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An Open Letter to Senator Barbara Boxer (D) California Sent 2/20/09 February 21, 2009

Dear Senator Boxer,

I appreciate your answer but I have to tell you that you are just following what Barack Obama is telling you without doing any home work.

What Barack Obama has brainwashed you into thinking is the same thing that Jimmy Carter did in the 70’s. It is true that Jimmy Carter gave way to creating a lot of jobs by doing the same thing. But in the long run we ended up with a huge Inflation rate. To combat that out of control inflation the fed took the prime interest rate to 20.39% on July 1, 1981 (Source: ) and Inflation Rate of 13.58% in 1980 (Source:

By the way, Jimmy Carter used the “Misery Index” ( to get elected. The difference here is that Barack Obama has psychologically damaged people so bad as far as consumer confidence that it will be very, very hard to change peoples minds until the light goes on in people’s minds when they finally realize that electing Barack Obama was the most catastrophic that thing that the citizens of the United States could have ever done.

OK, Now here is what I really want to hear your rational on. Let’s talk about Bill Clinton’s expansion of Jimmy Carters Community Reinvestment Act of 1977 that he did in 1997. This mandate led people from all different arenas to develop a ferocious appetite for greed and corruption which in the end caused the mortgage and home market to collapse to what we have today. While it is true that Bill Clinton did not tell the banks and lending institutions how to write loans, Bill Clinton was most certainly the catalyst for the mortgage melt down. I just find it appalling that there is not one socialist (Democrat) that will admit to his wrong doing in trying to expand our “Land of Entitlement.”

“C. Experience With the 1978 Rule
The experience with the 1978 rule
was summarized in the preamble to the
Agencies’ 1995 CRA rule. 60 FR 22156
(May 4, 1995) (1995 rule).”

It stated:
The CRA has come to play an increasingly important role in improving access to credit in communities—both rural and urban—across the country. Under the impetus of the CRA, many banks and thrifts opened new branches, provided expanded services, and made substantial commitments to increase lending to all segments of society. Despite these successes, the CRA examination system has been criticized. Financial institutions have indicated that policy guidance from the agencies on the CRA is unclear and that examination standards are applied inconsistently. Financial institutions have also stated that the CRA examination process encourages
them to generate excessive paperwork at the expense of providing loans, services, and investments to their communities. Community, consumer, and other groups have agreed with the industry that there are inconsistencies in CRA evaluations and that current examinations overemphasize process and underemphasize performance. Community and consumer groups also have criticized the agencies for failing aggressively to penalize banks and thrifts for poor performance. Noting that the CRA examination process could be improved, President Clinton requested in July 1993 that the Federal financial supervisory agencies reform the
CRA regulatory system. The President asked the agencies to consult with the banking and thrift industries, Congressional leaders, and leaders of community-based organizations across the country to develop new CRA regulations and examination procedures that ‘‘replace paperwork and uncertainty with greater performance, clarity, and objectivity.’’ Specifically, the President asked the agencies to refocus the CRA examination system on more objective, performance-based assessment standards that minimize compliance burden while stimulating improved performance. He also asked the agencies to develop a well-trained corps of examiners who would specialize in CRA examinations. The President requested that the agencies promote consistency and evenhandedness, improve CRA performance evaluations, and institute more effective sanctions against institutions with consistently poor performance.
60 FR 22156–57.”

“D. The 1995 Rule and Subsequent
The experience with the 1978 rule led the Agencies to replace it in 1995 with a rule designed to emphasize performance rather than process, promote consistency in evaluations, and eliminate unnecessary burden. 60 FR 22156.”

Ok what this tells me is that when Bill Clinton made this mandate it basically rated banks on the QUANTITY of loans over the QUALITY of loans. When this was presented, lending institutions were already writing as many standard 30 year loans as they could. However, the banks and lending institutions had to write more loans. Write more loans to people that could not qualify for a standard 30 year loan. The banks and lending institutions did not want to do this because it would expose the lending institutions to dangerously large amounts of bad debt from bad loans and foreclosures. Remember this was in 1997. So the banks and lending institutions had to come up with creative loan vehicles to meet the mandate that Bill Clinton had written or face federal fines or other actions against the institutions. So the birth of the “No down payment,” Interest Only,” “Adjustable Rate Loans” etc were created to meet the QUATITY of loans that were then rated by this system:

“D. The 1995 Rule and Subsequent Guidance

The experience with the 1978 rule led
the Agencies to replace it in 1995 with
a rule designed to emphasize
performance rather than process,
promote consistency in evaluations, and
eliminate unnecessary burden. 60 FR
22156. Among other things, it established a large retail institution test
comprised of three tests: one for
lending, one for investment, and one for

OK on page 10025 it talks about the above “test.”

Now if I’m not mistaken that is exactly what Barack Obama’s boy Tim Geithner wants to do. The same thing as he called it a “STRESS TEST’ of performance.

OK so what I am trying to tell you is that everything that the Socialist (Democratic) Party has done in the past has been a huge failure as far as jump starting the economy. This time will be no different.

But here is the big difference between Barack Obama and Bill Clinton:

Bill Clinton’s mandate gambled with investor’s money and the public’s savings (401K and IRAs) and lost.

Barack Obama’s mandate is gambling with all of the countries Tax Payer Dollars for generations to come in the future and will lose again. A much much greater amount of people’s lives are at stake here and in these numbers a Tax Payer Revolt is not out of the realm of reality.

And one final thing. A am just as upset with George W. Bush to have even offered a TARP program to begin with. It just gave the Socialist (Democratic) party an excuse to make business and individuals highly dependent on the Federal Government to survive when they gained power by creating a “Land of Entitlement.” out of the United States of America.

I will be best to say that I know you never even read all 1000 plus pages of that “Spendulas” package as I know you did not have the time as did none of the other people that voted for it.

Senator Boxer I can only hope that you sleep well at night not understanding what you voted for in this “Spendulas” package that Barack Obama and the Socialist (Democratic) party rammed down the throat of the citizens of the United States.

Thanks you,



I have been writing to Senator John Mc Cain about this as I do not have any representation what so ever in the State of California.


Tim Geithner Speech 2/10/09 February 12, 2009

I’m not sure what to make of this guy Geithner. It was very unnerving that as Geithner was speaking the market plummeted over 300 points. It is apparent that the people that buy and sell stock did not like what he was saying at all. As I mull over the points that he made today, I’m still not seeing how more and more government intervention is going to make things better. At one time a friend of mine and I were in the exploratory part of starting a business. We had a business plan put together but we were not comfortable enough to go to a bank and take out a lone. So we looked into an SBA loan from the government. Now just like any underwriter there were a great many things that they wanted. But as we started to read the fine print it was pretty convoluted and there were huge performance grades that had to be presented in return in a near term timeline. It just seemed so controlling that it also scared us. The SBA loan was way more than what we expected to have in returns in a short period of times. The SBA loan was very discouraging and we finally scrapped the business plan and I’m glad we did.

Tim Geithner seemed to have a concept but no clear plan on what exactly he and Obama were trying to do other than the same thing Clinton did and that is force banks to make loans when they don’t want to and credit cards not to issue credit. This is simply a rehash of what Bill Clinton did in 1997 when he expanded the Community Reinvestment act of 1977. Tim Geithner talked  about a “Stress Test” for the banks.

Here is proof of that over and over and over again from 1997.

In the second page on document 10025 under “POINTS ASSIGNED FOR PERFORMANCE UNDER LENDING, INVESTMENT AND SERVICE TESTS” you will see the term “Component Test Rating.” It seems to me that this is the exact same thing that Tim Geithner wants to do. As you know this is what caused the train wreck we have today with the mortgage meltdown.

For some reason I cannot get the public to see these connections between Jimmy Carter, Bill Clinton and Barack Obama and there is no “CHANGE” and the real slogan should be “NO WE CAN”T!!!!” We have areal conundrum here and that is for past months ever since Obama started his campaign he has been fear mongering using the “Misery Index” that I had talked about earlier. The more he spews everyday telling us that if congress and the people do not approve of the “Spendulus” program thing are going to get a whole lot worse.

In a nut shell Barack Obama is creating all of the potential problems by telling the banks that if he doesn’t get his package passed than worse things will happen. How do you think the underwriters at these banks feel about loan applications in their inbox. Of course they are real reluctant to write loans based on what Barack Obama is saying.

Barack has also mentioned that he not absolutely sure this will work and if it does it will take a few years for it to really have an impact.
So evan Barack Obama is not sure if this “Spendulus” package will work. I’m not sold on this guy Tim Geithner, the guy that doesn’t pay his taxes on time.



Barack Obama, Propaganda, Jimmy Carter, Inflation, High Interest Rates “Reinvestment Act” and The “Misery Index.” January 30, 2009

As I listen to the rhetoric that is coming from Barack Obama’s tone of voice I have to ask myself if the rapid collapse of our economy is being caused by Barack Obama telling us day after day that the economy is in very bad shape? Thus unnecessarily eroding the confidence of the American people. Thus making people believe that this huge spending package is the only way to save the The United States Of America? Is this rhetoric manipulative propaganda?

Let’s go back to an article that I had wrote previously.

I had wrote of the possible influences that Frank Marshall Davis may have had on  Barack Obama.

One of the tactics that has propelled the the Communist Party into successful power is PROPAGANDA. Propaganda is the perfect tool to sway people into thinking the same way the leader does.

My point is that it seems that Barack Obama is telling us that the economy is very, very bad and will get worse.  He tells us everyday.  We as the public already know this. It seems that he is over zealously telling this every day so the public will back him on this massive spending plan that will shift the wealth from the private sector to the government by making us dependent on the government for jobs, bailouts and miniscule tax rebates.  Seeing as how the government does not have this money to give to us, the only solution is to print the money.  Printing money that we do not have gold backing for in the federal reserve is called INFLATION.

Previous Barack Obama Propaganda:

So is Barack Obama’s Propaganda having an influence on the public that is listening? Does Barack Obama’s Propaganda have a great influence in certain sectors of our society

Ok, so what does this mean? Well in a very, very short time it will take more dollars to pay for things. When inflation gets out of control then the Federal Reserve will raise interest rates. Money will cost a lot of money to get. In the end, Barack Obama will create a lot of jobs but when all is said and done, people will still not be able to afford anything, because of high inflation, high interest rates and the inevitable much, much higher tax rates to deplete the over bearing deficit.

If you look back in history to the Jimmy Carter Administration you will find that during Jimmy Carter’s Reinvestment Act, much the same as Barack Obama’s, we went into years of double digit inflation because the dollar was so devalued (The fed printed a hell of a lot of money to fund the Reinvestment Act).  To combat high, runaway inflation the Federal Reserve kept raising interest rates. Now, much to Jimmy Carter’s credit there were 10.5 Million Jobs created under his presidency. However people could not afford to buy anything because the price of merchandise and interest were well beyond the average person.  The end result was the economy did not grow thus we had “STAGFLATION.”

Here is an interesting page from the Wall Street Journal:

Note that during the George W. Bush years there was the lowest unemployment and the the lowest interest rates.  One may argue that George W. Bush only created 3 Million jobs.  But wait…. almost everyone was working. But as the economy began to collapse because of Bill Clinton’s expansion of the Community Reinvestment Act in 1997, the unemployment number skyrocketed in the last months of George W. Bush’s term.  This was not George W. Bush’s fault at all.

Carter: Interest rate, 21%. Inflation, 13.5%. Unemployment, 7%. The so-called “Misery Index,” which Carter used to great effect in his 1976 campaign to win election.

Reagan’s last year: Interest rate, 9%. Inflation, 4.1%. Unemployment, 5.5%.

George W. Bush: Interest rate, 8% down to almost 0%. Inflation, 2.6%. Unemployment, 4.5%.

“The misery index was initiated by economist Arthur Okun, an adviser to President Lyndon Johnson in the 1960’s. It is simply the unemployment rate added to the inflation rate. It is assumed that both a higher rate of unemployment and a worsening of inflation both create economic and social costs for a country. A combination of rising inflation and more people of out of work implies a deterioration in economic performance and a rise in the misery index.”

The Misery Index

So what is my point? I think you can see the parallels between Barack Obama’s campaign and Jimmy Carters campaign and what lies ahead for us. Barack Obama is doing nothing new. It is an almost textbook repeat of the Jimmy Carter administration.  Even the rhetoric is the same. “Reinvestment Act” is the key phrase. Barack Obama also has used the “Misery Index” as an excuse to get elected.

This is how it works folks.  When interest rates climb people invest in high yield bonds, CDs and other interest generating investment vehicles. The public does not invest in stocks that are much riskier. That means that even Mutual Funds shift their assets into to CDs, Money market and bonds.  This makes it very difficult for companies to raise money for capital investments, company expansion, job growth etc. with the sales of company stock etc. What you end up with is STAGFLATION.

If you were to read this article written by John T. Woolley and Gerhard Peters at The University of California Santa Barbara.  You will see the striking resemblance of Barack Obama’s “Change” and what Jimmy Carter did when he was in office from 1977-1981.

Is is true that history repeats itself?