Archive for the ‘spending’ Category

It Can Happen Here

March 18, 2013

For years now, the Euro zone has been experiencing difficulty absorbing the costs of bailing out relatively small countries with relatively small economies that have relatively small amounts of debt.

Most recently, Euro zone leaders agreed to fund a bailout of Cyprus with a deal that includes taxing private bank deposits.  The deal to fund 10 Cyprusbillion euros worth of rescue loans for Cyprus imposes a 6.75 to 9.9 percent tax on those with cash in Cyprus banks.  Without the EU bailout Cyprus cannot avoid default, but the unexpected and unprecedented decision to take money from private depositors fueled a sense of crisis across the euro zone and led to a run on Cyprus banks by depositors.

The Cyprus deal could lead savers in similarly indebted countries like Greece, Italy and Spain to withdraw money from their banks, leading to a regional economic crisis that would affect bond and stock markets world-wide.

Imagine the difficulty faced by the world’s economy when the United States of America can no longer finance its debt.

It can happen here.

Greece recorded a government debt to GDP of 170.60 percent in 2011.  In 2011, the United States government debt to GDP ratio was about 100 percent.  Should the United States continue deficit spending at current rates, the United States will soon surpass Greece in debt to GDP ratio.

http://www.guardian.co.uk/business/2013/mar/18/cyprus-bailout-markets

What the United States government must do is stop spending money it does not have.

Before that will happen, American taxpaying voters must be made aware of the realities of the situation.

For so long as American taxpayers are unaware of the danger that looms just over the horizon, their concern will be focused on maintaining current levels of government payouts for Social Security, Medicare and Medicaid.  Until American voters understand that not restructuring big government socialist programs will bankrupt the U.S., they will not vote for the necessary revisions.  They will continue to vote for the status quo.

The truth about the danger American debt poses to the U.S. economy is not being disclosed by “progressives;” be they politicians, media pundits, college professors, Hollywood producers or government bureaucrats…including but not limited to winners of the Nobel Prize for economics.

It does not take a Nobel Prize winner to see that whole sections of the European economy have governments whose budgets are in horrible shape and teetering on the brink of true insolvency.  It does not take a genius IQ to realize that the cause of debt in those countries is big government spending money it does not have on socialist programs to support citizens dependent upon government for their existence.

It also does not take a Nobel Prize winner or a genius IQ to find information that makes it past the “progressive” filter NBC, ABC, CBS, CNN, The New York Times, The Huffington Post, The Los Angeles Times, Time Magazine, Newsweek and the rest of the “progressive” Party Pravda use to misinform the American public.

All it takes is a desire to learn the truth and a willingness to search beyond the filtered information used by “progressives” to nudge people into believing what “progressives” wish them to believe.

The last time America faced an existential threat during WWII, Americans fought and died by the thousands on foreign lands.

Is asking Americans to view the “mainstream media” with a skeptical eye and seek out second opinions now too much to ask?

Love. Early American Style.

The Phony White House Charm Offensive

March 12, 2013

Not only did the White House disavow the GOP’s 10-year budget plan put forth by House budget chief Rep. Paul Ryan, the White House will not release its budget until early April, a pattern true to the form displayed over Barack Obama’s time in office.

110601_ryan_blasts_obama_ap_328White House press secretary Jay Carney verbally attacked Ryan’s budget, saying it would punish middle-class Americans, cut taxes on the wealthy, and “the burden is doubled or even tripled on everyone else.”

Carney claimed Ryan’s “voucherization” reform of federal programs, including Obamacare and Medicare, “does nothing to deal with the fundamental problem, which is rising health care costs, but actually exacerbates that problem.”

These statements are in direct conflict with Obama’s heavily publicized attempt to convince the public he is trying to work with GOP legislators, which includes dinner with a group of GOP Senators, lunch with Ryan and two visits to Capitol Hill.

The real hope is that Obama’s efforts will boost his poll ratings, which have fallen noticeably since Obama tried to stop sequester cuts to the 2013 federal budget through demonization of their effect and by impugning the GOP’s motives.

Ryan’s plan is actually a reduction in spending, and does not cut federal spending at all.  “On the current path, we’ll spend $46 trillion over the next 10 years [but] under our proposal, we’ll spend $41 trillion,” Ryan wrote in a Wall Street Journal article. “On the current path, spending will increase by 5 percent each year. Under our proposal, it will increase by 3.4 percent.”

http://dailycaller.com/2013/03/12/obama-delays-budget-until-april-slams-ryans-plan/

The GOP would be well advised to proceed at their own risk with every one of their senses on full caution mode.

The current Oval Office occupant has displayed disingenuous intent on more than one occasion and there is no real evidence to assume that his “charm offensive” is anything other than a change in tactics.  The destruction of his political opposition remains the underlying strategy.

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It’s the Spending, Stupid

December 7, 2012

Barack Obama, who seemingly has remained in campaign mode since first entering public life, continues to insist House Republicans obey his command to hike tax rates on upper income earners.  If Republicans do note cede to his demands, Obama is willing to let everyone’s taxes go up and to cut one trillion dollars from the budget, a disproportionate amount of which will come from defense.

Were Obama sincerely interested in solving America’s fiscal dilemma, this would not be his stance.deficit

He continues to make campaign appearances claiming that these higher tax rates are needed to lower the U.S. deficit and cut the national debt.

Nothing could be further from the truth.

The amount of revenue collected by the IRS as a result of such a tax rate increase would fund U.S. federal spending for less than nine days.

According to the latest data from the Congressional Budget Office, at current spending levels the federal government is borrowing forty six cents of every dollar it spends.  Through the first two months of fiscal year 2013 the government is already almost $300 billion in debt.

http://www.washingtontimes.com/news/2012/dec/7/government-borrows-46-cents-every-dollar-it-spends/print/

Medicare, Social Security and interest on the debt are the biggest drivers of the debt.  The true costs of Obamacare have yet to be revealed, but given the U.S. federal government’s track record it is safe to predict that it will be far more expensive than projected and finish in the red every year.

Collecting eight days’ worth of spending from upper level incomes will do nothing to affect the level of spending on any of these programs.

Additionally, Obama willfully ignores that at current tax rates, revenues are up by thirty billion dollars over last year.

Obama, his “progressive” political allies and the obedient lapdogs within the “progressive” Party Pravda continue to foster the notion that raising tax rates on the highest income earners, those who already pay forty percent of all income tax revenue, will be a panacea, the magical elixir needed to solve America’s fiscal woes.

federal-non-defense-spendingThey also continue to lay the blame for today’s deficits on former President George W. Bush.  Bush’s highest deficit was $438 billion during his last year in office.  Obama’s government is poised to post another $1 trillion deficit, which will mark the fifth straight year of $1 trillion or more deficits.

America’s current financial predicament is the result of wasteful “progressive” spending on big government socialist programs.

That is the reason.

America’s debt and deficit dilemmas can only be solved through reduced spending.  If and when the United States falls off a fiscal cliff or receives another credit downgrade, it will be because of “progressives”, not Conservatives.

The conversation should be about how to cut spending, not about how to increase taxes.

Political Party or media employer notwithstanding, anyone who says differently is being intellectually dishonest.

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