Mental midgets at IRS and US Department of Treasury may cost US 10,000,000 jobs

Hi, I'm an economic know-nothing

Ok.  Here is where I am so angry at what the Congress, the IRS, Obama and Tim Geitner have done to me that I claim that you US persons are dumb and getting dumber by the minute.  An article in the Washington Times yesterday claims that the mental midgets running Washington are implementing regulations that will cause the flight of $14 trillion of foreign investment capital out of the US.  This will cause the loss of as many as 10,000,000 jobs.  Read it and weep.  Here is a salient excerpt:

Sen. Carl Levin, Michigan Democrat, and the other economic-know-nothings who proposed these measures claim – without any basis in fact – that the United States is losing $100 billion annually because of foreign account tax avoidance or evasion. Private foreign investment in the U.S. is about $14 trillion. So $100 billion is less than 1 percent of the private foreign investment, yet the mental midgets in Congress and the administration are willing to risk trillions of dollars in job-creating foreign investment in exchange for a phony $100 billion. Well over 10 million American jobs are at risk because of this foolishness.

Phil Hodgen reports on the backlog of people who want to renounce their US citizenship.  The US citizens living abroad now find that US citizenship is a liability not an asset and want out.  We want our Declaration of Independence.

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The definition of insolvency

Imagine that you maxed out your credit card, your line of credit, and that you are late making payments on your Visa, your car loan, your mortgage, and all your other bills.  The bank comes to you and says if you don’t pay your credit card bill, your car loan, your mortgage, and your line of credit, we will seize your car, your house, and anything else of value that you may have bought with the credit card.  Now you look at your bills: they are $3500 every month.  But your monthly net income is $2000.  You’re insolvent.

Timothy Geithner, the Treasurer of the United States says that if Congress doesn’t increase the debt limit the United States will default.  Why?  Because the bills are higher than the income. The United States is insolvent.  This is the definition of insolvency.  And Geithner is not lying.  He is, after all, working for the Obama Administration.

So you say to the bank:  Ok.  I’ll be able to pay my bills.  Just let me start another line of credit, and I’ll be able to make the regular payments on all my bills (mortgage, credit card, old line of credit, and car loan) using the new line of credit.  The bank says sure.  Then starts handing out the money.  That bank is called the Federal Reserve, and it is monetizing the insolvency of the United States. When this happens, hyperinflation follows.  It is just a question of doing the math.

(Hat tip:  Monty Pelerin, “The Government is Like NPR pimped by Tim Geithner“)