Hey obama, its the economy, stupid!

When you have a finite supply of something like capital, money – let’s just call it money. And you use that money, called capital now. You put it into something that you believe that you can use it to elevate the value of it. This is how business works. You take a raw material, say it’s sand. You combine it with another raw material, lime. You combine that with another raw material, water. And then you throw in the fourth raw material, a little bit of gravel. Now, together, or individually, these things are pretty worthless. They’re cheap. Sand’s cheap. Water’s cheap. Lime’s cheap. Gravel’s cheap. It’s not worth much, is it? Do you run around and sell that at the corner grocery? No. But if you put all four of them together, that you didn’t pay an awful lot of money for, you put them in a giant mixer, and you make this stuff called concrete.

Then you’ve got these guys that come in, they’re called masons. And they do amazing things with the concrete. Why, they form up driveways and roads and foundations for houses and what have you. And they’ve taken those raw materials that don’t cost a lot, and because of their ingenuity they have elevated the value of the sand, lime, water, and gravel. It is now worth something, and people will trade what they have gone out and earned in their endeavor to be able, or to purchase the amalgam of the sand, gravel, lime, and water, also known as concrete. Is everyone clear on this? We have now taken something that is naturally occurring and, as I said, is pretty useless or – not useless, but it’s a commodity. It’s not expensive. And you have turned it into something that people will pay for. Now, this is how you elevate the value of something.

Now, when you have someone’s dollars, an actual Krugerrand, piece of gold, that went into that, and purchased it, and then you turn that dollar into something that’s worth two dollars, when you sell it there is a dollar profit to be made. When you didn’t have the dollar to start with, which is what this stimulus is, and you borrow it, you’re a dollar in the hole. You’re not ahead. You’re a dollar in the hole. Then you have to factor in the interest while you’re making the concrete. And then that’s assuming that you can sell it. But if it’s for a public works project, you’re not going to sell it. You’re just going to let people drive on it. So you haven’t elevated the capital worth or the net worth of the raw products All you’ve done is move them around. And in the process of doing so you have expropriated capital that could have been spent in some other useful measure to elevate the capital or to elevate the worth of other things.

Now, listen. I’m not making this up. This is right out of the Austrian economist handbook. This is right out of Hayek. This is right out of Mises. This is right out of Roepke. This is right out of Thomas Woods and his book “Meltdown,” and his other books on how the economy works. This is not hard stuff to understand. This is why you and I know that these stimuluses are not going to work, because hundreds of billions, if not trillions, of dollars have been expropriated, and they have been put onto the minus side of our national ledger. This money must be repaid. And so the only way to repay it is either to devalue everything that you and I own, or to tax us, meaning more useful capital will be removed from the system and will be appropriated into the same useless measures. This is why we know unequivocally, I can tell you the results of this stimulus. I know what they are. There’s no question mark at the end of my statements. Just as most of your Austrian economists, they know how to – they can’t give you the exact number, but they know how this is going to turn out.

So all this pie in the sky wishing and wondering, as if we don’t know, is just a fantasy. Ladies and gentlemen, this is an exercise in extending Obama’s term here is what it is. “Well, we don’t see the full effect of the stimulus yet.” Well, of course we don’t. How many years can they get away with saying that? “We haven’t seen the full effect of the stimulus yet.” By the by, I misspoke earlier. The unemployment numbers are actually wrong from Bloomberg. They’re 9.4 percent. Making them the highest since July of 1983. But it’s just a day. Another walk in the park for the Obama economy here.

So let me just assuage you of one thing. This is not going to get better. You need to save your money. You need to do what is prudent and prurient for you. And you need to wait for this to end. And you will, because you’re Americans, and because you’re not lazy, and you’re not suckling off the federal or the state teat, and you know how this game is played. Now, you can make money in this market. As I have heard other people point out, smart people can take advantage of this. Like Wal-Mart. Have you seen the story? Monthly store sales are soggy, according to CNN Money. Large chain stores suffer another month of slumping sales as consumers show little appetite for discretionary shopping. This is because you are taking the advice of the evil, despicable, country-hating, talk radio mafia. And you are doing what appears to you to be commonsensical. I don’t see any reason I ought to be going out and spending bajillions of my dollars. No, I think I’m going to keep mine over here in my little cookie jar. I’m not giving them to you, Obama. Nancy Pelosi, I’m not going to expose my money so you can tax it and take it away. I’m just not going to spend it. No, I’m not going to buy those vegetables. I’m going to grow them in the backyard. No, no, I’m not going to go buy things that are taxed. I’m going to go to a garage sale.

How do you think garage sales and yard sales are doing in the Obama economy? I guarantee you they’re doing bang-up business. Do you know why? No sales tax. No capital gains tax. No property value added tax. When you’re dealing with your neighbors and you’re buying things that you need, your money is changing hands to his. Nobody knows where the money went, nothing. See, there are ways around this. And the government’s going to get frustrated by you finding a way around this. I think this is a beautiful thing, that people are discovering the evil that is big government because they see it all around them. And they are reverting back to what they know works, to what appears to most folks to be simple. I don’t want to pay sales tax on that refrigerator. I’ll go buy Johnny’s down the street at the garage sale, not pay any sales tax, and get it for one third of the price. “Yeah, but it’s used.” So? Now, here’s the best part of the monthly store sales are soggy. WalMart is kicking ass.

Thanks to Mike C. for helping me understand and voice my opinion.