Obama’s One Sided Shared Sacrifice

Mōhai Mahele

Obama said we must all have a “shared sacrifice“, but what does that mean?  Other Socialist Democrats have echoed that same meme without explaining what it’s supposed to mean.  Then again, this is how Socialist Democrats deliver their message of gloom and doom.  There’s no positive spin, it’s all about taking from one person and giving it to someone else.  You’ve heard similar calls of Social Justice as if there is either a crime, or some misdeeds, committed against someone or group.

The latest scheme by the Obama regime and the Socialist Democrats is to raise taxes on the “rich” and to raise the debt ceiling.  In other words, lets target small business owners who are successful and take their money away.  Remember when Obama had that “Spread the Wealth Around conversation?

 

Punishing success is exactly what Obama has been doing ever since he got into office, and he said this is what he was going to do.  He campaigned on it.  The Lame Stream Media lapped it up.  Obama made fun of the working class, the small business owners and the people that create jobs.  They yucked it up!

Will the miniscule of taxes collected by those making over $250,000, all those that are considered by Obama as “The Rich”, going to effect the $14 Trillion dollar debt level?  Not likely.  At 35%, the rate of taxation is already excessive for most people in the top tier bracket.

What about those people that don’t pay taxes?  What’s their sacrifice?

About 47 percent will pay no federal income taxes at all for 2009. Either their incomes were too low, or they qualified for enough credits, deductions and exemptions to eliminate their liability. That’s according to projections by the Tax Policy Center, a Washington research organization.

Tax cuts enacted in the past decade have been generous to wealthy taxpayers, too, making them a target for President Barack Obama and Democrats in Congress. Less noticed were tax cuts for low- and middle-income families, which were expanded when Obama signed the massive economic recovery package last year.

Obama has decided to target one economic group and demagogue them as receiving unfair tax breaks.  This is the same group that Obama claims can afford to give up their tax breaks, are also small business owners.  Obama then wonders why small business owners are not hiring.  Obama doesn’t have a clue.  If you threaten, and target, a specific economic group and then expect them to spend money hiring and spending capitol, it will only create a atmosphere of uncertainty.  No one will spend.

He reiterated his message that the 2012 political campaign is “about a set of contrasting visions” between the Republicans’ “cramped” vision that would cut entitlements and the Democrats’ “big generous vision” of America.

On the deficit talks, which stalled today after Republicans pulled out, he said one vision wants to “shrink” the government to size it was in 1930s, while his party’s vision “says we’re going to have to share sacrifice.”

Wealthy Donors

Among those who were to dine with Obama at Daniel were Robert Wolf, chairman of UBS Americas; Blair W. Effron, partner and co-founder of Centerview Partners LLP; Marc Lasry, managing partner and founder of Avenue Capital Group; Mark Gallogly, a managing principal of Centerbridge Partners; James Rubin, managing director of BC Partners; and Frank Brosens of Taconic Capital Advisors LP, according to a party official who spoke on condition of anonymity because the list hadn’t been made public.

Obama likes being generous with other people’s money and dining with “Fat Cat” bankers on Maine lobster salad with roasted beets, duos of Black Angus beef, braised short ribs with young spinach, and roasted tenderloin with stuffed potato and hen of the woods.  Meanwhile, companies like General Electric didn’t pay any taxes last year.  The reason is because GE is keeping its profits overseas.

 

It’s GE Capital that keeps the overall tax bill so low. Over the last two years, GE Capital has displayed an uncanny ability to lose lots of money in the U.S. (posting a $6.5 billion loss in 2009), and make lots of money overseas (a $4.3 billion gain). Not only do the U.S. losses balance out the overseas gains, but GE can defer taxes on that overseas income indefinitely. The timing of big deductions for depreciation in GE Capital’s equipment leasing business also provides a tax benefit, as will loan losses left over from the credit crunch.

Obama’s vision is a failed vision where “shared sacrifice” leads to shared despair for all but him and his fat cat banking pals.  The United States corporate tax rates are some of the highest in the world.  Unions continue to price themselves out of the labor market.  Corporations are moving their business overseas to take advantage of low taxes and low labor rates.  This will further reduce the tax revenue stream and Obama’s solution is to raise taxes on the rich?  That’s shared sacrifice?

Obama brags — albeit dishonestly — that he’s only raising taxes on rich people. Ninety-five percent of the American people will get a tax cut, the president insists.

Well, which is it? Do the times demand shared sacrifice from us all, or from just 5 percent of Americans?

If I say to 10 co-workers, “We all need to chip in together to get this done,” and then say, “So, Todd, open your wallet and give five bucks to everyone else in the room,” it would sound ridiculous. But when Obama says the same thing to 300 million Americans it’s called “leadership.”

Hardest hit in Obama vision of shared sacrifice will be the poor.  Obama’s policies will raise the price of energy, food, and other goods and services.  You can build a coal powered electric plant, Obama said, we’re just going make very expensive for you to operate it.  In other words, Obama has promised to bankrupt any means of producing cheap electricity.  Instead, Obama wants to force you to use expensive green technologies which most poor people cannot afford.  I suppose the poor will heat their homes with animal dung like they do in some African countries.

 

Got a 401K, IRA, some kind of pension plan?  Chances are, you might be a bond holder.  Here’s how Obama shared sacrifice will effect bonds.

The government’s approach to the bankruptcies of General Motors Corp. and Chrysler LLC illustrates how this new, unstated policy works: Bondholders are told to give up legal rights, and cash, as part of a government-mandated tradeoff that favors a politically connected special-interest group.

The big threat is that this policy will extend to all bonds, including Treasury and municipal debt, not just corporate obligations.

That sounds alarmist, even extreme. After all, the government has gone to incredible lengths to assure U.S. creditors — specifically, central banks that own trillions of dollars in Treasuries and other government-guaranteed debt — they won’t have to bear any financial-crisis pain.

Bondholders were given a 10 percent stake in the new GM and warrants to purchase additional shares down the road. The employee trust fund, meanwhile, received a 17.5 percent equity stake, as well as $6.5 billion in new preferred stock. This preferred stock pays a 9 percent dividend. So the trust will receive $585 million each year, while bondholders stew.

No Fair Shake

Much of the ultimate recovery for bondholders and the trust depends on the value ascribed to GM’s new stock, years into the future. No matter how you cut it, though, bondholders don’t get a fair shake.

“The UAW gets a recovery of five times the bondholders’ under reasonably upbeat scenarios,” CreditSights Inc. analyst Glenn Reynolds wrote in a research note. “This is just the fact.”

So bondholders now know how the Obama administration’s “shared-sacrifice” policy will work out for them. After GM, they can’t say they weren’t warned.

So Obama’s union buddies reap the benefit of GM’s bankruptcy bailout and the shareholders get the shaft.  Is that shared sacrifice?  It seems rather selective that the Obama regime is choosing winners and losers.  Where is the shared sacrifice?

Because the shared sacrifice meme is being exposed as the fraudulent scheme that it is, other Socialist Democrats have come out and accused the Republicans as trying to sabotage the economy

Here’s Chucky Cheese Schumer making the charge with Keeth Olberdork on the seldom watched Current TV, Al Gore’s channel of Global Warming hysteria.

You only need to watch the first 30 seconds and then bleach your eyes and ears.

Then ask Chucky Cheese Schumer, if the Republicans are sabotaging the economy, then why is New Jersey’s economy growing?  Why are Texas jobs growing?  Why are States with Republican Governors economies and jobs growing?  Let’s remember that scumbag Schumer caused a run on the Bank of California IndyMac:

‘The immediate cause of the closing was a deposit run that began and continued after the public release of a June 26 letter to the OTS and the FDIC from Senator Charles [Chuck-U] Schumer of New York. The letter expressed concerns about IndyMac’s viability. In the following 11 business days, depositors withdrew more than $1.3 billion from their accounts,'”

Schumer committed a criminal action and was never investigated for it.  You’re from New York you maggot, why isn’t your state’s economy and jobs growing?
Not to be outdone by Chuck U Schumer, Washington State’s senator Jim McDummy makes the same claim.

The most irresponsible legislation has been Obamacare which you voted for.  Since Obama came into office, this country has gone further into debt at the hands of you Socialist Democrats.

But don’t try to get an answer from the Socialist Democrats, they will always stick to talking points and avoid answering direct questions about their communist policies.  Here’s Dickhead Turbin on Fox News tap dancing around Chris Wallace questions:

 

Half way is a way of saying nothing changes.  It’s all smoke and mirrors.  Government malfeasance committed by the Socialist Democrats.  Notice how the class warfare meme gets thrown around when Durbin gets cornered.

In this post, I have constantly referenced the Democrats as Socialists and for good reason why.  Guess who just gave Obama and the Democrats a huge endorsement?

Obama just received a critical endorsement, The Communist Party USA. The Communist Party USA leader, Sam Webb, explains why he will continue to support Obama and Democrats in 2012. The Communist Party USA has consistently supported and infiltrated the Democratic Party.

The People’s World

 

Let there be no doubt that the founding principles of this country are being undermined by communists and Marxist enemies of the United States.  Remember the communist principles:

No property ownership.  No individual wealth.  No free government.

No capitalism.  No entrepreneurship.  No freedom.

Government run industries.

Government run media and television.

A central proletariat government.

 

Shared Sacrifice at the expense of your freedoms

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What’s For Breakfast?

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Ham and Cheese Omelet with Home Fries and Fresh Sliced Oranges

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5 Responses to “Obama’s One Sided Shared Sacrifice”

  1. LVB Says:

    Aloha and thanks for another great article, Kini.

    I just left a big comment the other day on VC about exactly the same thing with GE (run by Obama’s BFF and “Job Czar” CEO Jeffrey Immelt) paying ZERO taxes in the US. One would think it should be pretty darn easy for any business to make a profit when they have all these tricks and breaks so that they pay ZERO taxes, don’t you agree?? Bunch of elitist criminals, all of them in the Obama administration.

    Also, you’re not wrong about the scumbag Chucky Schumer violating the law in causing the panic that resulted in the demise of IndyMac bank, but I will tell you something else that you may not know about that story. IndyMac was knee deep in all aspects of subprime and predatory lending, which was the cause of this entire economic collapse – they were totally in bed with Fannie Mae/Freddie Mac, and they were one of the first dominoes to fall just prior to the economy collapsing a few years ago. I only tell you this because I once worked there, and I know it for a fact. I left that job specifically because of all the criminal behavior I saw there, and I knew the that OTS (Office of Thrift Security/US Treasury Dept) were all over them, and I knew it was only a matter of time before they would be shut down. Put simply, they were scum of the earth criminals, and all of the banks like them were directly responsible for the crisis we are in now – but only because our own Congress deliberately engineered the massive toxic debt crisis using Fannie Mae/Freddie Mac and the FDIC as the vehicles to do it.

    I’m sure you also know that Senators like Schumer and Barney Frank were also the biggest supporters and cheerleaders for Fannie Mae/Freddie Mac continuing to receive hundreds of billions of $$$ in order to keep making bad loans to people and businesses that any other bank that follows established standards and common sense would never do – because you don’t loan $$ to people you already know cannot and will not ever repay it. So, the liberal scum in Congress, like Schumer, are a prime example of the idea of Duplicity – saying one thing, doing another and deceiving people as to their true motives.

    The worst part of all this is that we know now what caused the crisis we are still suffering from, and still not one thing has been changed at Fannie Mae/Freddie Mac – in fact, they have been given billions more $$$, and are doing the same things they were doing before. Where is the Republican Congress on this??? It’s the same time bomb, ticking away.

    Anyway, here’s wishing you a very Happy Independence Day, and Mahalo, my brother!

    • Kini Says:

      Aloha LVB, thanks for the kind words. I knew that members of congress were profiting from the subprime mortgage fiasco and that the regulators were prevented from making corrections. The media didn’t report it even though the Bush administration repeatedly warned of the problem. The Housing Bubble, as it was called, burst, and you know the rest of the story. I didn’t know you had first hand knowledge of what was going on.

      My point in bringing up Chuck U Schumer is his baseless accusations. He’s never called on it, and he’s one of the biggest perpetrators of the economic crisis. Going into the 2012 elections, people need to know the facts. The media won’t report it. That’s why I use videos to support my claims of government malfeasance, hearing the truth from their lying mouths makes a powerful statement.

      Thanks for dropping by and I’ll be making stops at your site to see how your latest masterpiece is coming along.

      You have a great 4th of July holiday! Malama Pono!

  2. LVB Says:

    Yep, I’m totally with you on this topic. No doubt at all that Schumer is the worst kind of lying weasel and criminal there is. People like him and Barney Frank are perfect examples of why people distrust the Congress, and the Senate in particular, where scumbags like that can hold that office for decades as they grow more corrupt each day – not the intention of our Founders. And, yes, several Republican members did warn of the Fannie Mae/Freddie Mac disaster years before it exploded, including McCain (who is unfortunately a big RINO and very hated by most of us in AZ if you didn’t already know that lol), but they were ignored and then later blocked by the liberals from doing anything real about it…until it was too late.

    Anyway, great article, and I hope you have a great holiday and enjoy some great food. 🙂

  3. Zardoz Says:

    Kini,

    You have far more patience than I—there’s no way that I could have forced myself to review those videos and remember what all those dishonest hacks have said over the past couple of years. They think that we’re stupid and don’t understand the long con that they’re running on us. This is the same reason I can not watch the national news or just about anything on PBS. I’m not an idiot and I have a pretty fair understanding of our history and how we became the most successful country on the planet.

    In less than a month I turn 65 and will be at the mercy of the Obama administration for my healthcare decisions. Healthcare rationing, death panels, fewer doctors willing to accept Medicare reimbursements and longer lines are all in my immediate future. I’m not looking forward to the transition.

    I hope all the folks that voted for this untested junior senator from the state of Illinois have had the scales fall from their eyes. Never have we had a more incompetent, narcissistic and unaccountable pretender in residence at 1600 Pennsylvania Avenue. He has surrounded himself with like-minded cronies from Chicago and academia to run this country as though it was a college debating society. I wish there was one adult in the room. And, no, Joe Biden does not count as an adult.

    On some of the sites I visit several of the posters proclaim their hatred for Obama. It’s all too reminiscent of Bush Derangement Syndrome that we had to accept a few years ago. I do not hate Obama—that would require far too much emotional investment. I consider him to be profoundly wrong in his philosophy and policies. He is president only because he has been able to successfully hide so much of his past. Your current governor has been complicit in keeping Obama’s past a mystery.

    The Obama years will be a black mark on the history of our country. It will take us many years and untold amounts of money to dig ourselves out of the hole he has put us in. Demonization of business, both large and small, will keep the economy from growing. This administration doesn’t seem to understand that wavering on tax policy makes it impossible for managers to plan for the future. Yes, the Bush tax rates have been extended for a couple of years but that’s not nearly long enough for a company to commit to a long-range plan of expansion and growth. If there was someone in this administration that had actually run a business or worked in industry they might be able to explain it to Obama but when you surround yourself with theorists and college professors all you get is folks long on “book-learning” and short on real-world experience.

    I would like to echo LVB’s sentiments and commend you for doing all the hard work you do in creating your blog. I enjoy visiting because you always make me think.

    • Kini Says:

      Thank you for your kind words Zardoz. I wish you a Happy Independence Day celebration. I agree with you, we don’t hate Obama, we hate his policies. It is also the inexcusable actions by Socialist Democrats that try and pass off their failures onto others to protect themselves. Aloha!


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