San Diego – Only 8 weeks ago, wrapped in the sacred robes of Keynesian wisdom, Fed Chairman Ben Bernanke asserted proudly that from that the country, following the application of the economic policies of that paragon of financial wisdom who, in the history of the world, though he is adored by socialist and liberal thinkers, has yet to once be correct, was now vindicated by the situation where we were seeing slow but steady progress out of our economic woes. The sentiment was echoed by White House occupants and sycophants and their heralds in the media. If you listened to network news or to the policy parrots of the administration at MSNBC, you would have every reason but one to think we were on our way to a splendid if slow recovery.
And that one reason not to think so? It simply was not true. Last week, according to the AP, Ben Bernanke admitted that it was not happening and he was clueless as to why not and worse, that the troubles could continue into next year. Well, OK, to be fair, that is not precisely what he said. What he actually said was,
“We don’t have a precise read on why this slower pace of growth is persisting. … the weak housing market and problems in the banking system might be ‘more persistent than we thought.’”
I want to remember that phrase for my own use: “We don’t have a precise read on…” What an elegant phrase to admit you are simply stumped. But the class of the annunciation does not ameliorate the underlying message. They have tried what their guru told them and when it did not work, their blinders were so tightly aimed they had no way to analyze the results because they fell outside of the paradigm they had accepted totally.
Now bear in mind this is from the same group of briliant policy wonks that insist the way to help us out of a debt crisis is by raising our credit limit. In talking about the Democrat’s position debate over raising the debt ceiling, Sen Harry Reid and other Democratic leaders said an agreement should include some spending increases for infrastructure, clean energy and other programs to boost the economy.
Don’t you get it? There is only one reason to want the debt ceiling to be raised and that is so you can spend more? If you truly don’t want to spend more money and wish to actually cut some spending, why raise the debt ceiling instead of simply starting to pay down the liabilities? And don’t try the current red herring on me that if we don’t then we will start defaulting. Bovine Excrement!!! This is not about any default; the Congressional Budget office declared we take in more than enough in revenue (read, “Taxes”) to pay the interest on the current indebtedness plus basic essential government operations.
Therefore the only way we would default on our debt is for our dear leader to decide to default on the interest in favor of spending elsewhere. In other words, an abject failure of proper prioritizing. It is perfectly analogous to the decision by a person facing bankruptcy who decides, instead of paying off existing debt with his income and cutting his spending, to spend all his money buying a new TV and then buys a new car on the credit card before it collapses. That is exactly what King Barrack, Baron Bernanke, and Lord Geitner are telling you is the best plan for the country.
And how has it worked out so far, do you think? Has the investments we were assured would stop the recession and put us on the road to recovery worked? Have they worked even a little bit? Has unemployment dropped as promised? Has national productivity started a noticeable climb? Have housing costs adjusted properly? No, no, no, and no.
The argument is we need to do MORE “investment” (spending) to boost the economy. But that is exactly the plan Greece adopted and we all know how that is working out for them, Ditto Portugal, Ireland, Spain… and we would be different why?
Every word this gang utters about wanting to get spending under control is a bald faced lie or exhibits galactic level stupidity. The way to get spending under control is to stop spending. Period. There is no other. The way to control debt is to cut up the credit cards not to increase the limits on the ones you have or, worse, get some more. This is about priorities in a rational spending budget. Period. To get us out of this via taxes would require, using CBO, IRS, Census bureau, and Government figures, about $47,000.00 (that is $47 thousand dollars) from every individual in the country including those not now paying any taxes.
The math is, again as i’ve pointed out over and over, incredibly simple. The only way to not “get it” is to not WANT to get it and be blind to it. And how about those rich folks including the truly rich plus those owning small business as sole proprietorships whose income is listed at over $200,000.00 (and note the missing item you are not told is that people who want this figure as a criterion do not mention this is “Before Tax” income)? Well then since it is a smaller number, each of them would have to cough up $3.5 million in taxes.
Sure there are some that could pay it out of pocket change but the majority of people in that income bracket are small business owners and do you seriously believe it would not have a detrimental effect on the same small businesses that are the major employers in this country? I honestly do not have a problem closing true tax loopholes, but anyone who thinks that will solve the debt problem and let our profligate spending continue unabated is either hopelessly stupid or sim[ply does not want to face or acknowledge the reality involved. I’m in favor of the fair flat tax approach but it will not get us out of this mess. As noted in another post using 100% of our tax revenues will not get us out of this.
So we remain adrift. Or… as I have suggested before, we are not adrift at all but in the hands of a Captain Ahab, purposefully setting sail after the white whale of democracy and capitalism following the compass of Keynesian/socialist ideals and willing to take us all down with the ship for his ideology which he believes will, in the end be better for us after the ship sinks and he rebuilds us a better boat from the flotsam. And who is to stop him except us voters?
I just was sent a “civics” test from an inter-collegial studies course. The friend who sent it to me scored an 87% and I scored a paltry 86%. But here comes the really frightening statistic. Of the college professors who took it, the average score was 55% and the overall score of general citizens was 49%. It terrifies me to think our education is in such hands as those professors and worse, that our future is int he hands of those average citizens. You can take it for yourself at this URL:
Good luck to the rest of you who, along with me, is drifting on the ship of state we need to rename the Pequod!