The Iceberg of Truth

From 1954 through 2012, the federal government shelled out a total of almost $72 trillion on all spending, combined. Over the same period, it collected revenues of under $56 trillion from all sources. The $16 trillion difference is today’s federal debt.

But this simple math hides the fact that the dollar in your pocket today doesn’t buy what the dollar in your grandfather’s pocket bought years ago. There is a sleight-of-hand to Washington’s method of dealing with long-term debt. Like every shell game, those who play will lose to those who make the rules.

And make no mistake, we are all playing by Washington’s rules.

See for yourself: Inflation Calculator

$1 in 1954 now cost $8.56.

Just since Obama, it’s $1.07

And that 7% “tax” ,if you will, hits the poor just as much as anyone else. Just don’t try to explain that (as I have) to the low-information, unenlightened narcissistic “general public” who don’t understand even this most basic of concepts.

The Debt in 1954: $271,259,599,108.46

By 2009 it was $10,000,000,000,000

The Debt Now:  $16,442,474,000,000.00

In 1960, the federal government spent $1.6 billion more than it collected in taxes. Given the deficits we run up these days, $1.6 billion seems almost laughable. Today, Washington blows through that much money in the length of time it takes to sit through a screening of “The Hobbit.”

In 1960, though, you could buy six times more stuff for a dollar than you can buy today. That makes 1960’s $1.6 billion deficit equivalent to a $10 billion deficit today.

Which Congress blows through in 2 days!

So why is our money worth so much less, and why does it matter? After all, wages keep pace with inflation over time, so it’s a wash, right? Well … no, it isn’t. A cost of living wage hike protects the money you earn this year from this year’s inflation. It does nothing to protect money you earned last year and saved.

With inflation, the government pays back the number of dollars it borrowed, not the value of the dollars it borrowed. Inflation makes the dollars the government pays back worth less than the dollars it borrowed.

It’s like my borrowing your car for a year. Sure, I give you the car back at the end of the year, but because of mileage and wear-and-tear, the car I give back is less valuable than the car I borrowed. Inflation is to the dollar what mileage and wear-and-tear is to the car.

The Politicians Know

Were it not for inflation, the $16 trillion that the government owes would be more than $22 trillion. Where did the $6 trillion difference go? It came out of people’s pockets. The same inflation that reduces the value of the dollars the government owes also reduces the value of the dollars you own — your savings, the equity in your house, your retirement fund.

Sure, individual prices rise and fall over time, but that is not inflation. Inflation is the devaluing of existing dollars by the printing of more dollars — something politicians euphemistically call, “quantitative easing” and “lowering interest rates.”

And boy does Obama LOVE to do that!

Washington’s debt has gotten so far out of control that there are no politically viable cuts to make, nor enough rich people to tax in order to balance the budget.

The only thing left is for the government to print money to pay its bills. This is why the Federal Reserve has decided to keep long-term interest rates near 0% for the foreseeable future, and why observant people know that, unless Washington gets serious about cutting spending, we’re going to be in for some serious inflation.

Nonexistent interest rates and significant inflation are the only things that will allow the government to continue spending money it does not have. And the more irresponsible the government is with spending, the more inflation will erode away our savings. This is a matter of simple economics.

Unfortunately, Washington’s fiscal problem has grown so large that the answer now goes beyond simple economics. We must return government to its appropriate role as a referee in the marketplace, not a player. If we don’t do this, the laws of mathematics and the forces of economics will do it for us — and they won’t be gentle.

The Truth will hurt and hurt bad one day.

The sad thing is that the politicians all know as much. They just care more about the next election than they care about America’s long-term economic health. (IBD)

The drug addicts aren’t going to cut themselves off and they don’t want the wrath of those they’ve addicted vented on them either.

And the people who elected them are largely clueless narcissists who just want whatever they can take from others to be given to them because that’s “fair” and don’t really care what the consequences are.

Personal responsibility and personal self-reliance are archaic, quaint notions of the past.

So we’re the Titanic and the Iceberg of Truth is out there, it’s just a matter of when not if we hit it unless all the drug addicts do something they don’t want to do.

TRUTH!

Political Cartoons by Robert Ariail

Political Cartoons by Steve Kelley

 Political Cartoons by Bob Gorrell

Give Peas a Chance!

Political Cartoons by Bob Gorrell

But wait just a minute. If Washington receives about $200 billion in monthly revenues and sends out roughly $50 billion worth of Social Security checks and the same amount of Medicare payments, why is Obama claiming the checks may not go out?

Isn’t $200 billion minus $100 billion still $100 billion?

Because Obama is playing the demogogue, that’s why. Pure and simple.

This is demogoguery of the worst sort because Obama has to know that what he is saying is false. When you and I say something we know to be false, it’s called a “lie.”

Clearly, it is of no matter to Obama that hiking taxes and raising the national debt limit very likely will keep millions of Americans unemployed and hobble the economy for years to come. All he has to do is scare enough voters long enough to get through the November 2012 election to get himself re-elected.

Here are the facts, as reported by MarketWatch and the Bipartisan Policy Center. You do the math:

* The federal government receives approximately $200 billion in revenues each month.

* Interest on the national debt in August will be approximately $29 billion.

* Social Security will cost about $49. 2 billion.

* Medicare and Medicaid will cost about $50 billion.

* Active duty military pay will cost about $2.9 billion.

* Veterans affairs programs will cost about $2.9 billion.

If you’ve been punching buttons on your calculator, you know that still leaves $39 billion each month. This is where Obama and the Democrats most fear to go. If Congress doesn’t agree to raise taxes and the national debt limit, they will then have to make the tough choices about which of the remaining programs gets paid or cut and by how much:

* Defense vendors

* IRS refunds

* Food stamps and welfare

* Unemployment benefits

* Department of Education

* Department of Housing and Urban Development

* Department of Justice, etc. etc.

In sum, federal spending would have to be cut about 44 percent. For more on this, go here and here.

So the next time you hear Obama, or Senate Majority Leader Harry Reid, or Sen. Charles Schumer, D-NY, or House Minority Leader Nancy Pelosi, or any of the multiple Democratic echo chambers in the liberal mainstream media, remember – what they are saying is pure demogoguery.

A Normal person would look to cut spending. Democrats look to increase spending! And also raise taxes.

So when the outlay is higher than intake the best the Democrats can come up with is to steal money from everyone else and then spend it. This is guaranteed to fix the problem!

Republicans said tense negotiations over raising the $14.3 trillion debt limit at the White House ended when President Obama stormed out of the meeting with a stern warning to House Majority Leader Eric Cantor (R-Va.): “Don’t call my bluff.”

“It ended with the president abruptly walking out of the meeting,” Cantor told reporters upon returning to the Capitol Wednesday.

A Democratic source familiar with the negotiations said the reports of a dramatic or abrupt walk-out by Obama were overblown, but the source acknowledged that the president “said what he was going to say, he got up and walked out.”

“The climax of the meeting was the president basically saying ‘what’s happening in this room confirms what everybody across the country thinks about Washington, D.C.,’” the official said. “Which is that people are more interested in protecting their base and political positioning than solving problems.”

Yes, they do. And you, Dear Leader as the head of that effort. Hence the demagoguery and the fearmongering with an unhealthy dose of Class Warfare.

“He said to me, ‘Eric, don’t call my bluff. I’m going to the American people with this,’ “ Cantor said.

I just want to know if he stamped his feet and threatened to hold his breath until he got what he wanted or else!

Give Peas a Chance! 🙂

Bernanke told Congress he could keep rates at record lows, and the Fed could kick off a third round of quantitative easing, known informally as QE3, to ease market pressures.

The best they can come up with is more inflation and to devalue the dollar even more, which makes everything we buy more expensive. BUT at least they printed more fake money and run up the debt to pay the bills and didn’t have to cut spending!!

No Democrats wants to cut any spending for anything.

The Media is in the tank for the Democrats.

And the Republicans just don’t want the blame.

Welcome to Hell.

Political Cartoons by Jerry Holbert

Political Cartoons by Ken Catalino

Political Cartoons by Glenn McCoy

Viability

Michael Ramirez Cartoon

Thomas Sowell: The media have recently been so preoccupied with a Congressman’s photograph of himself in his underwear that there has been scant attention paid to the fact that Iran continues advancing toward creating a nuclear bomb, and nobody is doing anything that is likely to stop them.

Nuclear weapons in the hands of the world’s leading sponsor of international terrorism might seem to be something that would sober up even the most giddy members of the chattering class. But that chilling prospect cannot seem to compete for attention with cheap behavior by an immature Congressman, infatuated with himself.

A society that cannot or will not focus on matters of life and death is a society whose survival as a free nation is at least questionable. Hard as it may be to conceive how the kind of world that one has been used to, and taken for granted, can come to an end, it can happen in the lifetime of today’s generation.

Those who founded the United States of America were keenly aware that they were making a radical departure in the kinds of governments under which human beings had lived over the centuries — and that its success was by no means guaranteed. Monarchies in Europe had lasted for centuries and the Chinese dynasties for thousands of years. But a democratic republic was something else.

While the convention that was writing the Constitution of the United States was still in session, a lady asked Benjamin Franklin what the delegation was creating. “A republic, madam,” he said, “if you can keep it.”

In the middle of the next century, Abraham Lincoln still posed it as a question whether “government of the people, by the people and for the people shall not perish from the earth.” Years earlier, Lincoln had warned of the dangers to a free society from its own designing power-seekers — and how only the vigilance, wisdom and dedication of the public could preserve their freedom.

But, today, few people seem to see such dangers, either internally or internationally.

A recent poll showed that nearly half the American public believes that the government should redistribute wealth. That so many people are so willing to blithely put such an enormous and dangerous arbitrary power in the hands of politicians — risking their own freedom, in hopes of getting what someone else has — is a painful sign of how far many citizens and voters fall short of what is needed to preserve a democratic republic.

The ease with which people with wealth can ship it overseas electronically, or put it in tax shelters at home, means that raising the tax rate on wealthy people is not going to bring in the kind of tax revenue that would enable wealth redistribution to provide the bonanza that some people are expecting.

In other words, people who are willing to give government more arbitrary power can give up their birthright of freedom without even getting the mess of pottage. Worse yet, they can give up their children’s and their grandchildren’s birthright of freedom.

Free and democratic societies have existed for a relatively short time, as history is measured — and their staying power has always been open to question. So much depends on the wisdom of the voters that the franchise was always limited, in one way or another, so that voting would be confined to those with a stake in the viability and progress of the country, and the knowledge to cast their vote intelligently.

In our own times, however, voting has been seen as just one of the many “rights” to which everyone is supposed to be entitled. The emphasis has been on the voter, rather than on the momentous consequences of elections for the nation today and for generations yet unborn.

To those who see voting as more or less just a matter of self-expression, almost a recreational activity, there is no need to inform themselves on both sides of the issues before voting, much less sit down and think beyond the rhetoric to the realities that the rhetoric conceals.

Careless voters may be easily swayed by charisma and rhetoric, oblivious to the monumental disasters created around the world by 20th century leaders with charisma and rhetoric, such as Hitler.

Voters like this represent a danger of terminal frivolity for freedom and democracy.

Here’s another thing to consider: The Valedictorian for Arizona State University this year is an ILLEGAL ALIEN!  Think about that for a moment…

Envy-is best described as an emotion that “occurs when a person lacks another’s (perceived) superior quality, achievement, or possessions and either desires it or wishes that the other lacked it”. It does seem that the left run on emotions more than on facts no?

Oh, and the “fair” Media:

On Sunday’s This Week, ABC’s Christiane Amanpour repeatedly hit Senate Minority Leader Mitch McConnell with the White House’s plea for “revenue raising” measures, often the new euphemism for tax hikes, but when she talked to Democratic Congressman Jim Clyburn, the Assistant Minority Leader in the House, she failed to press him about agreeing to GOP spending cut proposals and instead only asked him about prospects for a deal.

Amanpour began with how reasonable President Obama and Democrats, who “need revenue,” are acting: “Democrats are saying they’re not putting, for the moment, tax hikes on the table, but they need revenue, they’re talking about closing loopholes, subsidies for wealthy corporations. Is that out of the question for you, or are you willing to entertain that?”

When McConnell wouldn’t agree, with “NEW TAXES OFF THE TABLE?” as her on-screen heading, she followed up by pleading:

Are you willing, I mean this is a negotiation after all, to talk about any kind of revenue raising, for instance, ethanol subsidies, for instance, tax breaks for oil and gas corporations or corporate jets. Is there anywhere where revenue raising can happen without you saying it’s a tax hike?

She wouldn’t let it go, despairing: “Are you now basically saying, all revenue increases off the table?”

But will she ask a Democrat about spending cuts?

Of Course not!

47% of people pay no Income Taxes AT ALL.

So is American Democracy doomed?

Good Question.

Then there’s Eugenics Al (the Global Warming Loonie gone insane) Gore:

‘One of the things we could do about (global warming),” Gore said recently, “is to change the technologies, to put out less of this pollution, to stabilize the population, and one of the principle ways of doing that is to empower and educate girls and women.” That, he said, would cause population “to stabilize and societies begin to make better choices and more balanced choices.” The logic is inescapable: A smaller global carbon footprint means fewer footprints.

But governments around the world have already “empowered” women to make “more balanced choices.” These have often led to something awful: the death of tens of millions of female babies, the very ones Gore wants to “empower.”

FED HAS NO IDEA WHY…

Federal Reserve Chairman Ben Bernanke says he’s puzzled by the failure of the economy to respond to our government’s many ministrations. Which explains much of why our economy is such a mess.

‘We don’t have a precise read on why this slower pace of growth is persisting,” Bernanke said recently, adding that the growth slowdown was proving to be “more persistent than we thought.”

His remarks came as the Fed dropped its 2011 gross domestic product growth forecast from the range of 3.1% to 3.3%, made just two months earlier, to a much slower 2.7% to 2.9% pace.

Not to be rude, but can the nation’s top banker really be so clueless? Anyone with half a lick of common sense looking at our economy knows what’s wrong: We’ve spent the better part of three years with government making the most extraordinary interventions in the economy in our nation’s history.

Government spending, as a share of the economy, has soared 25%. Regulations, many of them arbitrary and foolish, such as the ban on incandescent light bulbs, have never been more numerous.

Businesses say in survey after survey that, with all the government’s micromanaging of the economy, they are uncertain of what comes next, and therefore are postponing investment and hiring decisions.

But to top economic officials like Bernanke, it’s not clear by now what’s wrong. Really? How about:

• $830 billion in failed, corrupt stimulus efforts?

• A $700 billion TARP program that was promised as a way to stabilize the banks but ended up as a kind of union-crony slush fund?

• The government takeover of GM and Chrysler?

• The punitive re-regulating of Wall Street through a Dodd-Frank bill that affected even those entities that had nothing to do with the financial meltdown?

• Small-business fears about higher taxes and stringent, new green regulations that are making it harder to plan and make profits?

• Soaring oil prices that the government seems not only to tolerate, but also to actively advocate by refusing to permit our oil companies to drill for more?

• The admission by Vice President Joe Biden, put in charge of efforts on the economy, that higher taxes are “most important to us Democrats”?

• And, finally, the Bernanke Fed’s own $1.7 trillion in quantitative easing — a fancy central bankers term for “let’s print more money”? (and devalue what we already have)

Seriously, does Bernanke — and for that matter, all the other policymakers who say they’re “surprised” at the weakness in our economy — really think all this is normal?

Look at what’s transpiring in our markets. After repeated government intervention, no one today knows the real price of food, housing, energy, raw industrial goods, bonds or stocks. The amount of government money distorting these vital parts of our free economy is so great, our markets can’t really function.

Free prices set by buyers and sellers are the way free markets work. Free prices create efficiency. They send vital signals about what to produce — not to mention when and where and at what price.

Absent those price signals, which happen spontaneously between buyers and sellers, a free-market economy can’t work. That’s what’s happening today. And that’s why the USSR, with all of its grand five-year plans and thousands upon thousands of apparatchiks, couldn’t make its command economy fly.

A handful of bureaucrats can never set prices or allocate goods or decide what should be made as efficiently as millions of people acting in their own interest through a free and open market.

Our policymakers seem to have forgotten this. They make statements that indicate they don’t know the damage their policies are doing or they are willfully oblivious to them.

Either way, America needs to change course, and fast. This Keynesian superstimulus is a failed experiment — one that deserves to be cast on the ash heap of history as soon as possible. (IBD)

But don’t expect the Democrats to abandon their dreams or the Media to suddenly understand reality.

So you will have to.

And you will have make sure they do to.

They will kick and scream and yell. But if we succeed your kids will thank you for it.

Otherwise, kiss their asses goodbye.

Simple. 🙂

 

The Excuse List

During an online “discussion” regarding Libya specifically, a fellow conservative asked how can the Liberals justify this that were talking about and clear out the blue I came up with this list.

This list applies to most, if not all, Liberal responses to most anything.

So with a few tweaks here it is.

You’ve heard of a Bucket List. Well this a bucket of a different kind for a different purpose… <<hint hint nudge nudge say no more…>>

I’m sure It will fall under:
a) children will starve
b) grandma will be eating dog food otherwise
c) well “the richest 1%/2%”….
d) class warfare
e) Threats, Intimidation and Union Mafia mouthing off
f) Whine and cry like a 2 year old
g) But Mommy, so-so non-Liberal did it first…
h) But It was done for the best of intentions…
i) You’re just heartless
j) you’re a rac*st!
k) wingnuts!
l) It was the Tea party’s Fault
m) it was Bush’s Fault
n) It was Halliburton’s/Corporate America’s Fault
o) Orwellian Doublespeak
p) So what?
q) Don’t do as I do, Do as I say!!
r) Damn that Fox News!
s) You’re just Lying!
t) It does not!
u) Well, I have this Liberal report from Media Matters/Huffington Post/Mainstream Media/Liberally Biased Poll that says…
v) They already have a hive-mind Talking Point
w) well, it runs out/starts in 2014 so why do you care?
x) it’s “fair”
y) It feels good….
z) zzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzz

But rest assured…

a) it is never their fault

b) they are always the victim

c) They will fight the very drop of YOUR blood to be right every time.

That about covers it. 🙂

So on that note: Inflation.

It’s real it’s out there. And it’s not “corporate america’s” fault that Raw food commodity indexes, for example, have hit all-time highs. And the broader CRB Commodity Index, including food, energy and industrial commodities, has run up 32% the past 12 months.

It’s really government that causes inflation with actions such as:

• The $2 trillion in money created by the Fed under “quantitative easing” since 2008, an unprecedented shot of liquidity pumped straight into the economy.

• The $5.5 trillion in new debt added by our government in just three years — nearly a 60% rise.

• The Environmental Protection Agency’s move to regulate all stationary producers of carbon dioxide, which has led businesses to put off large investments.

• The surge in regulation at all levels of government, which has added to small-business uncertainty and reduced hiring.

• The record 29% jump in federal spending in President Obama’s first three years, which has crowded out private spending and business investment.

• Spending on TARP and “stimulus,” which could total nearly $2 trillion when all is said and done.

The list goes on. The point is, don’t blame companies like Wal-Mart (CEO of Wal-Mart’s U.S. arm last week he told consumers to get ready for a burst of “serious” inflation) , a proven price cutter, when inflation hits home.

Blame the federal government, which seems dead set on repeating the same errors it made in the stagflationary 1970s. (IBD)

And the Democrats want to whine about cutting 20 billion from 1.5 Trillion dollar deficit this year alone.

And the Republicans want to “compromise”.

I say, screw them both. After all, they are screwing us all in the end.

Political Cartoons by Chuck Asay

Political Cartoons by Steve Breen

Political Cartoons by Glenn McCoy