Tag Archives: fiscal cliff

The REAL Fools on the Hill Are At It Again!

Once again, we had another fiscal emergency. Well, THEY had a self-made emergency. Yes, our Federal government, our legislators, the ones who created this “Fiscal Cliff” mess in the first place and had over 2 years to work toward a resolution decided to wait until the last minute and act like they were riding in on a white horse (paid for by the American taxpayer) to solve the problem they created. And what did they do? They made the problem worse. They fixed NOTHING!

They simply pushed the debt down the road. This country is deficit spending at a rate that we can NEVER repay no matter how much money we steal from the rich.

Let’s put in terms we can all understand. Say you make $50,000 a year, and let’s say your expenses are almost $68,000 a year. You can cut back on expenditures or you can do what the government does when they aren’t making enough money… take a second, third, and forth mortgage out on your house. Then, use the borrowed money to pay your deficit while you continue to spend more than you’re making.

In ten years you are still in the hole. $180,000 in the hole. Even if you get a 2% raise each year, you will still be in the hole. This ratio is roughly equivalent to how our government is currently operating.

Our Federal government takes in almost $2.4 trillion a year in tax revenues. They spend over $3.6 trillion a year. We are spending a TRILLION more than we take in! President Obama and our Representatives have committed us to spending an additional $4 trillion over the next 10 years, leaving one big mess of a legacy for someone else to figure out because many of them won’t be around.

The Fiscal Cliff compromise didn’t really deal with any cuts or spending reforms. Remember, Mr. Obama said “no more bailouts for banks and big corporations”?? Well, NASCAR, the green industry, farming, and many others got BIG TAX breaks. And Obama’s beloved middle class got the BIG SHAFT!

The average American will lose $30.00 each week from their paychecks. That’s a ½ tank of gas, 1.5 bags of groceries, the water bill, or the phone bill.

The average American will lose $120 to $150 each month.  That’s ½ a car payment, a full insurance payment, or an electric bill in a small apartment. DOES ANYONE ON THAT HILL REALLY GIVE A ^%@$ about the American worker? NO!

As a small business owner, I spend a lot of time working through the company budget, what we are spending, what we need to spend and so on. As a husband, father, and homeowner I also have to take time to look at our current income, our expected future income, the safeguards on our investments, and “Plan B” in case everything blows up. It takes time and input from experts.

The Fools on the Hill took 3 minutes to evaluate this compromise before they voted on it! I wish I were joking. Let that sink in. Most of our U.S. Senators received a copy of this 154 page bill 3 minutes before they voted on it, maybe 10 minutes total.

I don’t know about you, but I can’t read 154 pages, take it in, and understand the details in less than 10 minutes. But these guys to this ALL THE TIME!

They have all got to go!

Democrats need to wake. Fifteen of the best 21 run states are controlled by Republicans. Eleven states that currently have more people on public assistance than those not on public assistance are run by Democrats. Detroit, the poster child for the way the Democrats want to do business, is in the toilet and has been for a long time. The schools are a mess, government is a mess, the city is a mess, the streets are a mess. Shall I go on?

Both sides need to look at the hard numbers and see what works and what doesn’t and just do what works! PERIOD!

How does an elected official looking at their failing city, look at successfully running city and decide they can’t do what the other city is doing because its run by the “other side” . That’s un-American, un-patriotic, and just plain stupid.

Hey America! Grow up and get a clue. Let’s replace these “Fools on the Hill” before they destroy us all.

Joe Messina

Ryan: ‘Sequester is going to happen’

Paul Ryan

Paul RyanOn NBC’s “Meet the Press” Sunday, Rep. Paul Ryan (R-Wis) said, “I think the sequester is going to happen.”

Ryan, the chairman of the House Budget Committee, said that the $1.2 Trillion in automatic spending cuts is likely to happen because Democrats have opposed every replacement spending plan the Republicans put forward while offering no alternatives of their own.

The President and Congressional Democrats have signaled that they expect more tax increases and are not planning to cut federal spending in any appreciable way. GOP leadership has taken a strong stance against additional revenues.

Having failed to secure any actual spending cuts in the recent “fiscal cliff” deal, Ryan says that “the president got his additional revenues. So that’s behind us” indicating that more tax increases or other revenue generation proposals will be rejected and that only spending cuts will be considered going forward.

Sequestration was a device put forward by the White House that focused on $1.2 trillion in forced spending cuts over ten years to defense and domestic spending beginning with $110 billion in cuts in 2013.

Social Security, Medicaid, supplemental security income, refundable tax credits, the children’s health insurance program, the food stamp program and veterans’ benefits will all be spared from cuts – everything else is going to get hit.

 

The Debt Ceiling, Revenue & The Progressive Overreach

9.4 debt by states-02 (2)

9.4 debt by states-02 (2)Soon, President Obama will stand before the American people, at his inaugural, and take the Oath of Office. He will place his hand on the Holy Bible (we assume) and swear an oath before God and country to preserve, protect and defend the Constitution of the United States of America. He did this once before in 2009. But, he has increasingly ignored the dictates and tenets of this Founding Document – one of the documents in the Charters of Freedom. He has disparaged the document as “flawed” and has transparently sought out legal mechanisms – and sometimes not so legal mechanisms – to circumvent the provisions and authorities set forth within. Many Presidents have done the same, although, perhaps, not as egregiously.

Truth be told, a great deal of the partisan gridlock – at least where the finances of the nation are concerned – wouldn’t exist today if the politicians we elect to office would simply cease being politicians upon being tasked with doing the business of government; if they simply followed the rules of government as set forth by the Founding Documents. But then, as James Madison said, “If men were angels…”

In a prior article, Why Is Boehner Negotiating with Obama at All?, I pointed out:

“Article I, Section 7, of the United States Constitution reads:

“‘All Bills for raising Revenue shall originate in the House of Representatives; but the Senate may propose or concur with Amendments as on other Bills.’

“And while the verbiage that follows outlines the processes by which the presidential veto and congressional veto overrides are to be executed, nowhere is the power of the purse – the ability to create legislation that raises revenue – extended to any other branch of government or congressional body.

“I bring this fundamental tenet of our system of government to the forefront because I am puzzled as to why House Republicans, led by Speaker of the House John Boehner (R-OH), are negotiating budgetary financial matters, a responsibility and purview exclusively vested in the US House of Representatives, with anyone outside that body, let alone the Executive Branch, which only has the constitutional power of the veto over said legislation?

“Such are the questions that arise when the bully pulpit is used to usurp the constitutional order of our government.”

So, you can imagine how happy I was to read that Speaker of the House John Boehner (R-OH), has told his fellow Republicans that he is done with private, one-on-one negotiations with President Obama. The simple fact of the matter is that he never – ever – should have entered into negotiations with anyone from the Executive Branch over issues of raising revenue in the first place; not on the fiscal cliff, the debt ceiling, the budget, tax reform, deficit reduction…none of it. Pure and simple, the Executive Branch, other than allocating revenues granted to it to through the constitutionally mandated legislative process, to the agencies and departments under their purview, has no authority over the raising of revenue whatsoever. I defy anyone to find any provision in the US Constitution that contradicts that fact.

The reality that President Obama (and through him his team) can co-opt authority over matters of national finance simply by bullying his way to a “negotiating table” under the perverted guise of “leadership” says a lot about how far we have gotten away from the constitutional process of government. That the elected officials in the Legislative Branch do not howl in protest over the usurpation of the Separation of Powers – and perhaps that they don’t know better to howl in the first place – presents as a frighteningly, but all to true, commentary on just how constitutionally illiterate (or subversive) our elected officials have become. The same, sadly, can be said of the electorate itself.

If, and that is the optimal word here, our elected federal officials adhered to the US Constitution as the rulebook by which government is executed (which it is), legislation would follow a path that goes something like this:

▪ Legislation regarding the generation and securing of revenue (including matters of debt reduction, budgeting and borrowing) would be created working through regular order, letting the House work its will.

▪ The legislation would be advanced to the US Senate where they “may propose or concur with Amendments as on other Bills.” (Note: had the 17th Amendment not been passed allowing for the direct election of Senators by the electorate, Senators would still be charged with protecting the rights of their respective States from the overreach of the federal government.)

▪ The legislation would then go to “conference” where the original legislation would be reconciled between the two chambers.

▪ The legislation would then be presented to the Executive Branch (as is the proper procedure for any piece of legislation), where the President can either sign it into law or veto it.

▪ At this point the House (because the legislation for our purposes has to do with revenue generation) would reconsider the legislation and the objections of the Executive Branch and either override the veto or make changes so as to satisfy the Executive’s objections. The overridden or revised bill would then go to the Senate for a similar procedure.

So, as you can see, the only options available for President Obama (or the Executive Branch), constitutionally, are to either sign the legislation into law or veto the legislation presented. Nowhere – nowhere – in the US Constitution is the Executive Branch afforded negotiating rights on matters of raising revenue but for those two options and at that moment in the timeline.

That understood, what we just witnessed – with the US Senate crafting legislation regarding the raising of revenue and the Executive Branch negotiating from the start with the leadership of the US House – was wholly in usurpation of the constitutional process by which revenue legislation is supposed to adhere. In fact, it could be said that the entire piece of legislation, by way of its origination, is unconstitutional.

Yet, because there will be no constitutional objection to this travesty of process, American taxpayers are now saddled with higher taxes and over $4 trillion in new debt over the next ten years, and we haven’t even dealt with the sequestration, the debt ceiling or the budget, all of which will, most likely, see an arrogant and belligerent Executive Branch bullying its way to yet more “negotiating tables”; negotiating tables at which they do not belong. I am willing to bet that through it all, taxes spending and the national debt will rise, and deficit reduction will remain in the realm of political rhetoric; the filth of political opportunism soiling the futures of our great-grandchildren.

On January 21, 2013, Barack Obama will place his hand on the Holy Bible (we assume) and swear this oath, as mandated by Article II, Section 1 of the US Constitution:

“I do solemnly swear (or affirm) that I will faithfully execute the Office of President of the United States, and will to the best of my Ability, preserve, protect and defend the Constitution of the United States.”

Nowhere in that oath exists the caveat, “…unless I think the document is flawed.” Barack Obama’s job as President of the United States is to uphold and protect; to defend the US Constitution. That means adhering to the provisions, limitations and authorities held within, including the legislative process by which revenue is raised for the federal government.

So, when you hear Mr. Obama say: “I will not have another debate with this Congress over whether or not they should pay the bills that they’ve already racked up through the laws that they passed,” two thoughts should come to mind.

First, your eyes should roll, given the fact that all the Obama Administration has done over the past four years is scream that they need to spend more money. Blaming Congress for racking up trillions in new debt with nothing to show for it but fictitious “jobs saved or created” numbers that don’t reconcile with the unemployment and workforce stats is tantamount to piling up debt on your Dad’s credit card and then blaming him for being a spendthrift.

Second, you should be asking yourself – and your elected representatives – this: What gives Mr. Obama the right to say he “will not have another debate with this Congress,” over the debt ceiling when he has no authority to debate it in the first place? More importantly, you should ask yourself why your elected members to the US House would allow their leadership to include Mr. Obama in debates exclusive to House membership…ever.

The time to understand the US Constitution – to become constitutionally literate – is now…as is the time to actually start asking these question. Your great-grandchildren’s’ freedom may just depend on what you do right now.

House Republicans Have More Than Two Options

fiscal-cliff-boehner

fiscal-cliff-boehnerThere were a few anxious moments in the White House last night and early Thursday morning. For a brief moment it looked liked John Boehner’s re–election as Speaker might be in trouble. This would have been a disaster for the Obama administration — equivalent to the French hiring Gen. George S. Patton as their commander–in–chief in the fall of 1938.

It’s quite possible that Boehner is the favorite Republican of Oval Office denizens. He’s never won a showdown with Obama. He huffs and he puffs and he blows his own House down. Cong. Boehner is the Ambrose Burnside of GOP strategists. He’s always a pontoon or two short of victory.

Which is why his three–vote margin was uncomfortably close for the Obama administration.

Speaker Boehner — and admittedly much of the Republican brain trust both in and out of elective office — is trapped in a binary, tactical battle with the White House. A battle he manages to re–fight and re–lose on a regular basis. The fiscal cliff confrontation was simply not a choice between passing Obama’s tax and spending increases or plunging headlong off the cliff.

A truly strategic thinker would have seen there was a third option. An option that was difficult in the short run, but promised a lasting victory in the long run.

I outlined that strategy here in mid–December. I contend that Obama has a legitimate mandate to raise taxes, so let him raise taxes to his heart’s content. Instead of fighting and losing, House Republicans step aside and let the Democrats pass a bill that gives the public a mandate right upside their head.

Only the Democrats do it without a single Republican vote.

Instead, Boehner states very plainly the GOP believes this bill is wrong and raising taxes will damage the economy. Unfortunately, the people have spoken, so the GOP will abstain on this vote. Making the 2014 off–year election a referendum on the Obama plan.

A referendum Republicans will win in a landslide, if we are correct. If we are wrong, and the voters actually want big, bigger and biggest government, then it doesn’t matter anyway.

Using a political rope–a–dope strategy means Republicans can’t be blamed for pushing the country over the fiscal cliff, nor can they be blamed for the recession redux that follows passage of Obama’s Christmas list.

Instead, binary, short–term, tactical thinking has saddled the nation with a terrible deal: $41 in new spending for every $1 in elusive spending cuts. And what’s worse, because the House GOP leadership helped pass the bill, Republicans now have part ownership of the blame for Obama’s failure!

Ss long as Boehner is speaker, this willing participation in mutually assured economic destruction undercuts responsible conservatives in the future.

On the other hand, Republican governors, when presented with an almost identical situation, made just the type of choice I’m advocating.

GOP governors loathe Obamacare. They believe it to be bad policy, bad medicine and bad government. Now Obamacare is the law of the land and the next step is implementation on a state–by–state basis. In any potentially chancy political situation Democrats can be certain to monopolize all the credit and outsource the blame if things go wrong.

Acting on this principle, Democrats established a system where each state is supposed to create a health insurance exchange, which insulates national Democrats from blame. When Obamacare goes horribly wrong, state governors will be in the line of fire, since they created the exchange.

If Boehner had been governor of say Virginia, he would have fallen right into the trap and worked to create an exchange that implemented Obamacare and dispensed blame to Republicans.

Fortunately Bob McDonnell is governor and he — along with other wise Republicans at the state level — refused to create an exchange. Leaving Obamacare a Democrat sole proprietorship, since the exchange will be run by the feds. Obama owns the law and he owns the outcome, because Republicans refused to participate.

Looking ahead, our next defeat will be the vote on increasing the debt limit. Sure Boehner has pledged that he won’t negotiate with Obama in the future, but I fail to see where being buffaloed by Harry Reid is an improvement.

Unfortunately for conservatives, Boehner is an excellent strategist when it comes to protecting his career. As Virginia Del. Rich Anderson (R–VA) points out, back in 2009 Boehner was a strong supporter of a secret ballot for union elections.

Boehner declared that a public vote with union organizers watching would “actually would strip workers of free choice in union organizing elections…. Instead, it would leave them open to coercion and intimidation — from either union officials or company management — to sign or not sign a card expressing their desire to join a union.”

Which makes the 12 Republican members of the House who voted against Boehner on Thursday all the more noble. Since he was watching teamster–like as each one of them voted against him.

Voting as a conservative in the Boehner House is not conducive to career advancement. As the four freshmen Congressmen who lost their committee assignments last month, in retaliation for failing to toe the company line, will be happy to tell you.

In Deep with Michelle Ray – Waxing Politic

In Deep with Michelle Ray

When: Thursday, Janurary 3rd, 10pm Eastern/7pm Pacific

Where: In Deep with Michelle Ray on Blog Talk Radio

What: Join Social Media Director of ConservativeDailyNews.com, Michelle Ray (@GaltsGirl) as she discusses the issues that impact America.

Tonight: Join me as I wax politic on fiscal cliffs, exhaustion, and bejeweled. It may even make sense.

Listen to internet radio with CDNews Radio on Blog Talk Radio

Calling Ceasefire on the Boehner Bashing

120712_boehner_crying_reu_328_605

120712_boehner_crying_reu_328_605After the deal on the fiscal crisis passed, disappointed Republicans began a rallying cry resembling those of medieval times yelling, “Off with his head!”. Except instead of Boehner’s head, Republicans want his gavel. Historically, the problem isn’t Boehner, it’s tired Republican strategy.

Republicans, for decades, have been sucked in by the Democrat Party’s last-minute engineered emergencies like the “fiscal cliff”. This crisis is manufactured under the transparent drive to increase taxes. Republicans walk into negotiations demanding spending cuts and come out with tails between their legs and higher taxes. Frankly, it’s as ancient a story as The Three Little Pigs.

Almost everyone knows the story of Ronald Reagan. He thought he went for a deal that raised one dollar in taxes for every three dollars in spending cuts. Unfortunately, the majority of those cuts never came. While the Washington Post refutes the claim, there is still strong evidence to suggest that this is what Reagan believed when signing the deal.

Continuing on, let’s not forget President George H.W. Bush who, in 1990, was promised two dollars in spending cuts for every one dollar in tax hikes. Sadly the story ended with a 137 billion dollar tax increase and an additional 22 billion dollars in spending.

Following suit yet again, Boehner and a host of Republicans believed that they could negotiate their way to a compromise with a party who simply wasn’t interested in a win-win scenario.

These examples aren’t meant to make Republicans out as martyrs. We are all big boys and girls with our own separate philosophies and motivations. The Democrat’s strategy works every time because Republicans refuse to learn their lesson every time.

But here is where the ball game changes: After all these years of misled Republicans, Speaker Boehner has made it clear that he will no longer negotiate with President Obama. Boehner has learned the lesson Republicans should have learned decades ago: Negotiating reasonably with Democrats is the way one loses to Democrats. Which is exactly why, moving forward, we need John Boehner as Speaker.

 

Michelle Stansbury

Michelle Stansbury

Michelle Stansbury has nearly a decade of experience in political strategy and has recently opened a consulting firm targeted at helping businesses and campaigns flip their marketing and public relations strategies through new media. Michelle is also a weekly commentator on the Hayden Collins Radio Program and a national speaker. To book Michelle for an event or inquire about her professional consulting services click here. To get more updates, follow Michelle on Twitter or Subscribe on Facebook

 

Taxes: Yours are Going UP

money capitol

Forget what you’ve been hearing about the fiscal cliff being averted. Your taxes are going up.money capitol

Beginning January 1 your FICA taxes (Social Security and Medicare) will return to their 2009 levels. In 2010, in an attempt to jump start the economy, President Obama reduced payroll taxes from 6.2 to 4.2 percent. Congress, in its efforts to keep us from falling off the financial cliff, neglected to continue this reduction and so now all taxpayers will see an increase.

Some will say that we should be glad to see this money returning to the Social Security and Medicare funds; that these programs are in severe need of significant changes if they are to remain funded beyond the next ten years.

This unexpected tax hike isn’t just a blow to working families. It will also be a shock to the economy. Economists have considered the payroll break one of the more effective ways of stimulating the economy because, as working families enjoy larger take home pay, they have more money to spend. That, in turn, helped boost businesses’ bottom lines and spur the fragile economic recovery. Many economists think it’s too early to tell exactly how much the higher payroll tax will hurt the economy, but generally agree that there will be a negative effect.

The initial amounts of the increase don’t sound so bad…after all, it’s spread out over a year. But imagine this: A family making $50,000 per year (not rich by any means) will now see an increase in payroll taxes of $20 per week or $80 per month, $1,000 in total. If you are that family you know that extra money is needed each month to buy groceries, buy winter coats, or maybe pay for the kids to be in a soccer program. It is real money and will be felt by real people.

It’s remarkable that despite the bluster of Team Obama not to raise taxes on the middle class they are doing just such. Did they think we wouldn’t notice?

This month as your Democratic voting friends notice their paychecks are a little smaller ask them first, who they voted for and if they truly believed Obama would keep their best interest at heart?

Do not be a low information voter.

Happy New Year America?

Happy New Year America ?

This will print the day before the most holy day in the lives of all football freaks and parade aficionados alike. NEW YEARS! You know, the ROSE BOWL and the ROSE Parade usher in a new year of, well, wait, let’s finish 2012. I don’t want to get ahead of myself.

By the end of 2012, I will have completed almost 250 shows, written more or less 100 columns or blog posts, and wolfed down about 80 hot dogs from Wienerschnitzel.

I will have seen our economy flat lined at under 2%(GDP) and our REAL unemployment rate hanging in at 14.6% (BLS u6 stats). This doesn’t account for the countless Americans who are taking jobs earning considerably less than they were making, NOT to mention MILLIONS of Americans who just gave up.

One out of every 4 houses in major metropolitan areas in foreclosure. The U.S. credit rating has dropped for the first time in FOREVER! Our deficient has tripled in 4 short years. Millions of Americans are living on food stamps and almost 46 million more are living under the poverty level. Americans are giving up… something is not right.

The person who does not work and who receives government assistance often makes more money than a median income person. How is this possible that a person who is receiving public assistance still gets services in amounting to over $40,000 a year? When you add up what they receive in food stamps, Medicaid services, and cash assistance, it adds up to over $40,000 to $50,000 a year!! Is anyone wondering why so many don’t want to work? A person who makes $33,000 to $40,000 a year only really sees $19,000 to $24,000 dollars a year after taxes. However when you go for services you are told that you “make too much”. You don’t make enough money to survive, but you make too much to receive services. You can barely make ends meet. Why bother getting up every day to go to a job that pays so little when you can make more with government assistance?
So to beat poverty you simply need to go on government aid. How do we move forward when things are this backward?! Wouldn’t it be better for government to encourage people to take on ANY job and assist them a little bit if needed to bridge the gap?

Thousands of businesses are closing down. Between the economy, taxes, health care mandates, and out of control regulation, it’s just too hard to be a business owner and survive, let alone succeed.

We can’t drill for oil. Manufacturing plants can’t open because we can’t import needed metals because of regulations. We are living in a global economy and are regulating ourselves out of business. Case in point: It’s cheaper and easier to build the Volt battery in Taiwan than in America (where our President says we need to be more green friendly). So he loaned GM money to build the Volt to save the car industry and further green energy, essentially putting many of GM’s workers out of a job (in the middle of a recession), bankrupting many GM re-investors and sending the green battery manufacturing services to Taiwan. Yup, makes sense to me! NOT!

The President said earlier this year, “Small business is doing well.” REALLY? Which small businesses was he speaking of? Look at the local strip malls and commercial industrial areas. So many are EMPTY! Bankruptcy is up with small business owners. Yup, it must be backwards YEAR!

And the cliff is in sight no matter what they agree on. But 2013 can’t get any worse… REALLY? Many economists say that there is another recession coming in 2013, maybe even a depression!

Current GDP is at a level that can’t even sustain the recession we are in now. (Yes, we ARE still in a recession.) We are extremely dependent on Europe’s economy. As of November, Greece alone has over 11 million people and ONLY 4.7 million are working. They need to borrow $30+ billion to pay their bills (retired people) for the next few months until a permanent plan can be worked out. Sounds like they are taking lesson from our legislators. Oh, and Japan, who we rely on heavily, has government debt that is 230% of its GDP!

Here at home, the foreclosure problem has only just begun. Banks have been holding back, just you wait!

Rising health care costs, stronger regulations, more stringent oil drilling regulations, more foreclosures looming, and a severe shortage of jobs … Happy New Year?

How Many Times Does America Have to Go Over the Fiscal Cliff Before the Concussion Kills Us?

uncle sam drives over the fiscall cliff

uncle sam drives over the fiscall cliff

 

America has gone over the fiscal cliff so often; the concussions have definitely created economic brain damage and lunacy.

First: “Fiscal Cliff” is nothing more than an economic political term for economic idiocy leaders engage in more often than they do with Dominican hookers and interns.

Second: America goes over the fiscal cliff every time the Federal Reserve lowers interest rates to give the federal government an excuse to over lend, spend, and borrow what can never be repaid.

If you are panicking right now, you forgot America has been cliff-diving  for over 200 years and generations of economic brain damage hasn’t taught America one, single thing about printing paper currency and borrowing: Loans cannot be repaid with paper or excessive taxes.

If we paid attention to history, the Federal Reserve wouldn’t stand at attention every time it hears the ca-ching of cash registers ringing the national hymn of Weimar.

Most leaders are more interested in gambling for power than America’s preservation, which is why Obama and Democrats are hyping the fiscal cliff: Make Americans believe the wealthy caused the $16 trillion debt and they must be over-taxed! Only taxation can stop America from collapsing and going over the cliff!

The “Fiscal Cliff” is purposely used as a weapon to destroy the economy and push America to the brink of bankruptcy in order to destroy individual American wealth.

Obama and Democrats are using the “Fiscal Cliff” weapon well. They’ve scared the daylights out of Americans who prefer suffering blind eye concussions rather than understanding that history is repeating itself on a level like never before because of our leaders, not the people.

Example: The American Revolution cost a fortune, and when we ran out of money, the Continental Congress created a new currency: Paper notes known as “Continentals.”

 

hamilton note

As always, the government over prints paper and people assume the notes are equal to gold coins and paper will back up their means.

“Continental” currency worked as well then as now: The Central Bank over-printed to keep up with“Continental” demands.  But paper is not a redeemable, tangible asset.  As the war accelerated, Congress reneged on its promise to issue more notes, inflation skyrocketed, and Americans were left in desperate need.

Alexander Hamilton, whose ideas were more in line with British government, created another central bank with one currency. The colonies had few banks: Britain controlled banking and prevented rival banks from developing. America needed a way to smooth the progress of government financing to investors and lending to businesses to develop a prosperous American economy. The idea was great, but failed: Hamilton’s Second Bank sent all United States gold [currency backing] to foreign countries during the 1790s.

In Hamilton’s Writings, his December 13, 1790  “Report on a National Bank” to the House of Representatives he stated: “The bank did not have the ability to circulate great sums of money beyond actual gold and silver coins held within the bank’s vaults,” so another rout was taken that pushed America over a fiscal cliff:

The stamping of paper is an operation so much easier than the laying of taxes, that a government in the practice of paper emissions, would rarely fail in any such emergency to indulge itself too far, in the employment of that resource, to avoid as much as possible one less auspicious to present popularity.

 hamilton dollar

Hamilton’s Bank continued printing nonredeemable notes as inflation escalated. By 1812 America dove over the fiscal cliff.

I’ll never understand why we outlawed dueling!

According to the Bureau of Public Debt:

The War of 1812 was financed mainly through the use of borrowed funds. Total public debt increased from $45.2 million on January 1, 1812, to $119.2 million as of September 30, 1815.

America’s banking system was so mismanaged; we dove again: The Panic of 1819.

In his book Andrew Jackson and the Bank War, historian Robert V. Remini wrote that by 1822 America’s economy collapsed: American banks fell and the people lost everything. Anger was so wide-spread, Americans elected President Andrew Jackson, who tore down the Second Bank,  placed money back into individual state’s hands, pushed for gold and silver to remain in America, and sold federal land to pay off the national debt.

 

destroying second bank

Jackson’s policies never prevented future government borrowing and lending idiocy or the creation of Federal Reserve.

Cheap paper seems to cause convenient amnesia.

By 1846, the United States war with Mexico over annexation of Texas and California cost $64 million, so “Congress authorized the issuing of additional debt to meet these obligations. It is this concept that would later become the basis for the Savings Bond program. By the end of 1849, public debt totaled $63.1 million.”

The War Between the States:

A final official estimate in 1879 totaled $6,190,000,000. The Confederacy spent perhaps $2,099,808,707. By 1906 another $3.3 billion already had been spent by the U.S. government on Northerners’ pensions and other veterans’ benefits for former Federal soldiers. Southern states and private philanthropy provided benefits to the Confederate veterans. The amount spent on benefits eventually well exceeded the war’s original cost.

By the end of the fiscal year of 1899, America paid much of its debt, leaving the country with $1.9 billion in gross debt.

But America elected Woodrow Wilson, who enacted the Federal Reserve, IRS, and borrowed $11.577 billion ($206.186 billion in 2002 dollars), we are still repaying today, to finance WWI, while borrowing further from Americans. This doesn’t include the enactment of the Debt Commission for borrowing funds.

Wilson admitted:

I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the civilized world – no longer a government by free opinion, no longer a government by conviction and the vote of the majority, but a government by the opinion and duress of a small group of dominant men.

Notice the “unhappy” president never repealed his ruination.*

Next, the “dominant” FDR “civilized” us with government programs and ended the gold standard in 1933,  declaring private ownership of gold illegal, except gold jewelry. I assume marriage had something to do with that decision.

exec order to confiscate gold

Though foreign governments could sell gold to America, President Nixon destroyed the gold standard completely, leaving America on a fiat standard not backed by commodities.

But hey, we have communist China backing worthless paper while manufacturing worthless American products!

Forget the damn cliff, we threw a rope over the highest limb on the tallest tree long-ago and hanged ourselves with our own economic stupidity!

* [Editor’s note: This story may be apocryphal.]

Harry Reid, Why Are You Furious with John Boehner’s “Plan B;” It’s A Democrat Plan in Republican Disguise!

 Beohner if we must destropy nation

 

Harry Reid is up in arms over John Boehner’s “Plan B,”  insisting the plan will hurl America over the fiscal cliff and force the nation to default its loans.

Memo to Harry Reid: America is $16 trillion in debt. I think it’s safe to assume you leaders defaulted America when we passed the $1 trillion mark.

Furthermore, if you’re going to feign indignant outrage, don’t do it over John Boehner’s liberal Democrat actions. Boehner’s no different than you Harry: You’re both sticking it to the people!

 

Reid gives the finger

 

As to Speaker Boehner, he’s is nothing more than a liberal Democrat in GOP clothing. He has no intentions of demanding deep tax-and-spend cuts or he never would have agreed to the 2011 debt ceiling hike.  If Boehner truly wanted to cut spending, he would have called the Democrat’s bluff:  Demand they cut billions from  government-funded programs like Planned Parenthood. Nancy Pelosi’s facelift would hit the floor, but, calling for deep cuts in areas taxpayers do not want to fund is the kind of demands conservatives want, not tax-hikes on the wealthy, as Boehner’s “Plan B” demands.

Despite “Plan B” being nothing more than anti-wealth  socialist collectivism, Reid says:

Speaker Boehner’s ‘plan B’ is the farthest thing from a balanced approach. It will not protect middle class families because it cannot pass both Houses of Congress. The Senate bill is the only ‘plan B’ that can be signed into law and prevent taxes from rising by $2,200 on the average middle-class family. Now is the time to show leadership, not kick the can down the road. Speaker Boehner should focus his energy on forging a large-scale deficit reduction agreement. It would be a shame if Republicans abandoned productive negotiations due to pressure from the Tea Party, as they have time and again.

 

Give me a break! John Boehner lays down and rolls over for Obama and spending hikes like a Paris Hilton sex video!

I’m surprised Harry Reid isn’t praising “Plan B;” it’s progressive Democrat legislation: More tax-and-spend hikes on millionaire earners that will trickle down to the middle class, creating more job and business losses and more government dependency.

Reid is angry. He  says “John Boehner seems to care more about keeping his speakership than keeping the nation on firm financial footing.” If I didn’t know better I would say Harry was talking about himself and every other leader serving unconstitutional life terms.

Its obvious Harry Reid doesn’t spend much time around Speaker Boehner or Reid would realize they are two of a kind:  They care more about their careers than serving the country and fixing America’s economy.

Reid and Boehner

Still, Reid is in a huff over Boehner’s tax-hiking fiscal cliff standoff.  As if any legislative standoff will stop the bill-shoving Obama from hiking taxes on   American earners in 2013.

Reid blames Boehner, insisting he is pushing America over the fiscal cliff with a plan that terminates Bush-era tax-cuts to those earning $250,000 and under. Reid says this debacle could be avoided if only Boehner would concede to Senate legislation.  Political translation: Concede to Harry Reid. America’s dilemma: All Boehner ever does is concede.

America has a debt crisis both parities contributed to.  None of these spendaholic leaders ever admits that America goes over the fiscal cliff every time the Federal Reserve cuts interests rates too low, over prints worthless paper, and the federal government over spends, lends and borrows what it cannot repay.

That didn’t stop Reid from calling Boehner a “dictator” who won’t go against the GOP, because Boehner caterers to his fellow Republican leaders:

The American people I don’t think understand the House of Representatives is operating without the House of Representatives. It’s being operated by a dictatorship of the speaker, not allowing the vast majority of the House of Representatives to get what they want…If the 250 [cut-off for income tax votes] were brought up, it would pass overwhelmingly.

 

Furthermore, Reid insists “what goes on [in the GOP] shouldn’t be decided by the majority, it should be decided by the whole House of Representatives.”

Reid never made that statement when Nancy Pelosi was Speaker of the House. Nor will Reid admit his statements reflect the way President Obama pushes bills into law without a “majority” Congressional consent.

As to dictators, most leaders in Washington are dictators, the reason many Americans dislike the modern-day government. Both parties have become power-grabbing life-termed aristocrats who care more about party loyalty than working to preserve, uphold, and defend the Constitution.  That’s why the Tea Party started.

Reid himself  admitted to the Senate that conservatives are sick and tired of Boehner:

He has so many people over there [in the GOP] that won’t follow what he wants, That’s obvious from the debacle that took place that week [with Tea Party leaders saying no to “Plan B”]. And it was a debacle. It was so bad, he was in such difficult shape there, he wouldn’t even allow a vote to take place with his Republicans because he knew he would lose.

 

Boehner cartoon

 

Conservative House members are furious with Boehner because he silenced their votes, removed their committee seats, trashed the Tea Party, and acts like Harry Reid:  He legislates as Democrat and compromises to Obama.

Boehner has not presented one, single plan that significantly cuts spending, decreases the deficit, and reduces taxes for every American.

According to The Economist:  

“Plan B” is a bill that hikes taxes only for income over $1 m[illion] per year, with no other spending measures or tax compromises…Mr. Boehner’s Plan B is an attempt to defray blame for the fiscal cliff onto Democrats, but if the country actually goes over the cliff, Plan B is unlikely to shield Republicans. Pressure from business groups and from taxpayers to reach a compromise deal before the economy suffers serious damage will become immense.

 

Hiking taxes on millionaires will crush middle class businesses that earn $1-$5 million before taxes. “Plan B” is another compromise for government programs to continue spending billions through taxes and  increasing debt as America defaults.

Both Reid and Obama should be jumping for joy; John Boehner has been a gift to the DNC: He’s just like Harry Reid, a liberal Democrat.

 

 

 

 

 

It’s Still Government Spending, Stupid

obama_pelosi_reid

Barack Obama, who has stayed in continuous campaign mode since birth, persists in insisting House Republicans submit to his demands to hike tax rates on “the rich.”  If Republicans do note cede to his decrees, Obama will let everyone’s tax rates go up and cut obama_liesone trillion dollars from the budget, half of which will come from defense spending.

If he were truly interested in solving America’s fiscal troubles, this would not be his position.

Most definitely not…

Obama carries on with his nonstop campaign-style appearances, claiming that higher tax rates will reduce the U.S. deficit and cut the national debt.

That is categorically complete, total, absolute, utter fantasy.

The amount collected by the IRS from Obama’s long lusted for tax hikes would fund U.S. federal spending for fewer than nine days.

For members of the self-imagined, self-appointed “progressive” intellectual elite: That is less than two weeks.

At current spending levels the U.S. federal government borrows forty six cents of every dollar it spends.  Despite the fact that 2013 has not yet begun, through the first two months of fiscal year 2013 the U.S. is already approximately $300 billion in debt.

The biggest drivers of U.S. deficit spending are Medicare, Social Security, “safety net” programs and interest on the debt.  The looming short and long term costs of Obamacare have yet to fully reveal themselves, but given the U.S. federal government’s track record one can safely predict that it will be far more than what taxpayers were told and will rape their wallets for billions every year.

In other words, under the White House’s current “progressive” policies, it is only going to get worse, not better.

obama_pelosi_reidThe Oval Office occupier and his “progressive” Party Pravda press secretaries willfully ignore and refuse to mention that under the current tax rates, revenues are up by thirty billion dollars over last year.

Obama keeps claiming that raising tax rates on America’s highest earners, those who already pay forty percent of the revenue to the IRS, will be the silver bullet that solves America’s financial woes.  He continues blaming today’s deficits on his predecessor.

During his time in office, George W. Bush’s highest deficit was $438 billion.  Obama’s government has posted a $1 trillion plus deficit for four straight years.  2013 will make five.  America’s fiscal gloom and the looming “fiscal cliff” “crisis” are the result of “progressive” spending on wasteful big government socialist programs.

That is the reason.  Any other claim is pure unadulterated political snake oil.

America’s debt and deficit problems can only be resolved by cuts in spending.  When the United States receives another credit downgrade, it will be because of “progressives”, not Conservatives.  America needs to cut spending, not increase taxes.

Anyone who says differently should be in organic fertilizer distribution…or is that redistribution?
Warning: This show is addictive

Off The Cliff We Go

fiscal-cliff630-290x207

fiscal-cliff630-290x207Tonight, Speaker of the House John Boehner declined to bring his so-called “Plan B” for averting the so-called fiscal cliff for a vote. “Plan B” did not have enough support among House Republicans to pass. The House immediately voted to adjourn until after Christmas. We’re pretty much going off the cliff unless something drastic happens in the next couple of weeks.

The GOP messaging and generally how they have conducted themselves in this crisis is abysmal. The House GOP should be out front trying to point out in every media appearance that they passed legislation in August extending the Bush tax rates for everyone and that the Senate has done nothing about it. But they haven’t talked about this, instead they have bought into the Democrat party’s class warfare arguments hook line and sinker. First it was the GOP leadership’s proposal to cap deductions for wealthy taxpayers, then it was getting into general agreement with President-Messiah Barack Obama about taxing the eeevvviiilll rich. For these basic marketing failures alone, the House GOP is in dire need of new leadership, starting with a new Speaker. If the Republican Party cannot be counted on to oppose tax increases, what is the point of voting for them?

All President-Messiah Obama has to do at this point is do nothing. Republicans are so afraid that they will be blamed for going off the fiscal cliff that they will give him exactly what he wants. If by some miracle House Republicans somehow receive a backbone from Santa for Christmas, Obama still wins because taxes go up for all Americans; not just the eeevvviiilll rich.

The only thing Republicans can do at this point is walk away. Let Obama win this battle because there is nothing to negotiate with. Vote present in the House for Obama’s plan and don’t filibuster Obama’s plan in the Senate. Let Obama and the Democrats own the consequences of their economic policies, for better or worse.

Originally published: http://kevinboyd1984.wordpress.com/2012/12/20/off-the-cliff-we-go/

Follow Kevin on Twitter @kevinboyd1984 and like his page on Facebook http://www.Facebook.com/kevinsrants

Obama Pardons Infamous Ponzi-schemer Bernie Madoff, Appoints to Manage Social Security Trust Fund

“Madoff duped a handful of well-off investors…meanwhile the Social Security program is duping generations of all classes of investors…” –Dr. Edward Forsythe

At a White House press conference Wednesday evening, President Obama announced he has issued an executive pardon to infamous Ponzi-schemer Bernie Madoff and appointed the convicted felon to manage the country’s Social Security Trust Fund.

“Look, the Social Security program is facing dire financial straits, and if there’s anyone who has the right experience, morals, and financial acumen to see this through it’s my friend, Bernie Madoff,” the President explained. “At least until I’m out of office,” he added off-microphone while sneakily winking at Jim Messina, his former campaign manager.

In March 2009, Madoff pleaded guilty to 11 felony counts related to running the largest Ponzi scheme in American history, with losses exceeding $10 billion. The scheme involved Madoff promising lavish returns to investors whose principal was ultimately being used to make good on those same lavish returns promised to his earlier investors. As the existing assets under management, which were funded by the earlier investors, deteriorated Madoff used the principal from his new investors to make good on his promises to his earlier investors.

Madoff’s unprecedented record of taking people’s money and making egregious phony promises positions him uniquely to manage the Social Security Trust Fund.

The Social Security program requires taxpayers (and their employers) to pay 6.2% of gross wages into the Social Security Trust Fund (this is that pesky “OASDI” line on your pay stub that reduces your net pay). The Trust Fund uses current period revenues (i.e., Social Security taxes from today’s workforce, or “the new investors’ principal,” and interest) to pay its expenses (i.e., Social Security benefits paid to yesterday’s workforce, or “the early investors’ return of principal and interest”). The Trust Fund is currently on pace to become insolvent by 2033, which means today’s workforce, and to a greater degree tomorrow’s workforce, can expect significant benefit reductions by the time they reach retirement age, if any benefit payment at all.

Dr. Edward N. U. Forsythe, a senior research fellow with the Institute for Opening Peoples’ Freaking Eyes, explains that the program orchestrated by Madoff is actually morally superior to the federal government’s Social Security program.

“The key distinction between a traditional Ponzi scheme and the Social Security program is that in a Ponzi scheme, the investors made a choice to invest,” Forsythe began. “The Social Security charade on the other hand, uses the force of law to require participation in what Milton Friedman called ‘the biggest Ponzi scheme on earth.’ Mechanically, the programs are largely indistinguishable: in a mature Ponzi scheme, there are no real assets under management, all new investment is simply funneled from late investors, through the asset manager’s bank account, and paid directly to the early investors; today’s Social Security Trust Fund likewise has no real assets under management and contributions received from today’s workforce are simply funneled through the Fund and paid directly to yesterday’s workforce. This seemed to work and appease the public while the demographics and economics allowed for it; in 1950 there were 16.5 workers paying Social Security taxes for every one person receiving benefits, and today there are less than 3 workers paying in for every one person receiving benefits. The wage base has simply not been able to offset that trending demographic shift.”

“Regardless of the demographics or economics,” Forsythe added, “the fact is while Washington was in front of the television cameras gesturing shame on Madoff with one hand, they were reaching their other hand into your pocket and snatching 6.2% of your income to invest into their mechanically identical plan, promising returns that it won’t be able to meet. Look, Madoff duped a handful of well-off investors who at least had a choice to participate; meanwhile the Social Security program is duping generations of all classes of investors who are compelled to participate by law. So since FDR can’t be charged with the countless felonies for his Ponzi scheme pandemic, who should we charge in his place?”

On the appointment of Madoff to manage the Social Security Trust Fund, Forsythe noted, “For once the administration has appointed someone qualified to serve in a particular role! I think Madoff will serve great in this appointment. I mean he’s the perfect guy for the job. And just think, using the law to force investment into his ‘fund’ should free up much of the creative capital he previously spent on intricate document forgeries, wire transfers, and sales pitches to entice new investment.”

Madoff will be in good company as the newly appointed asset manager of the Trust Fund. Ironically, the Trust Fund’s current Managing Trustee, U.S. Treasury Secretary Timothy Geithner, skipped paying his own Social Security taxes during tax years 2001 – 2004 (an “oversight” which he swiftly corrected after Obama expressed interest in nominating him as Treasury Secretary). Seriously, the dude in charge of the Social Security fund skipped paying his own Social Security taxes, how’s that for irony, Alanis Morissette? [♬ …it’s like a tax cheat, on the Fund’s Board of Trustees… ♬]

Madoff was not available for public comment at the time of the announcement; however his attorney noted that Madoff is eager to begin his new appointment and looks forward to applying his expertise to the federal program that he attributed as the inspiration for his own record-breaking financial swindle.

The fiscal cliff could be the country’s cure

imagesCAH96SOT-Harry, Obama, and Nancy2

According to Wikipedia’s definition of the fiscal cliff Americans could suffer a little more short term pain for a lot more long term gain. Americans are used to suffering these last four years so what’s another few more?

The fiscal cliff by their definition is a number of different laws which if left unchanged could lead to tax increases, spending cuts, and a deficit reduction. Two out of the three are just what the doctor ordered. It is only the first one that could create a problem.

According to the United States Treasury Department the George W. Bush Tax Cuts are a major part of the solution not the problem. These tax cuts have become the political football for the Democrats to play with. They rail against them because they don’t fit their narrative however when push comes to shove they always vote to renew them. The Democrats never seem to suffer politically because the propagandist’s in the media always provide cover for them.

The Democrats treat the middle class like their red headed stepchildren. They use scare tactics like the fiscal cliff in order to keep voters on edge and loyal to their party. Then when the time is right they trash Republicans as being obstructionists and play the role of savior by saving the middle class from inevitable ruin by renewing the tax cuts. The best actors and actresses are not in Hollywood. They are in the Democratic Party.

The Bush Tax Cuts are not just a political football for Republicans to kick around; they are sound fiscal policy. They are proven job creators and have been tremendously beneficial to the middle class by shifting a larger share of the individual income taxes paid from lower income earners to higher income earners. These tax cuts have actually helped and in some cases even eliminated the tax burden on lower and middle income Americans. It is for this reason that these tax cuts need to be made permanent and a mandatory part of the negotiations. For more on this see this article. http://www.examiner.com/article/how-to-end-the-class-warfare-argument?cid=db_articles

The second part of the fiscal cliff is spending cuts. Do you hear the crickets? Of course spending cuts! The last time I check our deficit was almost 17 trillion with a capital T. Our government has been spending more than it has been taking in for years and it needs to stop. We need to cut all the wasteful programs out of our government and the ones we keep should be returned to the states where they could be run more efficiently.

Another thing we can do is to immediately restore the work requirement for welfare. Ronald Reagan once famously said, “Welfare’s purpose should be to eliminate, as far as possible, the need for its own existence. He then goes on to say, “The best and most effective social program the government can help create is a job.” Reagan left no ambiguity as to how he felt towards big government when he famously quipped, “In this present crisis, government is not the solution to our problem; government is the problem.”

Being on welfare should never be a permanent financial solution for anyone. Removing the work requirement just adds to more government dependency which is exactly what most in the Democratic Party want. This policy is bad for the economy because it dramatically increases spending and allows recipients to become more complacent and ultimately makes it that much harder for people to get off of welfare. When government can’t solve a problem, they throw taxpayer’s money at it. Unfortunately for us it doesn’t provide solutions; it only exacerbates the problem.

The third part is deficit reduction. A constitutional amendment for a balanced budget would be a great start. If the Republicans were smart they would be bringing this up as a mandatory part of the negotiations. This is a winning issue and right now the Democrats are winning the fiscal cliff argument.

A balanced budget amendment to the Constitution will make future battles over fiscal policy much more transparent and opaque. The Democrats will not be able to move the goal posts like they do now and Republicans will be able to restore some resemblance of fiscal sanity. In addition, Republicans ought to be exposing all the horrible taxes that are just around the corner from the health care bill. If the Republican Party uses what little left they have in political capitol correctly than they can bypass the media and get the public on their side. A minority in Congress and a majority in America can create a majority in Congress.

Rather than raising taxes on job creators Republicans would be better off just letting the Democrats drive us over the fiscal cliff. By allowing this to happen maybe the American people will finally wake up and realize that liberal policies do not work. Republicans could than be in a stronger position to win in 2014 and beyond. The Republican Party and more importantly the country would benefit in the long run.

Republicans need to stand firm and call the Democrat’s bluff on the fiscal cliff. The Democrats will not allow the Bush tax cuts to expire. They know that if that happened the economy would go into an immediate recession. For political reasons if nothing else they won’t let that happen. However if it did happen along with spending cuts and a deficit reduction you would have the makings of a real recovery. And as the famous Meat Loaf song goes two out of three ain’t bad.
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