Saturday, July 30, 2011

Debt Ceiling Debate Worst Than a Joke

How many times have we heard the media use the phrase "raise the debt ceiling?" As if that will solve all of our problems and avoid a downgrade.

Do they ever think to ask the question: "where does the money come from to pay these Congressional commitments?" Regardless of what the dolt in the White House says, America has spent beyond its means and the bulk in Congress do not have the desire to solve the real fiscal problems. Raising taxes on the rich is a class warfare tactic and will do nothing to address the spending problem -- the real problem.

Congress has no plans to address the real spending issues, the so-called entitlements.
According to the most recent government data, today some 50.5 million Americans are on Medicaid, 46.5 million are on Medicare, 52 million on Social Security, five million on SSI, 7.5 million on unemployment insurance, and 44.6 million on food stamps and other nutrition programs. Some 24 million get the earned-income tax credit, a cash income supplement.

By 2010 such payments to individuals were 66% of the federal budget, up from 28% in 1965. We now spend $2.1 trillion a year on these redistribution programs, and the 75 million baby boomers are only starting to retire.

None of this includes the ObamaCare entitlement that will place 30 million more Americans on government health rolls.

In three years the debt has increased by more than $4 trillion thanks to stimulus, cash for clunkers, mortgage modification programs, 99 weeks of jobless benefits, record expansions in Medicaid, and more.

Congress has made so many promises to so many Americans that there is no conceivable way those promises can be kept. Tax rates might have to rise to 60%, 70%, even 80% to raise the revenues to finance these promises, but that would be economically ruinous.

Yet Mr. Obama and most Democrats still oppose any serious reform of Medicare, Medicaid and Social Security. This insistence on no reform reinforces the notion that our entitlement state is too big to afford but also too big to change politically. This is how a AAA country becomes AA, the first step on the march to Greece.
All of this debt ceiling discussion is a waste of time. Only the Tea Party Reps are making any viable attempt to address our spending problems.

None of the debt plans will do anything to protects the nation's AAA rating. It has taken 75 years but we have finally become a broken socialist state patterned after the Europe we escaped from so many years ago.

Sunday, July 24, 2011

Another Code Phrase: Balanced Approach to Debt

What is it we have heard every MSM talking head say about the dept crisis? What is it we hear every Democrat say about raising the debt ceiling? Answer: "we need a balanced approach."

These past few weeks, everytime President Obama talked about the addressing the US's debt crisis, he has said it must included both spending cuts and revenue increases (taxes), his so-called "balanced approach."

Balanced approach is the political answer to the fact that we have two parties and one party cannot have its own way, whether that party is right or not.

I heard a congressional Democrat actually say that a balanced approach is the way real businesses addresses its woes. Here's a man that has never lived in the real world and has never read a book on economics.

Businesses are always trying to increase revenues. They are always weighing the expenses versus revenues equation. When revenues and revenue forecasts are down, expenses must be put in line. Few established businesses actually make new investments -- take out loans to invest in new products. Their cash position may help short term but expenses must always be in line with revenues.

Democrats cannot do anything in government that does not involve higher taxes. They try to disguise it as "just a tax on the wealthy who can and should pay more."

The balanced approach is just another way of saying tax increases.

Saturday, July 23, 2011

Taxes Are Now Referred to As Revenue

Subtle but very real, the White House, Democrats and many in the media are now referring to taxes as revenue.

The government increases its revenue by levying taxes. The government does not make or produce anything. It can increase "revenue" by increasing tax rates (the traditional Democrat method) or it can realize additional revenue through economic growth (the traditional Republican method).

When we hear government and revenue in the same sentence, it is almost always code for higher taxes.

If it is not clear now to Americans, Democrats are fighting this debt ceiling battle doing the only thing Democrats can do: demand higher taxes. The problem with its position is that higher taxes always mean higher spending. That's what politicians do, spend money, create programs; Democrats are the superior party at doing this, but Republicans do their share (hence the reference to RINO Republican).

A vote for a Democrat, regardless of how nice a man or woman that politician is, will always favor higher taxes and bigger government. Only a true Republican (today they are called Conservatives) will favor lower taxes and smaller government.

That is what this debt ceiling debate is all about.

Friday, July 22, 2011

Fixing American Economy Mandates US Markets Fall Big

For months now, the story is that if Congress does not raise the United States' $14.3 trillion debt limit prior to 2 August, it could have "catastrophic" consequences.

The leaders of our current out-of-control government -- Bernanke, Geitner, Obama, Reid, Pelosi -- are trying to sell us a "necessary" tax increase in order to save the economy. If they had their way, there would be minor sending cuts but only within Republican strongholds; i.e., the military.

America should pay a price for reckless government. Collectively, we elected the dolts and allowed them to spend, tax, borrow to the point of no return. We are at that point.

$14.3 trillion in debt is more than enough. When real men and women find they have lived beyond their means, they don't declare bankruptcy. They do the hard things and reduce spending below their incomes. They sell assets. They downsize. They cut all expenses. We must demand our government do the same.

So what are "catastrophic" consequences? The key markets fall 50%? The result might be catastrophic but if we get our house in order, it will make us stronger as a nation. It will have shown that some politicians can do the right thing.

Tuesday, July 19, 2011

$4 Trillion in Cuts Plus $1 Trillion in Taxes

In our world of political compromises, the latest attempt to raise the debt ceiling calls for $4 trillion in cuts and $1 trillion in new taxes.

So let me get the straight: there are politicians that want to go on record for increasing taxes $1 trillion?

I really don't see it. I don't see any Republican who hope to keep his/her campaign promises or hopes to run for re-election signing off on this.

In the great poker stakes that this is, I would not cave. I would not vote for this massive tax increase. I wonder how many Republicans will fall for this? Will claim it is the best thing they could do given the politics? Maybe. But when you run on a no-new-taxes campaign, you must stick to your guns.

The bottom line is this country is broke. Even after $4 trillion in cuts over many years, the tax burden will continue to weigh on the economy. We are still talking about raising a debt ceiling. Monetary policies will continue to devalue our currency.

This will be a surgical dressing on a botched surgery.

Monday, July 18, 2011

Lower Taxes Drive Economies

The Congressional/Presidential/Fed/Treasury debate over raising the debt ceiling is the very thing that has divided this country from the beginning: the size and scope of government.

The Democrats and current administration favor larger government, hence higher taxes and less personal freedoms. The true Republicans -- not RINOs -- in the form of tea party conservatives and libertarians, believe in small government, hence lower taxes and more personal freedoms.

The Democrats believe that in order to reduce the deficit they need to increase revenues -- directly impose very high taxes on the rich. They only are willing to cut spending as a negotiation tactic. They never want to give up their social programs because it is those programs that keep the masses more and more dependent on the very government they want to control.

Class warfare has served them well so there is no need to stray from the blueprint. They pick on the rich because jealously is easy to manipulate. They do it under the guise of protecting the middle class, because they are the actual voters. All higher taxes even on specific classes impact us all.

-- Higher marginal rates influences incentives in the economy because financial decisions are based on after-tax returns.
-- As tax rates rise, the tax base shrinks and ultimately reduces revenue.

Taxes are stifling to everything except larger government, a government that will ultimately cave in on itself. Payroll taxes, federal income taxes, state income taxes, local/city income taxes, Medicare, Social Security (Ponzi scheme), corporate taxes (a hidden tax we all pay), property taxes, sales taxes, etc. are unrelenting for the producers of society.

Democratic policies are easier to sell because they play on emotions. Most vote on emotion, not on facts and logic. The Obama/Pelosi/Reid plan is to increase taxes. Higher taxes fail every time. They do nothing to shrink the size of government.

This debate is to the core of our ideologies. If anything, taxes need to be decreased. Tax loop-hole eliminated as they are nothing more than the product of American political corruption.

Long-term, America would be best served by not raising the debt ceiling. It would be best served by reducing tax rates, but forcing everyone to share in the burden. It would be best served by eliminate tax loopholes. It would be best served by reducing expenditures across the board. it would be best served if entire departments were done away with -- Energy, Education, Labor, Housing & Urban Development to name four.

It will never happen because politics and want to do things; doing thing requires money; money means higher taxes.

Sunday, July 17, 2011

Debt Debate Now Racist

Leave it to Rep. Sheila Jackson Lee, D-Texas, to claim the debate on raising the debt ceiling was being held up by members of Congress because President Obama is black.

Desperate times call for desperate tactics. The racism is call is desperate and offensive. For all of the legitimate racist cries, this one continues the most recent fictitious claims.

Ragarding racist, Obama was born of black father and a white mother who raised him. Obama was raised in a world of the privileged. Bill Clinton was "blacker" than Obama.

Obama is hated because of his politics, not because of his race.

Tuesday, July 12, 2011

Curse GE and Its CEO

We are are now being lectured by the CEO of the company that paid no federal taxes in 2010. GE Chairman and CEO Jeffrey Immelt stated:
The people who are part of the business sector, the people in this room, have got to stop complaining about government and get some action underway. There's no excuse today for lack of leadership. The truth is we all need to be part of the solution.
This socialist diatribe and payback from a man that benefited specifically from this Democrat administration.

He attempted to buffer it with some comments about the need for policy changes by Congress and the Obama administration.

The problem with hiring is not because business leaders don't want to hire, they are hesitant because of the inherit risk that this government has laid on every America with its high taxes, growth of debt-ridden entitlements and its incessant regulation and bureaucracy.

The arrogance of these people. I for one will try my best to avoid all things GE, as difficult as that has become.

Tuesday, July 05, 2011

Do Not Raise the Debt Ceiling

The American people -- those alive today and those that will be alive for the next hundred years -- have been failed by every US Presidency and Congress since WWI. For nearly 100 years, those elected to lead have felt that it is their "duty" to build a bigger, more consuming and controlling government -- by accident or by design. Up until 2001, it was more subtle. Since 9/11/01, politicians continue to fail us, party affiliation aside.

It is clear that the US tax code is designed by politicians to repay supporters and to buy votes within their states or districts. It is broke. There is no justifiable reason that Congress should increase taxes on individuals or businesses in order to help reduce the national debt.

America is broke, regardless of whether Congress raises the debt ceiling. They will raise the debt ceiling with nothing more than IOUs that cannot be honored. Raising the debt ceiling is perpetuating a governmental lie.

How can anyone believe what Geitner, Bernanke, Reed, and Obama say. They are financial and economical dolts, despite their resumes.

Obama has no intent to control the debt. His rhetoric is transparent. He, his party and most politicians cannot stop spending.

The sky is falling. It has already started. Raising the debt ceiling will postpone the inevitable. America is Greece, Portugal, Ireland, Spain all rolled together.

Obama, his cronies and supportive industrial media complex, are banking on class warfare to get the debt ceiling increased. Just like all multinational corporations are bad except those with boards that are Democratic-leaning, the tax loop-holes they will close for the rich (revenue boosters) are 100% targeted at Republican districts. This money will never be used to reduce the debt.

The debt is a 100% spending problem. I pray my congressional leaders stay focused on spending and do not vote for a revenue:spending bill.

America is broke, let's get on with doing the hard things and cut spending to match revenues. A balanced budget Amendment will never pass. Hence America is a fallen nation. Obama is the the figurehead. It continues to be "entertaining" to watch how he tries to deflect the blame.