Yes! Sanity & Prudence. Two words never heard in Washington, DC. Too bad S&P did not use sanity & prudence when they were giving junk bonds Triple A ratings. But it’s never too late to learn your lesson.
As I wrote last week, the profligacy of this administration and this Congress, the President before this one and the Congresses before this one have brought us to the brink of bankruptcy. High flown rhetoric and Super-Committees cutting debt ten years hence can fool the people but they can’t fool the money lenders in the temple of finance.
Like every addict can only stand up and face reality when they can go no lower, this government, the last in a string of addictive spenders has now been given its last ‘fix’. As in real life, those addicts that don’t change, don’t stop, nature cruelly allows to die of an overdose. In this case, S&P is the intervention family leader. They are telling this addicted government that if you continue this we will punish you. You will pay higher interest for your debt because the market demands to be paid for higher risks. Economics 101.
Yet does Obama get the message? Does he sense the anger rolling across the nation as we see our hard earned savings and investments disappear as a result of the stock market’s loss of confidence? Does he care? Or does his Marxist philosophy trump the will of the people?Does he not understand that simply printing fiat currency lessens the value of every other dollar in circulation? Does he think he can inflate the currency to pay off the debt with cheaper money and no one will take notice? Yet he continues prattling on, reading speeches from a teleprompter pushing for more taxes., blaming everyone and every thing around him but himself. Typical addict behavior. Will it never end? Will he never stop and realize his socialist plan for America will not work here. It’s never worked anywhere. If it were to fail, it certainly would fail in America because, thank God, we are not Europe.
Americans are for the most part not soft brained liberals. Although the media is doing its damndest to make us pliant, non –critical thinking robots by constantly repeating demagogic politician’s class warfare statements. Since when is standing for sound financial principles a terrorist act? Since when is cutting off a an addict’s supply of his favorite drug, in this case, more debt, holding a gun to the head of the President. and holding the nation “hostage”. The left thrives on rhetoric and a bumper sticker slogan mentalty. I dare say if Obama could take all the wealth accumulated by the so called $250,000 and above “millionaires”, he’d blow through it in a month!
What would then be his next “plan” for America? Collectivist farms powered by solar panels and wind farms made by Jeffrey Immelt’s GE?
It so well expresses the current blizzard of rhetoric and dithering over raising the debt ceiling. After a disgraceful two years without the Congress putting forth a budget and burying our country in a mountain of unsustainable debt, now at the last few days of what was a predictable deadline, we find our elected representatives seeking compromise. Except that only one party is putting forth plans while the other party submits no plans but only criticizes the other party’s plans. The Democrats are obviously trying to play a game of ‘pin the tail on the donkey, except in this case it’s pin the tail on the elephant. “What, financial disaster, you’re it, your party caused it by YOUR intransigence!”
What will compromise bring? Another temporary ceiling only to be raised again in 3 or 6 months? Increased taxes which will only stifle job creation? Spending cuts promised to occur 10-20 years in the future with absolutely no structural guarantees that they will ever happen? Downgrading America’s credit rating on August 3rd? The rating agencies that allowed a mountain of delinquent mortgage debt which can never be repaid gives the USA a triple A rating?? We must remember they are the same agencies that gave top AAA ratings to bundled junk bonds called derivatives that almost took down our economic system. What other Treasuries will the Chinese buy? Greece’s? Portugal’s? Spain’s? Italy’s? Will the interest rate we will have to pay go up, sure, the market demands it. But that would be the market’s loud signal to lower our debt and to restore financial sanity to an insane process that creates money out of thin air and hopes that the piper will never demand payment.
The only solution is CUT, CAP and BALANCE. Any other ‘compromise” just postpones the inevitable, NATIONAL BANKRUPTCY. So our choice really is to cut entitlements, re-engineer the Social Security, Medicare and Medicaid systems towards financial solvency by including means testing, private pensions and a return to private insurance. Failing to do THAT grand bargain now will only guarantee the bankruptcy of those three entitlement programs and eventually take down the American system of capitalism. So our choice is to take less, wait longer or have nothing when those three systems take down America. The wolves are at the door waiting for America to do the wrong thing at the wrong time. The enemies of America and of what America represents, foreign and domestic, are hoping we find compromise because in that they see the future fall of America. Bold action is standing firm on the principle of lower debt, lower spending, re-engineering our entitlement programs and a Constitutional Amendment to require a balanced budget. The time to act boldly is now.
Obama continues to relegate the United States to second class citizenship in the world of nations. The time for this president to leave office cannot come soon enough.
The Unions are Coming! The Unions are Coming! Where were you Paul Revere in 1958 when this whole mess started.
What we are witnessing in Wisconsin is both enlightening and a harbinger of what may follow throughout the country.
The idea of Public Service Unions is so far to the left that even Franklin Roosevelt believed they should not exist. How did they come to be? (more…)
No one to my knowledge has explained to the general public of the LEFTIST persuasion the difference between Collective Bargaining in the private sector and public sector. Here goes, lefties, please read carefully, I’m going to type this as slowly as I can:
In the private sector, a union sits down with a privately held or corporate entity and somewhere in the middle they find a balance between fair wages and benefits for the employees measured against the company’s ability to pay the negotiated increase and still stay competitive with their competition and therefore stay in business. So as a result there is a weight on the scale that enlightened union negotiators realize is an unavoidable economic law, namely, we can ask for and get the moon but, (forgive the mixed metaphor) we will kill the goose that lays our golden eggs.
In Government vs. public employee unions, there is no such weight that brings moderation. Governments don’t have to make a profit to stay in business and if they make nice with the unions, in fact the opposite happens; it is in the form of a hidden bribe. The unspoken bribe goes like this, “Give us what we want, who cares, just raise taxes now or just pass the debt up to the next generation and we’ll send you money back in the form of political contributions so you can stay in office and when we meet again around the negotiating table next year, we can do this again, and again. Hell you probably will be a lobbyist when the bill finally comes due anyway.” As a result, in the past 20 years we’ve gone from the mentality that went like this, take a government job, it’ll pay less but the benefits will be better -to- take a government job, the pay will be better than taking the risk of a private sector job where you must continue to prove your worth and stay productive- and -the benefits for doing less work, not having to worry about being fired is that you’ll have medical and pensions benefits way superior to the private sector employee and the bennies will be free, till you die, no contribution from you is needed.
Nice work if you can get it.
What is going on in Egypt will go on throughout the world until we recognize and address the underlying cause of the discontent.
The death of Nasser and the assassination of Sadat not withstanding, it would not be too inaccurate to say that Egypt has been a stable government for the past 50 years. There are no torture rooms that we know of where private citizens are pulled off the street and tortured. Torture we may presume is reserved for serious threats to the regime. Mubarak has not been an evil dictator when compared to the likes of Stalin, Hitler, Mussolini or even Fidel. He has simply done what any politician does anywhere in the world. He has tried to obtain, maintain and retain power.
But why now? Why has the discontent boiled over? What triggered it?
It should be obvious to any serious follower of big trends that Egypt is the first big target for converting a secular state to the first huge Islamic state. You can rest assured that Saudi Arabia is focused on what’s going on in Egypt. This ‘popular revolution’ no doubt has had its roots in Iran, or Syria or Lebanon where the structure of The Muslim Brotherhood is firmly ensconced. The Muslim Brotherhood was born in Egypt and prospered there until its founder Sayyid Qutb was imprisoned and then released. Had they only known what a powerful force it was to become I dare say Qutb would have ‘disappeared’ and that might have been the end of that movement.
But instead his radical movement will return to Egypt with a vengeance long postponed, co-opt the ‘revolution’ and will likely overthrow the Mubarak regime which has (as all regimes that stay too long) become thoroughly corrupt and controlled by an unyielding bureaucracy that stifles economic growth. (more…)
About two years ago, before the last election, I was getting “Boycott Exxon” emails. So I drafted a form letter and only had to insert the name of the person to whom I was responding. I paid $3.50 a gallon today so the Boycott Exxon emails should be arriving any day now so I found and dusted off my reply…
Since then nothing has changed except maybe America is no longer taking oil from the Gulf. All I have to do is change the name, Paul, in this case, cut and paste it and send it back. Feel free to use it also…
Dear (insert name here):
This is baloney, ever hear of the law of supply and demand? When there’s more demand than there is supply, the price goes up until demand either comes down or supply goes up. It’s Economics 101. The law of supply & demand is as immutable as the law of gravity! (more…)
If you’ve started to wonder what the real costs of Obama’s creeping socialism are going to be – once his full program (a Value Added Tax will be proposed) goes into effect in the United States and hits your wallet, remember you read it here first in this post.
As you digest these mind-boggling figures, (see link at bottom) keep in mind that in spite of these astronomical tax rates, these countries are still not financing their social welfare programs exclusively from tax revenues! Like us, they are financing these social programs with more and more debt. As a result they are deeply buried in public debt of gargantuan proportions. It is what desperate people do when they pay off one credit card by charging their payment to another credit card.
Read more to see world debt broken down by country:
After the election of 2008 gave Barack Obama a super-majority in both houses of Congress he has proved to be something of a Houdini in reverse. From an overwhelming position of safety he has quickly escaped to one of danger.
He sought to redefine America on a secular scale that is opposite to the Founding Fathers. His socialist model that one can constantly increase the size of government by reducing the tax base and producing more people who depend on the government has been thoroughly rejected by the electorate let alone the economy.
Obama’s policies have been repudiated as have his feints at portraying himself as someone who cherishes American values and supports America’s allies. It did not take Obama long to make Americans realize that they had elected someone who was at odds with American Exceptionalism and who had a crater-sized chip on his shoulder about the country he was supposed to lead.
It’s hard for a determined ideologue to learn his lesson and that is why he will now attempt to do by regulation what will now be impossible to accomplish by legislation. Although his policies have been repudiated by American voters and his self-proclaimed legislative achievements have been discredited he will continue whistling past the graveyard off key and as out of tune as ever.
During the last 21 months Americans have come to understand Milton Friedman’s observation that if the Democrats were in charge of the Sahara Desert in 5 years there would be a shortage of sand. The Democrats have more solutions than there are problems and as they look out upon the devastation wrought by this election they can see that their biggest problem is Barack Obama himself, the wrong man in the wrong job in the wrong country at the wrong time.
Posted by Paul Schnee