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We've been talking to you about President Obama's plan to cut through the red tape keeping millions of responsible homeowners from refinancing their mortgages, but we want to make sure your friends get the message, too.

We've put together an graphic that boils the President's proposal down to the five things that everyone should know, and the information is all right here -- you don't even need to visit Whitehouse.gov.

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This is Why Regulations Are a Scam!

A note by Zach Foster

There are times when pure theory becomes too abstract for a student of the Austrian School, and concrete examples are needed to solidify understanding of the stupid greed or false philanthropy of policy makers who seek to "protect" the American people.  Well, see the info-graphic to the left!

Here’s a graph showing just a taste of the overlap between Goldman Sachs corporate lobbyists/officials and federal government officials.  Remember folks, these are the people writing regulations to reign in those “greedy capitalists”—i.e., their competitors.

Instead of competing to produce the best goods or services to win over consumers, they’re using the law in an unconstitutional manner to give themselves an artificial advantage and fat profits and slant the playing field for everyone else.

Under a truly free market, they would have to compete honestly.  The naturally occurring phenomenon of the free market would require them to offer goods or services of the highest quality—with a correspondingly high price—or of the lowest price—with correspondingly low quality—or find a healthy balance between quality and low price that makes goods and services universally affordable and with good utility.

One economic insight to keep in mind this election cycle is that both Barack Obama and Mitt Romney are in the pockets of Goldman Sachs, both having received substantial donations from members of the Goldman Sachs executive board.  Ron Paul is not in anyone's pocket, disavows crony capitalism, and is Washington D.C.'s greatest advocate of the free market.

One of the problems in the common mindset is that people see crony capitalism and grievously mistake it for the free market.  Clearly there is a difference; the former, wedded to interventionism and eventually socialism, causes society and economy to decay, while the latter enables them to thrive.

Graphic courtesy of AgainstCronyCapitalism.org.

Oil Companies: $7,610 a minute

As gas prices rise, oil companies just watch their profits increase. And yet, they're still subsidized by Congress to the tune of $4 billion a year.

That's about $7,610 every minute.

To learn more about why gas prices are on the rise and President Obama's strategy to take control of our energy future and avoid gas spike prices in the future, check out our new infographic.

Editor’s Note: Providing subsidies to industry is a cornerstone of the Obama Administration’s agenda. All of a sudden, CONGRESS is to blame for subsidies to infamous companies like British Petroleum and the failed Solyndra. Despite distancing himself from this corporate welfare, all of this happened under President Obama’s watch and in part under his guidance

Investment or Malinvestment?

By Igor Karbinovskiy

 

Every administration wants to create jobs. There can never be too many jobs, if you ask them, so they're always interested in making more, even in times of low unemployment. Every administration, therefore, proposes its own jobs bill. Last year, for example, President Obama spent some time touring the country to promote his own jobs bill as a way to address the deepening economic crisis. This seems like a no-brainer. After all, jobs are clearly and unambiguously a good thing, right?

 

Suppose I write an article on the economy that no one wants to read, much less pay me for. Now suppose that the government pays me for it anyway — as part of a jobs bill. Presto! A new job has been created; a person who was previously unemployed is now working. Better yet, that person is me! This job certainly increased my standard of living. But what have I produced? What have I contributed to the economy? Because no one wants my article, the value of my contribution to the economy is zero. The time I've spent in writing, and the money the government paid me, have been wasted. Worse, because this money allows me to consume things that I (and other people) want — things like food and shelter — the net effect on the economy is negative: zero value in, positive value out. This, then, is an example of a "bad" job.

 

On the other hand, if someone wanted the article I'd written, at the price I was charging for it, then the situation would be quite different. My contribution to the economy would be positive; its value is determined by my customers, who prefer my work to the money they paid for it. I obviously gain the money, which I value higher than my labor. In this latter example, I was productive. In the former, I was not. This, then, is the difference between a productive job and an unproductive one: whether or not someone freely decides that its output is worth buying…  (Read more)

 

Source: Mises.org

Ron Paul Comments on Fed Actions in Europe

“…another reason why Congress needs enhanced power to oversee and audit the Fed.”

 

LAKE JACKSON, Texas – 2012 Republican Presidential candidate Ron Paul, who serves as Chairman of the Monetary Policy Subcommittee on the House Financial Services Committee, released a statement today regarding the Federal Reserve’s latest actions coordinating with other central banks in an effort to intervene in Europe’s debt crisis. See below for statement.

 

“The Fed’s latest actions in cooperating with foreign central banks to undertake liquidity swaps of dollars for foreign currencies is another reason why Congress needs enhanced power to oversee and audit the Fed.  Under current law Congress cannot examine these types of agreements.  Those who would argue that auditing the Fed or these agreements with central banks harms the Fed’s independence should reevaluate the Fed’s supposed independence when the Fed bails out Europe so soon after President Obama promised US assistance in resolving the Euro crisis.

 

“Rather than calming markets, these arrangements should indicate just how frightened governments around the world are about the European financial crisis.  Central banks are grasping at straws, hoping that flooding the world with money created out of thin air will somehow resolve a crisis caused by uncontrolled government spending and irresponsible debt issuance.  Congress should not permit this type of open-ended commitment on the part of the Fed, a commitment which could easily run into the trillions of dollars.  These dollar swaps are purely inflationary and will harm American consumers as much as any form of quantitative easing.

 

“The Fed is behaving much as it did during the 2008 financial crisis, only this time instead of bailing out politically well-connected too-big-to-fail firms it is bailing out profligate government spending. Citizens the world over deserve better than this. They deserve sound money that cannot be manipulated and created out of thin air by central planners who promise printed prosperity. Fiat money caused this European crisis and the financial crisis before it.  More fiat money is not the cure. The global fiat currency system has proven itself a failure, we need real monetary reform. We need sound money. ”

Senator Rand Paul: Stop the Madness!

Dear lover of liberty,
 
In the next few weeks, I believe one of the most importantvotes of our political lifetimes will occur when the House and Senate each vote on a Balanced Budget Amendment to the Constitution.  The stage isset for a remarkable victory that could help save our economy and end the tax-spend-borrow addiction in Washington.
 
For years, our deficits have been soaring out of control.  President Obama has proposed a "budget" that will stillallow a $1.6 trillion deficit.  And Republicans are hardly better, with their budget calling for "only" a $1.5 trillion deficit.
 
The threats to our prosperity and freedom aren't hard to see.  Just look all around us, everyday, at the news coming from Washington.  More bailouts, trillion dollar "stimulus" schemes, huge new debt burdens for our children,higher taxes – it never ends.
 
You and I have a chance to help put a stop to these abuses ofpower.  And because the Balanced Budget legislation is a Constitutional Amendment, we don't need President Obama to sign it.  Congress alonecan fix this problem.
 
But without your involvement, I don't think it will happen.
 
Please see this message from my friend Matt Hawes, Vice President of Campaign for Liberty, so you canlearn more about their battle to help pass a Balanced Budget Amendment in Congress.  Time is short, so please take action today.
 
 
For Liberty,
 
Rand Paul
U.S. Senator, Kentucky

Obama Administration Releases October Housing Scorecard

WASHINGTON - The U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of the Treasury have released the October edition of the Obama Administration's Housing Scorecard – a comprehensive report on the nation’s housing market. The latest housing data offer continued mixed signals as new home sales rose compared to August, but were still slightly down from the prior year. Mortgage defaults and foreclosure sales continued a downward trend as more homeowners were able to secure mortgage relief. However, foreclosure completions ticked slightly upward in September after months of decline.

 

Also, beginning this month the Housing Scorecard will capture data on the Administration’s Home Affordable Refinance Program (HARP). The Federal Housing Finance Agency recently announced efforts to ease refinance guidelines for homeowners. The full report is available online at www.hud.gov/scorecard.

 

HUD Assistant Secretary Raphael Bostic said “The housing data in this month’s Scorecard illustrate how complex the market is and why the Obama Administration has chosen a variety of approaches to help spur recovery. Last month we saw a continued fall in mortgage defaults, due in part to our foreclosure prevention programs reaching more borrowers upstream in the process.  And in the last quarter, a million more homeowners refinanced their loans under some of the lowest interest rates in history. But despite these signs of progress, we have much more work to do to reach the many households who still face trouble and to help the market recover. To help responsible homeowners, we have to make it easier for people to refinance at interest rates that are now near 4% – putting hundreds of dollars in real savings back in their pockets each month, and giving a boost to our fragile economy.”

 

"The Administration's programs continue to provide some of the most sustainable assistance available to tens of thousands of struggling homeowners every month," said Treasury Assistant Secretary for Financial Stability Tim Massad.  "The standards we have set are changing the industry and indirectly helping millions of additional families."

 

The October Housing Scorecard features key data on the health of the housing market and the impact of the Administration’s foreclosure prevention programs, including:

•The Administration’s recovery efforts continue to help millions of families deal with the worst economic crisis since the Great Depression.  More than 5.3 million modification arrangements were started between April 2009 and the end of September 2011 – including more than 1.7 million HAMP trial modification starts, more than 1,064,000 FHA loss mitigation and early delinquency interventions, and more than 2.5 million proprietary modifications under HOPE Now.  Many of these modifications are a direct result of the standards and processes the Administration’s programs have established. While some homeowners may have received help from more than one program, the total number of agreements offered continues to more than double the number of foreclosure completions for the same period (2.3 million). More than 850,000 homeowners have received a HAMP permanent modification to date, with a median payment reduction of over $520 each month.

•Even as new delinquencies continue to fall, eligible homeowners entering HAMP have a high likelihood of earning a permanent modification and realizing long-term success. Eighty percent of eligible homeowners entering a HAMP trial modification since June 1, 2010 received a permanent modification, with an average trial period of 3.5 months. After six months in the program, more than 94 percent of homeowners remain in their HAMP permanent modification. Homeowners in HAMP permanent modifications have saved an estimated $8.8 billion to date.

How to Fix the Housing Crisis

By Doug French

 

The foreclosure crisis has crawled on for going on four years now with no end in sight. The S&P/Case-Shiller index for August fell 3.8 percent from a year ago. The index includes home prices for 20 US cities.

 

"Continued house price declines could lead to even more defaults, foreclosures and distress sales, undermining wealth, confidence and spending," William Dudley, president of the Federal Reserve Bank of New York said. "Breaking this vicious cycle is one of the most pressing issues facing policy makers."

 

Every one of the Republican presidential candidates is being asked how they would handle the slow-motion housing wreck. Long shot Newt Gingrich says he would rewrite the rules to make it profitable for banks to renegotiate loan principal amounts.

 

"He disagrees with his Republican colleagues that the free market will find a fair way to let the banks and homeowners work things out," writes Karoun Demirjian for the Las Vegas Sun.

 

President Obama has jumped in to adjust Fannie Mae and Freddie Mac rules to allow refinances for loans exceeding 125 percent loan to value.

 

The president says this will save underwater… (Read more)

 

Source: Mises.org

Solyndra warned White House in Oct. 2010

Excerpts from POLITICO

By Darren Samuelsohn

 

“Solyndra's top executive strategized with the Obama administration in October 2010 as the California solar company prepared to shut down an older plant and lay off nearly 200 employees, new internal emails show.

 

“CEO and President Brian Harrison flagged the company's bad news to a top DOE loan guarantee official in an October 25, 2010 email. The warning worked its way up the chain of command, ultimately reaching President Barack Obama's top energy and climate adviser, Carol Browner.

 

"‘Solyndra has received some press inquiries about rumors of problems (one of them with quite accurate information) and we have received in-bound calls from potential financial investors,’ Harrison wrote to Frances Nwachuku, the director of the portfolio management at DOE.

 

"‘It is our view inside Solyndra that while not desirable from DOE perspective we need to internally announce to employees and with one selected press member’…Harrison added. ‘It is our belief that it is better for all parties to get in front of the story and control the messaging rather than get behind the story and on the defensive… I would like to go forward with the internal communication…There will be no mention of the DOE.

 

“Nwachuku forwarded Harrison's email to the head of the DOE loan guarantee program, Jonathan Silver, who then kicked it up to Rod O'Connor, then Chu's chief of staff, and deputy chief of staff Brandon Hurlbut. A day later, O'Connor sent Harrison’s email to Vice President Joe Biden's chief of staff as well as Browner and her top deputy, Heather Zichal.

 

"Media reported that Solyndra was announcing plans to shut its first factory, called Fab 1, to save $60 million in capital expenditures. The company also would lay off about 40 employees and not renew contracts for about 150 temporary workers… (Read more)

Rand Paul: $16 Trillion Missing???

Dear Lover of Liberty,
 
I ran for the U.S. Senate to end the federal government’s out-of-control spending and solve our debt crisis.
 
But that can't be done until we tackle the source of the problem: the unaccountable Federal Reserve.
 
As long as Ben Bernanke keeps printing money, Barack Obama will keep spending it.
 
You and I need to end that right now.
 
And just like during my campaign, the establishment is stacked against us.  But look at what has already been accomplished with you in our corner!
 
Please take a few moments to read this message from Campaign for Liberty Vice President Matt Hawes and support C4L in this vital effort to rein in the Federal Reserve.
 
For Liberty,
 
Rand Paul
U.S. Senator, Kentucky

Trade Agreements Finally Poised to Create Jobs

After almost 1,000 days of sitting on three job-creating Free Trade Agreements (FTAs) with Colombia, South Korea and Panama, President Obama finally submitted the FTAs to Congress on October 3rd.[1] Only two days after receiving the FTAs from the President, the House Ways and Means Committee passed all three with bipartisan majorities.[2] Less than a week later, the Senate Finance Committee also passed all three FTAs with bipartisan majorities,[3] and on October 12th, both the House and Senate are scheduled to vote on all three FTAs -- less than 10 days after presentation by the President.

 

Trade with our current FTA partners supports almost 18 million U.S. jobs.[4] When the U.S. enters into new trade agreements, exports to those countries have historically grown fourfold in the first five years.[5] With 80 percent of the world’s purchasing power outside the U.S.,[6] trade agreements are necessary for future U.S. growth. President Obama’s delay has cost Americans hundreds of thousands of good jobs during a time of economic hardship.[7]

 

Korea Free Trade Agreement

The Korea Agreement will increase U.S. exports by $10-11 billion per year.[8] In 2010, Korea was the fifth-largest market for U.S. agricultural goods. This FTA will eliminate most Korean tariffs and quota tariffs, and open many sectors to U.S. exports, including autos, which had limited market access traditionally.[9] Increased U.S. exports to Korea would vastly outweigh increased Korean imports.[10]

 

Colombia Free Trade Agreement

The Colombia Agreement will increase U.S. exports by more than $1.1 billion per year.[11] Currently, U.S. goods face an average 12.5 percent tariff going into Colombia; this FTA will eliminate the majority of those tariffs immediately and eventually remove 99 percent of the tariffs.[12] Historically, Colombia has been the largest U.S. agricultural market in Latin America; however, U.S. exports fell 50 percent between 2008 and 2010 as U.S. exporters waited for this FTA while other nations entered into agreements with Colombia.[13] The Colombia FTA will result in a $2.5 billion increase in the U.S. GDP.[14]

 

Panama Free Trade Agreement

The Panama Agreement will increase U.S. exports of grain to Panama by 61 percent, and exports of cars and light trucks by 43 percent.[15] This FTA will eliminate the majority of Panamanian tariffs on American products immediately and eventually remove 99 percent of the tariffs.[16] American agricultural exports to Panama will increase by 20-46 percent.[17]

 

These three trade agreements will provide American exporters the same benefits foreign competitors already possess. Korea and Colombia already have, or are negotiating, trade agreements with other nations, including the EU, Canada, and each other.[18] Failure to implement U.S. trade agreements could result in $40 billion worth of exports lost to our competitors.[19] We must act; on a level playing field, American can compete and win.

 

After fast action by Congress, we will be left with a lingering question: How many American jobs were lost in the nearly 1,000 days that the President played politics with the Free Trade Agreements?

 

________________________

 

1 Statement from President Obama on the Submission of the Korea, Colombia, and Panama Trade Agreements, October 3, 2011, http://www.whitehouse.gov/the-press-office/2011/10/03/statement-president-obama-submission-korea-colombia-and-panama-trade-agr.

2 Camp Statement on Committee Approval of Free Trade Agreements, http://waysandmeans.house.gov/News/DocumentSingle.aspx?DocumentID=263129.

3 The Colombia FTA passed Committee 18-6 and both the Panama and Korea FTAs passed by voice vote, http://finance.senate.gov/hearings/hearing/?id=611b68e1-5056-a032-52e9-e785d6525dd1 beginning at 74:30.

4 “Opening Markets, Creating Jobs: Estimated U.S. Employment Effects of Trade with FTA Partners,” by Laura M. Baughman and Joseph F. Francois, May 14, 2010, U.S. Chamber of Commerce, http://www.uschamber.com/sites/default/files/reports/100514_ftajobs_full_0.pdf.

5 “Myths and Facts: Trade Agreements, Deficits, Jobs and Growth,” http://www.chamberpost.com/2011/05/myths-and-facts-trade-agreements-deficits-jobs-and-growth.

6 Letter from National Association of Manufacturers to the President’s Council of Advisors on Science and Technology, April 20, 2010, http://www.nam.org/~/media/D3A22734DDDB4249AA61E6AD1A7B78E6/PCASTfinal.pdf.

7 “Trade Action – or Inaction: The Cost for American Workers and Companies,” by Laura M. Baughman and Joseph F. Francois, September 15, 2009, U.S. Chamber of Commerce, http://www.uschamber.com/sites/default/files/reports/uscc_trade_action_inaction_study.pdf.

8 “The Proposed U.S.-South Korea Free Trade Agreement (KORUS FTA): Provisions and Implications,” CRS Report RL34330, October 4, 2011, http://www.crs.gov/Products/RL/PDF/RL34330.pdf.

9 “Agriculture in Pending U.S. Free Trade Agreements with South Korea, Colombia, and Panama” CRS Report R40622, October 6, 2011, http://www.crs.gov/Products/R/PDF/R40622.pdf.

10 “U.S.-Korea Free Trade Agreement: Potential Economy-wide and Selected Sectoral Effects” USITC Publication 3949, September 2007, http://www.usitc.gov/publications/docs/pubs/2104F/pub3949.pdf.

11 “Proposed U.S.-Colombia Free Trade Agreement: Background and Issues,” CRS Report RL34470, October 4, 2011, http://www.crs.gov/Products/RL/PDF/RL34470.pdf.

12 “U.S.-Colombia Trade Promotion Agreement: Potential Economy-wide and Selected Sectoral Effects” USITC Publication 3896, December 2006, http://www.usitc.gov/publications/docs/pubs/2104F/pub3896.pdf.

13 “AFBF Advocates Passing FTAs at World Trade Month Event,” American Farm Bureau Federation, May 24, 2011, http://www.fb.org/index.php?action=newsroom.news&year=2011&file=nr0524.html.

14 “U.S.-Colombia Trade Promotion Agreement: Potential Economy-wide and Selected Sectoral Effects” USITC Publication 3896, December 2006, http://www.usitc.gov/publications/docs/pubs/2104F/pub3896.pdf.

15 “The Proposed U.S.-Panama Free Trade Agreement” CRS Report RL32540, October 6, 2011, http://www.crs.gov/Products/RL/PDF/RL32540.pdf.

16 “U.S.-Panama Trade Promotion Agreement: Potential Economy-wide and Selected Sectoral Effects” USITC Publication 3948, September 2007, http://www.usitc.gov/publications/332/pub3948.pdf.

17 “Agriculture in Pending U.S. Free Trade Agreements with South Korea, Colombia, and Panama” CRS Report R40622, October 6, 2011, http://www.crs.gov/Products/R/PDF/R40622.pdf.

18 Information on Free Trade Agreements available at the World Trade Organization’s Regional Trade Agreements Information System, http://rtais.wto.org/UI/PublicMaintainRTAHome.aspx.

19 “Trade Action – or Inaction: The Cost for American Workers and Companies,” by Laura M. Baughman and Joseph F. Francois, September 15, 2009, U.S. Chamber of Commerce, http://www.uschamber.com/sites/default/files/reports/uscc_trade_action_inaction_study.pdf.

UPDATE: He’s Making It Worse

Secretary Geithner Visits UPS Worldport in Kentucky, Highlighting Importance of Investments in Infrastructure

Visit Underscores Need for Congress to Pass the American Jobs Act

LOUISVILLE, KY – Highlighting the need for Congress to pass President Obama’s American Jobs Act proposals to create jobs and invest in our nation’s infrastructure, Treasury Secretary Tim Geithner today toured UPS’s international air hub and met with local business leaders in Louisville, Kentucky.  As a company that interfaces with almost every facet of the country’s transportation system, UPS believes there needs to be immediate short term investment as well as long term planning to maintain and grow our transportation system.

“One of the most important parts of the President’s American Jobs Act is to put people to work right now rebuilding America’s infrastructure,” said Secretary Geithner. “In order to be as productive and efficient as possible, American businesses need the foundation of a strong, reliable, modern infrastructure – and that means they need government to do its part.  Investing in infrastructure creates good, middle-class jobs and helps our economy run at its full potential, which keeps us competitive and helps lower costs for businesses and consumers alike.”

“I am encouraged that both the President and Congressional leaders are working to develop bipartisan solutions to put people back to work, modernize and create an interconnected transportation system of ports, rails, roadways and runways, create jobs by expanding access to overseas markets for businesses large and small and reform America's tax system so we can get this economy moving again,” said Scott Davis, Chairman and CEO of UPS.

The Secretary’s visit highlighted the value government investment in 21st century infrastructure provides by increasing productivity and efficiency in our economy and strengthening the competitiveness of American businesses.  UPS estimates that a five minute daily delay for every UPS vehicle costs the company $100 million annually. Across the U.S., clogged roads cost our country at least $80 billion a year in lost productivity and wasted fuel.  Flight delays cost another $33 billion in lost productivity. 

With more than 137,000 flights worldwide in 2010, and more than 31,000 of those from the Worldport Facility, the cost of routine flight delays and traffic congestion have a significant effect on UPS’s bottom line.  Because UPS’s operations require interactions with every level of American infrastructure – beyond just roads and bridges – the Secretary’s visit also highlighted the need to invest in the next generation of systems to help modernize air traffic control and create a 21st century energy grid.  

Earlier this month, President Obama sent to Congress the American Jobs Act, which creates jobs and cuts taxes for middle-class Americans.  The President’s plan addresses the problem of our nation’s crumbling infrastructure while putting hundreds of thousands of workers back on the job with a strategy that combines immediate investments in infrastructure with innovative reforms to ensure that the best projects get financing.  These investments would put people to work now and yield lasting benefits for our economy.

For additional information on the American Jobs Act’s proposals to put Americans back to work while rebuilding and modernizing our infrastructure, see the White House fact sheet here: WhiteHouse.gov/the-press-office/2011/09/08/fact-sheet-and-overview.