Thursday, July 30, 2009

Will Obama Attack Iran?

Obama may attack Iran within the next 12 months if I am reading things correctly. There are two main reasons for this possibility:

1. Obama is frustrated that he has been unsuccessful in negotiations with Iran and with Europe in his quest for other countries to help us fight the Talaban in Afganistan and in other places around the world. Other Countries such as Germany and France have told him to "bug off" when he has asked for help. Consequently he needs to boost his "savior" status by doing something on a grand scale that will get "world" attention and really do what others will see as his being able to cement his place in history as "the one" who started us on the path to "World Peace." Not to mention pick up his sagging poll numbers here in the U.S.

2. Obama is worried that if he doesn't do something soon, Israel will attack or bomb Iran in an attempt to stop the production of Nukes. Obama knows that if that happens Iran will seal off the Straights of Hormuz and this will cause China and Europe to panic and will push them into the deepest depression ever concieved because the price of oil would go up by several orders of magnitude. And China and Europe are telling him this and he is listening with the ear of a savior.

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Tuesday, July 21, 2009

Inflation is Comming - BIG TIME!

About 20 years ago while in College, I came up with a formula for Inflation and my professor thought it was really good and very interesting and here it is....

Delta Inflation is equal to Delta M3 divided by Delta GNP.

Or in other words to simplfy the above formula....A change in Inflation is equal to the change of amount of money in circulation divided by the change in the gross national product.

This goes along with the classical definition of Inflation..... "Too much money chasing too few goods." Notice that there are really only two components to Inflation....Money and goods.

The pied piper of washington is going to ruin this country with run-away inflation because of his spending plans. When ever there is a deficit, there are three ways for the government to get the money to pay for it...

1. Taxes - He wants to just raise the taxes on the rich...but the truly rich have their money protected! Also raising taxes can often lead to less revenue because of the "Laffer Curve."
UPDATE: 7-29-09 Actually the correct way to use taxes for the government to have more money to pay for it's spending is to lower taxes since this creates more profit for companies because people will then spend it and hence more taxes and more revenue.

2. Borrow - Borrowing money just makes more unemployment because it means less money for the private sector.

3. Inflation - Put more money in circulation - which has the effect of taxing all of us, rich and poor, because the price of everything goes up, (or more correctly the value of our money goes down.)

Value or Cost is equal to Demand over Supply.

Welfare Health Care ( Also known as Oboma Care ) will raise the cost of health care beyond belief.

Lets say that there are 100,000 doctors in this country and 70,000,000 people in the health care system. Now, all of the sudden we add 30,000,000 more people into the system with the same number of Doctors.... Value or Cost will be More demand over the same supply....

Volia - Much higher costs. Perhaps even double or more. It amazes me how Oboma doesn't acknowledge this very important fact. Either he doesn't understand or know it, or he is being dishonest to suit his goal of the "end justify's the means", meaning as long as everyone has health care, it doesn't matter the cost to the taxpayers, as long as they think they are getting taken care of.

This President will go down in history as the worst President we ever had because he will destroy our health care and our economy and even perhaps our freedom.

There you have it...math to prove my points. Of course proof is subjective. Proof is only what a person belives to be true, not what is true. Hence the same facts presented to a Jury, and often half of the Jury will see it 180 degrees from the other half.