Fritz Pfister

In the November 2, 2010 elections voters sent a clear message, they didn’t much care for what government was doing with a historical rejection of the Obama agenda. Democrats lost the most house seats in an election since 1938, lost control of 19 state houses, the most since 1928, and returned to the minority of governorships.

Fifteen million people out of work, the longest stretch of unemployment above 9% following any recession in 65 years, unemployment benefits extended to 99 weeks, an $865 billion Stimulus plan that failed to do what was promised which was to keep unemployment below 8% and create 3.5 million jobs by the end of 2010. Obama has less than three weeks to create 6.5 million jobs because his plan lost 3 million jobs.

Then there were the bail outs of GM & Chrysler throwing bankruptcy law under the bus to save union jobs, running up deficits by $3 trillion in just two years, $9 trillion in lost home equity in a housing collapse, foreclosures extraordinaire, bureaucratic rules that killed jobs due to Climate Change ideology, moratoriums unnecessarily costing tens of thousands of jobs due to the same ideology, building electric cars that must be subsidized because nobody wants them, solar, wind, and ethanol subsidies costing hundreds of billions with minimal benefit.

Then there was the nationalizing of the student loan program, a monster Financial Regulation reform bill giving dictatorial powers to treasury that will be involved with 70% of banking business decisions, allows every citizens every financial transaction to be monitored said to be for the purpose of avoiding another financial meltdown, without addressing the cause of the financial meltdown (Fannie Mae/Freddie Mac). 

Then liberals shoved down the throats of the American people against their will a nationalized health care reform bill taking over another 17% of the private sector that was sold on saving people money, lowering the deficit, improving care, with access to all, to keep your own doctor, insurance, without death panels; which are now all proving to be false promises.

For two years the Democratically controlled federal government knew the Bush tax cuts were going to expire on December 31, 2010. The we hate successful rich people party believed Obama when he campaigned on extending tax rates for all but the top 2% but took no action until after the midterm elections in an attempt to fool voters once again that they are not the party of tax and spend.

Now comes Obama appearing to compromise with Republicans by agreeing to extend for two years all tax rates in exchange for a thirteen month extension in unemployment benefits and preventing tax increases on middle and lower incomes, of which 47% of the employed pay no federal taxes.

Working its way through the lame duck congress is another budget busting deficit bloating monster that will have minimal impact on the economy and jobs. Sorry, when Obama pretends to embrace conservative ideas that will stimulate the economy, and brings in America’s most famous liar, Bill Clinton to say he’s reviewed the compromise and it’s good for America, we have a slight problem, there is no compromise bill yet.

The radical socialist left still in control of the house under Pelosi have revolted against their opportunity to stick it to the rich, which is nothing but class warfare, that would tax 50% of all small business income, who are the engine to job growth. Ideology trumps what’s good for America. Harry Reid to the rescue, the man who created the Louisiana Purchase, and the Cornhusker Kickback to buy votes to pass the devastating Obamacare bill, is larding up the tax rate compromise with tens if not hundreds of billions to benefit special interests again, that will sway the votes of strict ideologues who hate capitalism but love money and power.

I am sick and tired of a sick and tired economy. Only in a left winger’s mind could one say that keeping tax rates the same is a tax cut and will stimulate the economy, or by extending the tax cuts for the rich will cost the government $700 billion. Both having been trumpeted by the main stream liberal media are attempting to fool the masses with these false and economically ignorant arguments.

Why hasn’t business been hiring? Because businesses can’t write a plan or budget without knowing what their costs will be. Most business plans are five or ten year plans. A two year extension of the tax rates is like a man asking a women to marry him and she says no, let’s just live together two years then make up our minds. Could one make any serious long term plans with that type of an arrangement? That’s what Obama wants you to believe, that business will be so giddy with a two year extension they will hire like crazy. Then says if we don’t pass the bill we would have a double dip recession.

If this passes here’s what will happen, about two million jobs will be created when we need fifteen million jobs. You need one million a year just to meet the demand of new workers entering the work force. You can’t create 15 million jobs at once so you need a long term plan of 200,000 to 300,000 jobs being added every month for four to five years to return unemployment to below 6%. How’s that two year extension going to work? It will create what Senator DeMint has termed a ‘temporary’ economy. He’s right.

Republicans are idiots if they go along with another trillion dollars being added to the deficit to get a date instead of a wife. Obama has outfoxed the left and right. By pretending that extending tax rates as they are, with a compliant liberal media foisting the lie upon the masses, that this is a tax cut, when this plan fails to create enough jobs heading into the 2012 presidential election Obama can say ’see I told you tax cuts don’t create jobs’.

That’s the set up but don’t be fooled, economist’s Laffer, Greenspan, and Roubini have all made dire predictions due to the dangers of the unsustainable deficit. Here’s what Roubini said this week as quoted at moneynews.com [quote]:

This week Noriel Roubini renowned economist with N.Y. University said the president’s deal to extend the Bush era tax cuts would cause bond traders to demand higher yields on fears of deficit related risks. Roubini followed with this foreboding omen: “We should be clear in our minds that the fiscal situation in the U.S. is much worse than Europe. In one or two years, when the European debt situation stabilizes, attention of financial markets will definitely shift to the U.S. At that time, U.S. Treasury bonds and the dollar will experience considerable declines.” [end quote].

That means hyper inflation and double digit interest rates, in one or two years. Adding another trillion dollars to the deficit in exchange for a temporary economy is a recipe for economic disaster.

Why not try this solution. Have a simple up or down vote on extending the tax rates permanently. Pay for the extension of unemployment insurance, and the one year 2% social security payroll tax holiday for employees with unspent stimulus funds which would not increase the deficit. Eliminate the billions in subsidies to bribe politicians to get their vote. Here’s a list of Reid add ons to the compromise as reported by AP [quote]:

The add-ons were being attached behind the scenes.

Almost $5 billion in subsidies for corn-based ethanol and a continuing tariff to protect against ethanol imports were wrapped up and placed on the tree Thursday night for farm-state lawmakers and agribusiness lobbyists. Environmentalists won more grants for developers of renewable energy , like wind and solar.

For urban lawmakers, there’s a continuation of about-to-expire tax breaks that could save commuters who use mass transit about $1,000 a year. Other popular tax provisions aimed at increasing production of hybrid automobiles, biodiesel fuel, coal and energy-efficient household appliances would be extended through the end of 2011 under the new add-ons.

The package also includes an extension of two Gulf Coast tax incentive programs enacted after Hurricane Katrina to spur economic development in Mississippi, Louisiana and Alabama.

It’s all expected to come to a decisive vote next week, total cost by the latest congressional estimate: $857.8 billion.

[end quote]

Doesn’t appear either party remembers the election. We need long range effective plans to put people back to work, not bills that help politicians get re-elected. I don’t know about you but I am sick and tired of a sick and tired economy. This compromise will only provide a false sense of relief before the whole house of cards begins collapsing and we head into a protracted deep Great Recession II or depression. If this bill passes I hope the cards collapse in September of 2012 just as the Fannie Mae, Freddie Mac social engineering of the Democratic party housing for all plan collapsed, consumed Bush and gave us Obama to make things worse with his anti-business agenda, private sector takeovers, bailouts, bureaucratic over-reach, and jobs killing green (red) ideology.

Both Republicans and Democrats are proving again that a large centralized authoritarian federal government is the enemy of individual liberty, recovery, and prosperity. Where are the statesmen and true leaders? We are left to deal with horse traders, liars, nincompoops, self aggrandizing, feeding at the trough, money hungry, power mad imbeciles to run this country. Save all you can, and prepare for economic calamity at the hands of these idiots we elected.

The opinions expressed here are solely those of Fritz Pfister or identified sources, and not necessarily those of RE/MAX Professionals of Springfield or RE/MAX International.

Harry Truman said there’s no such thing as the future only history that hasn’t happened yet. That means we can probably tell where we’re headed by looking at the past. On a side note several Realtors from around the country I was chatting with said, anyone with half a brain should have known there would be [...]