A short while ago I returned from attending the OC Rush Limbaugh Fan Club breakfast meeting that was held at the Casta Del Sol Golf Course in Mission Viejo.
After the traditional opening prayer and pledge, Club president Joe Snyder, retired Marine Corps Colonel and former Mayor of Dana Point, introduced Orange County Treasurer/Tax Collector Chriss Street who proceeded to conduct a class in Economics 101 for the room full of concerned citizens.
This has not been a fun post to write. Assemblyman Chris Norby District Director Bruce Whitaker once advised me that “numbers numb” and he was correct.
For those unfamiliar with Chriss Street let me open with the RUSH flyer introduction.
“Having worked for thirty years as a money manager, investment banker and corporate restructuring specialist, Chriss Street brings extensive private sector experience to elected office. Mr. Street has served as Chairman and CEO of two New York Stock Exchange listed companies, as a Trustee for the United States Justice Department and as a member of the Board of Directors for several corporations.”
After distributing a PowerPoint reprint entitled “Inflation Vs. Deflation or Risk Assets Vs. Preservation of Assets” we commenced our class in economics.
The slide entitled “Inflation versus Deflation” shows that after FDR devalued gold in 1933 we have experienced a 1531% [percent] inflation during the period from 1934 to 2007 dollar increase for the same purchasing power. While the numbers can be numbing let’s go to the local grocery store.
Stated another way. In Morris County, NJ in May,1934 an 8 oz. box of Kellogg’s Corn Flakes cost $.08. In the past few years a 12 oz. box was priced at $2.99.
I happen to like Nabisco Oreo cookies. In 1934 you could purchase a 16 oz. package of OREO’s for $0.27. In 2008 an 18 oz. package cost $4.29.
My last illustration of inflation is a loaf of white bread which in 1934 cost $.09.
Today you can go to any supermarket today and pay anywhere from $1.00 to $3.00.
Yes, I would agree that while the buying power of our currency is in decline, we have yet to drop as much as Zimbabwe. No disagreement that the greenback has surely lost its purchasing power.
This leads me to the next page addressing “Quantitative Easing” where Chriss reports that “Central Banks create inflation, because their interest rate targets are usually too low. Consequently they must keep increasing their assets and liabilities, known as printing money, to keep policy interest rates down to targets.”
Treasurer Street stated that increasing our money supply increases inflation.
How many of us can recall high double digit interest rates during the Carter years?
In one slide it states that in “1979 the Federal Reserve under Volker induced Credit Crunch to break the inflation cycle.” Chriss pointed out that president Reagan was very courageous in breaking inflation on his watch.
As the current national focus is on jobs one page contains a chart of single family housing starts. Chriss said that it normally takes 12 months for housing restarts after a downturn yet it has now been 24 months and there is no activity in this vital private sector category.
The following page of his presentation is a graph addressing total nonfarm payrolls. Chriss said that “employment normally comes back after 24 months of a recession” yet “we are still going south after 24 months.” Another chart confirms what we have heard. Banks are simply not lending money into the real estate sector.
Some other sound bites from his presentation:
- “Every dollar spent on stimulus includes $.30 cents of administrative expenses.”
- “Government spending doesn’t work.”
- “A 1% increase in taxes equals a 3% loss of employment.”
- A 1% decrease in taxes equals a 4% to 5% increase in employment within 2-3 years.”
- “CA Bonds were being sold at 1.5% in 2009. Because of our outstanding credit rating, the current rate is approaching 6%.”
- “California is going over a cliff.”
To summarize. This was a very uplifting meeting indeed.
Note: After the Club meeting I conducted a lengthy interview of 42nd CD candidate Lee McGroarty, who is challenging Rep. Gary Miller.
Based on his in-depth answers my sense is that the interview shall be posted in two or three parts. Stay tuned.
The OC Rush Limbaugh Fan Club hosts Chris Street, this is either a VERY FUNNY JOKE or a VERY REVEALING COMMENTARY ABOUT CONSERVATIVE VALUES, either way, HILARIOUS!
It looks like this is real, anonster.
Hey, are we still on for the Hugo Chavez bash this weekend? I don’t know. How can I really even make fun of Brother Larry any more? Rush Limbaugh Fan Club. And Chriss Street was there. Along with the Reeps’ only alternative to dirty Gary Miller. It’s a grim, choked discourse out there.