What’s Stopping Small Businesses And People From Pooling Health Care?

Posted by Jason | Posted in Health Care | Posted on 26-02-2010


During the Health Care Summit yesterday, the word pooling was used a lot. Typically, it was in reference to how the government can enabled people and small businesses to setup pools to purchase health insurance. Has anyone asked what is preventing that now? The politicians act like nature itself is preventing “pooling”.

Senator Baucus: So the main point is we’re not really that far apart. We’re trying to find ways for small business to pool, small business to take advantage of competition, they shop and compare; and also some tax provisions that enable — to encourage businesses to get health insurance.

Congressman Andrews: And then the President asked the question about whether we can find agreement on pooling the purchasing power of small businesses and individuals so they can get the same deal that big companies and members of Congress get. And my friend John Kline talked about the association health plan proposal. Respectfully, John, I think that what you’re talking about with association health plans and what we’re talking about with exchanges is a semantic difference. It’s a matter of pooling the purchasing power of small businesses and individuals to get a better deal.

President Obama: I just want to point out, though, that the principle of pooling is at the center of both the Senate and the House bill.

Representative Boustany: Small business health plans is one way to really deal with this and allow for pooling.

What is preventing people and small businesses from pooling? It’s the same root problem of all our problems, GOVERNMENT. The government is the one who sets up these tyrannical rules and regulations that say what “free” people can and can’t do. They tell you how you are going to buy, what you are going to buy, how you are going to pay for it, and on and on. It is not nature, and it is not the free market.

If these geniuses want to enable people to pool, they should get the government out of health care. If pooling makes sense for people, they will do it themselves. The problem is right now they can’t because government is a pool of bad regulations and idiots with bad ideas.

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Economic Ignorance At The Health Care Summit

Posted by Jason | Posted in Health Care | Posted on 26-02-2010


Yesterday, Obama held his health care summit with both parties. While working, I had it playing in the background. Unfortunately, I found my self laughing and yelling at the TV more often than I’d like to admit.

What the summit highlighted to me is the complete ignorance of Obama when it comes to economics. He can bring out his laundry list of sob stories, but it still doesn’t change the fundamental economics that I outlined in a previous post on root causes.

Here is a sample of Obama’s ignorance.

Tom Coburn:

“So when you break down the costs, what we know is 33 percent of the costs in health care shouldn’t be there.

And how do we go about doing that? And what are the components of that cost? And when you look at, when it’s studied, if you look at what Malcolm Sparrow from Harvard says, he says 20 percent of the cost of federal government health care is fraud. That’s his number.

If you look at Thomson Reuters, when they look at all of this, they say at least 15 percent of government-run health care is fraud.

Well, when you look at the total amount of health care that’s government run, you know, you’re talking $150 billion a year.

So tomorrow, if we got together and fixed fraud, we could cut health care 7.5 percent tomorrow for people in this country.”

“So it seems to me if cost is the number one thing that’s keeping people from getting care, then the efforts of us, as we go after cost, ought to be to go to those areas where the cost is wasted.

And there’s a philosophical difference in how we do that. One wants more government-centered approach to that. I would personally prefer a more patient-centered, market-orient approach to that. But nevertheless, there’s where we can come together, just on those two areas, where we could cut costs 15 percent tomorrow. And that’s for everybody in the country.

What would — what would happen to access in this country if tomorrow everybody’s health care costs went down 15 percent? Access would markedly increase.”


“So that’s an example of where we agree. We want to eliminate fraud and abuse within the government systems.

Let’s recognize, though, that those savings in the government systems, which will help taxpayers and allow us to do more, doesn’t account for the rising costs in the private marketplace.”

via Sen. Tom Coburn discusses cost containment at the White House health summit – washingtonpost.com.

Can you believe how ignorant Obama is about markets and the economy? I guess based on his performance so far, you are probably can.  Coburn explains that based on the best case numbers 15% of all government spending is waste. The government accounts for 50% of all heath care spending already, so that 15% would count for 7.5% of all health care spending. Obama seems to think that there are two separate and unrelated markets and says that explains rising government costs but not the private sector costs. WHAT? Are you serious Mr. President?

This would be like dividing up a bathtub into half private and half government with the faucet on the governments side. When the tub starts overflowing, Obama would say, “Well the faucet explains why the government side is overflowing, but that doesn’t explain why the private side is as well.”

There is one health care market. It doesn’t matter where the money comes from. If more money is thrown at the same resources, prices go up. What Coburn is saying is you have 15% of all the government’s money as waste thrown into the market which is chasing the same resources as the private sector. That is one of the reasons costs are going up on both sides.

This one statement should highlight why government involvement in anything is a complete disaster. They have absolutely no concept of economics or reality for that matter. Democrats want to legislate based on feelings and wishes. Well, I may wish everyone was a millionaire, but that doesn’t mean it’s good policy. It doesn’t matter how many stories I tell about poor people.

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“Low Rates Still Needed”, So Says Our Central Planner

Posted by Jason | Posted in Economics | Posted on 25-02-2010


Will Bernanke be raising rates anytime soon? Sure doesn’t look like it.

After taking several small steps recently to take the financial system off life support, Federal Reserve Chairman Ben Bernanke made clear Wednesday that he wasn’t close to the more momentous act of raising interest rates, thus tightening credit.

In his semi-annual testimony to Congress on the economy and monetary policy, Mr. Bernanke said that short-term interest rates, now near zero, were likely to remain there for at least several more months.

He highlighted worries about what he called the “nascent recovery”—marked by high unemployment, wobbly real-estate markets, weak lending and large budget deficits. Mr. Bernanke said slack in the economy meant the benchmark federal-funds rate would remain near zero for an “extended period.”

Fed chairman Ben Bernanke will update Congress on monetary policy this morning. The question-and-answer session might prove illuminating, Kelly Evans reports on the News Hub.

via Bernanke: Low Rates Still Needed – WSJ.com.

OK, so if Americans tossed aside the assumptions that are programmed into them by the media and schools, they would ask, “How does Bernanke know when the rates need raised?” Well, the truth is he doesn’t.

Just think about this whole concept of central planning when it comes to interest rates. Interest rates are just the cost of money. It should be set by supply and demand just like the cost of any other product or service. So, what would have happened if Bernanke didn’t crank interest rates down to zero to fix the bubble the Fed just created and popped? Well, rates were high because the Fed raised them before the bubble burst, which ultimately popped the bubble. Now, let’s say the Fed disappeared off the face of the earth at that moment and the free market took over. Interest rates would have been high at the moment just like it was. When the interest rates are high people save instead of spend. If for instance you are looking to invest in a building and your return is 7% but interest rates are 6%, are you going to spend that money or save it? You are better off saving it than taking the risk for an additional 1% return.

Now, with an increase in savings and a decrease in borrowing, what would happen? What happens anytime supply (money in this case) increases and demand (borrowing in this case) decreases? The price (interest rates in this case) declines. As it declines, all the sudden that investment in a new building makes more sense, and at that point you will have real investment based on real economic conditions. The interest rate will actually mean something, and you will know that currently based on the interest rate there is ample supply of money in savings to be lent out to fund this project. The funding will not dry up at the whim of the Fed half way through the project.

Now the opposite is true as well. If too many people start borrowing instead of saving, the interest rate will increase. With less savings, supply (money) decreases. When supply decreases and demand increases or remains the same, what happens? Prices (interest rates) go up.

The market can handle money and interest rates based on real conditions. Instead, much like the Soviet economy, we have a central planner who has no clue what the real conditions are. Think about it. When the economy tanked, people should have stopped borrowing/spending and began saving. That would have lowered interest rates and got investments back on track after savings was back up to a sustainable level. Instead, the Fed dropped interest rates to the floor (actually negative real interest rates), which discourages savings. Is it any wonder our economy seems to have booms and busts? Businesses decide to invest assuming that there is ample supply of money. The problem is there was no real savings, because the Fed’s zero percent interest rates discouraged savings. Then some point in their project, the Fed decides they want to raise interest rates, and funding for that project dries up. This is not based on real market conditions, but because the Fed said so. Now this business lost it’s investment, which can ultimately lead to bankruptcy, laying off employees, etc.

Hopefully this makes sense. I’m not an economist, but sometimes I play one on this blog and not a very good one.

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Blowback In The Making

Posted by Jason | Posted in Foreign Policy | Posted on 25-02-2010


The Wall Street Journal had an article this morning about the US trying to remain “neutral” by selling weapons to both India and Pakistan. Did we claim to be neutral by selling weapons to both sides in WWII? Seems to me selling weapons to both sides will eventually have both sides blaming you in the event of a war.

The Obama administration is sharply expanding American weapons transfers to both India and Pakistan, longtime rivals about to sit down for peace talks Thursday.

Ah, our Nobel Peace prize winner. I’m so proud he won that with all his hard work promoting peace….well except for the dropping bombs in Yemen and Pakistan where we haven’t declared war. Oh, and instigating tensions with both Japan and China…..oh, and ratcheting up the war talk with Iran… oh, and now selling weapons of mass destruction to Pakistan and India.

The U.S. has sought to remain neutral in the thorny relationship between the nuclear-armed neighbors. But Washington hasn’t been shy about pursuing weapons deals in the region, which officials say will lead to closer ties with each country while creating new opportunities for American defense firms.

I am sure glad we have a government more concerned with “creating new opportunities for American defense firms” than with the long term peace with both nations, in other words by really remaining neutral. I have no problem with private businesses selling them weapons, but the problem comes in when our government is used as their sales force.

The U.S. has made billions of dollars in weapons deals with India, which is in the midst of a five-year, $50 billion push to modernize its military.

At the same time, American military aid to Pakistan stands to nearly double next year, allowing Islamabad to acquire more U.S.-made helicopters, night-vision goggles and other military equipment. The aid has made it easier for Pakistan to ramp up its fight against militants on the Afghan border, as the U.S. tries to convince Islamabad that its biggest security threat is within the country, not in India.

During a late January trip to Islamabad, Defense Secretary Robert Gates said the U.S. would for the first time give Pakistan a dozen surveillance drones, a longstanding Pakistani request.

OK kids, this is where you have to really read between the lines. Apparently, the Wall Street Journal doesn’t know what “aid” means. What this should have said is the US government is stealing the wealth of it’s own citizens at gun point. Then they are taking that money to give to defense contractors, who then give their products to Pakistan. Then Pakistan will use those products to kill their own people.

So, riddle me this Batman. If you are a Pakistani, and your family members get killed by a drone or some other weapon that was bought and paid for by the US government, ultimately the US tax payer, who are you going to blame? While it might be the Pakistan government that carried out the killing, who is their supplier? This is major blowback in the making.

Also, do you think for a second that the Pakistan government is ever going to say, “Hey, we don’t need your money anymore America. We killed all the terrorists. Thank you.”? No, we are paying them to wage war on terrorism. Their incentive is to never have that war end, for when it does, their hand out ends.

Washington’s relationships with the two nations are very different. India, which is wealthier and larger than its neighbor, pays for weapons purchases with its own funds. Pakistan, by contrast, uses American grants to fund most of its arms purchases. A new U.S. counterinsurgency assistance fund for Pakistan is slated to increase from $700 million in fiscal year 2010 to $1.2 billion in fiscal year 2011.

“We do straight commercial deals with India, while Pakistan effectively uses the money we give them to buy our equipment,” said a U.S. official who works with the two countries. “But we think that’s ultimately in our national interest because it makes the Pakistanis more capable of dealing with their homegrown terrorists.”

Ring-a-ling, ring-a-ling, ring-a-ling. The bells are going off. This came pretty close to the truth. “Pakistan effectively uses the money we give them (that we stole from our citizens) to buy our equipment (to give to our buddies in the defense industry).”

The country is preparing its military to deal with multiple potential threats, including conflict with Pakistan. Tensions have recently flared between India and China over territorial claims along their border. China defeated India in a short war in 1962.

OK, here’s another fight we are picking with China.

“For 2010 and 2011, India could well be the most important market in the world for defense contractors looking to make foreign military sales,” said Tom Captain, the vice chairman of Deloitte LLP’s aerospace and defense practice.

Russia has been India’s main source of military hardware for decades, supplying about 70% of equipment now in use. Moscow is working to keep that position, with talks ongoing to sell India 29 MiG-29K carrier-borne jet fighters, according to an Indian Defense Ministry spokesman.

The Obama administration is trying to persuade New Delhi to buy American jet fighters instead, a shift White House officials say would lead to closer military and political relations between India and the U.S. It would also be a bonanza for U.S. defense contractors, and has dispatched senior officials such as Mr. Gates to New Delhi to deliver the message that Washington hopes India will choose American defense firms for major purchases in the years ahead.

Still in the pipeline is India’s planned $10 billion purchase of 126 multirole combat aircraft for its air force. U.S. firms Boeing and Lockheed Martin Corp. are vying with Russia and European companies for that deal, which would be a near-record foreign sale for the firms. An agreement last summer allowing the U.S. to monitor the end-use of arms it sells to India is expected to facilitate such deals.

“That’s the biggest deal in the world right now,” said Mr. Captain. “If it goes to an American firm, that would be the final nail in the coffin in terms of India shifting its allegiance from Russia to the U.S.”

Picking another fight with Russia. Is it any wonder why so many people in the world hate our Government? We are trying to be strategic by sticking our finger in the eye of Russia, China, Japan, India and Pakistan, and this is just one article. Do some research on South America, but hey, I’m sure glad Obama won that peace prize.

via U.S. Sells Arms to South Asian Rivals – WSJ.com.

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Is Obama Ratcheting Up His Economic War On Japan?

Posted by Jason | Posted in Miscellaneous | Posted on 24-02-2010


Following up on my previous post.

BREAKING: FBI Raids Three Toyota Suppliers In Detroit

While Toyota CEO Akio Toyoda sits answering questions on Capitol Hill, the FBI confirmed with us they raided the offices of three Toyota suppliers in Metro Detroit for documents related to antitrust violations. UPDATE!

The FBI just confirmed to us they raided the offices of Yazaki North America, Denso International and Tokai Rika (TRAM). Though all are Toyota supplies they’ve yet to confirm if this is a part of an ongoing probe into Toyota’s 1.4 million unit recall, and a larger antitrust action confirmed by Toyota to MSNBC.

via BREAKING: FBI Raids Three Toyota Suppliers In Detroit – Toyota Recall – Jalopnik.

So, when will Japan start dumping our debt?

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Sotomayor the voice of reason?

Posted by Jason | Posted in Foreign Policy, Government | Posted on 24-02-2010


While many of my conservative friends won’t agree with me, I must say I was surprised to see Justice Sotomayor being the voice of reason on the court when it comes to the government going after terrorist abettors.

The Supreme Court wrestled to find the line between First Amendment rights and the fight against terrorism Tuesday during oral arguments over a law barring people from providing “material support” to foreign terrorist organizations.

Prosecutors favor the material-support charge because it is broad enough to cover a range of activities linked to terrorist organizations, from collecting funds to shouldering a rifle. But by making it a crime to provide “training,” “personnel” and “expert advice” to such groups—even for, say, peaceful ends such as disaster relief—the law sweeps too far into the rights of U.S. citizens to speak and associate freely, critics say.

Highlights are mine. Prosecutors love broad laws, because all they care about is convicting someone. The truth is not their concern. Most of them are looking for higher office, and the more convictions they get, the tougher they can claim to be on crime. Let’s not pretend the ultimate goal is to get to the truth.

The lawsuit was filed in 1998 by people who wanted to offer what they view as benign support to the Kurdistan Workers Party in the Middle East and the Liberation Tigers of Tamil Eelam in Sri Lanka, which the U.S. designated as foreign terrorist organizations in 1997.

Though neither group has targeted Americans, justices were aware of the case’s implications.

“Suppose the group is not the two that we have here, but al Qaeda and the Taliban?” Justice Ruth Bader Ginsburg asked David Cole, a Georgetown University law professor challenging the law.

Ah Oh! The boogieman. Maybe the geniuses in congress could pass a law with the names al Qaeda and the Taliban in them, so you could fix this problem. Besides, in my naive view of the Supreme Court, I thought their job was to determine constitutionality of laws. Where was al Qaeda, Taliban or terrorist for that matter written in the constitution? You could use this argument from Justice Ginsburg in regards to any activity. Next time the second amendment comes up, what if Ginsburg says “Suppose we don’t have these two people here, but al Qaeda and the Taliban? Do we want them to have guns?”

“It would pose a very different constitutional question,” Mr. Cole said, as lending support to groups taking up arms against the U.S. could be considered akin to treason or aiding the enemy.

Hey, here’s a thought. The constitution actually addresses treason, and if we are at war with the Taliban and al Qaeda, helping them would fall under treason.

Mr. Cole’s clients filed suit seeking a court ruling that their intended activities, such as helping the Tigers get aid following the 2004 tsunami in Asia, were not covered by the law. “It is advocating only lawful, peaceable activities,” Mr. Cole said.

Justice Anthony Kennedy suggested that it could be difficult to draw such a bright line. “If you get tsunami money, that frees up your other assets for terrorist money, so why can’t the government forbid teaching how to get that money?” he said.

Solicitor General Elena Kagan, representing the government, said that was the law’s point.

“Hezbollah builds bombs. Hezbollah also builds homes,” she said, referring to the Lebanon-based Shiite Muslim faction that is also designated a foreign-terrorist organization. “What Congress decided was when you help Hezbollah build homes, you are also helping Hezbollah build bombs.”

This has to be the worst argument ever. Why should we be able to donate to the Red Cross then? If the Red Cross goes in to help Palestinians, then Hezbollah would not have to pay for the help that the Red Cross provided. Since they don’t have to pay, Hezbollah now has money freed up for building bombs.

Several justices seemed troubled by the claim that virtually any interaction with such groups could be prohibited. The government has said that even filing legal briefs on behalf of a designated organization would violate the law.

“Under the definition of this statute, teaching these members to play the harmonica would be unlawful,” Justice Sonia Sotomayor said.

As my title says, it’s amazing to me that the woman I didn’t want to make it to the bench is the voice of reason in this case.  While neocons think she’s an idiot for this (read comments on the Wall Street Journal) because they love big government when it comes to foreign policy and fighting boogiemen, I don’t trust the government with foreign policy and the taking of my rights in pursuit of their wrong headed foreign policy. Neocons don’t trust the government with domestic policies, but they give the government a blank check with their freedoms when it comes to any “war on….” insert latest war title here.

As I said above, there is a means to try treason written in the constitution. We do not need laws that take away our liberties at the whim of government prosecutors and bureaucrats. With laws like this, the government can imprison any group of people that challenge them. What if the government thought the teaparties were getting a little to powerful for them? They could easily label Joe Stack’s attack on the IRS as a terrorist act. Then in pursuit of terrorism look into and prosecute anyone who is speaking out too boldly against government taxation. They could label militia groups terrorists, and then go after anyone who sold militia guns or was ever involved in militia.

Do not trust the government with you liberties. They do not care about protecting you. All they care about is the perception of protection in order to get you to hand over your liberties.

The Supreme Court should rule in favor of the Humanitarian Law Project, and the burden should be heavily placed on the government to prove their was treason and harm to our country.

A decision in the case, Holder v. Humanitarian Law Project, is expected by July.

via Justices Wrestle With Terror Law – WSJ.com.

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Town charges for 911 calls

Posted by Jason | Posted in Government, Video | Posted on 23-02-2010


Interesting that this would show up just days after my privatizing 911 post. If you watch the video or even if you read the post at Hot Air, everyone seems to think this has to be a government service that is provided for “free”.  Of course the news piece focuses on a retired gentlemen who is on a fixed income, because he probably depends on another crappy government program, social security.

My guess would be that the city is doing this knowing that people will be up an arms. There are probably 100s of other places to cut, but those are probably places voters don’t care about. They need the voters to get up in arms to raise taxes or to get the federal government to cough up more money. Ultimately though, this probably isn’t a bad idea. It shows people that government really does have a cost. Imagine if you had to pay one time fees for all government services. How quickly would the waste be  drained out of the system?

Saying that people shouldn’t or can’t pay $300 for a 911 call, which is probably used to save someone’s life, should tell us how bad our country has become. Who in their right mind wouldn’t spend $300 to save their life or someone else’s life? My only question would be why aren’t they having private sector companies competing for this business. If they are going to make people pay, at least let them have service from people who care about their jobs and a business who cares about their customers.

If we are ever as a nation are going to get back to the free market and back to any semblance of what the founders envisioned, we must realize that nothing the government “gives” us is free, and nothing the government does is more efficient than what the free market can deliver.


via Hot Air.

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Borrowing our way to wealth, jobs bill passes Senate

Posted by Jason | Posted in Economics | Posted on 23-02-2010


When will we learn that government cannot create jobs? All that needs to happen is for the government to go home and leave us alone. We’ll create jobs. Now, the Senate passes another jobs bill that we have to borrow money to pay for. How idiotic is this? When has borrowing money ever made a nation or a person richer?

The Senate voted to advance a $15 billion job-creation package Monday, showing a rare hint of bipartisanship as five Republicans voted to end debate on the Democratic bill, including newly elected Sen. Scott Brown of Massachusetts.

via Senate Advances Jobs Bill – WSJ.com.

Thanks Scott Brown! Some conservative, although who didn’t see that coming. Are Republicans still going to talk about this idiot as a Presidential candidate?

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Obama, Our Fascist in Chief

Posted by Jason | Posted in Health Care | Posted on 22-02-2010


You seriously have to laugh at the idiocy of our government officials. They simultaneously do things that drive up costs at the same time they try to cap costs. It’s like trying to squeeze the air out of one end of a balloon at the same time trying to keep it from going to the other end.

Seeking to revive his stalled health-care legislation, President Barack Obama is proposing a new idea to address health costs, giving the federal government authority to block insurers from making premium rate increases.

Sorry, one second. I’ll be right back…………

Ok, I didn’t think so. I was looking to see where in the Constitution it says the Federal government has any power to block private enterprises from raising their prices. Competition will prevent private enterprise from raising their prices above market prices. Oh, that’s right our government prevents competition between states.

The move raises the ante after two weeks of presidential bashing of rate increases including WellPoint Inc.’s decision to raise premiums for some California customers by as much as 39%. WellPoint has defended its price increase as unavoidable in light of rising health costs.

While I would hate to sound like a conspiracy nut, this huge rate hike sure comes at an opportune time for ObamaCare. I mean, if I wanted to help out Obama, I would probably do just this. This would make people just mad enough to say “Screw it. Let the government take over the industry. How can they justify a 39% increase.”

Meanwhile, once the health care theft bill is passed, the insurance companies have a huge increase of new customers who have no choice but to buy their crappy products. After all, the customers has a gun pointed at them.

Private insurance companies are now regulated by the states, which review proposed rate increases. Under the Obama proposal, the federal Department of Health and Human Services would gain the power to review and block premium increases.

via Obama in New Health Push to Block Insurers From Raising Premiums – WSJ.com.

Wow, I didn’t realize there was no federal regulation of the insurance industry. The Wall Street Journal really did break news this morning. Can we confirm this and burn all the papers in the federal registry?

States, like the rest of our government idiots, do tell insurance companies they have to provide coverage for all kinds of medical conditions even when the customer doesn’t want or need it. This does not help consumer. They are not getting something for nothing just because state governments tell insurance companies they have to provide certain coverages. The customer still has to pay for services they never wanted and do not need.

Then in order to make sure the citizen can’t avoid the idiotic ideas of their local states, the federal government steps in and makes sure you are trapped. They make sure you cannot buy insurance from across state lines. This is no different than how they trap us into the expensive drug market we have here in the US. Because we aren’t allowed to buy drugs from across the border, drug companies can charge whatever they want.

After all this anti-free market, anti-consumer, anti-freedom idiocy is put into place, you get demagogues like Obama saying the free market has failed. He must step in. The government must have the power to take over the private sector in order to save us. Meanwhile, the only saving we need is from our fascist government.

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Teapartiers, thank Glenn Beck for the roadmap to destroy the movement

Posted by Jason | Posted in Video | Posted on 21-02-2010


Now that Glenn Beck used the 9/11 Truther question to attempt to discredit Debra Medina, it appears he has handed the left the perfect stick to beat the teapartiers over the head with.

Luckily, teapartiers are not Jason Mattera‘s Obama Zombies. They have people like Sheriff Mack, who know what and why they believe what they believe, so they don’t fall for idiots like Chris Matthews.

Another find from the Daily Paul.

Visit msnbc.com for breaking news, world news, and news about the economy

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