Early Take On Obama's Speech

Tyler Durden's picture

From Peter Tchir of TF Market Advisors

The only surprise in the speech so far is that he hasn't told Transatlantic Holding Inc., that they should accept Buffett's offer. 

Now we can get back to trying to figure out what new plan Greece and the Troika come up with to justify repeating the process again a few weeks from now.  And just how much QE is going to be announced Wednesday.

His "fairness" speech leaves something to be desired.  His math is even more interesting.  I wonder what the effective tax rate of a single person making 50k is?  Without any deductions or rebates, the effective tax rate is 17.25%.  I bet that very few single people making 50k pay an effective rate of more than 15%.  I suspect that many people making over a million pay an effective tax rate greater than 15%.  So much for math.


And a follow up from Mike Krieger who doesn't much care of PCness...

Anyone watching this clown’s speech?  So he wants to just raise taxes on “millionaires” now to pander to his base.  Apparently it is the idea of Warren Buffett, crony capitalist #1 in America.  Ok, let’s think about this for a second.  His WHOLE argument is that we need the revenues to pay the elevated debt.  Ok, well why is the debt elevated?  The big banks blew up the economy and then need a bailout.  Ok.  Have we separated investment banking from commercial banking and brought back Glass Steagall which did that in the first place?  No.  Are any bankers in jail?  No.  Did they pay themselves record bonuses on tax payer bailouts? Yes.  I though Obama couldn’t possibly get any worse.  He just did.  He is a liar and is 1000% in the pockets of Wall Street and crony capitalists like Buffett and Immelt (GE).  The guy is a fraud and his plan is a smokescreen to protect his real backers and create class warfare.

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r101958's picture

I noticed that there were no concrete numbers in the address. Just platitudes. I heard nothing about what exactly he proposes.....just another fluff speech.

narapoiddyslexia's picture

If its more than fluff, he's the deer-in-headlights, again. Wall Street shill, through and through.

And I voted for the shill. Only 'cause I was sick of Cheney, understand, the man with no heartbeat.

There is only one option left at this point, Ron Paul. If he fails again, then there are no options left but resistance, which can take many forms.

There are thousands of places where sand can be thrown in the monster's gears, without repercussions to the sand thrower. We are the sea, they are the islands.

Think about it.

trav7777's picture

then ur a dumbass for voting for the lesser of two evils, because you still got evil, mfer.


Joshua Falken's picture

FDR's Treasury secretary, Henry Morganthau Jr.said in 1939  

"We have tried spending money.  We are spending more than we have ever spent before and it does not work.  And I have just one interest, and if I am wrong … somebody else can have my job. I want to see this country prosperous. I want to see people get a job. I want to see people get enough to eat.  We have never made good on our promises. … I say after eight years of this Administration we have just as much unemployment as when we started. … And an enormous debt to boot."

Obama, Geithner and Bernanke are clearly not students of history otherwise they would not be following Morganthau and the Japanese kicking the can down the road hoping for a miracle.

DaveyJones's picture

voting is sooo pre-revolt

Oh regional Indian's picture

Hah! nice. yes, Demoncrazy, it will make everyone 'equal". What a bald faced lie.

But on topix, got to give the guy props for his delivery. The level of training to do what he does must be mind-boggling. i get the heebie-jeebies watching him talk and yet cannot help but shake my head in wonder. 

And if anyone stayed long enough to watch, Timmah is answering questions about changes to the tax-code. Anyone see the inherent ridiculousness in that? Eh? And that whole Press WHore, I mean Cored, I mean Core, no one has the balls to break from script and ask, on Camera, hey, Tax-cheat, you talking taxes to me?

BAh! Such an uber controlled set-up!


America is a Lie. AMERICA is where these cats are at.

BDig's picture

A tax on millionaires affects very few people now.  However, in 10 years, this will be nearly everyone.

narapoiddyslexia's picture

May not be 10 years, even. A tax on millionaires may hit the middle-class in as little as five years, Bernanke willing.

malikai's picture

Yup. Obama will get class warfare. But I'm not so certain it will be the class warfare he seeks. I suspect it will be more of the political class vs. the serf class, because all the "rich" will be gone. But nevermind that, by the time the serfs figure that out, the new batch of crones will be on to saving the world from the next great problem they create.

trainman's picture

well said- need to try voting domeone different- not a dem. or reb.- cannot believe either party at this point- they speak paty first- America second (maybe).

Stop being a sheeple and vote for a difference-

pods's picture


“If voting changed anything, they'd make it illegal.”

-Emma Goldman


Tater Salad's picture

Stop being a sheeple and vote for a difference-


Because trying to vote in a third party in a two party system is the ultimate "wasted" vote.


Sorry, just keepin' it real!

mojine's picture


... It's a feature-length documentary that explores how a third political party could win the presidential election of 2012 or 2016 with four key issues. Obviously, you're the inspiration. Are you pleased with the result?

Nelson Hultberg: Very much so. It is extremely difficult in the times we live in for the forces of freedom to get a fair hearing in the media and movie houses. This film gives us that fair hearing. It tells the viewer what has brought about our demise as a free country by contrasting the two distinct periods of our history – the libertarian-conservative era, 1776-1913 with the progressive era, 1913-2011. It puts forth four strategic policies that must be enacted if we are to correct the terrible damage done to us by the Keynesians and the collectivists, and thus save the country. These are policies that can get a nationally known candidate 38% of the vote and win in a three-man race. This would begin the salvation process of the country.

Daily Bell: It features Freedom Force Founder, G. Edward Griffin (author of The Creature from Jekyll Island), Peter A. Lillback, author of George Washington's Sacred Fire, John McManus, President of the John Birch Society, Pat Buchanan, well-known author and political analyst, and Edwin Vieira, constitutional attorney from Harvard, (author of Pieces of Eight). Feel like you are in good company?

Nelson Hultberg: Extremely fine company. These are the type of "truth-tellers" that Orwell was referring to. These are the type of contrarian intellectuals who do not worship popularity over principle as the MSM talking heads do so cravenly. These are the type of minds that are not afraid of the truth. They know that we live in times of massive deceit, and their goals are far more profound than receiving acclaim from the collectivist herd. Their views are geared toward exposing the usurpations and sickening humbug that permeates politics in America today.

Daily Bell: Of course it's inspired by your strategy set forth in your new book, The Conservative Revolution. You launched AFR and the CONSERVATIVE AMERICAN PARTY to give people that choice. Tell us about its "Two Pillars Strategy."

Nelson Hultberg: The "Two Pillars Strategy" is the foundation of the Conservative American Party. It is designed to put in front of the American people two crucial political reforms that will stop the relentless growth of government and begin the restoration of what we were meant to be as a country.

These two crucial reforms are: 1) Ending the Federal Reserve's power to inflate the money supply at will, and 2) Ending the government's power to progressively tax its citizens. These two powers give government the ability to steal wealth from the people by debasing the currency and by confiscating the earnings of our most productive citizens through progressive tax rates.

Pillar #1 is to enact Milton Friedman's 4% auto-expansion plan for the Fed. This will mandate by law that the Fed can only increase the money supply by 4% every year. Monetary expansion will be taken away from the FOMC's arbitrary discretion and be computerized, which will keep money supply growth equivalent to the growth of goods and services, which will reduce price inflation to zero. This will end the Fed's irresponsibility and allow time for the people to be educated as to the necessity for a gold standard and ending the Fed, which might require several decades. Such an auto-expansion plan is not perfect and not a permanent solution, but it will stop the destruction of our currency. It is a vital interim policy until gold money can be re-established. Even Ron Paul himself knows that the Fed is not going to be eliminated right away. Only naïve utopians who don't live in the real world want to end the Fed today. Good grief! The country would totally collapse. We need a plan to phase out the Fed. This pillar is the first step toward that process. Combine it with Edwin Vieira's plan to enact gold and silver coin alternatives at the state level, and you have a viable means to rectify 100 years of Marxist / Keynesian monetary insanity.

Pillar #2 is to enact an equal-rate income tax of 10% for everyone (i.e., a genuine flat tax). If we are to uphold "equal rights" in America, then we must have "equal rates" in our tax system. And all citizens must be assessed the tax. No exemptions. Period. Only in this way can we have a responsible electorate. When all people have to pay proportionally for their government services, they will begin to vote for less government every year at the polls. A 10% equal-rate tax for everyone will be revenue neutral, and thus not threaten the stability of the voters' lives. Because all the people will have to pay the tax, the overwhelming majority will demand that the 10% rates be lowered every year and government spending be reduced. They will start sending Ron Pauls to Congress instead of Chuck Schumers, for this is the only way they will be able to get more freedom and money into their lives. Consequently we could have a 5%-7% flat income tax in a decade or two. At that time we could then switch to a national sales tax of 5%-7% and completely eliminate the income tax along with the IRS.

Waffen's picture

anyone who voted for Obama was either a complete ignoramus or completely and utterly ignorant of reality. (or commie P.O.S or kleptocrat)


if you voted for McCain you are likely also an ignoramus or completely and utterly ignorant of reality as well. 



narapoiddyslexia's picture

At least you're evenhanded about it. Here is a question. Of those who voted, how many voted for neither The Big Zero or Big John/Big Sarah?

Construct's picture

That is because his team is busy redefining what rich is.

Oh regional Indian's picture

That is an excellent construct, Construct. Nwo(!!!) they will cull the "merely" rich. 

Basically, the cull and th ere-definition of the matrix's visible structure has begun, in earnest. The millionaires are going to get buffeted. The Buffets are safe,a s they always were.

Oh, and two words for mr. jobs Plan. Soiled Undies!


Raymond K Hassel's picture

Running 50k throuh my tax software, with no deducts or kids, single taxpayer, tax would be $6,350, just a shade higher than 12%.

Ruffcut's picture

Lip service, at its best.

I suggest to close the def with a bullshit tax. Problem solved.

spiral_eyes's picture

"It's not class warfare" — Obama

No — it is class warfare — warfare by the rich: Goldman Sachs, Obama, the military industrial complex, the Federal Reserve — against the poor: everyone else.

This is a sick Presidency, based on Orwellian logic, hopey-changey nonsense, crony capitalism, oligarchy and corporatism.

Fuck Obama, Fuck Warren Buffett, Fuck the Federal Reserve.

Let good businesses succeed and failing businesses (hello BAC) die.


ZeroPower's picture

The rich pay enough taxes... top 1/2 pays 97% of taxes, bottom 1/2 pays <3%. And yet, they want more benefits!

trav7777's picture

a wealth tax to retire real debt would be just as the debt went directly into the pockets of the elites.

Tax bankers' wealth, and all the people attached to the gov't tit and retire the debt.

maximin thrax's picture

The banker's income is taxed in the higher brackets. Their bonuses are earned in the top bracket. The progressive tax scale guarantees that. The feds would rather have the banker working and see his bank having bigger profits than have you working. If the government has to lose its 9% effective tax rate on the $50K you earn so that the banker's multi-million dollar bonuses are maintained from which Uncle Sam gets 30%+, there's no chance for you. With the top 1% paying so much of the tax burden and the bottom half paying so little, it behoves the government that the people in the highest tax brackets make as much money as possible, as often as possible and in any way possible. Government will always shepherd the mega-taxpayers towards greater profitability at the expense of the little guy who sees tax breaks on non-existant income.

malikai's picture

Change I can believe in.

clagr's picture

He must be saving taxpayers money by cutting out telelprompter script writers.

"Just roll the old ones, they haven't got it yet."

Long-John-Silver's picture

His teleprompter writer did quit and has moved on to another job.


ZH, can you have someone in your math department report on the correlation between 'stock market down days' and 'Obama economic speeches", thank  you.

carbonmutant's picture

It's not about the math it's about class warfare...

Josh Randall's picture

Common theme in DC - to quote Spinal Tap/The Thamesmen: "Gimme Some Money"


DaveyJones's picture

great look, great drummer. He died...he died of a bizarre gardening accident.

Lady Heather...UNCLE's picture

...he is such a disappointment. A very inarticulate person in reality. And a stooge. Please get rid of this imposter.

CaptFufflePants's picture

I heard him say he would remove tax deductions for those making more than 250K so if that is the case the single guy making 50 grand argument is pointless.


I see the S&P went up 1% since start of speech so that means the world likes his plan right?


I mean if it went down, the headline would be Obama Opens Pie Hole Global Markets Crash


So since they went up you will attribute all gains to his plan, amirite...lol yay right...


SheepDog-One's picture

QE3 FOMC can only be a disappointment, as theyve got the entire $3 trillion baked into fake stocks already and also a complete recovery of the economy. 

Its goin down folks, Cat 5 Shiticane.

scatterbrains's picture

so cap gains are held low while stocks rise via bursts of hft. As we crest the top, with the whales positioning short, we jack the cap gains rate up just in time to snatch back a big piece of the fortunes about to be made when stocks collapse?

SheepDog-One's picture

Its all just worthless fiat markers anyway.

moregoldplease's picture

Warren is apparently suffering ego driven dementia. Our president thinks he is a monarch, and most of the population seem to agree or wish it were true. The fact that there isn't enough money does not seem to matter. The only thing the plan would accomplish is the complete suffocation of economic growth, just take a look at Europe. Junk away Obama trolls I can't wait.

PivotalTrades's picture

Makes you wonder what other deals the bumbkin made. He knows that captal gains rates are lower than income rates because they represent the double taxation that takes place on the corporate level.

Restcase's picture

Isn't it the case that Americans are really monarchists? Look at the congressional approval ratings, the participation level in local elections, and the immense hope and belief placed in the executive branch. This is basically a Czarist peasantry, ZH readers (on the other hand) being the freedom-loving cossacks on the frontier. Unfortunately, this peasantry will get a dictator before they get a king.

LetThemEatRand's picture

I don't buy that tax policy is going to suffocate or not suffocate anything.  The problem is that the globalist oligarchs figured out they could make more money "employing" slaves in China and elsewhere, resulting in the huge sucking sound of jobs leaving the USA and the wealthy nations in general as predicted by crazy ass Ross Perot many years ago.   The idiotic Blue Team keeps its base of sheep happy by claiming that taxation of the few left with money is the answer, and the Red Team rallies its sheeple supporters by claiming that the rich just need a little more and then everything will be better again.   Divide and conquer. 

Moe Howard's picture

Unemployed communists don't get up this early, hence no junks.

Outlaw Of The Wasteland's picture

The Republicans should come out and say, " We are not going to pass anything authored by this man.  He is a communist and a domestic enemy.  We have no idea who his real father was, but we do know much about his past not reported upon by his fellow travelers in the media." 

Throw down the gauntlet.  Have some balls.  Call a spade a spade.


SheepDog-One's picture

Yep, they should. But we'll get the standard touchy feely compromise crap because all politicians have to operate to the lowest common denominator and believe this crap that 'The people want you to work together and get along'....Oh Cumbaya! 

AssFire's picture

I had him pegged as a psychopathic joker.


Little John's picture

HEY! That's not fair to spades.

SWRichmond's picture

Would that it were true.  But the Repubs are ball-less assclowns.

I Got Worms's picture

"Call a spade a spade."

I see what you did there. :-)

DosZap's picture

I Got Worms,

No he missed it lets Call a  Mulatto a Mulatto.(He's as much White as Black.) None of that matters,his policies are murdering us.

This has to chap his ass that he is 50-50 ,but he more than makes up for it with the commie manifesto shit,and causing class warfare, to get the peoples eyes off the real agenda.

LawsofPhysics's picture

Another sheep who believes that the two parties are actually different.  The script has already been written moron.  If voting actually changed the status quo, it would be illegal.  Ron Paul is the only viable GOP candidate I see.