Barack Hussein Obama... Any Way You Slice It... He's a Radical Socialist!

As a follow-on to my last piece, specifically dove-tailing on the subject of the rising cost of gasoline... let's take a look at the latest factual evidence that Barack Hussein Obama doesn't have a clue as to how capitalist economics work. I would proffer that if Obama didn't have his anti-American pea-brain stuck up his primary posterior orifice, he wouldn't put forth such policy statements about instituting a "windfall profits tax" on oil companies.

Let's take a couple of minutes to see how every "for profit" and "not for profit" business works, and then I think you'll agree that Obama is an economic moron.

Let's look at the International Widget Company (IWC). IWC knows that their cost of goods sold is made up of many components which drives them to determine the price at which they will sell their widgets... Raw materials, payroll, payroll taxes, federal taxes, state taxes, all other taxes, capital equipment to turn the raw materials into widgets, accountants, lawyers, governmental licenses & permits, utilities, etc... Well, you get the idea.

In addition to these considerations there are some other very important factors which socialists like Barack Hussein Obama fail to fathom in the world of capitalist economics. Let's take a look at two basic components which tell the tale of success or failure in the corporate world. In a "for profit", publicly traded company, the two primary metrics are "revenues" and "earnings per share".

Companies routinely advise Wall Street (which also includes working class IRA, mutual fund and 401(k) holders, and the elderly) how they expect their business to perform over the next several months. Have no doubt! Corporate leaders of IWC will meet their numbers! After all, that is how their Board of Directors evaluate their effectiveness in leading the corporation and "delivering the goods"!

OK... So some "FoolOnCapitolHill" (Barack Hussein Obama) decides in their feeble, socialist mind, that IWC has made "obscene profits" while selling their widgets. And this FOCH tells his fellow FOCHs that they need to teach IWC a lesson and levy a windfall profits tax... And they do! What happens next? (Glad you asked!)

IWC now has several options to consider. Let's explore these option, but remember this... The CEO, CFO, COO and and every other C-level yahoo who is incentivized by making both their revenue & earnings per share number WILL MAKE THEIR NUMBER... NO MATTER WHAT!!! Have no doubt about that!

So the FOCHs levy a big tax... They expect IWC to pay the tax... If IWC pays the tax, those C-level guys don't hit their numbers & don't get their bonuses (Remember... This AIN'T gonna happen!) So what is a poor CEO to do? It's just this simple: (A) Raise prices to cover the cost of the tax; (B) Cut expenses; (C) Both. Guess what? "(C)" is what happens more often than not. This means that Barack Hussein Obama & The FOCHs attempt to "punish" IWC have instead raised prices for widgets, fueled inflation, cost working people their jobs, increased unemployment & unemployment claims, slowed consumer spending and consumption, cost other working class jobs in other businesses which relied upon the laid-off workers from IWC who used to patronize their businesses... Well, you get the idea! Too bad that Barack Hussein Obama & The FOCHs don't seem to get it!

In other words, trying to "punish" companies for doing what it is they are in business to do never does punish the company... It punishes consumers (The poorest of the poor most of all) and sets all of us back. And in the process it also negatively impacts the share price of IWC (Or ExxonMobil, Shell, etc...) which negatively impacts the retirement income of the elderly, school teachers, firefighters... EVERYONE!!!

In closing, I believe I can sum this up in the following... "Barack Hussein Obama... Scary As Hell"!

Perhaps There Is A Silver Lining...

There has only been one, truly big news story for the past three weeks... The price of oil hitting $140 per barrel & gasoline skyrocketing past $4.00 per gallon. This has been very unnerving to people everywhere, and some have even described their concern as "fear". Now, although not having a good idea how high these prices will go can be disconcerting, I have a hard time wrapping my mind around the thought of describing the current situation as fearful. That not withstanding, there is absolutely no doubt that the public is pretty torqued! And the FOCHs (Fools On Capital Hill) have heard the hue & cry of the folks back home and promptly subpoenaed the CEOs of the evil oil companies to answer for their criminal, predatory pricing practices. (Thank, God, that Big Brother is watching out for us!) And what did we learn from these hearings? We all learned just how ignorant & incompetent those FOCHs truly are! And in the process the FOCHs learned a lesson that most of us were taught as children... Whenever you point a finger at someone assigning blame, there are three fingers pointing back at you!

Then all Hell started breaking loose as the truth started sinking into our corporate minds. The blame of rising oil & fuel prices isn't the fault of the evil oil companies... The blame lies with Congress! In other words, we the people have been FOCH'd! No drilling in ANWR... No drilling off the continental shelf on either coast (Although the FOCHs don't seem to have any problem with the Chinese & Cubans doing same off Florida)... No new refineries in the past 35 years... No new nuclear power plants. NO! Nothing allowed that might facilitate energy independence within ten years... OH, NO-O-O!!! We can't have any of that now, can we? No, absolutely not! It's much more important that we send billions of dollars each and every day to Muslim terrorist states in the middle east, and to psychotic dictators and corrupt politicians in South America and Mexico!

So, back to the title statement... "Perhaps There Is A Silver Lining..." And that silver lining is this: Polling data out this week overwhelmingly shows that Americans want to drill here... drill now... and are no longer willing to let whiny, emotional, mentally-malformed environmental crybabies rule the day! We want to take OUR oil out of OUR ground & off of OUR coastlines... Refine it HERE... Keep OUR money HERE AT HOME... And to quit funding terrorist states and hostile foreign governments!

Perhaps there is a silver lining... But if we all don't take action, that silver lining will probably only turnout to be Fool's Gold!