RSS

Tag Archives: debt ceiling

More BS Flowing Down The Political Sewer Pipe

San Diego – Oh how soon we forget when it serves our purposes…  But sometimes there is that pesky videotape that someone forgot to erase when the agenda changed.  And now we have a glaring example of it.

The year was 2006.  The President was the hated Bush demon and in his evil machinations sought to raise the debt ceiling.  The left was simply apoplectic.  Senators Reid, Pelosi and, yes, Senator Barrack Obama each took to the dias and bloviated in soaring rhetoric how this was an outrage!  This was, they ALL chanted, simply so we could spend more money but we did not need to raise it for current spending obligations because all of those had to have been approved under the debt ceiling as then defined.  This was, they shrieked, merely a way to allow the administration to spend NEW money on the wars in Iraq and Afghanistan beyond that already approved, which they hated.

In fact, they were right.  Congress cannot approve borrowing more money than the debt ceiling in place at the moment will allow.  So every debt and liability incurred by the country at the moment has had to fit within the debt ceiling when the liability was enacted.  And, sure enough, we have the revenue to at least service the current debt even though we do not have the revenue to pay the principle down or to fund new debt.  That was true when Reid, Pelosi, Obama, et al rose to say it in 2006.  And it is still true today.

It was still true in 2008 when Obama, on the stump, called the Evil Bush Demon irresponsible and unpatriotic for allowing the national debt to reach $4 trillion on his watch, to create, he noted, a debt exceeding the total debt run up by all presidents before him.  He was correct.  But that was $6 Trillion ago.  And that additional $6 Trillion was run up not by the Evil Bush Demon but by the benighted Obamessiah,  How can that be when he was telling the truth back then.

However, he was not telling the truth today or anything even close to it.  He had to be assuming, (and with every reason to make the assumption based on the election results), that the populace is so ignorant and so burdened with short attentions that they will not only have forgotten it but those few who remembered will think they remembered in error, our Spender in Chief rose Monday morning to warn the people that if the evil right wing continued to hold America hostage by refusing to raise the debt ceiling unless some equal cuts in spending were added, we would fail economically, fail in our promises to the world, our credit would be shot, and we would no longer be a powerful nation.

Sorry Chief, that is simply a bald faced lie.  And worse.  Trying to frighten recipeients of social security and VA benefits is disingenuous because he knows full well that the payment of those specific benefits is protected by Federal law.  It is more than disingenuous, it is sleazy and duplicitous.

And, Dear Leader, it contradicts your own surprisingly well reasoned diatribe against raising the debt ceiling for the Evil Bush Demon which, against all odds, actually caught you doing something unusual, telling… the truth.  Well, some of the truth anyway.

Raising the debt ceiling is wanted and needed solely so we can raise our debt.  Duh.  Obama’s problem is that as a country, we do not take in the revenue to pay for the desired levels of spending especially when the leadership wants to turn us overnight into a Scandinavian model socialist democracy.  But this is not a result of incompetence.  I believe it is an obvious part of strategy 101.

If we continue, year after year to raise the debt ceiling and then borrow up to it so we need to raise it again to spend and borrow more, sooner or later that house of cards will come crumbling down just as it does to a family who tries the same thing.  And then we have a choice.  We can do what we are doing now which is simply push the day of reckoning down the line so our kids and their kids will have to deal with the catastrophe we are creating, or we have to belly up to the bar and cough up the revenues into the public coffers to pay for it.

The problem is then we will have to believe that a Congress known most of all for its profligate spending (and yes, this includes the mainstream Republicans as well who differentiate themselves from the liberals only be want to spend a little less and a little slower, will take that added revenue and put it toward paying down the debt instead of simply expanding new programs.  You do all believe they will all suddenly be bitten by the bug of restraint, don’t you?  I’m sure I do…  NOT!

The only chance this generation has of getting the debt under control is to stop increasing the debt faster than it can be paid down.  And that needs to start now.  Will it happen?  I doubt it.  The citizenry unburdened by any real knowledge of the issues or the consequences, hearing only what they want to hear and even then only if buried in the speech is a promise for more stuff to flow down into the public trough, are apparently clueless.

Obama has an uncanny ability to avoid issues and solutions while successfully painting any who oppose his view as the enemy, not just of him, though that is bad enough in his eyes, but of the country, of the children, of the poor, of the minorities, of women, of anyone whose status allows the inference of some ugly label to be applied to his opposition.

Amazing.  Sad.  Maddening.  I think perhaps we need the object lesson  now rushing at us like an out of control freight train while we, in our economically and ethically broken jalopy sit here broken down on the track.  Maybe those left standing, after they have clawed their way back to fiscal responsibility and productivity will, at least for another generation, remember.

Despite government promises to the contrary, there really is no free lunch.  And this lunch is going to have one Hell of a bill.

Advertisements
 
Leave a comment

Posted by on January 14, 2013 in Uncategorized

 

Tags: , , , , , ,

Adrift and Rudderless in a Keynesian Fog

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:

http://www.isi.org/quiz.aspx?q=FE5C3B47-9675-41E0-9CF3-072BB31E2692>

Good luck to the rest of you who, along with me, is drifting on the ship of state we need to rename the Pequod!

 
Leave a comment

Posted by on June 27, 2011 in Uncategorized

 

Tags: , , , , , , , , , , , , ,

When You Find Yourself in a Hole…

San Diego – An old saying goes, “When you find yourself in a hole, the first thing to do is stop digging!”  But the approach of our brilliant congress takes another tack: they want us to give them a bigger shovel, or, better yet, a backhoe.

After the fight over the peanuts involved in the “negotiations” over keeping the government open, the next hot topic appears to be the Liberal Keynesian clamor to raise the debt ceiling so the country can borrow more money.  The rationale given is that if we do not raise the debt ceiling thereby allowing us to borrow more money, then it will be a disaster because we will have to default on some of our loans.  What?  Do they not realize what they said?

Basically they are saying that they do not have money to pay the sources from which we have borrowed money and so their best solution is to… borrow some more.  They want to borrow more money to keep from defaulting on previously borrowed money.  Put simply, the plan is to borrow more money to help with their debt problem.  Before becoming President, Senator Obama knew the reality of this and eloquently railed against raising the debt ceiling calling the need to do so a failure of leadership.  He was right then and that statement is STILL right.  But now that he has to apply it to himself, he is saying it was a mistake.  No, Barrack, baby, it wasn’t.

Does anyone out there with some credit card debt see that as a good way to get out form under their debt?  In fact isn’t precisely that approach the first step down the road toward real bankruptcy for so many of us?  We don’t want to cut back, we don’t want to lower our expenditures for material things we have come to see not as niceties but as necessities, we don’t know how to raise our productivity, so we get another credit card to use or raise the limit on ones we already have.  And has that plan ever worked?  No.  So why will it work for the government?

“But, but, with that “breathing room” they can now tackle the underlying and real problems!” goes the cry supporting the plan.  Really.  And i would believe that, why?

In the last fight over a tiny fraction of the budget problem those who wanted to cut back were accused of “…coming to town to kill women!”  They were going, with the paltry cuts proposed as a stop gap, to starve children and old folks, it was screamed about.  So do you really, for a split second, believe that those same people will not fight tooth and nail when the REAL cuts are being proposed?  THey do not want to cut a penny.

As I have said before, the problem is simple.  The citizenry wants more goodies than the government can afford or that they are willing to work for themselves.  And that has led politicians to give them those goodies and in return they keep getting voted in to keep the slop flowing in the trough.  When the revenue did not meet the demands of the expenses, to keep themselves employed by keeping the people happy, the politicians simply borrowed it.  It was easy.  Too easy.  They borrowed it from China, Japan, Saudi Arabia, Great Britain, they even printed money and are borrowing it from themselves!  But astonishingly they kept spending at a rate higher than the initial borrowing could handle so they need to increase the borrowing.  And now the deficit (the amount needed to pay for those goodies that we do not actually have) is in the trillions while the debt itself is in the tens of trillions.

And now they want to be able to spend more (raising the deficit) and borrow more (raising the debt) as a solution to it.  if you wrote this as a novel most people would say it makes so little real-world sense as to be unbelievable.  When a situation arises where you do not have the money to pay for what you want and you can no longer borrow money, then you have a clear set of choices; only have what you can pay for, or increase your revenue.  The government is no different.  To be fiscally sound they can either deliver only what the government has the money to pay for, or the citizens have to agree to pay for the services they want.

That is so obvious and so clear, to push for an obviously disastrous third choice, i.e. to raise the debt limit so you can borrow more, is nonsensical on the face of it… if, that is, the goal really is to achieve fiscal stability.

We have long ago passed the point where solutions will be pain free and are well into the phase where solutions will really hurt across the board.  But no one wants to be the ones in pain: they want those OTHER feeders at the trough to be the ones to suffer, but not themselves.  Anybody else hurting is OK, but not themselves or their pets.  So why would anyone believe that the coming fight over the real money is going to be any less rancorous than the fight over the paltry money (in government terms) just fought so viciously over?

Or, since that line of thinking that you can borrow your way out of debt is so bizarre is it possible that applying Occam’s Razor to the issue (Occam posited that the simplest solution was usually the correct one) we might have to realize solving the problem is not really the goal?  Perhaps the problem is, to the ones in charge, not a problem at all but actually a tool and a means to an end. Our system, unique in the history of world governments, was so well thought out, has been so strong and so able to persevere since its inception, the only way to truly transform it, as King Barrack says he wants to do, is to tear it down and start over.  That would be nearly impossible.  Only if the system crashes will there be a likelihood that a new one, built on the constantly failing european social systems can be built in its place.  Hmmmmmmm

Now that is, to me at least, a really ugly line of inquiry.  I do not want it to be true.  But since the declared reasons are so fallacious and spurious on their face it logically means that either the people supporting the declared reason are stupid beyond belief, or that rationale is simply there to cover for a truth that does make sense.

So I need a little help here in figuring out the truth of it.  Can someone show me how it has ever worked to borrow their way out of a debt crisis and if so, how that translates into the government’s avowed plans?  And if not, then can you explain why the sheep are knowingly following their bellwether leaders to almost certain doom?

 
Leave a comment

Posted by on April 12, 2011 in Uncategorized

 

Tags: , , , , , , , ,