It's the Economy, Stupid


RealAmerica
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The national debt is now at $30,000 for every man, woman, and child in America. For a family of 5, that is $150,000. As a nation, we are technically bankrupt. So when you hear or read or think about posting some 'issue' for the coming election, ask yourself this. How will that impact my ability to pay back my portion of the Federal Debt?

By TOM RAUM Associated Press Writer
Article Launched: 12/03/2007 12:06:21 AM PST

WASHINGTON—Like a ticking time bomb, the national debt is an explosion waiting to happen. It's expanding by about $1.4 billion a day—or nearly $1 million a minute.

What's that mean to you?

It means almost $30,000 in debt for each man, woman, child and infant in the United States.

Even if you've escaped the recent housing and credit crunches and are coping with rising fuel prices, you may still be headed for economic misery, along with the rest of the country. That's because the government is fast straining resources needed to meet interest payments on the national debt, which stands at a mind-numbing $9.13 trillion.

And like homeowners who took out adjustable-rate mortgages, the government faces the prospect of seeing this debt—now at relatively low interest rates—rolling over to higher rates, multiplying the financial pain.

So long as somebody is willing to keep loaning the U.S. government money, the debt is largely out of sight, out of mind.

...

The national debt—the total accumulation of annual budget deficits—is up from $5.7 trillion when President Bush took office in January 2001 and it will top $10 trillion sometime right before or right after he leaves in January 2009.

That's $10,000,000,000,000.00, or one digit more than an odometer-style "national debt clock" near New York's Times Square can handle. When the privately owned automated clock was activated in 1989, the national debt was $2.7 trillion.

It only gets worse.

Over the next 25 years, the number of Americans aged 65 and up is expected to almost double. The work population will shrink and more and more baby boomers will be drawing Social Security and Medicare benefits, putting new demands on the government's resources.

These guaranteed retirement and health benefit programs now make up the largest component of federal spending. Defense is next. And moving up fast in third place is interest on the national debt, which totaled $430 billion last year.

...

Who is loaning Washington all this money?

Ordinary investors who buy Treasury bills, notes and U.S. savings bonds, for one. Also it is banks, pension funds, mutual fund companies and state, local and increasingly foreign governments. This accounts for about $5.1 trillion of the total and is called the "publicly held" debt. The remaining $4 trillion is owed to Social Security and other government accounts, according to the Treasury Department, which keeps figures on the national debt down to the penny on its Web site.

Some economists liken the government's plight to consumers who spent like there was no tomorrow—only to find themselves maxed out on credit cards and having a hard time keeping up with rising interest payments.

"The government is in the same predicament as the average homeowner who took out an adjustable mortgage," said Stanley Collender, a former congressional budget analyst and now managing director at Qorvis Communications, a business consulting firm.

Much of the recent borrowing has been accomplished through the selling of shorter-term Treasury bills. If these loans roll over to higher rates, interest payments on the national debt could soar. Furthermore, the decline of the dollar against other major currencies is making Treasury securities less attractive to foreigners—even if they remain one of the world's safest investments.

For now, large U.S. trade deficits with much of the rest of the world work in favor of continued foreign investment in Treasuries and dollar-denominated securities. After all, the vast sums Americans pay — in dollars — for imported goods has to go somewhere. But that dynamic could change.

"The first day the Chinese or the Japanese or the Saudis say, 'we've bought enough of your paper,' then the debt — whatever level it is at that point—becomes unmanageable," said Collender.

A recent comment by a Chinese lawmaker suggesting the country should buy more euros instead of dollars helped send the Dow Jones plunging more than 300 points.

The dollar is down about 35 percent since the end of 2001 against a basket of major currencies.

Foreign governments and investors now hold some $2.23 trillion—or about 44 percent—of all publicly held U.S. debt. That's up 9.5 percent from a year earlier.

Japan is first with $586 billion, followed by China ($400 billion) and Britain ($244 billion). Saudi Arabia and other oil-exporting countries account for $123 billion, according to the Treasury.

"Borrowing hundreds of billions of dollars from China and OPEC puts not only our future economy, but also our national security, at risk. It is critical that we ensure that countries that control our debt do not control our future," said Sen. George Voinovich of Ohio, a Republican budget hawk.

Of all federal budget categories, interest on the national debt is the one the president and Congress have the least control over. Cutting payments would amount to default, something Washington has never done.

...

Texas billionaire Ross Perot made paying down the national debt a central element of his quixotic third-party presidential bid in 1992. The national debt then stood at $4 trillion and Perot displayed charts showing it would soar to $8 trillion by 2007 if left unchecked. He was about a trillion low.

Not long ago, it actually looked like the national debt could be paid off—in full. In the late 1990s, the bipartisan Congressional Budget Office projected a surplus of a $5.6 trillion over ten years—and calculated the debt would be paid off as early as 2006.

Former Fed chairman Alan Greenspan recently wrote that he was "stunned" and even troubled by such a prospect. Among other things, he worried about where the government would park its surplus if Treasury bonds went out of existence because they were no longer needed.

Not to worry. That surplus quickly evaporated.

Mark Zandi, chief economist at Moody's Economy.com, said he's more concerned that interest on the national debt will become unsustainable than he is that foreign countries will dump their dollar holdings—something that would undermine the value of their own vast holdings. "We're going to have to shell out a lot of resources to make those interest payments. There's a very strong argument as to why it's vital that we address our budget issues before they get measurably worse," Zandi said.

"Of course, that's not going to happen until after the next president is in the White House," he added.

http://origin1.contracostatimes.com/nationandworld/ci_7621637

For the Real American view of the economy, look here -

http://www.unlawflcombatnt.blogspot.com/

If Congress Can't Deal With A Simple Thing Like The AMT, Why Do We Think We Can Trust Them With The National Debt?

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RealAmerica
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And yet the White House just doesn't get it.

http://www.whitehouse.gov/news/releases/2008/01/20080104-2.html

Check out this bullet of economic 'good' news - 18,000 jobs created in December, 2007 marks 52 months of straight job growth. Something to be proud about, right? Well. sorry to bust your bubble, but it takes close to 84,000 jobs per month just to keep up with the illegal alien population! Americans, I guess, just don't need jobs.

Then there is this bullet - Real GDP grew at a strong 4.9 percent annual ... . That hardly kept up with inflation, and didn't address the REAL GDP numbers taken after 'adjustments'. You see, since el Presidente Bush took office, every month the numbers for the GDP for the prior month have been adjusted DOWN, which creates an artificial 'GROWTH' compared to the new month, for every month in the last 7 years. It's funny the report compares to the 60's and 70's, when it took a single wage-earner to provide for a family and college for the kids. Now it takes two.

I love this one - The Federal budget deficit is down to 1.2 percent of GDP ... . But wait, the Federal TREASURY debt is greater than the entire Federal budget! That's right, less than 1/2 of our Federal revenue goes to the budget. Plus we have to add the cost of military action in the Middle East, and the Baby Boomers demand on Social Security, which will also have to come out of the Federal 'budget' since it wasn't rolled into it's own account. Isn't that like ignoring the tiger in the center of the room?

Then there is this one - productivity growth has averaged 2.6 percent per year ... . So now that we are working more hours than any other civilized nation per week, and the administration is adding pressure by condoning the practice of slave labor to keep wages down by using the international labor pool ... get the picture?

Boxer, Feinstein, Pelosi
Selling America One Piece At A Time

RealAmerica
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Sorry for the cross-post, but this article addresses 3 top issues - California economic crisis, illegal alien invasion, and the upcoming election.

http://www.investors.com/editorial/editorialcontent.asp?secid=1501&status=article&id=284947429536176

Note that the cost of the invasion in California would more than pay to keep the parks open. All the Guv' has to do is to have a large portion of the state legislature arrested for sedition to get the ball rolling.

Boxer, Feinstein, Pelosi
Selling America One Piece At A Time

RealAmerica

RealAmerica
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How Things Really Work

Now this is scarey. It is a comment taken from an article referenced in another of my posts today -

neoconned08 | January 19, 2008, 9:30am

The conspiracy theorists make up a very small percentage of the Ron Paul Revolution. I am no conspiracy theorist but I DO know there are quite a few who are pretty naive to the facts.

Look at the economy right now. Ron Paul has been saying this was going to happen over and over. Now, the GAO comptroller general David Walker (the head accountant of the us government) is agreeing with Ron Paul. The nation is insolvent due to the creation of money out of thin air to pay for more guns and more butter. Our dollar today is worth 3 cents of the dollar from 1913 when the Federal Reserve (a private banking cartel that isn't even part of our government) was first instituted. Our founding fathers continously warned about a central bank and having anything but gold and silver being legal tender.

Why?Just look at what happened with the Continental. The SAME thing is going on right now. The ONLY thing keeping this whole charade going is that the US dollar is the World Reserve Currency. How did it obtain that status? By being backed by gold. The korean war and the vietnam war combined with the Nanny state (welfare, medicare etc) that was built up during that era by printing money out of thin air devaluated the currency so much that the rest of the world started to reject it in 1970/71. They wanted their gold. Nixon said no and took us off the gold standard. Why? Because the US government didnt have enough gold to exchange for all the dollars it created. We were basically bankrupt then.

So now the world was left with all these useless dollars. How to keep them from dumping them back into the us economy and causing the currency to crash? Simple. Sign a deal with the Saudi Arabians in 72 that they would sell their oil ONLY in dollars. Now, the rest of the OPEC nations followed suit, thus sealing the deal.

What did that do to the rest of the world that had these useless scraps of paper called dollars that they wanted to get rid of? It made them have to keep them....and continue to buy more of them. Why....because every nation needs OIL for their civilian, construction, aero nautical and military vehicles. If you dont keep the dollars.....you cant buy oil. So the US could keep devaluating its currency by creating money out of thin air and forcing it upon the rest of the nations of the world and there was nothing they could do about it. It's a hidden taxation on the entire planet through inflation.

This gave the US a HUGE economic advantage in that the world would have to keep buying ever depreciating dollars to get gas with and the US could build up a massive military empire with 700 bases around the globe in 130 different countries. Everyone in the US could live a dreamy existence and not question anything etc. The French and Germans saw this and helped form the European Union with the express purpose of getting the Euro as the World Reserve Currency. Hence the reason they were pretty anti-us iraq invasion. Why? Because saddam hussein quit selling his oil in dollars in 2000 and begin selling in .......Euros! By 2003 the US invaded Iraq and within one month's time after toppling Saddam, sales of oil quietly went back from Euro to dollars.

In comes Iran. They too are losing a ton of money. What they have done though, is to create an Oil Bourse...an exchange that is not going to be trading in dollars. Euro and Dinar only. (Dinar because even Kuwait...who has nothing against the US...quit selling in dollars too. It's just too expensive and they are losing so much money). The Bourse goes live in 3 weeks, Feb 08. Who is the US talking of attacking next? Iran. Why? Because of nuclear armed terrorists? Because they hate Jews? NO and NO. The NIE has said repeatedly that Iran has no nuclear weapons nor can create them for at least a decade. Iran has the largest jewish population in the entire middle east outside of Israel. They are going to be attacked because of the Oil Bourse. That bourse is more powerful than 1000 nuclear bombs. All the world economies are going to ditch the dollar and trade in Euro when the option is available, thus crashing the dollar as a currency. Similar to Weimar, Germany post WW1.

The US can't let that happen so t hey are probably going to sick Israel on Iran, probably via a faked attack on israel, similar to a gulf of tonkin type event. (speed boats attacking 3 destroyers strike a note?) However, this will freeze the markets like a deer in the headlights, and thus crash the US economy, not to mention the EU, Russia and China all get more than 1/3 of their oil from Iran and all have deeply vested interests in seeing the Bourse succeed. The US is in a lose, lose situation and it's going to become readily apparent in 2008. The ONLY hope the United States has of weathering this situation is to elect that guy Ron Paul. He's the ONLY one with a game plan that will stop the currency from crashing. Just look at how the Dow did after Bernanke gave his stimulus package talk yesterday. 300 point drop. Everyone knows that doling out beer money to Americans isn't going to fix the complete erosion of the financial underpinning of the US economy from the SubPrime Mortgage Scandal. That is the single largest fraudelent event in the course of human civilization. What's the fed's response? Let's just print more money!! woohoo!! Too bad for them tons of folks are catching on due to Ron Paul educating everyone about economics.

Obama......bah.....loser. He wants to continue policing the world, wont remove the 14 permanent bases in Iraq, wont remove nuclear first strike against Iran off the table, want's to implement socialized medicine. Where is he gonna get all the money for this?!?! The head accountant of the government already said we're broke! Bankrupt! No more money!! Just creating money out of thin air is going to devaluate the currency even more and push other nations away from dollar that much quicker. I dont really care if Obama is a muslim or any of that stuff. I feel it's kind of bigoted to not vote for someone due to their religion. There is some stigma against Muslims that have been ingrained in the US populace psyche and it's all unfounded.

They don't attack us because we are free....they are attacking us because we have been over there for the last 50+ years propping up brutal dictators who kidnap, torture and murder their own people by the tens of thousands. Our CIA helped topple Mossadeq in 1953 in Iran and had the Shah put into power. Operation Ajax. Google it up. That shah turned out to be a brutal dictator. Eventually the Iranian people overthrew that Shah and took Americans hostage. Why? Because they are these evil terrorists? NO! Because they were provoked. If they had done the same thing to America, would you consider yourself a terrorist if you helped to overthrow some brutal dictator puppet that they put into power over here? Hell no. Then we did the same thing in Saudi Arabia. Not only that, but we occupied the country. That's where Mecca and Medina are located....the epicenters of their religion. That's like if they came here and propped up some brutal dictatorial monarchy in North Dakota and put a base on the heads of Mt.Rushmore. We wouldn't be very happy with that. Then we put Saddam in power to go attack Iran. We gave him biological weapons of mass destruction. He, too, turned out to be a brutal military dictator that used the gas on his own freakin people. Same thing with Musharraf, a military dictator who overthrew a democratically elected government and who has an 8% approvement rating of the population in Pakistan, we just gave him 10 billion bucks. We just sent 20 billion dollars worth of weapons to Saudi Arabia.

They are NOT attacking us because we are free. That's just some idiotic, pathetic excuse pushed by our propaganda machine so that we can keep going to war over there to keep the Dollar as the World Reserve Currency. They have this War on Terror......terror is a tactic...not a combatant. You can't win a war on terror by going and attacking ppl in far off lands and toppling governments. You have to address the source problem.....which is us being over there for decades, helping put into power ppl that are brutal, evil dictators. Occupying their lands with our troops only incenses them even more. If we pull our presence out of there the terrorists don't have any ability to recruit because their main incentive just left. It's common sense. Please, save our future, along with our children's. Our current way of life is unsustainable (so sayeth David Walker, head accountant of the US). Vote for Ron Paul and tell every single person you meet on the street about him.

RealAmerica

RealAmerica
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This may be more scary than the prior article. It's our elected "leaders'" response to the tanking economy -

http://www.contracostatimes.com/nationandworld/ci_8050930

Let's see. The national debt is larger than the national budget. So let's add a QUARTER TRILLION DOLLARS to the national debt to fix the problem. Every man, woman, and child in America owes $60,000 just to pay the current national debt. Our politicians are returning up to $600, one time, knowing that they will have to collect that much, and more, each year for the next decade by increasing taxes just to pay the interest on the additional borrowing.

Dr. Ron Paul is right about this insanity. It is really time to dump the Democrats and Republicans in power.

Feinstein, Boxer, Pelosi
Selling America One Piece At A Time

RealAmerica

RealAmerica
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Pop Quiz!

Who owns the Federal Reserve Bank?

  1. The government. That's why it's called the Federal Reserve
  2. It is a private corporation owned by 'member' banks

Who controls the Federal Reserve Bank?

  1. A U.S. Senate oversight committee
  2. The Federal Banking Agency
  3. The Good Ol' Boyz
For the answer, check out -

http://www.nctimes.com/articles/2008/01/27/perspective/8_35_561_26_08.txt

Republicans. Democrats.
Selling America One Piece At A Time!

RealAmerica

RealAmerica
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I Trusted You 2 B Careful How You Vote
And This Is What You Gave Me

You can believe the head of the GAO (Gov't Auditing Office) who is the head bookkeeper of the nation when he sez the elephant in the room just farted, and we call it the 2008 primaries. This recession is just a wake up call, the big event is on the horizon -

http://youtube.com/watch?v=OS2fI2p9iVs

If you haven't called your senator to let them know we can't afford to borrow to stimulate the economy, there is still time.

If you would like to know how your candidate proposes to address the problem, check out -

http://www.ntu.org/main/page.php?PageID=141

America On The Auction Block

RealAmerica



Edited 2/6/2008 8:33 pm by RealAmerica

RealAmerica
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Question - What kind of an idiot thinks you can borrow your way out of financial problems (debt)?
Answer - the elected kind (mostly Democrats - but what's the big deal; after all, we're talking about your grandkids' money)

This is a link to a recent vote on the economic stimulus package being considered by the Senate. It will be paid for by adding to the deficit; in other words, borrowing the money from China -

http://www.wtopnews.com/?nid=116&sid=1340821

And the House vote -

http://news.yahoo.com/s/ap/20080129/ap_on_go_co/house_rollcall_economic_stimulus_1

Fortunately there are still a few real conservative Republicans left who were able to kill the amendment. Sen. Boxer's take on the economy - "... spending money ... oooooh, let's go shopping!" -

http://www.allamericanpatriots.com/48741384_senator-boxer-praises-efforts-move-economic-stimul

Feinstein, Boxer, Pelosi, Miller
Selling America One Piece At A Time

RealAmerica

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This is a scary view on how the globalist economy will impact us within this generation -

http://www.opednews.com/articles/opedne_francis__080225_the_emerging_thi...

Why yes, OBama, Clinton, and McAmnesty support further globalization at the cost of our sovereignty.

B Careful How U Vote!

shays
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This ongoing rant has lots of merit and is generally spot on, but I find it interesting that you close almost every message by encouraging to dump Republicans and Democrats, but then name only Democrats (except for your reference to McAmnesty in this final post). I hate to break your bubble, but the nanny state (as you call it) is not the source of the debt. Even one of your own posts highlighted a little known fact ... that the government owes Social Security $4 trillion because it has been borrowing from it.

Now, if you look at some of my other posts, you will see that I have long contended that the Democratic Party is simply the liberal wing of the ruling elite of what used to be just this country, but for the last half century or so has morphed into this vast global network of competing rich boys and girls (and the financial institutions they represent). Within both parties there occasionally arises an independent thinker who challenges the status quo and actually forces the leadership of the respective party to sit up and take notice. As a rule, they don't last long. Witness Doctor Paul, whom you seem to think carries magic bullets or something.

His problem is that his independence is from the Republican Party, and no matter how you want to cast him, unless he repudiates that association, he is still coming from a point of view that things people are essentially bad and must be controlled by rules and laws, that wealth is inherently good and must be protected and encouraged, and that the state (and its leaders) exist to tell everyone what to do.

If you go back and reread your posts, I think you will quickly discover a couple of common threads lying right under the surface. The national debt, usurious lending practices, the power of the federal reserve, and borrow-and-spend economics all arise from Richard Nixon and the enthronement of Milton Friedman as king guru and head honcho of life, the universe, and everything. Nixon and weak Republican administrations after him started the downward spiral you have accurately pointed out. Jimmy Carter is not depicted as a silly doofess by the right wing for no reason (because he is a brilliant man with a clear, analytical head and an articulate means of expressing himself) ... he represented a possible break in the grab for power orchestrated by the William F. Buckley/Norman Podhoretz/Irving Kristol gang (for reminders, the latter's path illustrates a typical neo-con Man of the Top: founder of Public Interest and The National Interest, Senior Fellow at the American Enterprise Institute, lifetime member of the Council on Foreign Relations, member of the Wall Street Journal Board of Contributors, President of National Affairs, Inc, and awarded a Presidential Medal of Freedom by George W. Bush ... who also gave one to George Tenet for HIS contribution to the New World Order). That gang found its hero in Ronald Reagan, and they have used the machinery of the Right to deify him ... even though he ranks right up there among the 10 Worst US Presidents of all time for crimes against humanity, for blatant theft of the National Treasury, for direct and conscious violation of the Laws of Congress, for arming the Taliban and creating Al-Qaida, for supplying Saddam Hussein with biological and chemical agents that he used against both Iran and his own people, etc. etc. etc. Ronald Reagan's one singular accomplishment was to seriously begin to undo what right-wing Republicans had been trying to undo since 1935 ... the New Deal. He broke unions. He raised taxes on the Middle Class more than one time to try to cover his incredible (for the time) national debt that his war-machine, military-industrial-complex golden savior of America sucked up. He oversaw what, for the time, was the largest transfer of wealth from one class to another in the shortest amount of time possible. He destroyed public education in California while "serving" as Governor, then tried to do the same nationally except he lacked the legal vehicle to do so. His goal, as is the goal of the neo-con movement (besides erecting a New American Empire that will make the world safe for the sale of corporate goods, whether it uses democracy is neither here nor there) is to destroy the Middle Class altogether and to keep the various sections of the middle and working classes fighting and feuding amongst themselves while they rob us blind. His efforts are only exceeded only by the current President ... the Number One Worst President of All Time.

We are going to be paying for our ill-advised and unnecessary invasion of Iraq for a very long time. As you point out. Politically (at home and abroad) and financially, as you also point out. While much of what transpired before 1995 can be attributed to a Democratic controlled Congress, everything since 1995 must be laid squarely on the shoulders of the borrow-and-spend Republican Party. Stop dealing in stereotypes of Boxer and Pelosi. Stop letting other people tell you what it is that they say and want. Listen to them. Watch C-SPAN for the rare times that they are actually on. Here is what Nancy Pelosi said to the assembled House yesterday as it passed the second part of its Energy Bill (for the second time)

As an aside, you might recall that this is the same Energy Bill that the House also passed in 2007, but the Senate couldn't muster enough votes to override a threatened Presidential Veto ... so the House broke the legislation into two parts: Part I was passed late last year, and set the new CAFE standards so strongly resisted by the President and his allies in the auto and energy corporate world. Part II is the part where tax credits are offered for research, development, and implementation of alternate energy technologies and applications. This is a good thing, done in the open where anyone who is interested can listen in and watch how the decision gets made (as opposed to the Top Secret, Executive Privileged meetings conducted by Richard [the Big D*ck] Cheney to formulate the administration's energy plan] and starts us back on the path that Jimmy Carter initiated almost 30 years ago (another black eye for the Republican Party, by the way). And, unlike Republican borrow-and-spend plans, this initiative is fully funded by money given back to the U.S. by the five big oil companies, who were given a different kind of tax credit when their offshore and foreign-sourced products was deemed to be a "domestic manufacturing enterprise" and they were handed an $18 billion tax credit designed to stimulate domestic production (and jobs). The President, of course, opposes the removal of this tax credit, and this is the reason for his original veto.

So ... Nancy Pelosi stood on the floor of the Congress and challenged the President to tell the American people why five companies, EACH of which claimed $30-$50 billion dollar PROFITS last year could not afford to return the $18 billion TOTAL they have all been collectively given and not still have a $26-$46 billion profit margin? Besides demanding a pay-as-you-go system for funding the so-called nanny state, she pretty clearly pointed out where a whole lot of our people's wealth is going ... oh sure, almost anyone has some of their saved money tied up in oil one way or another (another part of the corporate strategy to corporatize us all, by the way), but I know for a fact that my Life Insurance premiums and my 501(c) savings amount to a trifle return each year when compared to those investors who REALLY benefit from oil ... like anything, you have to put in money to earn money, and the percentages are not in my favor.

And that's enough. I am going to write a little bit about Chinese inventions.

RealAmerica
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I was trying to stay away from 'the Democrats did this ...' and 'the Republicans did that ...' in order to focus on the ideas and concepts that rule our lives. Using labels like 'liberals', 'moderates', 'conservatives, 'the left', 'the right' is an unnecessary distraction as it causes the reader to confirm their definition of the term used matches the authors.

That being said, your historical review might take a new context if you consider that television became a force to contend with in elections about the time Friedman and his globalists started to rise in power. I would expect to find links between the corporate moguls who created the networks as we know them today and organizations you named above.

So where are we today. The three 'prime' presidential contenders share the same pod. Then there is Dr. Ron Paul, who took on Ben Bernanke recently - ref: http://www.nolanchart.com/article2993.html Ron Paul Educates Ben Bernanke Once again the champion of the Constitution, Ron Paul, takes on the Federal Reserve Chairman Ben Bernanke as the Feds prepare to drop rates once again.by therealJJJ

You could set off a fire with a match in the room. On one side of the room the Federal Reserve's Chairman and on the other, the defender of the Constitution and the people. Tensions were high as Ben Bernanke braced himself for the expected dose of common sense once again coming from Congressman and Dr. Ron Paul.

Ben Bernanke was stuck between a rock and a hard place when asked about the value of the dollar, and he responded that it was the Treasury's responsibility. But Paul wasn't about to let him slide on just passing off the blame for our dollar's crisis. Paul responded, "And here I find the chairman of the Federal Reserve in charge of the dollar, in charge of the money, in charge of what the money supply is going to be, but (you) don't deal with the value of the dollar."

Then as Bernanke smugly nodded, Paul proceeded to call Bernanke's bluff, "But you do admit you have a responsibility for the prices. But how can you separate the two? Prices are a mere reflection of the value of the dollar. If you want to control prices, then you have to know the value of the dollar. But if you're going to avoid talking about (the value of ) the dollar then all you can do is deal with central economic planning."

Then Paul went on to educate Bernanke on the reasons why central economic planning, even and especially when dealing with the money supply, never works.

"Everybody refers to inflation as rising prices, instead of saying inflation comes from the unwise increase in the supply of credit."

Then Paul put the icing on the cake with, "Their standard of living is going down,... the middle class is being wiped out, and nobody's understanding that it has to do with the value of money: prices are going up. So how are you able to defend this policy of deliberate depreciation of our money?"

Bernanke attempted to compose himself and with quivering voice said, "The Federal Reserve Act tells me that I have to look to price stability, price stability,... and that's what we aim to do. You're correct that there are relationships, obviously, with the dollar and domestic inflation and relationships between the money supply and domestic inflation, but those are not perfect relationships, they're not exact relationships, and, given a choice, we have to look at the domestic inflation rate." Then he went on to say that Congress has the responsibility of abolishing the Federal Reserve and returning back to a gold standard.

Paul, responding to his first statement, saying, "But your (lack of) achievement; we now have PPI going up at 12%... that doesn't get a very good grade for price stability. Wouldn't you agree?"

Then Bernanke grudgingly concurred, "I agree."

However, Federal Reserve Chairman, Ben Bernanke, apparently wasn't paying attention. He then deferred that if oil prices continued to rise, then inflation would continue to rise as well. However, Ron Paul made it very clear that the price of oil wasn't rising relative to other commodities, but that it was the value of the dollar that is falling, which he also made clear that the value of the dollar was in control of the Federal Reserve‘s decisions.

Apparently Paul's pleas for the people did not penetrate Bernanke as he continued to announce that rates would be lowered once again. This means that more money will be created out of thin air, which will translate into more inflation of oil as well as other commodities.

shays
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... but my point was that you only named Democrats. I guess you made up for it by going after Ben Bernanke, so I drop the matter. Bernanke is, of course, a protege of Alan Greenspan and I can't think of a better person to be nominated for Mismanagement of the Economy than Mr. (so-called) Economy!

--->(This symbol represents a paragraph break ... I no longer can create paragraphs on this bulletin board -- how did you do it?)

--->So tell me this. If petroleum is no longer pegged to the dollar (or is pegged to a weak dollar), and true market forces exist, while at the same time gasoline reserves in this country are at a high peak while consumer demand is demonstrably reduced ... why is gasoline reaching $4.00 a gallon (and already past that in ... gasp, California ... who consistently dares to challenge BigOil, which now finds it has the support of the EPA)?

--->And this is taking place in an economic environment that is supposedly "regulated". As much as Ron Paul says things that make sense, how would his laissez-faire, pro-business economic philosophy rein in the BigBoys (including BigPharma, BigInsurance, and BigBank)?

RealAmerica
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Although oil is / was tied to the American dollar, the policy of the Federal Reserve is not to maintain the value of the dollar, but to maintain prices. A couple of weeks ago the Fed quietly 'lent' mega-billions of dollars to banks to stem the recession (for banks, that is). They then proceeded to print more money to cover their loans. Since their policy is not tied to oil, we pay more at the pump because the dollar is worth less. When oil was $50 / barrel, gas was around $2. Now that oil is $100+ / barrel, gas is almost $4. So the Fed has done their job of maintaining prices. Sounds whack-o, right? But by devaluing the dollar, the losses the banks will incur from bankruptcies and bad real estate loans will be minimized because the dollars they are writing off are worth less than the dollars issued at the time of the loans.

The only presidential candidate who seems to get this is Ron Paul. The remaining nut cases stay conspicuously silent on this issue, either because they are too dense to understand it, or because they hope the inflated dollars will push everyone who remains working into a higher tax bracket so they can fund their entitlement campaign promises. For those reasons Dr. Ron Paul voted against the 'stimulus' package, and the indentured corporate servants Clinton, Obama, and McCain voted for it.

Forbes magazine has invited the candidates to state their issues. Ron Paul has already answered. ref - http://www.forbes.com/opinions/2008/03/04/election-economy-paul-oped-cx_...

shays
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... I think it is a gross misstatement to suggest that the Fed merely prints more money to cover its loans. What it actually does is far more complex, and has a lot to do with repurchasing (temporarily borrowing) Treasury bonds it has already purchased, and moving credits into participating banks reserve accounts until they are no longer needed (and the banks have reserves to protect them against a panic withdrawl or buyback of credits by those with accounts in the banks). It is far less glamorous than imagining Ben Bernanke flying a helicopter over Wall Street and dropping money on the teeming crowds below him, but it certainly shoots a lot of holes in the argument that many profess to believe in ... namely, that we live in a 'free-market' system where economics are determined solely by the Unseen Hand of Market Forces (e.g., "supply and demand").

---> The question I would ask is why should the Fed, who aggressively supported and encouraged lending institutions to pursue highly speculative home loan practices now come around and bail out the crooks and liars that followed its advice and now are left sucking air and holding the bag? In a so-called "free-market" system, wouldn't those institutions who sort of created the bubble (through greed and avarice) have to suffer the consequences of their poor decisions? Why shouldn't the fed, instead, pour all of that money towards the folks who were exploited by the system (whether they entered into the sugar deals with open or closed eyes is immaterial) and guarantee they can make their payments, so the lending institutions still have money coming in, but they just don't realize the ill-conceived and misbegotten profits their schemes were intended to secure?

---> Do you see Doctor Paul coming down on the side of the common working American on this issue? Do you see him suggesting that maybe the fed ought to lean on the lending institutions and force them to renegotiate the loans they made to people whom they agreed ... at the time they signed a contract, anyway ... constituted a "good" enough security risk that they could offer them the money, so that those facing foreclosure in a collapsing market can continue to make their payments? Or does Dr. Paul, like almost every other politician in the current political market place, kowtow to the financial powers that be and view the world only through a top-down periscope?

---> The stimulus package is, as you imply, a joke. Dr. Paul was correct to vote against it. The problem lies in spending $3 trillion of unaccounted for money while cutting taxes at the same time, and then still trying to fund legislated programs (fighting over nickel and dime allowances in various categories to give the allusion and uphold the pretense that "democracy" is at work.

shays
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Three trillion in borrowed dollars, and counting. The price of oil (mentioned in my last post) has risen from $25 a barrel to $100 a barrel in the five years (five years! ... that's more time than we spent in either World War I or World War II ... and we were at least attacked by somebody in the second one) not because demand has risen or supply has decreased (that's still coming) ... but because the WAR creates a lot of uncertainties (especially since one of the prime goals of the invasion was to carve up the supply in Iraq between the BigFive, and the jury is still out on whether that is going to happen or not). The Shieks (i.e., "good dictators" we support) are not unhappy, of course. BigOil is not unhappy, either (those record profits are blood money, and we all know it). Neither are private contractors who might be personally making 100 times the salary of a GI on the ground!

--->But we are all losers!

--->Alan Greenspan kept interest rates lower than they would naturally have been ... anytime a President invades a country and starts a $3 TRILLION WAR while at the same time cutting taxes (mostly for the wealthiest), anyone with any sense knows he has to be borrowing that money. It is also a bit convenient that no one has to "share in the pain" by paying more taxes, creating the illusion that we are getting the war on the dime. At any rate, with rising gas prices, everything else goes up in price. Lowering interest rates to encourage people to borrow to pay off the out-of-control inflation was almost evil in design. But then to encourage predatory lenders to go out and bundle sub-prime mortgages with variable-rates is practically criminal. I can't remember when I first read warnings of the impending burst of the housing bubble, but I sold my home in Carmel Valley in 2005 because the journal articles I was reading spelled it out pretty clearly.

--->But, it all comes back to the "war". Why no one is talking about it in this election is pretty scary. Ending the war is not going to end the economic miasma we find ourselves in ... that's going to hang around for a pretty long time thanks to the connivance of George W Bush and every single stinking Republican individual in this country who gave him permission (with their vote) to steal two elections and ruin our country, a catastrophe my three grandchildren will still be addressing as they near retirement age ... but it is going to be the first step in turning things around.

--->Yesterday, we need to impose a surtax on every walking and breathing American to pay for this war. The tax should be a progressive tax, based on pre-tax income (including the cash value of medical benefits, housing allowances, stock options etc. etc ... with no deductions, credits or shelters), and the highest tax rates should apply to those benefitting most from the corrupt and immoral political and economic system they created ... 40-50% would be a good start for the wealthiest 1% of the population, but that may be a bit steep for even Bill Gates. It's a negotiable amount, and I can be flexible. The point is, the war cannot be financed by funny money. We all need to feel the pain.

---> More people might then decide it was time to bring it to an immediate end.

RealAmerica
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The British are rolling in the aisles laughing from watching our election process. This is their take on the candidates' take on our economy -
ref: http://www.thespoof.com/news/spoof.cfm?headline=s2i31244

RealAmerica
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Well, the Democratic candidate who likely would increase government spending the most, and promises to raise taxes as well, has finally edged out his competition. His economic policy, from the silence of the mainstream media, is '... just credit my account ...'. The solution to the Social Security debt problem is to give amnesty to 30M illegal alien invaders and let them pay into the system (at the lower end of the wage scale), without regard to the additional cost of adding them to the system.

Here is another perspective of the 'elephant in the room', the National Debt.

http://moneynews.newsmax.com/streettalk/comptroller_warning/2008/06/09/1...

How did the elephant get in the room, you might ask? Well, they brought it in thru the door when it was a baby, then fed it year after year after year ...

shays
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"Just credit my account"?  Have your eyes and ears been stopped up for the past 7.5 years?  How do we fight the most expensive war on record and cut taxes at the same time?  Oh yeah ... we borrow the money!  Who inherited a multi-billion surplus and squandered it for your grandchildren to pay for?

All you have to do is read any newspaper and they will tell you that Barack Obama will end the tax cuts given to the wealthiest 5% of the people in this country (which is to "raising taxes" what replacing the whiskey you snuck out of mom and dad's bottle last night) and CUT taxes on people earning under $250K a year (who now are paying a disproportionate share of those taxes), and ELIMINATING taxes on seniors earning under $50K.  He has proposed tax-cuts to new businesses and small businesses, and tax incentives to those actively seeking to invest in alternative energy and clean emissions ... while cutting loopholes to hedge-fund CEOs (the guys whose companies speculate on oil futures and artificially -- maybe even consciously -- drive up the cost for a barrel of oil) so they pay taxes on their billion dollar incomes at the income tax rate (30%) instead of the capital gains rate (15%); stop allowing oil importers claim a tax break given to "manufacturers"; and to clamp down on those so-called "American" companies who set up shells outside the US to avoid paying any tax at all (like Halliburton).

There is no crisis in Social Security except the one manufactured by laissez-faire corporatists and conservative think tanks whose hidden agenda is to privatize one of the few socialized social programs that actually work by turning it over to for-profit insurance companies more concerned with churning profits than providing "security".

Please find and cite the source for your claim that Barack Obama favors "amnesty" for illegal immigrants.  He does favor a regulated guest worker program, and a clearly defined pathway for undocumented residents to seek citizenship if they desire it; he is opposed to the deportation of 12,000,000 undocumented workers for the simple reason he does not believe they can all be found or that the effort to find them won't create more illegalities than they stem; he voted in favor of building a fence to keep people out (fat lot of good that's going to do).  The rest is up to you.

According to the article you cited, "Spending constraints on the federal budget were removed in 2002".  Seems to me in 2002, only the Congress could remove such constraints.  Gosh, who ran the Congress in 2002.  And who asked that Congress to follow his suggestions lock-step (which obviously, it did)?  And, since 2006, the new Congress does not authorize expenditures unless it finds funds to cover the costs, or cuts costs from a different program.  Gosh ... which party is now in control of the Congress?

And the reasons that "supplemental emergency funding" exists?  Because every effort of the Congress to pass a budget THAT CUTS SPENDING is either vetoed, or threatened with a veto!

An honest person would look at what is happening and analyze that before drawing conclusions, not draw a conclusion then look at ways to cherry-pick facts to support the conclusion.

 

RealAmerica
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shays wrote - ... Oh yeah ... we borrow the money!  Who inherited a multi-billion surplus and squandered it for your grandchildren to pay for? ...

Let's see, multi-billion dollar budget surplus, representing less than 50% of treasury, vs multi-trillion dollar national debt, representing most of treasury. So in a 100 years of continuous surplus, we should have the debt paid off. (1B x 100 = 1T). And if I remember correctly, most of the Democrats, including our seditious senators, voted to borrow money from China to give to Americans to buy Chinese goods. Including Obama. In the meantime no effort was made to curb the Fed from printing $5.3B since December to bail out their member banks at the cost of devaluation of the dollar. Oh, let's spin that devaluation to a nicer word, like inflation (which doesn't work in Europe any more, because they no longer accept American currency for everyday shopping, for the first time ever). Oooops ....

All you have to do is read any newspaper ...

Well, there's your problem right there. Lending credibility to the newpapers about economic matters, when they won't report on the recent Trilateral meeting of world economic leaders, the recent Bilderberg meeting of world economic leaders (where Obama and Clinton allegedly snuck off to).

... replacing the whiskey you snuck out of mom and dad's bottle last night ...

Hard to do, as they've both been dead for 20 years. Are they the source of your 'information'?

... There is no crisis in Social Security

If that is true, why did they change the rules to require us to work longer to receive less benefits?

Please find and cite the source for your claim that Barack Obama favors "amnesty" for illegal immigrants.  He does favor a regulated guest worker program, and a clearly defined pathway for undocumented residents to seek citizenship if they desire it; he is opposed to the deportation of 12,000,000 undocumented workers ...

After reading http://obama.senate.gov/podcast/060504-immigration_ral/, I couldn't figger which side of his mouth he was talking out of at any given time. Given your use of the oxymoron 'illegal immigrants', and 'undocumented residents' for the lawful term 'illegal alien', I surmise your open borders and inclination to 'sanctuary city' away our sovereignty, so let's take this to another forum about the invasion. BTW, the 12M number was taken from a study of 4 years ago, and the original amnesty estimate of 1986 was about 60% of the actual. And check the poll about immigration levels -   http://forums.contracostatimes.com/poll/what-should-we-do-with-immigrati...

And, since 2006, the new Congress does not authorize expenditures unless it finds funds to cover the costs, or cuts costs from a different program.  Gosh ... which party is now in control of the Congress?

Oooops again, except for EARMARKS! Maybe you would like to sum up the earmarks by both parties over the past decade and enlighten us? But to answer your question, the party now in control of Congress are the lobbiests like the U.S. Chamber of Commerce and other commercial interests who fund the campaigns of both political parties.

shays
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Oooops again, except for EARMARKS! Maybe you would like to sum up the earmarks by both parties over the past decade and enlighten us? But to answer your question, the party now in control of Congress are the lobbiests like the U.S. Chamber of Commerce and other commercial interests who fund the campaigns of both political parties.

We find at least two areas of agreement here.  Sort of.  Personally, I have nothing against most of the things that earmarks fund ... but I object to how they get included in legislation.  Legislators do not read the proposed bills they vote on already, so why not just mandate that every appropriation must stand on its own and receive an up and down vote?  According to the Center for Responsible Politics, lobbyists spend an average of over $16,000,000 a day each day that Congress is in session lobbying for favorable legislation.  This is why, in the good old days before laissez-faire capitalism and the Gilded Age, corporations were prohibited from making political contributions.  Corporations, of course, are not the only lobbyists.  The solution?  Only individuals may make political contributions.  Only individuals may speak with law makers.  Individuals may only make individual contributions, and may only speak for themselves.  There must be limits on the amount that an individual may contribute ... the rub, of course is the imposition such limitations make on free speech.  However, just because a person has more money should not give them more free speech than anyone else.

Let's see, multi-billion dollar budget surplus, representing less than 50% of treasury, vs multi-trillion dollar national debt, representing most of treasury ... [you wrote the rest, you can find it]

If Ron Paul cannot be President, can we at least appoint him Secretary of the Treasury with the power to DO something?  I won't be traveling anywhere soon (only the affluent are able to do that anymore), so whether I can buy stuff with dollars in London doesn't bother me too much.  But the rest is extremely disturbing.  And every day we hear of a new American business being bought by some foreign gang with money.  Can anyone say "tighten the belt buckles"?

Well, there's your problem right there. Lending credibility to the newpapers about economic matters ...

You got me there!  I am usually the first person to question the reliability of news papers.  Touche!

 

RealAmerica
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Anybody read here about the results of the recent economic conference we just concluded with China?

Anybody see the mainstream media present this fact?

Much of the oil originating in Alaska goes to Japan, not the United States. Japan pays a higher price. The parties drilling for oil in Alaska and on the coasts do not include the U.S. government, but are private corporations. They will say thank you very much, SUCKERS, we will sell that oil to the highese bidder.

Someone reported on Garrison Keillor's site today that gasoline in Shanghai is selling for a little over $1.50/gallon. This is because China is subsidizing the price for its citizens. China will buy the oil because it has the wealth and because they can use oil as the ultimate weapon to finish us off without firing a shot.

I used to think that high oil prices would make Chinese goods more expensive but it isn't going to work that way. Exporters in the US get saddled with $5-$6 per gallon fuel while exporters in China pay $1.50. Game over and Bushco laughs all the way to the bank.

shays
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And do you know what they do with all the Natural Gas coming up with the crude in Prudho?  They pump it back into the cavity and cap it.

I have a friend in Texas who used to work the oil fields.  In his neighborhood (that is, the subdivision where he lives), the still operating wells have all been capped.

And, on a related note ... most of the lumber felled in the Pacific Northwest goes to Japan and China, just like the oil and for just the same reasons.  But then, they process that wood and then sell it back to us as fiberboard, plywood, paper ... you name it.  And it isn't cheaper than it would be if processed here and sold.

stoney4
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Isn't shortsighted corporate greed a wonderful thing? And what do you want to bet that the CEO's all wear flag pins on their lapels.

So much for the trickle down theory that's still being pushed by BushCo. The last few drips of whatever trickle there was were plugged a long time ago. The containers of the rich keep getting fuller and fuller while the rest of us are dying of thirst. What a sham.

shays
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Do you remember the fun the upper-echelon muckymucks at Enron used to have at the expense of grandmothers who couldn't afford to pay their electric bills?  Why do people refuse to believe that similar folks in similar positions in the big oil companies (and the hedge funds they control) aren't doing the same thing today?

stoney4
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The Robber Barons are going to grab what they can, when they can before the party's over and they won't have Uncle Dick and his lap dog George to cover for them anymore.

RealAmerica
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As it has been stated before, it takes over 130k new jobs per month just to keep up with our population growth (sans illegal aliens). Even with increased productivity (we work more hours per week than any other civilized nation) we have had 8 years of less than 250k new jobs per month, and now it shows.

http://www.washingtonpost.com/wp-dyn/content/article/2008/07/14/AR200807...

So why do both presumptive presidential candidates rationalize amnesty for the 8% of the population here illegally?

RealAmerica

shays
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I don't presume to know.  That doesn't stop me (or anyone else on this board, as far as I can tell) from hazarding guesses.  I will just not try to pass my guesses off as authoritative or knowledgeable.

• What would agribusiness, construction, the hospitality industry, maintenance providers, meat processors and food packers, and a whole slew of other major businesses or corporations do if all their workers were deported?

• Who is going to do all the rounding up, and how will they do it?

• Where do you put 12,000,000+ people while waiting to process before deporting them?

• How much overtime, workman's comp, disability and other claims will come down as a result of launching such a campaign ... and who will pay all those expenses?

• Who will remain as the drug connections to keep America strung out on whatever form of Soma is its preference?

RealAmerica
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Ever notice how un-newsworthy the revised jobs report is? Well, when consecutive months of revised jobs reports show a loss of 400,000+, ya gotta figure it has some impact on the economy.

http://idexer.com/2008/08/01/congress-reacts-to-soaring-unemployment-by-...

Tnen again, it just may reflect the return of illegal alien invaders to their countries of origin.

http://idexer.com/2008/08/01/experts-slam-report-claiming-undocumented-a...

McCain, Obama,Feinstein, Boxer, Pelosi,  -
Selling Out America's Middle Class is Their Mission

RealAmerica

RealAmerica
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The WSJ reported that the FDIC is considering borrowing money from the (empty) U.S. Treasury to pay cash obligations of its failed member banks.

ref: http://news.yahoo.com/s/nm/20080827/ts_nm/fdic_treasury_dc_2

How is this possible? We are a debtor nation, and our obligations are greater than our assets. You would think you would hear about it from a responsible presidential candidate if they really cared about what was happening to their subjects.

 

McCain, Obama,Feinstein, Boxer, Pelosi,  -

Writing Checks The Middle Class Can't Afford

RealAmerica

RealAmerica
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Thought this was worth sharing ...

Just how many zeros in a billion?

How many zeros in a billion?

The next time you hear a politician use the word 'billion' in a casual manner, think about whether you want the 'politicians' spending YOUR tax money. A billion is a difficult number to comprehend, but one advertising agency did a good job of putting that figure into perspective in one of its releases.

A. A billion seconds ago it was 1959.
B. A billion minutes ago Jesus was alive.
C. A billion hours ago our ancestors were living in the Stone Age.
D. A billion days ago no-one walked on the earth on two feet.
E. A billion dollars ago was only 8 hours and 20 minutes, at the rate our government
is spending it.

While this thought is still fresh in our brain, let's take a look at New Orleans. It's amazing what you can learn with some simple division.

Louisiana Senator, Mary Landrieu (D), is presently asking the Congress for $250 BILLION to rebuild New Orleans. Interesting number, what does it mean?

A. Well, if you are one of 484,674 residents of New Orleans (every man, woman, child), you each get $516,528.

B. Or, if you have one of the 188,251 homes in New Orleans , your home gets $1,329,78