Big “Farma” Or Who’s Milking Whom?

The failure of the 112^th Congress to pass a new version of the farm bill which expired on September 30 of this year is going to cause the price of milk to go through the roof.  We could be seeing the price on grocery shelves double to $6 or $7 a gallon.

I guess this news is only good if you’re lactose intolerant.

Washington Post Columnist Charles Krauthammer has suggested that going over the "dairy cliff" might have an upside:

"I do think if we went over the milk cliff it would actually be a good idea. [If] people actually saw the milk price double, it would be less abstract than watching a debt clock. They would finally understand that we have the insane laws that acquire barnacles over the decades. And the farm laws are the worst. They are all kind of pressure, special interest favors, pay offs which make no economic sense. I'd like to wipe them out and start all over again, and it would be good if the law expired. People would actually be awakened to how insane our system is and how much we really need tax reform. It wouldn't be an abstraction, it would be real."

Federal law puts a giant safety net under the dairy industry by promising that if the price of milk collapses, the government will swoop in and push it back up by buying mass quantities of dairy products. The goal is to make sure that the farmers are paid somewhere close to what it should cost them to produce the milk, a figure that's determined by a complex formula. 

Usually, dairies can earn plenty selling their product on the open market, and the government doesn't need to intervene. But the 1949 law getting ready to kick back in, bases its formula for the cost of milk production on how the industry worked in the early 20th century, when it was far less efficient than today. As a result, it will automatically force the government to start paying a giant premium for milk products, which will then cause prices to jump for everyone else as well. 

Don’t think for a moment you can avert the so-called “dairy cliff” by stocking up on powdered milk or almond milk or soy milk.  It’s all milk-based.

What’s next?  Oreos?

That giant sucking sound you hear isn’t just the milking machine hooked up to the udders of cows; it’s going to be hooked up to our wallets relieving us of its contents.  Thanks you miserable POS congresscritters.

Happy New Year, citizen.

UPDATE 12-31-12:  Deal could prevent spike in milk prices.

Does This Obama Lapdog Have Alzheimers?

Washington (CNN) —Less than two weeks after one of the nation's deadliest school shootings, the No.2 Democrat in the U.S. House, Steny Hoyer, compared Republican tactics for dealing with the nation's debt limit to someone threatening to shoot a child hostage. 

"It's somewhat like taking your child hostage and saying to somebody else, 'I'm going to shoot my child if you don't do what I want done.' You don't want to shoot your child. There's no Republican leader that wants to default on our debt that I’ve talked to" Hoyer said at a Capitol Hill press conference.

Obviously, the image associated with this post is a Photoshop™ of the profoundly foolish 73-year-old addlebrain bonehead dimwit pinhead cretin who’s been representing the Great State of Maryland for 31 years.  Hoyer provides the perfect argument for term limits and regular tests for signs of the onset of Alzheimers and, perhaps, an IQ test. Never take your eyes off the mumbling, bumbling bum.

I’m certain the parents in Newtown find Hoyer’s comments revolting.  I know I do.

Performing The Miracle Of Turning Unlimited Debt Into Unimaginable Prosperity

Alright gang, Christmas is over.  Time to face the music.

If you haven’t read Kyle Becker’s The Progressive Bible: Obama’s Genesis, you really should.  Here’s just some of his parody:

In the beginning Obama promised to create a heaven on earth. 

And his believers’ minds were without form, and void; and awe-struck looks were upon the faces of the asleep. And the Spirit of Obama moved upon the faces of the believers. 

And Obama said, Let there be debt: and there was debt.

We learn today that the Chicago Messiah plans to return early from his annual vacation to Hawaii in order to take part in talks to avert the fiscal cliff.  Congress is also due to return to the capital on Thursday.

“God only knows” how a deal can be reached now, said Speaker John Boehner.

If negotiations between His O’liness and Congress collapse completely, 2013 looks like a rocky year.

Taxes would jump $2,400 on average for families with incomes of $50,000 to $75,000, according to a study by the non-partisan Tax Policy Center. Because consumers would get less of their paychecks to spend, businesses and jobs would suffer.

At the same time, Americans would feel cuts in government services; some federal workers would be furloughed or laid off, and companies would lose government business. The nation would lose up to 3.4 million jobs, the Congressional Budget Office predicts.

Several tax breaks begun in 2009 to stimulate the economy by aiding low and middle-income families are also set to expire at the beginning of 2013.  For example, the alternative minimum tax would expand to catch 28 million more taxpayers, with an average increase of $3,700 a year. Taxes on investments would rise, too. More deaths would be covered by the federal estate tax, and the rate climbs from 35 percent to 55 percent. Some corporate tax breaks would end.

If the nation goes over the fiscal cliff, budget cuts of 8 percent or 9 percent would hit most of the federal government, touching all sorts of things from agriculture to law enforcement and the military to weather forecasting. A few areas, such as Social Security benefits, Veterans Affairs and some programs for the poor, are exempt.

The New York Times has an article in today’s paper that cites noted research economists at the Bank for International Settlements, Stephen Cecchetti and Fabrizio Zampoli.  They say, “The United States, along with the rest of the industrialized West, has been on an unsustainable fiscal path for decades.”  They predict that unless radical reforms are adopted the public debt will exceed 400% of GDP.

Such debt levels are wildly implausible, as creditors would likely stop lending to Western governments long before such levels are reached. Some politicians and economists may want to put a fig leaf on it, but the projections by Cecchetti and others mean that the West is effectively bankrupt.

I’d like to personally thank all those f%#king low-information voters for perpetuating this financial morass by re-electing The Protector of the People as Long As They Know Their Place and Belong to The Right Unions.

Here’s A Pen, Sign Your Surrender

I loved that line so much; I pinched it from John Gordon Steele’s piece at Commentary Magazine for the title of this post.

Steele concludes his post with this pearl of wisdom: 

“Obama’s utter disdain for any ideas but his own is going to be the ruin of this president and that ruin might not be that long in coming. Too bad it is the country, along with his place in history, that has to suffer for his hubris.”

Obama’s budget plan is “mainly tax hikes,” House Speaker John Boehner told reporters today in Washington. “We’ve got some serious differences,” he said. During a phone call yesterday, Boehner said, he and the president were “frank” about “how far apart we are.”

Senate Minority Leader Mitch McConnell (R-KY), said Obama’s focus on higher tax rates for top earners has made a deal tough to reach.  “The president and his allies have taken so many things off the table the only thing left is varnish,” McConnell said.

When I conceived this Photoshop™, I considered Ebenezer Scrooge from Charles Dickens’s A Christmas Carol because he loved money more than life itself.  Obama loves money; your money—my money—our children’s’ and our grandchildren’s money.

The second character in the ‘shop is of the bitter, grouchy, cave-dwelling Grinch who had a heart two sizes too small.  He’s there because Obama “seems to think that if all he talks about are taxes, and that’s all reporters write about, somehow the rest of us will magically forget that government spending is completely out of control.”

The third character, Uncle Sam wearing handcuffs, represents a helpless country unable to fend off the significant negative economic, employment, and social consequences of going over the fiscal cliff—the effects of which, in many cases, would mean long-lasting if not permanent damage.

And finally, the errand boy sent by grocery clerks himself, laughing his ass off as he warns Republicans against using the debt ceiling as a bludgeon in this debt battle.  In the spring, when the Chicago Messiah seeks to raise the debt ceiling, we can only hope they refuse to pay him any attention.