Daily Pfennig - 8/13/2009

http://www.dailypfennig.com/

"...getting back to the thought of abolishing the Fed... Think about this for a minute... What good are they? Have we not had dozens of recession and one Great Depression since they were created? Have we not seen a 95% loss of purchasing power for the dollar since they were created? Let me tell you something else, folks... If the markets set the interest rates based on activity, we would never experience inflation or deflation..."

"...The U.S. Budget Deficit swelled to $180.7 Billion in July, from $102.8 Billion in June... Hmmm... Think about that for a minute folks... In June, when quarterly tax receipts should be enough to cover the expenditures, they not only were not enough, but they fell short by $180.7 Billion dollars! This is a combination of slower tax receipts because of the depression were in, and... The unsustainable deficit spending by the Gov't. Oh! And the Budget Deficit year to date is now $1.27 Trillion... But you don't see the knuckleheads in Washington D.C. doing anything about it, except for coming up with new things to spend more money on... I say fire them all!

Speaking of tax receipts... My friend, and writer & Marketing genius extraordinaire, David Galland, had this to say recently in one of his most excellent news letters... Here's David...

"I like the idea of also forcing the government to stop automatically withdrawing taxes from paychecks. Instead, wage earners would be responsible for sending out their tax payments on a monthly basis. By my back-of-the-envelope calculations, it would take about two months of writing out the big checks to Uncle Sam before people came to grips with just what government (or, in this case, one slice of government) is actually costing them… and out would come the pitchforks. We cannot afford our current level of government, and the sooner we get around to cutting it back, the better. Period." -- Thanks David... As always you think on a different level than the rest of us!

The Trade Deficit also grew larger in July as Oil prices rose... The Trade Deficit moved to $27 Billion from $26 Billion... Now, the Trade Deficit is much smaller than it used to be thanks to the depression, but, the fact remains that it is still nipping at the heals of the dollar like one of those small dogs, and whenever it is that the U.S. comes out of this depression, this figure will balloon once again..."