When the Democrats aren’t cheating on their taxes like Charlie Rangel or forgetting to pay them like Timothy Geithner, they’re busy lambasting Republicans for actually paying theirs—albeit at a rate unsatisfactory to them.

In yet another fantastic display of hypocrisy, the liberal mainstream media spent the week attacking Governor Mitt Romney for having a 15% tax rate.  Since the media is loath to engage in any actual investigative journalism when it comes to the Democrats, I decided to do a little of my own.  Here’s what I found.

Start with Senator John Kerry who is among the 400 richest Americans thanks to his wife, Teresa Heinz Kerry’s, inheritance.  Their last publicly released tax returns in 2003 revealed that they paid a rate of 13.4% on a declared income of $5.5 million. This from the man who, just last year, tried to avoid half a million dollars in taxes by anchoring his yacht in Rhode Island rather than Massachusetts. Estimates pin Kerry’s net worth somewhere between $700 million and $3.2 billion compared to Romney’s lower net worth of $202 million.

Take a look at former Vice Presidential Candidate John Edwards’s 2003 tax returns, and you’ll find that he paid an astonishingly low rate of 5.1%.  Seems a bit low for a man with a net worth hovering around $54.7 million.

But, of course, Kerry and Edwards’ income tax rates were protected under lock and key by the mainstream media during the 2004 presidential race against President George W. Bush.   Speaking of Bush, you’ll also never hear anyone mention the fact that he paid a rate of 27.7% in the same year.

Tax rates aside, in yet another attempt to make something out of nothing, the media has been reporting relentlessly on Romney donating millions in cash and stocks to the Mormon Church, as if tithing to one’s church is somehow a negative.  Thanks to donations like Romney’s, the Mormon Church is able to sustain a large philanthropic network and send young men on two year missions that provide extensive humanitarian aid to a countless number of people in need.  If you call that bad, I’d hate to see what you call good.

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In the wake of the $700 billion TARP bailout, Warren Buffett apparently shaped a plan to clean up toxic assets that Treasury Secretary Tim Geithner later adopted–resulting in massive profits for Buffett.

That’s the latest bombshell revelation from investigative journalist and Breitbart editor Peter Schweizer’s sensational new book, Throw Them All Out.

According to Schweizer, after the bailout bill’s passage, Warren Buffett sat down and wrote then-Treasury Secretary Henry Paulson a four-page private letter laying out a plan to clean up the toxic assets plaguing numerous financial institutions.  Buffett proposed something he called a “public-private partnership fund.”  For every $10 billion the private sector invested, Buffett said the government should put up $40 billion.

After Paulson’s exit, incoming Treasury Secretary Tim Geithner tweaked the plan and rolled it out in March 2009. But according to quarterly reports from Buffett’s holdings company, Berkshire Hathaway, between the time the billionaire crafted his plan and Geithner adopted it, Buffett quietly purchased 12.4 million shares of Wells Fargo stock and 1.5 million shares of U.S. Bancorp. Once the government unveiled its “Public-Private Investment Program,” bank stocks jumped, resulting in large profits for Buffett.

How much Buffett profited is hard to calculate, since there’s no way to know what his purchase price was. But prior to the government adopting Buffett’s plan, Wells Fargo had been trading at roughly $20 a share. In the weeks after Geithner’s announcement, the stock jumped to $30 a share. Likewise, U.S. Bancorp went from $8 in February 2009 to more than $20 a share by May. (more…)

Elizabeth Warren might just be the motivation that conservatives need to get behind the re-election campaign of Sen. Scott Brown (R-MA). Until now, the Tea Party activists that helped push Brown to an historic victory in 2010 had been grumbling about Brown’s leftish voting record. But Warren’s embrace of tax-and-spend policies, and her disregard for constitutional checks and balances, are giving conservatives new reasons to care.

I once admired Warren–and told her so. I was a student at Harvard Law School when she was plucked from her teaching job to serve as the congressional “oversight czar” for the Troubled Asset Relief Program (TARP). In that role, Warren stood out for her unique willingness to criticize Obama administration appointees, notably treasury secretary Tim Geithner, for failing to comply with basic transparency and reporting requirements.

Warren had also been extremely popular among her students–so much so that our graduating class awarded her the Sacks-Freund Teaching Award in 2009, even though she hadn’t taught since the previous fall. I hadn’t had the privilege of being in one of her classes, but I congratulated her on the award, and told her that as a conservative, I felt she was speaking for me, too, in holding the Obama administration accountable.

But something seemed to change once she joined the administration. (more…)

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On today’s edition of Coffee and Markets, Brad Jackson and Ben Domenech are joined by Francis Cianfrocca to discuss Tim Geithner’s response to the Occupy Wall Street protestors, emails that show coordination with the media and if this is all part of the end to America’s centuries long prosperity.

We’re brought to you as always by BigGovernment and Stephen Clouse and Associates. If you’d like to email us, you can do so at coffee[at]newledger.com. We hope you enjoy the show.

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Treasury Secretary Tim Geithner may be most famous in the United States for cheating on his taxes (you can even buy a t-shirt to acknowledge his tax dodging), but he’s becoming a punch line in the rest of the world for different reasons.

I wrote two years ago about Chinese students erupting in laughter after Geithner claimed the Administration believed in a strong dollar.

Now he’s getting mocked by the Europeans.

After Friday’s post about the absurdity of Obama sending his Treasury Secretary to lecture the Europeans, you can imagine my great amusement today as I read that the Europeans basically told Geithner to go jump in a lake.

Here are some passages from the Reuters report.

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Obama finally got something right. Can you believe it? In a recent interview, Obama said he is confident we will not enter a double dip recession. Brilliant Sherlock. No, we are not entering a double dip. That is because we never left the first dip. Only Obama could get something so right, because he is so wrong.

While Obama, Fed Chief Bernanke, Treasury Secretary Geithner, and various other Obama economists, lackeys and socialist cabal members drone on about double dip, or not to double dip, common folks on Main Street understand that there has never been a recovery.

The continuing Great Recession started on Bush’s watch in 2007 and has never ended. Like Herbert Hoover, another Republican President who panicked, and failing Capitalism 101, abandoned fiscal conservative principles, George W. Bush turned to big government to “save us.” And as usual, the more government tries to save us, the worse it gets. So Bush channeled Hoover, starting the bailouts, stimulus, and insane levels of spending and government intervention.

Then, just when you thought it could not get any worse, along came Obama with his “Axis of Evil” game plan. What is the “Axis of Evil,” you ask? It is the principles to which Obama’s life is dedicated: Taxation, Regulation, Government Strangulation, Unionization and Litigation.

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On today’s edition of Coffee and Markets, Brad Jackson and Ben Domenech are joined by Francis Cianfrocca to discuss the crumbling “Boehner Plan” in the House, how Obama may circumvent it, and who’s to blame for this mess.

We’re brought to you as always by BigGovernment and Stephen Clouse and Associates. If you’d like to email us, you can do so at coffee[at]newledger.com. We hope you enjoy the show.

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On today’s edition of Coffee and Markets, Brad Jackson and Ben Domenech are joined by Francis Cianfrocca to discuss the dismal unemployment numbers for June, a constitutional showdown over the debt ceiling limit and we say goodbye to a dedicated listener.

We’re brought to you as always by BigGovernment and Stephen Clouse and Associates. If you’d like to email us, you can do so at coffee[at]newledger.com. We hope you enjoy the show.

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Why the GOP should reject tax increases, in one chart

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On today’s edition of Coffee and Markets, Brad Jackson and Ben Domenech are joined by Francis Cianfrocca to discuss the debt and Tim Geithner’s potential exit from Obama’s cabinet. Then Senator Tom Coburn joins us to talk about his plan to reform Medicare and gives us an inside look at the debt ceiling debate.

We’re brought to you as always by BigGovernment and Stephen Clouse and Associates. If you’d like to email us, you can do so at coffee[at]newledger.com. We hope you enjoy the show.

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Senator Tom Coburn, M.D.

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(more…)

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On today’s edition of Coffee and Markets, Brad Jackson and Ben Domenech are joined by Francis Cianfrocca to discuss the Congressional Budget Office’s scathing report on the debt, Ben Bernanke and Timothy Geithner’s call for higher business taxes.

We’re brought to you as always by BigGovernment and Stephen Clouse and Associates. If you’d like to email us, you can do so at coffee[at]newledger.com. We hope you enjoy the show.

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On today’s edition of Coffee and Markets, Brad Jackson is joined by Pejman Yousefzadeh and Elizabeth Blackney to discuss TSA’s growing search efforts outside of airports, state efforts to restrict intrusive airport searches, and Tim Geithner’s call for new taxes.

We’re brought to you as always by BigGovernment and Stephen Clouse and Associates. If you’d like to email us, you can do so at coffee[at]newledger.com. We hope you enjoy the show.

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Geithner: We Need ‘Revenue Increases;’ Cutting Deficit by Spending Cuts Alone ‘Irresponsible’

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[White House exercise facility]

MICHELLE:  Well, come in, people.  Geithner, Carney–get your skinny butts over here and spot for me while I press 250.  Everybody else, pull up a mat and sit so we can start.

JOE BIDEN:  Huh?  Why’s the Boss over in the corner in his PJs staring out the window?

MICHELLE:  Off the record.  He’s stressed out.  I’m running things until his therapist clears him for duty. Anybody got a problem with that?

DAVID PLOUFFE:  No Ma’m, but, uh . . . .

MICHELLE:  What happened?  Yesterday, he had to layup on the first par 5 at Burning Tree and couldn’t choose between a 6-iron and 7-iron.  Told his playing partners he wanted to sleep on it.  At dinner, a steward asked what flavor parfait he preferred for dessert.  Midnight, he was still muttering, “I like the strawberry, but the peach appeals to me, too.”

BILL DALEY:  Deteriorating decision-making skills.  It’s worse than when I came on board.  Hell, CIA knew where bin Laden was hiding since mid-2009.   The President couldn’t pull the trigger.  I had to use his autopen to sign the order okaying the Seal operation on Osama’s compound.

MICHELLE:  Hmmph.  Didn’t have a problem deciding on those chili dogs and stepping on my nutrition message the other day. (more…)

From the Associated Press:

Treasury Secretary Timothy Geithner is telling Congress that he will halt investments in two big government pension plans Monday to allow the government to continue borrowing money for the next few months.

Geithner says the government will reach its $14.3 trillion borrowing limit on Monday. Republicans have held back supporting an increase in the borrowing limit, saying they want Congress first to approve more spending cuts.

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The recent correction in the commodities markets may be providing Bernake, Geithner and their easy money acolytes with a sense of relief given the relentless run up in prices of raw materials since the announcement of QE back in 2008, but they should not sleep tight just yet.  As anyone in the markets will tell you, when any underlying commodity has a price move so vertical in its trajectory it’s bound to face a correction as the smart money, having gotten in for fundamental reasons much earlier along the trend line now wait for the panic buyers or the Johnny-come-lately’s to give the rally that last unsustainable spike to unload their longs and leave the suckers holding $40.00 silver in their purses.

So one must step back and take a long view.  Although it would appear that those of us who warn that inflation is not just a threat but very much a fact of life now were knee-jerk pontificators jumping on the commodities rally trend for political (read: Fed/Obama bashing) reasons, the analysis is quite sound.  Most important, it is methodical not emotional as price surges tend to make investors and analysts from time to time.

Here are some facts: even with the inevitable correction in commodities, as of this writing crude oil is 35% more expensive than it was a year ago…advancing with ups and downs along the way from as low as $17.50/bbl in November of 2001 to its current level of over $100/bbl or around a 19% annual appreciation in a decade since the Fed started giving away dollars.  In that same year silver is still up 93%   Wheat 84%. Cotton 100%  Coffee 55%. Cattle 10%, etc.  In that same decade the USD index against all currencies shed 40% of its value.  Gold is up 22% for the year.  More revealing, the most precious metal and most stable of exchange mechanisms is up an astonishing 450% since 2001. Put another way, whereas the dollar was worth 1/250^th of an ounce of gold in 2001, it is now only worth 1/1500^th.  Money can be printed with much more ease and speed than gold can be mined.

To understand why the Bernake’s and Geithner’s of the world view CPI through rose-tinted glasses we must remember who they are.  They are wonks who have spent their entire careers lecturing and/or fidgeting with economies without actively participating in them.  They are awash in data and are hardwired to extrapolate patterns from the past to predict the future.  But we have only had a non-gold fiat monetary system in place since 1971 which is hardly enough time to get a handle on repeating macro-economic cycles in such an ever changing and dynamic landscape.  And I want to offer something else.  From the late 1940s to the mid-1980s the United States was the dominant manufacturer in the world.  The reason?  Of our three main foreign competitors today, China, Japan and Germany, one was mired for much of the third quarter of the 20^th Century in a disastrous experiment with Maoist communism while the latter two’s urban centers had been reduced to utter wasteland as their reward for launching the most devastating war in human history.  Indeed, all of Europe was digging out of the wreckage of their mass-fratricide, including a bankrupted Great Britain…once the supreme power of the world.

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At the Detroit Economic Club today, Treasury Secretary Timothy Geithner tried to claim the auto bailout is a success.

It certainly doesn’t seem like a success for the taxpayers. GM stock is about $30 today, and unless it gets up to $54, the taxpayers lose money on the deal. Why would it go up? You want to fight high gas prices by buying a Volt? How does $41 grand a pop sound? And still GM loses money on every one it sells even at that price. Not only that but we are seeing that government subsides for electric cars is good tax money wasted in any case.

It doesn’t get any better. Worldwide, U.S. cars aren’t selling worth beans and domestically, GM is lagging because people who hate the bailouts won’t support it with their car-buying dollars any more than they did with their votes last year when they kicked out every incumbent they could find who’d been for it. And GM still has all its old problems, too, like those big fat union pension obligations. Sadly, nothing that caused GM’s financial trouble has been fixed.

But the spin continues.

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Senator David Vitter (R-LA) introduced legislation yesterday to prevent the Federal Reserve from secretly bailing out states with budget problems.  Senators Jim DeMint (R-SC) and Mike Crapo (R-ID) have joined the effort and signed onto S.251, the State Bailout Prevention Act.  This legislation music to the taxpayer’s ears.

The Hill reports that Senator Vitter wants to use this legislation to slam the door on state and local bailouts by the federal government.

With the State Bailout Prevention Act, Vitter is looking to make legally binding an earlier commitment from Fed Chairman Ben Bernanke that the central bank would not make loans to states and municipalities struggling with budget gaps and large debt burdens. Testifying before the Senate Budget Committee on Jan. 7, Bernanke said states “should not expect loans from the Fed.”

Vitter is memorializing the Bernanke promise into law.  Because of Bernanke’s promise, one should expect the Federal Reserve to wholeheartedly support this effort by Senators Vitter, DeMint and Crapo.  This law would make it the iron clad promise of the federal government not to use taxpayer money or taxpayer backed loans to prop up, bail out and otherwise enable state and local governments in deep financial distress because of irresponsible budgetary decisions.

The legislation is a comprehensive effort to shut the door on all of the federal government’s financial tools available today to bailout states and localities.  This legislation follows on the heels of the termination of President Obama’s “Build America Bonds” (BABs) created in the President’s so called “Stimulus” plan.  The BABs were tax free federal bonds that served to provide a rolling blue state bailout for states that have spent more than they take in.  The BABs expired at the end of 2010 and conservatives blocked all efforts to renew these bonds.

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Is there a new Cold War developing between China and the United States? That’s a question hovering over President Hu Jintao and his entourage as they come to Washington to discuss military, trade, and financial flash points with the Obama administration.

President Hu told the Wall Street Journal that “we should abandon the zero-sum Cold War mentality.” But is he to be believed?

Everyone agrees that this is a new, muscular, and more aggressive China. The more the Chinese strengthen economically, the more rambunctious they become with their foreign policy. Americans are increasingly irritated by this arrogance.

Just last week — and just as the Pentagon plans to cut back on the modernized F-22 stealth fighter — China insulted Defense Secretary Robert Gates by test-flying its own J-20 stealth bomber during his visit. Admiral Mike Mullen, head of the Joint Chiefs of Staff, wondered out loud why China is boosting its high-tech weaponry. He said, “Many of these capabilities seem to be focused very specifically on the United States.”

Surely the J-20 flight was a snub to Washington. Surely China’s whole military buildup is aimed directly at us. And surely China is of no particular help when it comes to the nuclear operations of North Korea and Iran.

Then, of course, are the numerous trade violations being committed by China.

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Friday’s unemployment report for September, the last before the election, brought more bad news for the Obama Democrats.

Noteworthy is the fact that stocks rallied a bit on the lackluster and tepid jobs numbers, pushing through the 11,000 mark. But more and more, it seems bad economic news illustrating the failure of Obamanomics becomes good news for stocks on the expectation of a GOP tsunami in November.

The unemployment rate itself held at 9.6 percent. It’s been over 9.5 percent for 14 straight months. Meanwhile, the marginally unemployed — or the so-called impairment rate (U-6) — jumped to 17.1 percent from 16.7 percent.

These headlines are political poison for Democrats. Voters are going to keep asking, What exactly did we get for a $1 trillion stimulus-spending package that puts us deeper in hock?

Overall, nonfarm payrolls fell 95,000 for September, largely from a drop in census workers and state and local government employees. Private payrolls increased 64,000, only a third of what’s necessary to sustainably reduce unemployment.

Average hourly wages were flat, as was the workweek.

Looking back, the jobs story was much stronger in the first four months of the year through April. But job creation has slowed markedly since then, along with the overall economy.

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In this week’s edition of Coffee and Markets, featuring The New Ledger’s Francis Cianfrocca, we’re talking about the latest unemployment numbers, the call for a millionaire’s tax, and Christina Romer’s goodbye remarks. We’re brought to you as always by BigGovernment.com and Stephen Clouse and Associates.

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I am not personally acquainted with John Boehner, though I laid eyes on him once. I do not really know Eric Cantor either – though we met in passing in April, 2009 when I was in DC promoting my book Soft Despotism, Democracy’s Drift. And I have never met Paul Ryan or Mike Pence.

Moreover, I am strongly inclined to fear that they will betray us in the aftermath of November. The Republicans in Congress do have a track record, after all. If the Democrats have a propensity for adding new social programs, their opponents have a no less powerful aptitude for voting to pay for them. It was not for nothing that Bob Dole was once derided as “the tax-collector of the welfare state.”

Like a man about to embark on a second marriage, I am nonetheless inclined to let hope triumph over experience and to entertain the possibility that this time it might be different. When a Democratic pundit such as The Washington Post’s Ruth Marcus charges that the Republican opposition to Obama is “irresponsible,” it really does give one hope.

The event that caused Marcus to rise up in high dudgeon was a speech that John Boehner delivered in Cleveland on Tuesday, in which he attacked the latest “stimulus” bill, called for President Obama to submit to Congress “an agressive spending reduction package,” warned against allowing tax increases to take effect that would fall heavily on small businesses, pressed for an immediate repeal of the healthcare bill provision requiring businesses to issue a 1099 every time that they spent $600 or more, and called for the President to fire Tim Geithner and Lawrence Summers. Twelve times, Marcus lamented, Boehner used the phrase “job-killing” – “as in ‘job-killing tax hikes,’ ‘job-killing bills,’ ‘job-killing agenda,’ ‘job-killing federal regulations.’” This is, she charged, “bumper-sticker politics, not a real economic plan.”

Boehner’s speech was shocking, indeed. It might lead one to think that we are in the middle of an election campaign and that the Minority Leader in the House of Representatives is intent on distilling for the voters what the party that controls both houses of Congress and the Presidency has most egregiously done wrong. It might be taken to suggest that he intends to offer voters a choice, not an echo; and though Boehner’s speech was not a plan, it does suggest that he has one.

Ruth Marcus is thoughtful and often worth reading, but when it comes to economics she is completely out of her depth.

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