Considering voting 3rd Party? Watch this.
This is about as good an example of what is known as “Okun’s Leaky Bucket”. Money that is spent by government does not have nearly the same effect or “velocity of money” as private investment or consumer spending does.
When government spends money it does so for reason of politics and corruption. Government does not create wealth it just spreads money around either to the unproductive or least efficient. While defense is a critical role of government, does anyone actually believe that Pentagon spending is efficient?
When the private sector spends money it is done in order to create something, repair something, or engage in a crucial economic need for someone, so by its nature it is very efficient. Dollars tend to go where they are most needed.
It is as if the money government has to spend is put in a bucket and much of it seemingly vanishes from the economy.
Via Fox Nation:
Since Obama has taken office ….
[through Q2 2012 for comparative purposes]
For every $1 added to the economy, we’ve added more than $3 in debt added $5.23 trillion in debt vs. $1.68 trillion to the economy 50% increase in debt vs. 12% increase in economic output
Total Public Debt:
$10,626T [Jan 20, 2009]
$15,856T [Jun 30, 2012]
–> $5.23 trillion increase in debt
$13,923T [Q1 2009]
$15,606T [Q2 2012]
–> $1.68 trillion increase in GDP
In the mean time the Federal Reserve is printing money nonstop and is tanking the dollar:
The dollar hung near seven-month lows against major currencies on Monday after last week’s Federal Reserve announcement of aggressive easing dampened the outlook for the U.S. currency.
The U.S. dollar could recover somewhat in the near term, as some traders said the greenback’s 3 percent drop so far this month may have been overdone. That slide took the euro to a four-month high against the dollar and the yen to a seven-month high.
The Fed on Thursday said it would pump $40 billion into the economy each month until unemployment falls significantly. A week earlier the European Central Bank unveiled a new bond-buying program to address the region’s debt crisis.
“The outlook for the dollar has definitely been damaged by the policy actions by both central banks — the Fed and the ECB,” said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange in Washington.
In a nutshell: 150 more Obama Administration emails released showing how green energy money was steered to Obama cronies with sham junk bond companies. The list of green jobs companies gone or going under grows to 50. That is your money folks.
With so many of these green energy boondoggles it looks like this: Obama gives big taxpayer money to a fund raiser who is an owner in a “green energy company”. Said owners pay themselves in a big way, give big money to Democrats and go out of business.
While the administration claims that this was all science and no politics, a slew of leaked emails show the corruption and influence peddling.
Our friends Christine Lakatos at Green Corruption and Marita Noon at Townhall have been tracking the list of green jobs boondoggles that are going out of business after paying themselves lavishly with your money. That list went from 15, to 16, to 36 and now 50 green jobs enterprises paid for with your money that either have shut down or are about to. See that list here:
Via the research from Lakatos and Noon, the Daily Caller is now running with this story, as is former Speaker of the House Newt Gingrich:
Newt comments on the erupting “green corruption”story after he discusses the emails showing that the order to let or embassy staff die was from the White House.
Erupting indeed. Emails showing the influence peddling and corruption keep coming out.
The House Oversight Committee has released a new set of 150 emails that show how your money was steered to cronies in the name of green jobs. More on this story from Marita Noon in today’s Townhall (excerpt):
The 1705 loan guarantee program had 460 applicants, but only 7% were approved—26 projects were funded. Of those 26 projects 22 were junk-bond rated—meaning private investors wouldn’t fund them. So why did we, the taxpayers?
Our research showed that at least 90% of the projects had close ties to the White House and other high ranking Democrats. Despite the obvious connection, President Obama has repeatedly denied any involvement—preferring to blame “career bureaucrats” who could take the fall with no political consequence.
In March, Energy Secretary Steven Chu, testified that, “We looked at the loans on their own merits.” Also, back in November 2011, he said: “I am aware of no communication from White House to Department of Energy saying to make the loan or to restructure.”
Just last week, on October 26, President Obama affirmed Chu’s position when he said: “Decisions made in the loan program office are decisions, by the way, that are made by the Department of Energy, they have nothing to do with politics.”
However, late Wednesday, the House Committee on Oversight and Government Reform released a new report of “over 150 emails that contradict statements by the President, Secretary Chu, and White House and DOE officials.” The emails reveal a series of questionable practices, including coercion, cronyism and, cover ups.
Read the rest HERE.
Says Noon, “The Obama green energy program is the largest, most expensive, and deceptive case of crony capitalism in American history”.
See the rest of our green jobs scam and Solyndra coverage HERE.
UPDATE – Even MORE from the House Oversight Committee: Obama Administration lying about the influence peddling; caught again with more of their own emails.
KYLE CLARK: In a national address, you touted the stimulus money going to Abound Solar – a Colorado company connected to one of your billionaire fundraisers. Now, as you may know, Abound Solar is out of business and under criminal investigation. The jobs are gone and taxpayers are out about 60 million dollars. How do you answer critics who see Abound Solar as Colorado’s Solyndra – a politically connected clean energy company that went under and took our money with it?
PRESIDENT OBAMA: (Laughs) Well, Kyle, I think that if you look at our record that these loans that are given out by the Department of Energy for clean energy have created jobs all across the country and only about four percent of these loans were going to some very cutting-edge industries that are going to allow us to figure out how to produce energy in a clean, renewable way in the future and create jobs in Colorado and all around the country. And some of them have failed but the vast majority of them are pushing us forward into a clean energy direction. And that’s good for Colorado and good for the country. And these are decisions, by the way, that are made by the Department of Energy, they have nothing to do with politics.
Investigative Reporter Todd Shepherd: NOT POLITICAL? EMAILS SHOW WHITE HOUSE DROVE FAILED GREEN-LOAN IN COLORADO
CompleteColorado.com has obtained emails that seem to directly contradict Plouffe’s answer, and also challenge the President’s notion that the DOE’s loan decisions were universally autonomous within the agency. The emails also lend even more credence to the theory that the loan to Abound Solar was political payback to Colorado’s wealthy Democratic benefactor and Gang-of-Four member, Pat Stryker.”
In the above email thread, DOE loan executive Jonathan Silver tells DOE credit advisor Jim McCrea, “You better let him know the WH wants to move Abound forward.” It appears to be a mild scolding to a Treasury advisor, Ian Samuels, who is not moving fast enough to schedule calls regarding Abound.
The second page of the email thread makes mention of “…transaction pressure under which we are all now operating…” This entire email thread happened just a few days before President Obama would hail the government-backed loans as a job creator for Colorado.