-- Posted Tuesday, 13 September 2011 | | Disqus

Rick’s Picks

Tuesday, September 13, 2011

“Phenomenally accurate forecasts”

If you thought Obama’s vote-buying “jobs” scheme was political bilge when he announced it last week, the plan sounds even less appealing now that we know how he plans to pay for it.  For starters, in search of revenues, the president has returned yet again to his cherished notion that anyone making more than $200,000 is “rich” – i.e., in the same category as leftist envy-mongers put hedge fund managers and oil and gas companies.  Reportedly, tax breaks for all who fall in those categories, and in many others from which the government is already extracting more than 90% of its revenues, would be eliminated in order to offset Obamajobs’ supposed $467 billion cost.  Is it possible that when the President went to war with Republicans earlier this summer over raising the debt limit, he completely missed the key point of the discussion – i.e., that new taxes were off the table?  Op-ed supporters will undoubtedly claim there are no new taxes involved in the jobs proposal, only the elimination of existing tax breaks.  This is an argument we thought Obama lost when he tried to roll back tax-breaks to pre-Bush II levels earlier in his term.  Say this for the man:  Like the die-hard disciple of hard-left rabble-rouser Saul Alinsky that he is, Barack Obama never gives up. We should have realized as much when he rammed health care legislation down our throats even though most Americans indicated they strongly opposed – still oppose – it.

Concerning the jobs scheme, who could possibly believe that the $467 billion would be well spent.  Outside the Keynesian lunatic fringe championed by Paul Krugman, we read mainly about the epic sums expended on each new job associated with Federal handouts.  At best, these jobs routinely seem to cost taxpayers many hundreds of thousands of dollars apiece, especially when the dollars are thrown at “green” projects and firms. Thus do we read in a report prepared by the State of Illinois that the U.S. was eager to throw $8 million at developers for every wind job reported. This particular giveaway falls under Section 1603 of the stimulus bill, but it is chump change compared to the $535 million Uncle Sam gave solar-energy firm Solyndra. The firm recently declared bankruptcy and is under criminal investigation by the FBI, but the most disturbing part of the story  -- more disturbing, even than that Solyndra’s founders were big Obama campaign supporters -- is that the Department of Energy had been allowed to sit in on the company’s board meetings as it went broke.  Under the circumstances, in the unlikely event Obamajobs is enacted, taxpayers will probably get far better value for their $467 billion if the recipients’ business cards are drawn from a fish bowl or selected at random from the Yellow Pages.

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Information and commentary contained herein comes from sources believed to be reliable, but this cannot be guaranteed. Past performance should not be construed as an indication of future results, so let the buyer beware. There is a substantial risk of loss in futures and option trading, and even experts can, and sometimes do, lose their proverbial shirts.  Rick's Picks does not provide investment advice to individuals, nor act as an investment advisor, nor individually advocate the purchase or sale of any security or investment. From time to time, its editor may hold positions in issues referred to in this service, and he may alter or augment them at any time. Investments recommended herein should be made only after consulting with your investment advisor, and only after reviewing the prospectus or financial statements of the company. Rick's Picks reserves the right to use e-mail endorsements and/or profit claims from its subscribers for marketing purposes. All names will be kept anonymous and only subscribers’ initials will be used unless express written permission has been granted to the contrary. All Contents © 2011, Rick Ackerman. All Rights Reserved. www.rickackerman.com 

-- Posted Tuesday, 13 September 2011 | Digg This Article | Source: GoldSeek.com

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