures spending, and spending is not growth.

Last Friday we received the latest indication that the real economy is not recovering in the slightest. The Labor Department reported that non-farm payrolls increased by 431,000 jobs in May. In a press statement, the President himself crowed at the news, noting that the official employment rate fell to 9.7% from 9.9%. However, just inches below the headline, red flags were everywhere. Only 41,000 of those jobs were generated in the private sector - far below the median forecast of 180,000. Even more troubling was the fact that the Census Bureau alone accounted for 411,000 new jobs, which were almost exclusively temporary positions.

Rather than a recovery, the jobs data seems to indicate that we are still mired in the first economic depression since the 1930s. Back in 1931, two full years after the Crash of 1929, there were still very few people who thought that the recession then underway would one day be called the Great Depression. (See my commentary from March 1st "Don't Bet on a Recovery)

Increased spending, financed by unprecedented borrowing, will prove to be just as temporary as a US census job (unless, in the name of stimulus, Obama decides to make "people counting" a permanent function of the US government.). When the bills come due, the next leg down will be even more severe than the last.

The swelling ranks of the government payroll, and the shrinking number of private taxpayers footing the bill, will guarantee larger deficits and a weaker economy for years to come. In addition, the artificial spending has prevented a much-needed restructuring from taking place, leaving our economy far less efficient than before the crisis began. In other words, we have dug ourselves into a much deeper hole while failing utterly to build any means to climb out.

One reason that we have thus far been spared the full wrath of Washington's poor decisions is that we are still benefiting from problems abroad, particularly in the eurozone. As sovereign debt issues have temporarily caused a flight to the dollar, our economy has benefited from lower interest rates and restrained consumer prices.

However, EU member-states have shown some willingness to confront their problems by cutting government spending - correctly ignoring US government suggestions that they do the opposite.

Just today, newly elected UK Prime Minister David Cameron prepared his constituents for austerity. Citing a budget deficit that is currently running at 11 percent of GDP, Cameron indicated that government spending would have to fall in order to maintain solvency and a high standard of living.

Cameron went on to say, "Greece stands as a warning of what happens to countries that lose their credibility, or whose governments pretend that difficult decisions can somehow be avoided." This type of realistic sentiment is completely absent in our current leadership in Washington, even though the US deficit is 9.9 percent of GDP and mounting. Meanwhile, the tough decisions being made by European governments will start to rebuild investor confidence in the euro.

Once the euro finally stabilizes against the dollar, I expect commodity prices to resume their rise, especially oil. Normally, the uncertainty created by the disastrous oil spill in the gulf, and the resulting moratorium on deep-water drilling, would have sent crude oil prices skyrocketing. However, fears of a global slowdown, euro weakness, and general risk aversion have held prices in check. As Asia continues its growth and Europe regains its footing, I expect a delayed surge in oil prices, which will put yet another obstacle on the road to US recovery.

Our last remaining leg of support has been the activity of Asian central banks, who have continued in their herculean efforts to prop up the dollar and bail out Americans with low interest rates and cheap imports. However, when sovereign credit risk eventually rears its head in America, look for Asian policymakers to finally wise up. Once that prop is removed, there will be no questions about the gravity of our situation - and little dispute that it amounts to a depression.

The real danger will be if we follow our own foolish advice that Europe appears to have rejected. Treasury Secretary Timothy Geithner has bluntly suggested that European governments should print and spend money in order to keep their economies out of recession. In reality, cutting government spending is a far better stimulus. Maintaining lavish budgets through the use of the printing press will only result in disaster. Not only will such action fail to avert a double-dip recession, but it will practically ensure an inflationary depression.

As I have said before, we can't simultaneously grow the economy and grow government. The latest jobs report shows that we are just growing government. If that trend doesn't soon reverse, investors will start betting on the collapse of the dollarzone.

Dodd Set To Announce His Resignation

There certainly was much sadness and excitement this morning when Chris Dodd took Michael Moore's advice and decided to resign for the "good of his party." Dodd's resignation comes during a tumoltous period, one marked with tea party protesters, and scandals that included "sweet heart" deals on mortgages, and AIG bonuses.

Dodd stepping aside will certainly be "bitter sweet" for the Democratic party, but just as soon as he resigned Connecticut's Attorney General Richard Blumenthal expresed interest in a run for the Senate.

Dodd is expected to make an announcement to the media soon, and give more details surrounding his decision not to sek re-election. Most onlookers this year are of the opinion that Dodd's record low poll numbers, and pressure from within his own ranks are behind the Senators decision.

Sometime ago Dodd was diagnosed and succesfully treated for prostate cancer, and health concerns are not expected to be an issue that has led to his decision.

Keep tuned in to the major news networks this evening, as more news is to follow on the race for senate Christine Stuart of Connecticut News Junkie has also extensively covered the Blumenthal bid. To read more, click HERE to access her article today.

UI Wants Ratepayers To Fund 80 Million Dollar "Taj Mahal" In Orange

Although only about a dozen people attended an aldermanic hearing Thursday night on United Illuminating’s planned move to Orange from downtown New Haven, state Attorney General Richard Blumenthal said afterward, “The battle has only begun.”

Blumenthal, who arrived after the hour-long session had adjourned, said he believes there’s “a strong chance” the state Department of Public Utility Control can be persuaded to force UI not to use any rate-payer money to fund its move to Orange.

“This effectively will stop the project,” Blumenthal said. “Because then UI would have to pay for its (new) headquarters out of shareholder funds, and they apparently have no intention of doing so.”

In his written statement, Blumenthal said, “UI’s plan for a corporate office in a Taj Mahal costing in excess of $80 million is an outrage. Rate-payers should be spared this monument to corporate greed.”

UI executives declined an invitation from Alderman Carl Goldfield, D-29, to attend Thursday’s public hearing. Alderman Roland Lemar, D-9, said the fact the public knew this before the session probably hurt attendance.

Goldfield announced at the hearing’s outset that UI representatives had asked for a private meeting with the aldermen.

“I told them that whatever they have to say to us, they should say in public,” Goldfield added.

Insead of appearing at the hearing, UI CEO Anthony Vallillo sent the aldermen a letter defending the company’s decision to consolidate six separate locations into one central facility in Orange.

“UI management is confident this is a prudent business decision and that the move to Orange is in the best interests of all UI customers,” Vallillo wrote. “The move will help UI operate more efficiently and will save customers money in the long run.”

Vallillo estimated the consolidation will save UI customers $25 million over 20 years. “All of these savings flow to all of our customers.”

But Goldfield said Vallillo was “misjudging costs” of the move and Lemar said the letter contained “half-truths and falsified information.”

Lemar charged the move “will ultimately raise rates.” He said it would also be economically damaging to downtown New Haven because 500 UI workers would move out, hurting other city businesses.

Lemar said the move would also increase air pollution because of added traffic on I-95 and make it more difficult for lower-income UI employees to get to work, given the lack of mass transit serving Orange.

Frank Panzarella of the group Fight the Hike told aldermen that “making a big buck” was motivating UI to move to Orange. He said UI is abandoning its role as a corporate citizen responsible to consumers.

Goldfield later addressed another issue: UI’s sale nine years ago of the polluted English Station power plant in New Haven. “We’re looking into a possible lawsuit against UI; can they just turn their back and move on?”

Alderman Mordechai Sandman, D-28, said, “The original polluter (UI) takes ultimate responsibility for the clean-up.”

ORIGINAL POST BY R.BEACH

Glenn Beck Vs. Richard Blumenthal

Blumenthal, our beloved Attorney General and Hamden's own Glenn Beck go head to head in the video below. The subject AIG bonuses, CT Senator Chris Dodd (who wrote the AIG bonus loophole)and the logic of the fiasco. This is a very heated and opinionated debate that promises the invocation of passionate and yet serious issues stemming from CT.

Illegal Immigrant Worker' s Wait For Jobs In Norwalk

The illegal immigrant workforce, takes to the Norwalk streets daily. This event I witnessed last week as I traversed up Martin Luther King Blvd. There were about 50-100 people of what looked like Spanish descent waiting on the corner as if ready to jump in a passing truck; They looked ready to work in any craft from landscaping to construction.

Upon arrival to my destination to fix a computer I asked my customer A Mr. Yanni what was the scoop with all the people hanging out on the corner, I asked him the rhetorical question of what were they doing there? Just as I expected he gave me the answers, the same ones that have half the nation "ticked off" about, that they are all mostly illegal, undocumented, migrant workers preying on the desperation of small businesses desperate to increase their profits.

Many of them are going to your homes by way of your landscaper, stone mason or handyman. This problem has become perverse throughout our state and does not limit itself to just Norwalk. Mayor DiStefano has worked to grant these people ID's and Hartford has all but become a sanctuary city after the town council walked away from immigration issues, calling them the greater responsibility of the Federal Government.

Just as matters seemed to be as bad as things could be our secretary of state decided to run a campaign with Blumenthal to shore up the numbers of the Democratic party by registering as many people of all descents... many if not most being these federal "fast track" illegal immigrants.

While I am no objector to legal immigration a reminder of the correct way of achieving this is through acculturation and assimilation. That is that they intermarry, speak English, and lose over time their intense feeling of nationalism over the United States. In the exaggerated unregulated number that are present today America is building Hispanic nonspeaking ghettos who will soon evolve into a separatist group that will look to create their own special place in America that is not America. To explain what I mean imagine entire Spanish Speaking cities like Miami where America and its history becomes second to that of the supra nationals.

Something to think about while the rest of the U.S. border still goes unfunded, wide open and our leaders act as if they care but continue to take no action. Today's blog is yet again another reminder of the excuses and collusion at all levels of government in our state to enable the Federal Government and its policy of destroying our national borders under the premise that our state is helpless.

Food for thought today!

Can A School Drop Out Become Governor?

Our Speaker of the House, and my opponent has got to have the biggest "pair" in town. His academic achievement is absolutely baffling and sub-par. Jim Amann also known by many "old timers" in town as the Johnathan Law High School troublemaker created a name for himself the day he set the school on fire.

People who know Jim have characterized him as being a sub par student who had difficulty attaining even the most basic of academic standards. Against the odds, he did graduate from High School even with all the controversy and mischief he was known for there.

He did attend University for a very short time, but for numerous unknown reasons he eventually concluded that college was not "his thing" and decided to quit.

This academic failure on his part raises a very important question on many peoples minds. How can a person who has such a poor educational level, be expected to comprehend in-depth legislation, complex accounting spreadsheets, and even be expected to know how to manage thousands of employees, negotiate contracts based on sound macro-economic principles and be trusted not enslave the population of our state with his mistakes?

Perhaps times were different then, but today most parents (who love their children) would cringe should they discover that their child was a juvenile delinquent whose sole ambition was to quit school. What is more enlightening about our Speaker is that he has a crass, crude vocabulary to match his "sub-par" education.

Amann, as part of his vocabulary, routinely engages others with unprofessional language. These choice words include "Idiot," "HeartOn", "Crush", "Brain-Dead", and many others too inappropriate to mention. Certainly we would not call this progressive under any circumstance. If anything these inappropriate words are an admission of our Speaker's disappointing and unprofessional image as a state legislator.

As if that was not shocking enough, Jim is now getting even more arrogant and grandiose than ever before. Jim, after enraging the the Democrats by ignoring party primary results in the last U.S. Senate race, is demanding that the Democratic Party, the very people he betrayed, support his bid for Governor. Quite sadly, and absent any real choices come 2010, it is entirely possible that CT could have this under educated, insulting, and un-professional man become our next governor.

It is my belief, that should Amann actually win the gubernatorial bid, our state will see his lack of education result in some of the greatest political and economic mistakes ever made in CT. Anyone supporting Amann's bid must be prepared to pay with their own jobs, lives, health and family finances.

Personally I know this to be true based on the fact that his record speaks to his character. We can expect more of the same frustrating, costly trial and error with Amann. We could expect increased potential for corruption, more wasted tax dollars on lavish parties, more opposition and issues with ethics committees, more rude insulting divisive crass language, the introduction and passing of bills that he does not read on fully understand and of gravest concern the constant battle to misappropriate state funds on mundane projects that in debt our state and benefit no one.

Every person in lower Milford needs to band together and send a message this Nov. 2008 that we demand higher standards of both professionalism and academia of our leaders in Hartford. We must speak out with our voice and with a vote for Change. This November vote for Independent leadership not in the clutches of a bickering deceptive party system.

As of today nearly 30% of our state, frustrated with parties, have become registered independents, and yet not one Independent representative exists in Hartford. Voting for me Rocco J. Frank Jr. this Nov. will bring the long overdue Independent voice desperately needed Hartford.

My promise is to never be compromised by energy interests, lobbyists, or any tyrants who come bearing gifts in exchange for favorable policy. Having a great family and loving children, there is nothing more that I desire than to return to you all that you lost. All our children deserve better from our leaders who often are lost to the subversive nature and prevalent corruption that will remain ever present in the annals of government.

Connecticut Sues To Keep Lights On

TEN Company, a subsidiary of Energy East, also involved with UI in our Devon Power Plant project, is trying to shut off the electric on ten of our government office buildings.

These buildings include important government facilities such as the Legislative Office Building, State Supreme Court, our Armory, our Dept of Environmental protection, and six others.

The reason for the "shut off", according to Attorney General Richard Blumenthal, is because of a pricing dispute. Blumenthal alleges "Fraud," a claim TEN denies, on the part that they are taking advantage of its monopoly on energy. Blumenthal has taken this matter before the court seeking an injunction to halt the shutdown of energy to the affected state office buildings.

Blumenthal decried to the media "we will not let Connecticut be held hostage by this company." The issue before the court is wether or not the state was fradulently overcharged 14 Million since the early 90's.

Rohback the attorney representing TEN in court offered the entire heating and piping systems up for state purchase. He alleges that the state contract is not that profitable and is willing to put them up for sale.

In lieu of this lawsuit the TEN Cos. prefer not to do business with the state and are aiming to withdraw service, or render it to another provider.

My personal opinion to bring this home, goes along with what I said in earlier posts about the greed, and antics of corporate energy in CT. I would much prefer choice and free enterprise when it comes to energy, but unfortunately we have a monopoly in town. Thankfully, that is changing if anyone would like to see emerging energy alternatives click This Link.