Sunday, July 31, 2011

The National Debt Ceiling Phony Deal

After two weeks of drama and name calling, Socialists and Republicans in Congress and Socialist President Obama have reached a phony, face saving deal to raise the National Debt Ceiling by a reported $2.4 trillion, the highest increase in the Debt Ceiling in American history.  Supposedly, there will be cuts in spending equal to the amount of the Debt Ceiling increase.  If it happens, spending will be cut by $2.4 trillion over ten years.  About a trillion dollars of that number will come from the whined down of the war in Iraq and Afghanistan that was going to happen anyway.  Unless the Congress takes action by November, the rest of the cuts will automatically come 50% from Defense, which will hollow out our military negatively impacting our National Defense and 50% from cuts to payments to Medicare providers.  Since there are many doctors that will not take Medicare patients now because the payments are so low, this is another crazy idea.  Notice, there is no plan to cut the size of the federal government in this "compromise".  Big Deal!  

Obama has raised federal spending by 25% since taking office and spending is still going up 8% a year.  Federal government spending is now 25% of GDP.  As such, the base line is far above where federal spending was during the Bush II years.   This $2.4 trillion cut in spending, if that is the number that is finalized in the "deal",  if it ever happens, will only be about 5% of growing deficit spending over 10 years.   This "deal" will still result in adding $7 to $8 trillion or more to the National Debt in the next ten years, assuming interest rates do not go up dramatically, which is likely and the country is not bankrupt before then.  This is still fiscal insanity and just more smoke and mirrors.   There are no real cuts to spending in this deal.   If allowed to do so,  the federal government will continue growing under this deal.   That is a road to bankruptcy. 

This spending cut is peanuts and will do nothing to stop the trillions in deficit spending planned by the Socialists, nor will this plan do anything to pay off our National Debt and avoid the bankruptcy of our nation.   Some Republicans and all Socialists, including the President, have no business experience and live in a dream world.   The rating agencies will surely downgrade the credit rating of the United States if this deficit spending continues.   It is coming sooner than later.   Once that happens, the capital markets will just say NO by demanding much higher interest rates to loan money to the federal government.   We cannot continue borrowing 40 cents for every dollar that we spend for years to come.  The Chinese that hold a trillion dollars of our debt already will soon close their check books out of fear of default.   Who could blame them?   Greece is the word and if this deficit spending does not stop, we will become Greece complete with civil strife on our streets.  

There is no way to stop the trillions in deficit spending, under Obama, without dealing with entitlements.  Higher taxes, as always proposed by Socialists, will do little to solve the spending problem. The retirement age for full Social Security benefits must be raised to 68 years old for those 55 years or younger.  Social Security benefits for current recipients should only be increased if the Consumer Price Index is more than 3%.   Medicare must be means tested for all recipients NOW.   It is already happening.  Those that can afford to pay more for Medicare should pay higher premiums.  Life will not end.   Medicaid should be formulated to an appropriate percentage of federal revenues and then block granted to the states, based on population, for them to manage.  All of this is just common sense. 

Then we need a hiring freeze to shrink the federal government by 500,000 employees from the current 2.65 million civilian employees.  This will happen over five years by retirements and normal attrition; not lay offs.  No doubt, various redundant wasteful programs, departments, agencies and commissions will have to be eliminated over the next five years.   Believe me, no one will notice and we will all be better off for it.  And, the compensation and benefits for remaining federal employees and all government employees at all levels must be brought in line with private sector practices.  There is no reason that government employees should receive total compensation and benefits that are 20% - 40% more than people working in comparable jobs in the private sector.  That is just plain stealing from the American taxpayer. 

Finally, we need tax reform to get rid of most deductions, subsidies and loop holes; but in exchange the personal tax rates should come down to 5%, 10%, 15% and 20% as the top rate.  The first $35,000 of income should be exempted from tax to protect the poor.  We should not eliminate the charitable deductions at all because they bring value to our society.   The mortgage deduction, which distorts real estate markets, could be eliminated over ten years to give current homeowners time to adjust.  Capital gains and dividends should be taxed at 10%.  The current Estate Tax allowing individuals to provide their heirs up to $5 million should continue and be indexed to keep up with inflation.   This protects the family farm and small businesses. 

Corporate tax rates should be reduced from the current 35%, the second highest in the world, to just 20% to encourage more job creation in the United States.   This is about average around the world.  In exchange, any goodies going to business should be eliminated including subsidies for green technologies.  And, there should be a 5% corporate income tax on repatriation of foreign profits, rather than regular rates, to encourage American companies to bring profits home for investment in the US.  Keep in mind, American companies have already paid taxes on these profits overseas.   If the United States were to adopt this tax plan, we would see terrific economic growth and job creation in the US once again.   The federal government would be flush in new revenues allowing us to pay off our National Debt. 

Most important, we must enact a Balanced Budget Constitutional Amendment to insure that the deficit spending, that is bankrupting our country, stops once and for all.   Federal government spending should be capped at no more than 17 or 18% of GDP by law in the Constitution.  Unless there is a Declared War, or National Emergency, approved by two thirds or maybe three fourths of the states, the federal government should be prohibited from borrowing money to fund expenses.  This would allow for some flexibility related to a Balanced Budget Amendment; but make it very hard to borrow money to fund programs just to buy votes. 

We have got to get our fiscal house in order.   Phony deals and contrived crisis's will not do it.  The common sense ideas put forth by this Blogger would do it.  It is highly doubtful that Socialists, including President Obama, would ever agree to many of the things listed.  Socialists need to provide goodies to their PEEP's, those that pay no income taxes at all, those on the dole, illegal aliens, public employee and other union members, and favored industries that contribute to Socialist campaigns in order to win elections.   In other words, Socialists must support those feeding at the trough to stay in office.   And, we must secure our border.   We cannot continue being Mexico's welfare system any longer. 

WE THE PEOPLE have had enough!!   We must sweep these Socialists out of office in 2012 and 2014 to put our fiscal house in order and prevent the bankruptcy of our nation.   It will not happen any other way.  We must take back our country to preserve our freedom, our nation and way of life for the sake of our children and grandchildren.   We can do it.  We must do it.   The phony deal, related to the National Debt Ceiling, with phony triggers and Committees to review spending cuts, will just give Obama another $2.4 trillion to add to our National Debt.   In the next 24 months, we will see our National Debt grow from $14.3 trillion to $16.7 trillion dollars.  Obama is borrowing $4 billion a day to fund his Socialist Schemes and it will only continue under this "deal".   How can that be good for our country?  

Saturday, July 30, 2011

President Obama's Approval Rating Keeps Falling

According to Gallop, a respected pollster, Socialist President Obama's approval rating is now at 40% and falling.   Only 40% of Americans, presumably Obama's Socialist base, his PEEP's, still approve of Obama's job performance.   What is worse for Obama, only 34% of Independent voters approve of Obama's job performance.   Is it any surprise.   Obama is borrowing an unprecedented $4 billion a day to fund his Socialist Schemes.  Obama has added $4 trillion to the $14.3 trillion National Debt in less than 3 years in office.   And, if allowed to prevail, Obama wants to add another $12 trillion to the National Debt in the next 10 years.  Of course, the capital markets will never allow that to occur because the United States will be bankrupt long before.   For the first time in our history, the US faces a downgrade of our credit rating by the rating agencies from the current triple AAA rating to probably double AA, or lower.   If that happens the federal government will have to pay billions more to borrow money each year and interest rates will go up for all Americans.   Thank you Mr. President. 

As a result of Obama's job killer economic and tax and spend policies, GDP (Gross Domestic Product) growth was at a dismal 1.28% last quarter.   The first quarter GDP growth has been revised down to less than 1%.   We need 3% or greater GDP growth to make any dent in unemployment.   We are clearly in a double dip recession thanks to Obama and his Socialist pals in Congress.  As such, we have 25 million Americans either unemployed, working part time that want full time work, or who have just given up looking for work.   Minorities, African Americans in particular, have been especially hard hit as unemployment in the Black community is double the national rate. Millions of Americans are either on extended unemployment benefits, Welfare or Medicaid.  43 million Americans, a record number, out of about 307 million Americans, are on Food Stamps.  For millions of Americans we are in a Depression not a Recession thanks to President Obama.  Is this the "hope and change" that Obama promised us three years ago when he ran for President.  

President Obama will be a one term President, both because he has been a complete failure, really Jimmy Carter II and because the nation is suffering from Obama fatigue.   We just can't take any more Obama made crisis's that destroy the tranquility and stability in our nation so necessary to economic growth and job creation.   We are tired of the class warfare that divides our country utilized by Socialists to win elections.   We are tired of the scare tactics designed to frighten Senior Citizens related to Social Security and Medicare.  We have had it with Obama's Gestapo's, the Environmental Protection Agency and the National Labor Relations Board that are destroying jobs in America.   We can't tolerate Obama's Justice Department that refuses to deport illegal aliens and properly deal with Terrorists.  In other words, Enough is Enough.  We are mad as hell and we are not going to take it anymore. 

Former Speaker of the House Socialist Congresswoman Nancy Pelosi of San Francisco recently referred to Conservatives and Tea Party Members in particular as "the dark side".  Ms. Pelosi, if by that you mean that Conservatives will either help you see the light, or feel the heat,  it is not the dark side that we represent; but rather Morning in America and the light of day.  WE THE PEOPLE, that pay all the bills in America, are sick and tired of supporting the Takers in society, Obama's PEEP's, those that pay no income taxes at all, those on the dole that can work, illegal aliens, public employee and other union members and favored industries that give money to Socialist campaigns.   We are tired of supporting those feeding at the trough, including politicians in office for life that all seem to end up as millionaires through corruption and pay-offs.  Clearly, many of these elected representatives should be in jail not in Congress for perpetrating fraud and the largest Ponzi schemes in world history, far worse than anything ever done by Bernie Madoff.   These Socialists are bankrupting our country to pay off their supporters.  It has to stop and NOW. 

So, is it any wonder that Socialist President Obama's approval rating keeps falling.   Incompetent Obama is destroying and bankrupting our country, which is the reason we must make him a one term President in 2012 and also sweep his Socialist pals out of Congress.   We have to take back our country in 2012 and 2014.   We can do it.   We must do it to preserve our freedom, our nation and way of life for the sake of our children and grandchildren.   The Makers in our country, WE THE PEOPLE, will stand up and be counted in 2012 and 2014.   Thankfully, Obama's days in office are numbered because we have had it!! 

Friday, July 29, 2011

Dismantling The Federal Government

Former Socialist Speaker of the House Nancy Pelosi of San Francisco hysterically claims that Tea Party Members want to dismantle the federal government, which Pelosi claims "will end life as we know it".  In a major revelation to Pelosi, this Blogger would like to inform her that the Makers in the United States do not depend on the state, or federal government for " life as we know it".   In fact, in addition to all the taxes that we pay, any interaction that we have with government, that is usually distasteful, cost us additional monies is fees and other charges.  In other words, unlike the Takers in the US, Pelosi's PEEP's, the Makers in society do not get a free ride from government ever.
 
No, the Makers in society enjoy life as we know it as a result of our hard work and family life often in spite of government, not because of it.  As a business owner, I can say that government is often the source of additional work, expense and stress as we must respond to ever increasing regulations and tax issues.  Government often makes my life miserable.  Pelosi is right, however, in that Tea Party Members want to shrink government in keeping with our Constitution and the original intent of our Founding Fathers related to the proper role of limited government. 

That which governs least, governs best.  Local, State and Federal governments currently consume an unprecedented 40% of GDP.   Under Obama, the federal government has grown to 25% of GDP when it should be no more than 17 or 18% to provide essential services for our people.  To put this in perspective, health care in the United States now represents 20% of GDP.  The Tea Party does not want to dismantle government; but rather shrink it to providing essential services like defense, insuring that our food supply is safe,  insuring that we have energy to power our homes and country, insuring that the dollar is sound, making sure that our airports function etc. etc.   We want all the redundancy, waste, fraud and corruption squeezed out of government.   Since when is common sense unreasonable?

Since Nancy Pelosi is focused on her PEEP's, those that pay no income taxes at all, those on the dole, illegal aliens, public employee and other union members and favored industries that contribute to Socialist campaigns, in other words all those feeding at the trough, naturally she does not want to see government shrink because it would involve taking money and other benefits and goodies from the Takers in Society.   She is right for many free loaders, it would end life as they know it.   Imposing a hiring freeze on the federal government to reduce headcount by 500,000 in the next five years would mean 500,000 less dues paying union members contributing to Socialist campaigns.   Bringing public employee union compensation and benefits in line with private sector practices, would mean less money for Fat Cat union bosses.  Reforming Social Security and Medicare, once and for all, would mean that Socialists could not continue using scare tactics with Seniors to win re-election. 

So Pelosi is right.  Shrinking government would end life as she knows it.   Those feeding at the trough would be impacted; but it is necessary to prevent the bankruptcy of the United States.  Every time Nancy Pelosi opens her mouth, she demonstrates all the reasons that we must take back our country.   Pelosi is a Socialist dinosaur.   At 70 years old, Pelosi still basks in the glory of Franklin Roosevelt's New Deal, even though like the Obama/Reid/Pelosi SwindleUS Plans, government deficit spending did nothing to end the Depression, or the current Recession.  As a result of Obama's tax and spend economic policies, or lack thereof, GDP growth in the US is now at 1.28% when we need 3%, or higher, to make any dent in unemployment.  There are 25 million Americans either unemployed, under employed working part time that want full time work, or who have just given up looking for work altogether.   There are 43 million people on Food Stamps along with millions on extended unemployment benefits, Welfare and Medicaid.   Is this the "change we can believe in" that Obama promised us three years ago during the Presidential campaign?

We have to take back our country in 2012 and 2014 by sweeping these Socialists, that are destroying and bankrupting our country, out of office.   We can do it.   We must do it to preserve our freedom, our nation and way of life for the sake of our children and grandchildren.   No one makes the case for the need to sweep these Socialists out of office better than Nancy Pelosi.   Every time Pelosi opens her mouth, it demonstrates that we must work harder to get the job done.   

Thursday, July 28, 2011

Obama & The Crisis Of The Day

Socialist President Obama's former Chief of Staff Raum Emmanuel made the infamous statement, "Never Let A Good Crisis Go To Waste", which by implication meant always use a crisis to raise taxes and expand the role of the federal government.  Could it be a coincidence that ever since Obama was elected President, we have gone from one Obama made crisis to another.  Obama claimed that our health care system was in crisis and we got that monstrosity called ObamaCare, enacted by the Socialist Congress without one Republican vote, in the middle of the night.  ObamaCare raises various taxes, expands the size of the federal government and cuts Medicare benefits for senior citizens to provide health care to 30 million Americans that already were covered by Medicaid.   Though health insurance premium cost too much, there was no crisis. 

And, then we were told if Obama's trillion dollar, deficit spending SwindleUS Plans I, II and III were not enacted that the Recession would turn into a Depression with much higher unemployment.   So once again in the dead of night the Socialists in Congress enacted this deal to pay off their PEEP's, primarily public employee unions and those on the dole.   Of course, while Obama promised us that official unemployment would top out at 8%, it went to more than 10% and is today at 9.2%, or really 17% if all our counted.   Obama finally admitted that all those shovel ready projects did not exist.  

Now and because the Socialists in the Senate have not enacted a federal budget in more than 800 days and Obama keeps borrowing $4 billion a day to fund all his Socialist Schemes to pay off his PEEP's, we have a National Debt Ceiling Crisis.   The fact is that Obama has added $5 trillion to the National Debt in less than three years he has been in office.   The highest annual amount of deficit spending during the Bush II Administration in eight years was $450 billion, which by comparison is chump change.   Obama is running three or four times that amount with deficits of $1.5 trillion each year.  Obama is bankrupting our country.  Regardless of what happens related to the raising the National Debt Ceiling, the rating agencies will soon downgrade the US Credit Rating from AAA to probably AA, which will not only result in higher interest rates for the American people, the federal government's cost to borrow money will increase by billions of dollars each year.   Thank You Mr. President.  

The left wing media, President Obama and the Socialists in Congress need a good crisis to get their PEEP's, those that pay no income taxes, those on the dole, public employee and other union members and favored industries to both go to the polls and contribute to their campaigns.  Every crisis is about class warfare and scare tactics to frighten senior citizens concerning Social Security and Medicare.   We see this same old story every election season.  

The problem with Obama's man made crisis's, ever few months, is that this management style has destroyed the tranquility and stability necessary to economic growth and job creation.  This constant state of agita (stress) is bad for business.  This national stress, along with high taxes and an increase in crazy regulations, are preventing American companies from investing money in America.  Hence the reason unemployment is so high and our GDP is now just 1.28%.  Of course, Obama does not care because high unemployment makes more people dependent on the government, his goal.   43 million Americans are currently on Food Stamps, a record number.   Millions are collecting extended unemployment benefits.   Millions are on welfare and Medicaid.  These are all potential Obama supporters, which is music to Obama's ears.  Let's face it.   Socialists are poverty pimps.   Socialists live off the misery of the Takers in society.   This is how they win elections.  

The problem is that we will not see economic growth and job creation again in America as long as Obama and his Socialist pals in Congress are still in office.  These Socialists are job killers.  It really is that simple.  As such, to get our nation back on track, we have to sweep these Socialists out of office in 2012 and 2014.  We have to end the constant state of Obama made crisis's to create a tranquil, stable, pro-growth environment that will give American business the confidence to invest in America again.   We have to take back our country.  We can do it.   We must do it preserve our freedom, our nation and way of life for the sake of our children and grandchildren.   We have to end the Obama Presidency to end the agita that we all feel.    

Socialists False Choices - The Big Lie

President Obama and his Socialist pals in Congress continue to present false choices related to dealing with the National Debt Crisis an an attempt to win re-election and nothing more.  With Socialists, cutting spending is always the class warfare argument that somehow impacts Social Security, Medicare and Medicaid.  This is a bunch of baloney designed to scare Seniors and their left wing base, so called Progressives, into coming to the polls to vote for Socialists.  Frankly, after more than 60 years, this Socialist game plan is so old and stale that is is sickening.   Seniors today are not that stupid.   They can see through the smoke and mirrors even without their glasses. 

Here are the facts.  Social Security needs to be reformed to save that program for future recipients, those under 55 years old today.   Younger people should be allowed more choices related to Social Security.  Medicare is already means tested, which is perfectly fine.   Those that can pay more, should pay more for their health care.   It is already happening.   Medicaid should be a block grant to the states letting them manage the monies that are available for that program.  Besides, if ObamaCare remains in tact, which hopefully will not be the case, the notion of Medicaid, as structured today, will become moot.  These programs must all be reformed to save them and everyone including all Socialists know it.   But, it makes for good political theater and votes for Socialists to scare Senior citizens.    We hear this story before every election.  It is just same old, same old. 

The real issue is shrinking the federal government to get deficit spending under control and pay off our National Debt.  This is not as hard as made out to be by Socialists.   First, we should start with a hiring freeze to shrink the federal government down from 2.65 million civilian employees to about 2.1 million employees.   Certainly, we can shrink the size of government by 500,000 employees over five years by normal retirements, deaths and other attrition without lay-offs.   This is just common sense.   Then we need to have targets that would tie the size of government to GDP.   Today, the federal government is spending 25% of GDP, an all time record under Obama.  That number should be around 17 or 18% of GDP long term.   So over ten years again, without much pain, redundant programs, departments, agencies and commissions can be eliminated through some common sense analysis.  

Believe me we won't feel a thing as these functions disappear.   Many of them are boondoggles anyway.   Various federal government assets can be sold.   The federal government owns millions of acres of land, particularly in the West, that can be sold for development.   The federal government would gain revenues and these properties would be put into productive use and on the tax rolls.  Finally, it is fine to eliminate all deductions, subsidies etc. provided personal and corporate tax rates come down at the same time. 

If all of these things are done in addition to implementation of a pro-growth economic plan to grow our economy, federal revenues will increase allowing the federal government to pay off the National Debt and get our fiscal house in order.   Of course, none of this will happen as long as Socialists are in office, which is a big reason we must sweep them out of power in 2012 and 2014.   We must take back our country to get our fiscal house in order. 

So don't believe what you hear from Obama and the Socialists in Congress.   They are all fear mongering LIARS, that churn out this baloney to win elections.   Their goal is bigger government and more Americans dependent on the federal government to win elections and nothing more.   They are in business to take care of their PEEP's, those that pay no income taxes, those on the dole, illegal aliens, public employee and other union members and favored industries that contribute to their re-election campaigns.  And, Socialists are willing to bankrupt our country to stay in office.  We can't let that happen. 

Otherwise, there is no compelling argument in favor of Socialism, which is why we always hear the Big Lie related to throwing granny on the street and then when granny gets sick pulling the plug.  Don't worry, granny is not going anywhere until God calls her home.   Don't be swayed by Socialist false choices.   The plan described above would solve our budget problems and pay off the National Debt, but it will not win elections for Socialists.  That is the real story. 

Tuesday, July 26, 2011

The Real Crisis In America

As we watch the drama unfold related to raising the National Debt Ceiling, all should know that this is a side show.   The bigger issue is the $14.3 trillion National Debt and the $50 trillion in unfunded liabilities for Social Security, Medicare and federal pensions, which are a time bomb waiting to explode on the American people and even more Debt that grows by the minute.  Clearly if allowed to prevail, President Obama and his Socialists pals in Congress will cause the bankruptcy of our nation.  This is a real threat to us as bad as any enemy we have ever faced in our history.   So the enemy within our nation, these Socialists, must be turned out of office in 2012 and 2014 to stop this from happening.  WE THE PEOPLE must take control by demanding various Constitutional Amendments to stop the decline of the United States. 

But the Debt Crisis is just part of the picture.   This Blogger was born in 1950, in the 20th Century, often referred to as "The American Century".   As such, 27 years of my professional working life occurred during the American Century, first in public education in the inner city in Los Angeles and then in Corporate America, working with some of the largest corporations in the world.  Though I had traveled extensively around the world in this time period, most of my work experience before 2001 was within the United States.  After 2001, into the 21st Century, in addition to US business experience, more and more of my time has been spent overseas dealing with international business.  That would be great; but in the process I have watched close up as jobs have moved overseas, including jobs in my own company.  

The reality is that many American companies cannot afford to do business in the United States any longer.   Industry after industry has moved off shore to avoid US high wages, high corporate taxes and increased regulations, crazy employment laws, frivolous lawsuits and environmental wacko regulations that prevent companies from doing business in the US.   Socialist creep for more than 100 years has pushed these jobs overseas.  Today, there are only about 1,650 large companies left in the US with 5,000 employee or more.   These companies are sitting on about $2 trillion in cash, which when they do spend money, they are using to either expand overseas, or to implement mergers and acquisitions, neither of which creates jobs in the US.  Of these companies about half derive the majority of their revenues overseas.   And, in some cases though these companies are headquartered in the US, the majority of their employees are overseas.   These jobs are not coming back to the United States any time soon, unless and until, we see pro-growth policies enacted into law in the US.   This certainly will not happen as long as Socialists, including President Obama, are in office.  These Socialists are destroying our country, plain and simple.   We see the end result of their handiwork; real unemployment of 17% or more. 

During the first 27 years of my professional working life in the United States, during the American Century, even after living through the Jimmy Carter years, the turmoil of the Vietnam War caused by the radical left in the United States and at least three recessions and major real estate downturns,  there was never a question that the United States was the only super power in the world.  I have been to China.  I have employees in China.  It is a growth market for our business.  If the United States continues on the current trajectory, there is no doubt that the 21st Century will be the Chinese Century, not because their system is so wonderful; but because we have lost our way.

We have no energy plan that would make our country energy independent.  Though we spend more on public education than any other country in the world, our public schools produce among the poorest results of any industrialized nation.   The teacher unions continue to prevent any reforms that would result in improvements.  It is almost impossible to fire an incompetent teacher.  I would bet that many students that graduate from university, let alone high school, could not pass a basic US History test.  Nor do most of the kids coming out of school speak any foreign languages, or have the ability to do higher level math.   Clearly, our public education system in the United States is badly broken.  We are just not preparing our young people to compete in a global business environment.  Inner city kids, if they do graduate from high school, do not even have a marketable skill. 

The Socialists in power continue to make more and more Americans dependent on government as their ticket to power, which is bankrupting our country.   Our infrastructure is crumbling, not because the government does not have the money to invest in infrastructure; but because our tax dollars are going to support local, state and federal employees that receive compensation, benefits and pensions, driven by unions and corrupt politicians, far in excess of what is common in the private sector.   Even with the downturn, there are about 18 million public sector employees, at all levels of government feeding at the trough, consuming 40% of our Gross Domestic Product, while our bridges collapse, our roads are inadequate and our sewer systems corrode.

And, then there is the attack on American values.  7 out of 10 African American children are born out of wedlock.  Many of these kids don't graduate from high school.   Most children in the inner city cannot read at grade level, which is the reason many of them do not have jobs.   These kids do not even have a skill that is marketable except maybe playing video games and break dancing.  4 out of 10 White children are also born out of wedlock.  Yet, there is no uniform condemnation.  Drugs and pornography are now part of our culture.  Television and movies, for the most part, are primarily focused on murder and sex and the more perverted the better.   The traditional American family is under attack.   The Mom who stays home to care for children is often portrayed in the left wing media, as somehow less valuable, or less intelligent, than the woman who chooses to go to work.   It is fair to say that many American families are completely dysfunctional dealing with drug or alcohol abuse, serious financial, marital or child issues.  It is no wonder that half of marriages, if there are marriages, end in divorce.   Traditional marriage is under attack; not just related to Gay marriage; but any marriage at all as people "hook up" to have children without marriage.  The notion of right and wrong is questioned today as though it can be questioned. 

Today, we have about 25 million Americans that are either unemployed, working part time that want full time work, or who have just given up looking for work altogether.   43 million Americans are on Food Stamps; a record number.  Millions of Americans are on Welfare and Medicaid.   We do not have control of our Southern border as drugs, Terrorists and illegal aliens continue to stream across that border contributing to the bankruptcy of many states and our nation. 

Clearly, we have lost our way.  Many of our elected representatives should be in jail, not in Congress, for betraying and bankrupting our nation.   These politicians for life are crooks living off the fat of the land.  We have to take back our country in 2012 and 2014.   The 21st Century can still be the American Century; but only if WE THE PEOPLE take control.  We can do it.  We must do it to preserve our freedom, our nation and way of life.   We must deal with the real crisis in America, as described by this Blogger, before it is too late. 

Monday, July 25, 2011

Compromise Is A "Dirty" Word

Socialist President Obama, in advancing his Socialist agenda related to the raising the National Debt Ceiling, complained that compromise has become a "dirty" word in Washington.   Damn right!  By compromise, what Obama is talking about is his plan to raise taxes on the American people by another $1.2 trillion in the next ten years, which Republicans have wisely refused to do.  Obama really wants the tax increases to allow him to continuing trillions in deficit spending to pay off his PEEP's.  Obama is absolutely right.  Compromise is a dirty word because it has led to 100 years of Socialism that is bankrupting our country.  As such, there can be no more compromise with Socialists that will contribute to the destruction of our country.   Enough is enough. 

It is funny, Obama argues for compromise to get his way; but did not care about compromise when the Socialists controlled Congress.   Not one Republican voted for ObamaCare and few if any voted for Obama's SwindleUS Plans.   There was no compromise, or bipartisanship on ObamaCare, or Obama's trillion dollar SwindlePlans.  Those programs were crammed through Congress by Socialists in the dead of night without members of Congress even reading the bills.  Then Socialist Speaker of House Nancy Pelosi said they had to enact ObamaCare to know what was in it.  That had to be the most ridiculous statement ever uttered by an American politician and believe me there have been many, many stupid statements made by American politicians over the years.   Remember, Jimmy Carter.   

In any case, Social Security as a product of compromise, is a case in point.   When enacted in 1933 by the Congress and Socialist President Roosevelt, it was supposed to be a supplementary program to assist senior citizens with retirement, who at that time died on average at 62 years old.  Social Security was never intended to be a sole source of support in retirement.   But then what happened.   As a result of compromise, Social Security benefits were extended to people that paid little or nothing into the system.  The minor children of Social Security recipients receive Social Security benefits until they are 18 years old.  When one spouse dies, the other spouse receives the higher of the two monthly benefits.   Many senior citizens today live to be 85, or older, receiving benefits for many more years than was ever envisioned when Social Security was created. 

Social Security is not actuarially sound, which is the reason it is going bankrupt.  The retirement age for full benefits must be raised to 68 and cost of living adjustments must be limited.  By the way, originally Americans contributed just 1% into Social Security, capped at the first $1,400 of income.   Today, that percentage, which includes Medicare contributions, is 7.65%, capped at $90,000 of income.  That does not include the matching employer contribution, which has become a job killer. 

Food Stamps were put in place as a short term remedy during the Great Depression.   Today 43 million Americans are on Food Stamps.   In bankrupt California, the state runs ads on radio encouraging people to apply for Food Stamps by telling them it does not matter if they own property, or have assets, that they still can qualify for Food Stamps.  California's Program is called CAL FRESH as though it is some health food program.   

Medicare is bankrupt.   If Medicare is not reformed now, which must result in Means Testing and higher premiums and deductibles, for all seniors able to pay, including those currently on Medicare in addition to future recipients, this program will not be around 10 years from now.  Of course, this is already happening in one way or another; yet the Socialists make it sound like Republicans want to pull the plug on granny.  This Blogger is just sick and tied of all the Socialist lies we hear from Obama and his Socialist pals in Congress every day.   They are out right LIARS. 

We also see the impact of "compromise" related to various government programs.  Today, we have 2.65 million civilian federal employees working in more than 1,300 redundant, wasteful departments, agencies and commissions.   We see all sorts of wasteful redundancy in various programs.   It just happened again.   The federal government has always had a Consumer Protection Agency.   Recently, Obama created the Consumer Financial Protection Bureau.  Why on earth do we need both?  Upon review of the long list of federal government entities and programs, there are many examples of this redundancy that is bankrupting our country.  And, under Obama federal government spending has risen to 25% of GDP when it should be no more than 17 or 18% of GDP and maybe that is too much.   This rise in spending, all paid for with deficit spending and borrowing, is the end result of "compromise".

Compromise is indeed a dirty word.   No more compromise with Socialists as we take back our country.  In fact, we  need to roll back 100 years of Socialism by saying NO to all of Obama's Socialist Schemes.  WE THE PEOPLE must act to prevent the bankruptcy of our nation.   We can do it.   We must do it to preserve our freedom, our nation and way of life.   We have to say NO to Obama.  We must make Obama a one term President to save our nation.   That means no more compromise with Socialists. 

Sunday, July 24, 2011

It Is All About The 2012 Election Stupid

Socialist President Obama is insisting on a "long term solution" to raising the National Debt Ceiling, which Obama defines at 2013 just passed the 2012 election.   This timeframe has nothing to do with actually paying off the current $14.3 trillion National Debt, or with with dealing with $50 trillion in unfunded liabilities for Social Security, Medicare and federal pensions that are all bankrupt.   Nor is Obama concerned about dealing with Medicaid that is bankrupting the states, or ObamaCare that will bankrupt the nation.

All Obama wants is to raise the Debt Ceiling by at least $2.5 trillion so he can keep on borrowing trillions of dollars to pay off his PEEP's to buy votes; those who pay no income taxes at all, those on the dole, illegal aliens, public employee and other union members and favored industries that contribute big bucks to Socialist campaigns.   The last thing Obama wants now is to have to deal with this issue again next year just before the election, or to cut deficit spending because his re-election depends on all these pay-off's to support his PEEP's feeding at the trough.   So, it is all about the 2012 election stupid, not the National Debt Ceiling. 

The Republicans, to their credit, are attempting to put in place an actual real long term solution to actually pay off the National Debt, not just kick the can down the road as has been happening for years.  Finally, there are some honest adults in Washington.  The rating agencies have already said that if they don't see a credible plan, which they define as spending cuts of around $4 trillion over ten years, even if the National Debt Ceiling is raised, that they will downgrade the US Credit Rating.  This is only common sense.   The US National Debt is fast approaching 100% of GDP.  This is simply unsustainable.   The Capital Markets will demand higher interest rates, the result of a downgrade, because with every trillion dollars added to the National Debt, the chance of default rises.  As the Socialists continue borrowing 40 cents for every dollar the federal government spends, the Markets will react negatively whether we like it or not. 

Eventually, cards talk and numbers don't lie even if Socialists do lie.  This is no different than American banks charging higher interest rates to people whose FICO scores are below 700.  If rated properly, the US FICO score would be about 400.   It is pretty tough for anyone in the United States to get a mortgage today with a FICO score much below 650 and even then the banks require higher interest rates and higher down payments than normal.  The reality is the United States is already a bad credit risk by any standard.  

Of course, none of this matters to President Obama and his Socialist pals in Congress.  In business, when you don't have money and can't borrow anymore,  the only option is downsizing which could mean selling assets, lay-off's and in general cutting all expenses to conform to revenues.   Socialists just don't think in these terms probably because most of them, including President Obama, have never worked in business.   No, their remedy for unsustainable deficit spending is not cutting expenses; but instead taxing the "rich" who they define as any married couple making $250,000 or more and any single wage earner making $200,000 or more.   These are often professional couples and singles and or small business owners who file as Chapter S corporations.  

These are the very job creators needed to bring unemployment down.  None of that matters to Socialists because their goal is and always has been for the last 100 years to redistribute income to take from the Makers in society and give to the Takers; their PEEP's.   The only way Socialistsr can win elections is by making more people dependent on government.  Obama has achieved that objective during his three years in office by destroying the economy so that now 25 million Americans are unemployed, when all are counted, and 43 million Americans are on Food Stamps; an all time record number.

So as we watch the theater surrounding the National Debt Ceiling debate, let's not forget that for Obama, it is all about the election, stupid.   Obama is a Socialist who believes in tax and spend big government even if it bankrupts our country.   We can't let that happen, which is the reason we must make Obama a one term President in 2012.   We can do it.  We must do it to preserve our freedom, our nation and way of life for the sake of our children and grandchildren.   While the National Debt Ceiling may be about the election in 2012 for Obama, it is really about taking back our country for most Americans.  Let's keep our eye on the ball and send Obama into early retirement. 

Saturday, July 23, 2011

The National Debt Ceiling Is Not The Real Story

While the media and our elected Representatives are focused on raising the National Debt Ceiling from $14.3 trillion to who knows what just so Obama can make it to the next election in 2012 and continue buying off his PEEP's, presumably to get re-elected, what is lost in the discussion is that the United States currently has more than $14 trillion in official National Debt.   There is another $50 trillion in unofficial debt to deal with the promised benefits of Medicare, Social Security and government pensions, not to mention Medicaid and ObamaCare, which will add even more. 

Forget about the National Debt Ceiling.  In fact, it would probably good if the US Credit Rating is downgraded by the rating agencies because just maybe it will shake our elected representatives into doing what is necessary to prevent the bankruptcy of the United States.  Right now, there is no viable plan in place to begin paying off the $14.3 trillion debt on the books let alone dealing with Social Security, Medicare and federal pensions.  Our current National Debt is fast approaching 100% of annual US Gross Domestic Product.  In other words, the Debt is equivalent to all the good and services produced and sold in the United states each year.   We have reached fiscal insanity.   Though a downgrade of the US credit rating would be very painful causing higher interest rates and a likely stock market crash in the short term, in the long run it might be just the medicine needed to force Washington politicians, including Socialist President Obama, to face reality.  Obama needs to "eat his peas"; but instead he continues living in a dream world where trillion dollar deficits don't matter.  By the way, this Blogger loves peas. 

The fact is that trillion dollar deficits do matter to the capital markets that will soon cut Obama off.   Like junkies on a crack habit, Obama and his Socialist pals in Congress will be forced to go cold turkey because at some point the capital markets won't be there to bail them out with more borrowing.   It is time for our country to take control of our destiny because if we don't, foreign countries will dictate our fate as is happening in Greece and Ireland.  If that were to occur, there would be civil strife on our streets.   We can't let that happen. 

So as we watch the theater in Washington concerning raising the National Debt Ceiling,  all should know that this is not the important story.   The real story relates to the National Debt itself and unfunded liabilities for Social Security, Medicare and federal pensions.   This is the nuclear time bomb that will explode on the American people in the years ahead.   Unfortunately, it is likely to take a complete financial collapse before our elected Representatives and particularly Socialists will do what is necessary to preserve and protect our nation.   And even then, Socialists, including President Obama, may be completely incapable of getting our fiscal house in order because they are owned lock, stock and barrel by their PEEP's, those that pay no income taxes at all, those on the dole, illegal aliens, public employee unions and favored industries that contribute to their re-election campaigns.  In order for Socialists to get our fiscal house in order, they would have to cut off their PEEP's, those that continue feeding at the trough, that vote for Socialists.  Any one want to take bets that this will happen anytime soon.  

Since it is not likely to happen, the choice is simple, sweep these Socialist out of office in 2012 and 2014, or experience the bankruptcy of the United States.   We can't let that happen.   We have to take back our country in 2012 and 2014 to prevent bankruptcy and resultant economic chaos.   We can do it.   We must do it to preserve our freedom, our nation and way of life for the sake of our children and grandchildren.   In the end, the story is not about the National Debt Ceiling; but rather the National Debt. 

Time For A Constitutional Convention

WE THE PEOPLE of the United States in order to maintain a more perfect union and enjoy life, liberty and the pursuit of happiness must call a Constitutional Convention to prevent the bankruptcy of the United States.   It becomes clearer by the day that we cannot trust our elected representatives, and in particular the Socialists in office, to protect and preserve our nation.   In fact, President Obama and his Socialists pals in Congress are doing everything possible to bankrupt our nation.   Socialist Senate Majority Leader Senator Dirty Harry Reid, a crook, senile and incompetent, is simply not capable of representing the interests of the American people.   House Minority Leader Socialist Congresswoman Nancy Pelosi, that 70 year old, Botox babe, is dumber than wood.   The US House of Representatives enacted Cut, Cap and Balance to get our fiscal house in order and bring a Balanced Budget Constitutional Amendment to the states for ratification to stop the trillions in deficit spending once and for all.   That sensible legislation was dead on arrival when it reached Harry Reid in the Senate.  And, Socialist President Obama has refused to finally deal with our National Debt in a meaningful way, choosing instead to continue trillions in deficit spending that is bankrupting our country. 

As such, WE THE PEOPLE must finish the job began by our Founding Fathers by amending our Constitution to force our elected representatives of both political parties to act responsibly.   It will not happen any other way.   We need a whole series of Constitutional Amendments to get our house in order.   WE THE PEOPLE must take back some of the power that we delegated to our elected representatives because they have proven over and again that they cannot be trusted with that power.  

First, we must have a Balanced Budget Amendment that requires the Congress to balance the budget of the United States every year.   The only exception to allow for borrowing to fund the federal budget should be if and when their is a formal Declaration of War, or other National Emergency, ratified by two thirds of Congress and when approved by the three fourths of the state legislatures.   The bar to borrow money must be very high; with little wiggle room in the Constitution.   Second, it should require a vote of two thirds of both Houses of Congress and two thirds of the state legislatures to raise taxes.  We must make it much harder for corrupt elected Representatives to confiscate our money to pay off their PEEP's to support their re-election campaigns.  Third, we must limit federal government spending to no more than 17% of Gross Domestic Product (GDP).   Currently, under Obama it has grown to 25%, which is stifling economic growth and threatening our freedom.  Fourth, we must have term limits for members of Congress, including three four year terms for the Senate and perhaps four three year terms for Congress to help prevent the corruption that is rampant in Washington.  As it is now, Senate terms at six years are too long and House terms at 2 year years are too short.  In any case, what ever the mix, 12 years is more than sufficient for any one office.  Finally, fifth, we must define American citizenship to make it very clear that to be an American citizen, the mother of a child born in the United States, must already be an American citizen.   The notion that an illegal alien can come across our border and have children in the United States that are automatically American citizens is ridiculous.  And, by the way,  this law would be in accordance with the citizenship laws of nearly all other countries in the world, including Mexico. 

WE THE PEOPLE can't wait any longer for our elected representatives to get it right.  We need these five Constitutional Amendments to take back our country.   We can do it.   We must do it by calling a Constitutional Convention to preserve our freedom, our nation and way of life for the sake of our children and grandchildren.   We need more checks and balances on our federal elected representatives.   WE THE PEOPLE must take back some of the powers we have delegated to them to prevent the bankruptcy of the United States and get our country back on track.  There is no other way. 

Thursday, July 21, 2011

The Chinese Century - US Second Class Status

By 2016, China is projected to be the largest economy in the world putting the US in second class status.  China's Gross Domestic Product (GDP) will surpass that of the US because our government, as managed by Socialist President Obama, has failed to implement a pro-growth economic plan.   It really is that simple.   This could be acceptable if it meant that the Chinese would be buying more goods and services from the United States; but that is not likely to happen because the Chinese have been investing in and "acquiring" by hook or crook, technology, manufacturing and service capabilities, so much so, that as their consumer demand ramps up, they will be able to to support sales internally rather than looking to external purchases from the West.  We can't blame the Chinese for being smart; but we can and should blame our elected representatives for being dumb and betraying our nation.

Who ever has the gold makes the rules and the Chinese have the gold, while the Obama continues trillions in deficit spending that is bankrupting our nation.   As it is now, we are working for the Chinese to pay the interest on the trillion dollars in US debt that they hold.  Their return on investment will only get better as interest rates go up, as surely will occur, if we don't get our deficit spending under control.   China is forging ahead in space technology just as Obama has ended the space program.   The fact is that the US is broke and can no longer afford the space program when we have 43 million Americans on Food Stamps.   The problem is that many new technologies emanated from the space program.   This just means that the Chinese will own those technologies rather than US companies.   What a shame!  In addition, when Obama talks about solar energy, he is really talking about creating jobs in China since China is already the largest producer of solar panels in the world. 

Most important and ominously, as the Chinese become an even greater economic power, they will also become an even greater military power.  The Chinese have learned the lessons of history well.  Centuries ago, they had a blue ocean navy and abandoned it as one of their Emperors closed China to the outside world.   They will not make that mistake again.  In addition to being a nuclear power, China will build a blue ocean navy that will allow them to extend their power around the the world and to our shores.  Certainly, they will seek to dominate Asia Pacific, if not farther.   China is in the process of gaining control of commodities all over the world.   They will ultimately seek to protect their economic interests, which may mean a direct challenge to US interests.  

History is our teacher.   All of this is coming if we don't act to regain America's preeminence in the world.   The United States does not have to fall to second class status.   The 21st Century could be an American century rather than the Chinese Century; but it will not happen if President Obama and his Socialist pals in Congress remain in office.   In order to remain the preeminent super power, we must restore economic growth and job creation once again in the United States and have a military that is second to none.    We must see GDP growth of at least 5% a year, which is possible if we can get Obama's Socialist boot off the necks of American business.  


We need a pro-growth tax policy and a 50 year energy plan to get the United States moving again.   We have to roll back 100 years of Socialism that is destroying is our country.   We have to send Obama's environmental wackos packing to stop the havoc they are causing American industry.  We have to deal with the trial lawyers to end all the frivolous litigation.   We must end collective bargaining for public employees that is bankrupting our country.  In essence, we must end everything Obama to put our fiscal house in order and get the United States back on track. 

We have to take back our country in 2012 and 2014 to prevent the decline of the United States.   We can do it.   We must do it to preserve our freedom, our nation and way of life for the sake of our children and grandchildren.   If WE THE PEOPLE fail to take action, the 21st Century will be the Chinese Century.   We can't let that happen. 

Wednesday, July 20, 2011

Voters In America - The Great Divide & Tweeners

We live in a very divided country.   About 40% of American voters are avid Socialists.   Another 40% are common sense Conservatives.  Then there is that 20% in between that have no convictions at all and will vote for Socialists in one election and Conservatives in another.   What is that all about?  These voters often say that they support the candidate, not any particular ideology or party.   Apparently, they vote based on which candidate gives a great speech, likability, personality and a great smile.  For the life of me, since elections matter, this Blogger just does not understand these Tweeners.   While many of us vehemently disagree with misguided Socialist failed ideology based on historical facts, at least we can respect their erroneous opinions as true believers in a failed ideology.   However, if we have relatives, friends and neighbors who are Tweeners, we can't let them off the hook.   We must demand that they choose based on ideology by helping them understand the ramifications of their votes. 

If you know a Tweener, explain to them that the actual candidate really doesn't matter at all.  Politics is all about how a candidate, once elected, will vote and or if the President will act once in office.  We have never had a clearer choice in American history.   The so-called Democrat Party is no more.   In fact, John Kennedy would be a Republican today.   Even Bill and Hillary Clinton are too moderate for the current Democrat Party.   What we have instead is the Socialist Party of America.   In general, Socialists support big intrusive government, higher taxes and more job killer regulations concerning all aspects of daily life, big unions, trillions in deficit spending that is bankrupting our country, ObamaCare, a weak national defense, open borders, environmental wacko energy policy that will result in higher energy prices and a lower standard of living for all Americans, more gun control, unrestricted abortion and assaults on the traditional family.   Most important, Socialist support redistribution of income in the name of "social justice".   Socialists actually believe that our money belongs to the people, rather than our families, which is the reason they constantly figure out ways to confiscate more and more of our assets to give to their PEEP's.  So if you have a Tweener neighbor, friend or relative, help them understand that if voting for a Socialist,  the Socialist will vote in accordance with this ideology.  

Many thought Obama would move to the middle after being elected.   They did not listen to Obama's Socialist Schemes during his campaign for the Presidency.  Obama clearly told us what he would do if elected to "transform" America into a Socialist nation.   To his credit, Obama is doing exactly what he said he would do and we see then end result; 25 million Americans either unemployed, under employed working part time, or who have just given up looking for work altogether.   We also see millions of foreclosures that are the result of Obama's failed Socialist economic policy.   Cards talk and numbers don't lie.  It is what it is.   

A Conservative is more likely to support free market capitalism, limited government, lower taxes and less regulation, a balanced budget, term limits, real education, energy and health care reform,  a strong national defense, including securing our border and fighting Terrorism, the right to bear arms, the sanctity of life and family values that are the foundation of our nation.   This is the platform supported by the majority of the American people and the only way to restore economic growth and job creation in America. 

We have to take back our country in 2012 and 2014.   The 20% of voters that are the Tweeners will determine the fate of our nation so we can't leave them alone.  As a result, they must be confronted even if it makes them feel uncomfortable as will probably be the case.   We have to help them understand the clear choice between Socialists and Conservatives.   They cannot be allowed to swing both ways from election to election because our nation is at stake.   We must force Tweeners to make a choice based on their beliefs and ideology, not smiles and personalities.  If that means helping them understand that they are really Socialists, so be it.  More often than not, however, once Tweeners understand that Socialism is a failed ideology and the road to a lower standard of living, higher unemployment, high interest rates and inflation and generally second class status for the United States, they will vote for Conservatives.   Tweeners are not stupid, just misinformed and too influenced by Socialist propaganda and scare tactics, rather than cold hard facts.   We have to change all that. 

We have to take back our country in 2012 and 2014.   To do so, we must convince Tweeners to vote for Conservatives.  This does not mean a heavy hand; but it does mean providing facts to make the case.   We must take back our country to preserve our freedom, our nation and way of life for the sake of our children and grandchildren.   We can do it.   We must do it to prevent the bankruptcy of the United States, resultant second class status and the end of America as we know it.   We can't let that happen so if you know a Tweener, your job is to help them see the light even if it means they must feel the heat. 

Tuesday, July 19, 2011

Profiles In Courage - Cut, Cap & Balance

Republicans in the House of Representatives have demonstrated profiles in courage as they enacted Cut, Cap and Balance by a vote of 234 to 190 to get our fiscal house in order and prevent the bankruptcy of the United States.   The vote in favor included nearly all Republicans and 5 Democrats.  These Congressmen and Women are American heroes.  This legislation would cut spending by $111 billion in the next fiscal year, a drop in the bucket, in exchange for raising the National Debt Ceiling by another $2.4 trillion dollars to $16.7 trillion. Once again, a trillion dollars is a thousand billion dollars.   So this means raising the Debt Ceiling by $2,400 billion dollars.  But in an attempt to bring and end to this lunacy, future federal government spending is capped at no more than 19.9% of GDP by 2021, which is still high.   Obama and his Socialist pals in Congress are currently spending 25% of GDP.   This blogger would have been more comfortable with federal government spending of 17 or 18% of GDP; but this is a good start.  Most important, this House legislation brings a Balanced Budget Constitutional Amendment up for a vote by the states. 

Clearly, our elected representatives of both political parties have proven over and over again that they cannot be trusted to balance the federal budget.   As such, the only way WE THE PEOPLE can regain control of our country is by Constitutional Amendment.  It will not happen any other way.   Republicans in the House of Representatives have finally demonstrated true profiles in courage by enacting this sensible legislation.   Of course, it is dead on arrival in the Senate because Republicans there, many of whom are RINO's, are looking for a "compromise deal" that will surrender the ideals of the Republican Party and the interests of the American people.  There can be no more compromise with Socialists, including President Obama, because they are destroying our country. 

Republicans in the Senate should hold firm.   They have the votes to stop any crazy deal that raises taxes and or fails to stop the deficit spending that is bankrupting our country.  Any Republican that does not get with the program must be challenged and defeated in the primaries.   Senator Mitch McConnell, the Republican Senate Minority Leader is a RINO.  McConnell, who often looks like he has been embalmed, has to go.   Senator Jim DeMint of South Carolina must replace McConnell as Minority and eventually Majority Leader once Conservatives regain control of the Senate in 2012.  In the mean time, call your Senator and tell him or her to vote for Cut, Cap and Balance when it reaches the Senate in the next few days.   This legislation is the only plan that will put our fiscal house in order once and for all. 

Monday, July 18, 2011

President Obama & The Price Of Gold

The price of gold has sky rocketed to record levels to more than $1,600 an ounce.   This is happening for several reasons as investors vote with their money, choosing the safety of gold, over other investments.   Clearly, the extraordinary price of gold is a vote of no confidence in Socialist President Obama.   Investors see Obama's mismanagement of the economy, which has led to very high unemployment, slow or no growth and high inflation as a key indicator of the future as long as Obama is in power.   In addition, the Federal Reserve has destroyed the value of the dollar by monetizing US Debt.  Further, investors know that as long as Socialists, including Obama are in office,  there will be no serious effort to stop all the trillions in deficit spending that is bankrupting our country. 

It really does not matter what all the "expert" talking heads, or politicians on TV say about the financial condition of the United States.  In the end, card always talk and numbers don't lie; but Socialists and the left wing media do lie.  Here are the facts.   Stock prices are up because the dollar is worthless.  American companies are profitable as a result of all the lay off's that took place in 2008 - 10.  Corporate expenses are down, which results in higher profits; hence higher stock prices.  The price of all commodities have gone up because the dollar has been devalued by the Federal Reserve.  Investors are fleeing to gold, not because they fear that the National Debt Ceiling will not be raised; but rather because they know it will be raised and there is no serious effort happening in Washington to seriously cut federal spending. 

Keep in mind, though the Ryan Plan would have cut $6 trillion in federal spending over ten years, there still would have been $5 trillion added to the National Debt even with these cuts.   Though Obama and the Socialists in Congress have no plan, what ever plan they do have for restraining spending would add $12 trillion to the National Debt in the next ten years.   None of this matters.   Capital Markets will never support this level of borrowing.  At some point and it will happen suddenly, there will be no takers for US treasury bonds unless of course, the interest rate the government is willing to pay is four or five times what it is today.   Greek government bonds require a 30% interest rate to attract investors.   The same thing will happen related to US treasury bonds in the future if the trillions in deficit spending continues.  Of course, none of this is sustainable. 

Many Washington politicians and particularly Socialists live in a dream world.  These Socialists, including President Obama, do not understand free market capitalism or Economics 101.   Obama and his Socialist pals in Congress actually think they can just continue trillions in deficit spending each year with no consequences.   It is important to note that the highest amount ever added to the National Debt, in any given year by President George W Bush, was $400 billion, which was thought to be alot at the time.   A certain Senator Barack Obama said of President Bush that he was completely irresponsible for adding to the National Debt.   We see now that this was chump change.  Obama has added $5 trillion to the National Debt in less than 3 years in office.  It is as though Obama is intentionally out to bankrupt our country to "transform" it into a Socialist nation more quickly.   We just can't let this happen because it will mean a lower standard of living for all Americans.  

We must take back our country in 2012 and 2014.  We must start by making Obama a one term President and running his Socialist pals in Congress out of town.   They really all should be tarred and feathered for what they have done to our nation; but I guess we will just have to be satisfied with throwing the bums out of office; though many of these politicians should be in jail, not in Congress.   The price of gold is going up because Obama is destroying and bankrupting our country.   WE THE PEOPLE must stand up and say enough.   We must take back our country.   We can do it.   We must do it to preserve our freedom, our nation and way of life for the sake of our children and grandchildren.   The price of gold is a sign that we are facing a financial crisis.  It is time for us to take action.   

Sunday, July 17, 2011

The US Credit Rating - Downgrade Coming

While Congress and the media focus on the politics of raising the National Debt Ceiling from the current $14.3 trillion to something much higher to allow Socialist President Obama to continue borrowing trillions of dollars to take care of his PEEP's, those that pay no income taxes at all, those on the dole, illegal aliens, public union employees and favored industries that contribute to his reelection campaign, what is being lost in the translation is that unless federal government spending is dramatically cut, the rating agencies have already said that they will downgrade the US credit rating from Triple AAA to something less.   So it is not just about meeting an August 2nd deadline date to raise the National Debt Ceiling; but in addition, we must put a credible plan on the table to end the deficit spending that has been happening for years. 

The federal government is currently borrowing 40 cents for every dollar that it spends.   This is unsustainable.  As interest rates go up and they will go up in future years, the interest on that debt will consume billions more in monthly expense.   As it is now, with low interest rates, the interest on the debt is about $20 billion a month.   That is $20 billion that cannot be spent on vital federal government functions, let alone funding more than 1,300 redundant and wasteful federal agencies, commissions and departments and all kinds of crazy programs.   If Obama is allowed to borrow trillions more and the Federal Reserve continues to print money devaluing the dollar,  we will see very high inflation and interest rates that will result interest on the debt that will go through the roof. 

Unless deficit spending ends, even if the National Debt Ceiling is raised and it will be raised, various rating agencies will downgrade the credit rating of the US.   When that happens and it will happen, the United States will have to pay much higher interest rates to borrow money to fund out of control deficit spending.   But that is not the end of the story.   If the United States no longer has a Triple AAA rating then all other ratings for city, county and states will have to be downgraded, as well, since surely the United States must have a higher credit rating that these other government entities since only the federal government can print money. 

The balloon has burst.   Federal deficit spending has got to stop.   There is no other choice if we are going to avoid the bankruptcy of the United States.   President Obama and his Socialist pals in Congress will never cut spending enough to get our fiscal house in order.  As such, we must sweep these Socialists out of office in 2012 and 2014.   We must elect Conservatives that understand Economics 101 and that support free market capitalism, limited government, lower taxes and less regulation, a balanced budget, term limits, real energy, education and health care reform, a strong national defense, including securing our border and fighting Terrorism, the right to bear arms, the sanctity of life and family values that are the foundation of our nation.   This is the platform supported by the majority of the American people and the only way to restore economic growth and job creation in America. 

We have to take back our country in 2012 and 2014 to get our fiscal house in order.   We can do it.   We must do it to preserve our freedom, our nation and way of life for the sake of our children and grandchildren.   If we don't act to stop President Obama from bankrupting our country, the United States credit rating will be downgraded, which will result in dire implications for the American people.   We can't let that happen. 

P.S.  Watch the rising price of gold to get the real picture.    Investors gravitate toward the safety of gold because the dollar is becoming worthless. 

Happy Birthday Mr. President

As 25 million Americans are either unemployed, working part time that want full time work, or have just given up looking for work altogether and our country is on the verge of defaulting on our National Debt, Socialist President Obama is planning to celebrate his 50th birthday in a huge bash in Chicago to raise money for Obama's reelection campaign.   The tickets to attend the August 3rd event will be $50 - $10,000; though if you want dinner with the President, that will cost you $35,800, the legal limit.  Obama raised $86 million in the second quarter, apparently a record amount, in his quest to raise a billion dollars for his reelection.  

Give recent dismal economic numbers, that are the result of Obama's mismanagement of the economy, he will need every bit of a billion dollars to spread his reelection propaganda.    Cards talk and numbers don't lie; but Socialists do lie, which is the only way they can win elections.   Obama is already putting in place the class warfare argument that will be the basis of his reelection campaign.   In Obama's world, the "rich" are the blame for the poor economy, when in fact without the "rich" paying taxes, creating jobs and spending money, things would be even worse. 

Obama will say that President George W Bush left him with a big mess, when in fact it was the Bush Administration that stabilized the economy before leaving office.   Obama will blame Bush for the 9.1% official unemployment rate when in fact the unemployment rate when Obama took office was 7.2%.   The real unemployment rate today when all are counted is really closer to 17%.  Obama will blame the Bush tax cuts for the growing National Debt, when in fact it is Obama and the Socialists that have added $5 trillion to the National Debt in less than three years by borrowing and deficit spending. 

Obama will advocate his Socialist agenda in an attempt to win reelection.   The President will use scare tactics related to Social Security and Medicare to frighten senior citizens into voting for him, even though Obama knows that these programs are going bankrupt and must be reformed to save them no matter who wins in 2012 and 2014.   Let's face it, Socialist President Obama will do anything, or say anything no matter how dishonest, to win reelection.   But this time around, Obama has a clear and dismal record that cannot be hidden from the American people.    WE THE PEOPLE can see Obama's handiwork and it is pretty ugly. 

We see the 25 million unemployed and the millions of foreclosures.   We see the new job killer regulations that intrude into every aspect of daily life.   We see Obama's inability, or unwillingness to secure our border, allowing thousands of illegal aliens, drugs and Terrorists to enter our country every day.    We see that gas prices that have doubled since Obama took office.   We see the destruction of the US dollar and the inflation that  is causing food and other prices to rise dramatically.    What we really see in President Obama is Jimmy Carter II and we all know the end to that miserable story.   

Hopefully, just as occurred when Jimmy Carter was in office, a Ronald Reagan will arise from the list of Republican Presidential candidates to get our country back on track.   To win the Republican nomination, a Conservative must come forward that supports free market capitalism, limited government, lower taxes and less regulation, a balanced budget, term limits, real education, energy and health care reform, a strong national defense, including securing our border and fighting Terrorism, the right to bear arms, the sanctity of life and family values that are the foundation of our nation.   This is the platform supported by the majority of the American people and the only way to restore economic growth and job creation in America.   Fortunately, most of the Republican candidates, in contention, support this platform so the odds are pretty good that we will have a nominee that is Ronald Reagan in mind if not in spirit.  

We have to take back our country in 2012 and 2014.   Obama will have a billion dollars to spend on his reelection along with another billion dollars in free left wing media support.   That just means that we have to work even harder to get the message and truth out.   We must convince the American people that 100 years of Socialism are not only leading our country toward bankruptcy; but also leading to second class world status.   We must take back our country in 2012 and 2014.   We can do it.   We must do it to preserve our freedom, our nation and way of life for the sake of our children and grandchildren.   So Happy Birthday Mr. President.  We just hope that future birthdays are celebrated out of office and the sooner the better.   

Saturday, July 16, 2011

More Taxpayers - Not More and Higher Taxes

Thanks to Socialist President Obama's incompetent management of the economy, there are about 25 million Americans either unemployed, under employed working part time that want full time work, or who have just given up looking for work altogether.  Many of these people are within the 43 million Americans on Food Stamps and/or receiving unemployment, or welfare benefits.   In addition, millions of these people have lost their homes to foreclosure since they cannot make their mortgage payments.   Obviously, while some of these people were probably within the 50% of Americans that pay no income taxes at all, even when they do work, there are others of the unemployed that would have paid taxes if they were working that are not paying taxes into the federal treasury today.  

So instead of creating more taxpayers by growing the economy, Socialist President Obama is demanding higher taxes on the "rich" defined as those earning annual income of $200,000, if single and $250,000 if married.   Forget about all the class warfare baloney we hear coming out of the Socialists in Washington,  about taxing millionaires and jet owners, Obama's argument is really about redistribution of income, not dealing with cutting federal spending.   If every dollar of assets was confiscated from the "rich", it would do little or nothing to pay down the National Debt, or deal with Obama's trillions in deficit spending.    The only way to get our fiscal house in order is to bring down federal government spending from about 25% of Gross Domestic Product, a record level under Socialist Obama, to around 17%.   

The Socialists will never cut spending to these levels because it would mean the elimination of at least 500,000 federal union jobs out of 2.65 million civilian employees and the elimination of many worthless, redundant programs, departments, agencies and commissions.   And, to be clear, though Medicare, Medicaid and Social Security must be reformed to prevent the bankruptcy of these programs, the whole discussion about raising the Debt Ceiling is about Obama's ability to continue spending trillions of borrowed dollars to support programs for his PEEP's, the 50% of Americans that pay no income taxes at all, those on the dole, illegal aliens, big union employees and favored industries that contribute to Socialist candidates.  That is the real story.

Clearly, the only way out of the financial mess that we face is to grow the economy, not raise taxes on the "rich" that are already paying more than 40% of their incomes in assorted local, state and federal taxes.   The "rich" are not only paying their "fair share", if not for the "rich", the federal government would have no taxes at all.  What we really need is a pro-growth tax and economic policy designed to grow and keep jobs in the United States.  In reforming the tax code, it would be fine to get rid of all deductions and exemptions if as part of the deal, personal income tax rates were brought down to 10%, 15% and 20% as a top rate.   To protect the working poor, perhaps no income taxes would be paid on the first $50,000 of family income.  Above that level, the 20% rate should kick in around $300,000 and there after.  Tax on capital gains and dividends should be no more than 10%.   The current Estate Tax, which allows anyone to leave up to $5 million tax free, is appropriate.  Corporate federal income taxes should be no more than 25%.

Medicare should be means tested and continue to be applicable at age 65.   That is already happening as the rich are already paying more for Medicare premiums than the poor.  There should be tax free Health Savings accounts that would allow people to save for future health care while they are working to deal with higher premiums and deductibles during retirement.  The retirement age for Social Security full benefits should go up to 68 years old for those 55 or younger today.  With many living past 85 years old rather than the original 62, when Social Security was invented, raising the retirement age makes perfect sense.  Finally, Medicaid should be done as a block grant to the states, not a mandated federal program for the poor, that is bankrupting the states.

Of course, all of this assumes a federal government that is under control spending no more than 17 or 18% of GDP, rather than the current 25%.   We can get our fiscal house in order with common sense growth, tax and economic policies assuming federal regulations are also reasonable.   We can do it.   We must do it; but it will never happen as long as Socialists control any part of our state or federal government.   We have to end the class warfare by sweeping these Socialists out of office in 2012 and 2014.  We must elect Conservatives that support free market capitalism, limited government, lower taxes and less regulation, a balanced budget, term limits, real education, energy and health care reform, a strong national defense, including securing our border and fighting Terrorism, the right to bear arms, the sanctity of life and family values that are the foundation of our nation.   This the platform supported by the majority of the American people and the only way to restore economic growth and job creation in America.   

We have to take back our country in 2012 and 2014.   We need to create more tax payers, not implement more and higher, job killing taxes and regulations.   We have to get our fiscal house in order to prevent the bankruptcy of the United States.   We can do it.   We must do it to preserve our freedom, our nation and way of life for the sake of our children and grandchildren.             

Friday, July 15, 2011

The Voters Will Have A Stark Choice in 2012 & 2014

The argument over raising the National Debt Ceiling demonstrates the stark choice voters will face in 2012 and 2014.   Socialist President Obama's vision for America will result in years of high unemployment and millions of Americans dependent on the government, a lower standard of living for all Americans, trillions more added to the National Debt and the bankruptcy of the United States, until such time that the markets step in and they will.   When that happens, the United States will lose control of our own destiny.  China will be calling the shots when they ask for Alaska to cover the debt owed to them.   Ultimately, we will see civil strife on our streets if Obama remains in office just like what is occurring  in Europe.

In addition,  if Obama and the Socialists remain in power, we will see the US Federal government continue to spend money at 25% or more of Gross Domestic Product.   Socialists are simply incapable of cutting spending.  This will result in a bigger, more instructive government into every aspect of life and a loss of our freedom.  Obama will continue to raise taxes to take from the Makers in the US and give to the Takers; Obama's PEEP's, the 50% of Americans that pay no income taxes at all, those on the dole, illegal aliens, big unions and favored industries that contribute to Socialist campaigns. 

Instead, if Conservatives are elected in 2012 and 2014, we will begin to see the roll back of 100 years of Socialism as Conservatives shrink the federal government.   Conservatives support free market capitalism, limited government, lower taxes and less regulation, a balanced budget, term limits, real energy, education and health care reform, a strong national defense, including securing our border and fighting Terrorism, the right to bear arms, the sanctity of life and family values that are the foundation of our nation.   Most important, Conservatives will bring back fiscal sanity to Washington to finally get our National Debt under control and pay off the National Debt.  This is the platform supported by the majority of the American people and the only way to restore economic growth and job creation in America again. 

The choice in 2012 and 2014 is indeed stark.   WE THE PEOPLE will either take back our country and see morning in America again, or we will lose our nation.  Watch the Republicans in Congress this week.  Shortly, they will pass Cut, Cap and a Balanced Budget Amendment in the House of Representatives to deal with the National Debt Ceiling.   The battle is joined and it is the right battle.     

Wednesday, July 13, 2011

Time For Republicans To Act On The National Debt Ceiling

Socialist President Obama stormed out of a negotiation session with leaders in Congress concerning the National Debt Ceiling like a spoiled little boy who is not getting his way.   To hell with him.  It is time for the Republican Majority in the House of Representatives to enact Cut, Cap and a Balanced Budget Constitutional Amendment and send it to Socialist Senate Majority Leader Dirty Harry Reid to take up the vote in the Senate, or reject it.   Republicans control the House of Representatives and therefore they have the votes to raise the National Debt Ceiling by $2 Trillion to satisfy the markets at the same time that they cut $4 trillion in spending.  So the grand bargain to get $2 trillion added to the National Debt should be $4 trillion dollars in cuts over ten years.   This is a perfectly reasonable solution. 

Republicans absolutely should reject any job killer tax increases demanded by Obama.  Forget about Republican Senator Mitch McConnell's crazy scheme to allow President Obama to raise the National Debt Ceiling to unlimited amounts, provided it is approved by two thirds of the Congress.  The plan suggested by this Blogger will get us through to the next election in 2012 and then the voters can decide if they want to allow Obama and the Socialists in Congress to continue bankrupting our country. 

At the same time, the Republicans in the House of Representatives should enact a Balanced Budget Constitutional Amendment and pass it on to the Senate for an up or down vote to get that process started to achieve state ratification.   In addition, the Republicans in the House should enact a law that requires federal government spending to be no more than 17% of GDP within five years.   Send all of this to the Senate for a vote and then presumably if enacted by the Senate on to the President for signature or a Veto.   At that point, if the President and or the Socialists in Congress refuse to enact this reasonable, common sense package and the United States defaults on our National Debt, it will be the responsibility of the Socialists in Congress and the President.   It is what it is. 

It is time to stop all the games and draw this line in the sand.   The time for more negotiations is over.  Obama is the most irresponsible President in the history of the United States.  Obama has added $5 trillion to the National Debt in less than three years in office.   This just can't continue, which is the reason we must make Obama a one term President in 2012 and also sweep his Socialist pals out of office in 2012 and 2014.   These characters are both bankrupting and destroying our country.  If this is not all stopped we will end up with riots in our streets as is happening in Europe.    It is time for the Republicans in Congress to enact a reasonable plan related to the the National Debt Ceiling and let the chips fall where they may.