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

A Sign of the Times

Obama is desperate. He wants to be re-elected. He doesn’t care how.

He’s becoming so desperate that he is even considering tax cuts for evil corporations.

He’s even going around to them and schmoozing them for cash.

Since previous methods to gin up the economy are off the table, such as more stimulus spending and another round of monetary easing by the Federal Reserve Bank, the administration has nowhere else to go but cutting taxes.

After axing his top economic advisor last week, word from the White House is that Obama is considering a method of stimulus that would have been an anathema two years ago, but has been long favored by conservatives: cutting corporate payroll taxes.

The advantage in cutting employer-side corporate payroll taxes is that it stops penalizing employers for adding workers, while freeing up money that already resides in the payroll line item on a company’s P&L.

In fact conservatives made a strong case for a payroll tax holiday for both employers and employees in 2009 in lieu of stimulus spending controlled by the government.

“I’d have a payroll tax holiday for a year or two that would put taxes in the hands of everybody who has a job, whether they pay income taxes or not,” Senate Minority Leader Mitch McConnell told Fox News in January of 2009 . “And, of course, businesses pay the payroll tax too, so it would be both a business tax cut and individual tax cut immediately.”

But Obama’s political allies on the left quickly shot down the notion:

“A payroll tax holiday does not score well on this front — too little of the benefit goes to lower-income households struggling to make ends meet,” wrote the left-wing Center on Budget and Policy Priorities, playing the rich versus poor game, “and too much goes to higher-income taxpayers, who are likely to save a significant fraction of any new resources they receive.”

Instead, Congress voted for an $800 billion targeted stimulus plan that went into the kind of government programs that put our economy in the hotseat to begin with.

A deal between Obama and congressional Republicans in December included a reduction in taxes that workers have taken out of their paychecks in 2011, but corporations did not get the same break.

The official, who spoke on condition of anonymity, declined to give details about other ideas the administration is considering.

The struggling U.S. economy is the biggest challenge that threatens Obama’s hopes of being re-elected president in 2012.

The president, at a news conference with German Chancellor Angela Merkel earlier this week, said his administration was looking at ways to extend elements of the December deal.

“Some of the steps that we took during the lame duck session — the payroll tax, the extension of unemployment insurance, … the tax breaks for business investment in plants and equipment — all those things have helped,” he said.

“And one of the things that I’m going to be interested in exploring with the members of both parties in Congress is how do we continue some of these policies to make sure that we get this recovery up and running in a robust way.”

The GOP should take the opportunity to press Obama to dismantle the economic agenda that he crafted in the first two years.

But I bet they won’t. No guts, no glory. And they haven’t shown any guts so far.

Mr. Obama, who enraged many financial industry executives a year and a half ago by labeling them “fat cats” and criticizing their bonuses, followed up the meeting with phone calls to those who could not attend.

The event, organized by the Democratic National Committee, kicked off an aggressive push by Mr. Obama to win back the allegiance of one of his most vital sources of campaign cash — in part by trying to convince Wall Street that his policies, far from undercutting the investor class, have helped bring banks and financial markets back to health.

Last month, Mr. Obama’s campaign manager, Jim Messina, traveled to New York for back-to-back meetings with Wall Street donors, ending at the home of Marc Lasry, a prominent hedge fund manager, to court donors close to Mr. Obama’s onetime rival, Hillary Rodham Clinton. And Mr. Obama will return to New York this month to dine with bankers, hedge fund executives and private equity investors at the Upper East Side restaurant Daniel.

“The first goal was to get recognition that the administration has led the economy from an unimaginably difficult place to where we are today,” said Blair W. Effron, an investment banker closely involved in Mr. Obama’s fund-raising efforts. “Now the second goal is to turn that into support.” (NYT)

Gotta raise that $1 Billion dollars so he can buy his re-election.

But another sign of the times, the rats deserting the ship but the Captain says all is well.

Don’t look now, but many on Obama’s economic team is abandoning ship and heading for the exits. Austan Goolsbee’s, who recently resigned from his post as the White House economic advisor after less than a year, is just the most visible defection. Obama’s economic team is headed for the doors and following the lead of the more senior economic advisors. Christine Roemer, Larry Summers and Peter Orszag were the first to abandon Obama’s economic team as it became painfully obvious that their policies on job creation had failed. These are the same advisors that assured Americans that a huge expansion of entitlements, an historic increase in the size of government, almost doubling of the national debt by $5 trillion, while hobbling small businesses with a new thicket of regulations, would actually result in economic expansion and job growth across the nation.

Not only were these presidential advisors wrong, but disastrously so. Rarely has a group failed so spectacularly. Thus, Americans should not be surprised that many of the lower levels of Obama’s National Economic Council team (Sarah Cannon, Eric Lesser, Bryan Jung, Kyle Watkins, Pascal Noel) are also abandoning the sinking Obama ship. This mass exodus of Team Obama’s economic advisors is a stunning vote of no confidence in the President’s economic policies. Obama needs to consider this: When all of your staff give up, they are telling you that there is something flawed in the current approach that doesn’t work. Personnel is policy.

Mr. Obama’s supporters certainly understand that when key staffers depart en masse, they are essentially fleeing a losing endeavor and are hoping to get out before recriminations for failure have a chance to permanently tarnish personal reputations. No one wants to be part of a losing team, and, before the stench of defeat has a chance to permanently cling, they leave.

Curiously, this is the same argument that Obama’s supporters are using to characterize the recent defections from Newt Gingrich. Yet, when it comes to finding a rationale for why the entire Obama economic team has bolted for the doors, the Administration is essentially telling us that “there is nothing to see here…just move along”.

So we hit the iceberg and we’re slowing sinking. The Captain comes over the speaker, “Anyone for another round of golf on the fore deck!”

Then sits down for a dinner with the “fat cats” and tries to get them to support him.

It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it was the season of Light, it was the season of Darkness, it was the spring of hope, it was the winter of despair, we had everything before us, we had nothing before us, we were all going direct to heaven, we were all going direct the other way – in short, the period was so far like the present period, that some of its noisiest authorities insisted on its being received, for good or for evil, in the superlative degree of comparison only.
Charles Dickens, A Tale of Two Cities
And these are the times that try men’s souls… 🙂

Come Hell or High Water

The Congress that took the last week of July until Sept 13 off has now left Washington for all-out-war campaigning after working an exhaustive 17 days since late July and won’t be back until after they have had their heads chopped off by the American people.

Poor babies.

They left town without the House passing a budget for the first time since 1974. The 4th time the Senate has done it since 1974.

So the government that started a new fiscal year today with resolutions.

I bet your household budget works the same way. You just fake it. right? 🙂

They also left town without dealing with the Tax Increases coming on 1/1/11. They were too chicken. So they split town to save their own asses rather than tell you, your employer, or any potential employers if they were going to get hit with the largest Tax Increase in American History (for real).

Failure to extend the Bush tax cuts will also mean a reinstatement of the marriage penalty that makes some married couples pay higher taxes filing jointly than they would if they were single and filing individual returns. It will mean cutting in half the child tax credit from $1,000 to $500. It will increase tax rates on dividends from a maximum of 15 percent to 39.6 percent, which affects seniors who depend on dividends to supplement their Social Security and pensions. And it will raise the top capital gains tax rate from 15 percent to 20 percent, stifling business investment.

It will also raise taxes anyone who pays taxes. Regardless of income.

The President repeatedly says he want to raise taxes on the rich as a class warfare tactic, but in all these months has he actually proposed an actual bill for it?

Or was he hoping Pelosi or Reid would do it for him? Be the good Lieutenants and get all the troops in line to set up for the firing squad one more time?

But the fact remains it was all talk and no action. Much like the Congress since the passage of the business buzzsaw killing Financial Reform bill the Democrats have done nothing useful since (not that they did it before to be fair).

And who is to blame for the President not proposing and the Democrats not disposing of this part of the agenda, The Republicans. 🙂

The Minority party is at fault for the President not even sending a bill containing his Tax proposals to the House and the House not willing to come up with the bill and vote on it.

It’s all those damn Republicans fault! 😦

HUH??

Now that’s a “transparent” “drain the swamp” “most ethical congress” “responsible”, “post-partisan” government isn’t it?

The real problem was there were enough Democrats  who were willing to join Republicans on an across-the-board extension of the Bush tax cuts that it made the Reid-Pelosi position of raising taxes on some higher earners untenable, so no tax bill moved forward.

But that was the Republicans fault too. 🙂

Members of Congress have now returned home to try to save their own jobs, never mind helping the millions of Americans who have lost theirs. “When we come back this fall, the election will be over,” Senate Majority Leader Harry Reid told the Washington Post. “I hope that it also means that Republicans will finally be able to put the American people ahead of their short-term political interests and ambitions.”

Now that’s responsible government.  and very “post-partisan”. 🙂

So it’s time to get your Lame Duck Poisoning Prevention Shot.

The New Roman Empire is being invaded by a hoard of Barbarians are the gate. So it’s time to prep the wells for poisoning and to raze the crops and poison the soil.

What Reid and his counterpart in the House, Speaker Nancy Pelosi, are hoping is that Democrats who lose their seats in the election will be willing to pass legislation in a lame duck session that they know the voting public doesn’t support. In Reid’s logic, they will be free to vote their liberal ideology. And it won’t matter because they will have already lost their jobs. But it is precisely this kind of arrogance that has Democrats in such poor shape heading into the mid-term elections. (Linda Chavez)

Some say you have to admire our “rock star” (in his own mind and the media’s) President for sticking to his ideology as he is 200% in campaign mode, 2008 campaign mode, that he doesn’t care about moving to the center. He wants to move even farther LEFT. Hoping to spike turnout amongst those who were fainting in his presence 2 years ago.

Now their fainting from working so hard. But that doesn’t matter. And once again, it’s supposed to be how he says it, not what he says.

Let’s party like it’s 2008!

The perception that he’s The Anointed One is supposed to trump the reality of the last 21 months.

A couple of back-to-back statements by President Obama at a town hall rally in Des Moines, Iowa, tell us all we need to know about his economic philosophy and that we aren’t going to climb out of his recession and begin to slow the growth of the national debt as long as he’s calling the shots.

Voters, he said, tell him to “cut government spending.” But “most spending is for veterans, for education, for defense. … Finding $700 billion is not easy.”

Yet a few minutes earlier, in response to criticism over illegal immigrants getting health care in the United States, he had said, “It is very important that we have compassion as part of our national character.” (How about compassion for future generations of Americans?)

Does anyone see the disconnect here? If Obama believes our national character is deficient unless we expand the welfare state to illegal immigrants, then how could he ever preside over a balanced budget?

His wildly inaccurate statement about where the money is spent is equally revealing. For fiscal year 2010, according to the Center on Budget and Policy Priorities and other sources, benefits for veterans constituted about 3.5 percent of the budget; education expenditures were 3 percent; and defense and security totaled about 20 percent.

Even worse than these errors is his defeatist statement that “finding $700 billion is not easy.”

Well, of course it’s not easy if you have no desire to trim the size, functions and intrusiveness of government.

Didn’t he just say again the other day that he is “committed to fiscal responsibility”? Hasn’t he incessantly argued that President George W. Bush is the one who ran up these outlandish deficits?

We all know what a distortion and exercise in scapegoatery that is. President Bush fulfilled his promise to cut the deficit in half by 2006. In fiscal year 2007, the deficit was $161 billion. Hard to believe, isn’t it?

That’s just three years ago, and Obama says it’s nearly impossible to trim much? Even the final Bush year, which Obama continues to blame for all “this mess” and which Obama has used to establish his new deficit base line, was not actually the alleged $1.3 trillion, but closer to $800 billion when TARP repayments are factored in.

Assuming Obama even wants to bring down the deficit, his economic philosophy precludes him from advancing policies likeliest to do it. You cannot make much headway on the deficit in a period of recession, and his policies are leading us toward a double-dip recession.

Indeed, the dirty reality is that Keynesian policy works as a double whammy against fiscal sanity. It involves government’s spending money it doesn’t have, which, by definition, increases the deficit and debt. And it also increases the deficit by smothering the private sector and deterring real economic growth. There is no appreciable “multiplier effect” from monies that are spent by government fiat, as opposed to those spent in response to true market forces, including real consumer demand — as opposed to government  command.

We saw the devastating impact of reckless Keynesian policies during the Great Depression, and we’re witnessing them again today. As long as Obama is married to his redistributionist profligacy, we cannot reduce the deficit. And it’s even worse when you consider that Obama wants to raise taxes on the primary generators of economic growth, small businesses, during a slow economic period.

With his signature audacity, Obama told town hall attendees their taxes haven’t gone up in his administration. Puleeze! Obamacare, anyone — for starters? He also said Republicans haven’t been honest with voters about what needs to be done to revive the economy. “We can’t pretend that there are shortcuts,” he said.

Sorry, but he’s the one being dishonest. The Bush years saw robust economic growth until the last year of Bush’s second term. The policies that led to the subprime collapse, the recession and the skyrocketing deficit in his final year were brought upon mostly by liberal Democrats hellbent on demonstrating their “compassion” for people by insisting on loans to people who couldn’t repay them and cynically resisting President Bush’s efforts to rein in Fannie and Freddie.

President Reagan didn’t continue to blame Jimmy Carter for his malaise-ridden economy during his term. He didn’t implement policies that didn’t work after promising they would and then whine that it would “take 10 years to get out of this mess because it took us 10 years to get into this mess.” He passed tax cuts that launched an unprecedented period of peacetime growth — and not at the expense of federal revenues, as has been falsely alleged.

I don’t expect President Obama to come clean with the American people or to ever accept responsibility for his disastrous policies, much less to voluntarily change course, but it’s gratifying to see that people, including some of his supporters, are finally onto him. (David Limbaugh)

And if you were expecting the Media to do their job, of journalism. Forget it. The Propaganda ministers for Obama are in full damage control, but unlike 2008, people are less inclined to believe their spin.

But it’s all they have and if they say it often enough people will believe their lies.

Gallup: Distrust in Media Hits New High and Three Times as Many See Media as ‘Too Liberal’ Over ‘Too Conservative’
They are too busy kissing up to Rep. Alan Grayson’s so-blatant-it’s-a-supernova misrepresentation attack ad, Obama’a 2008 “glory days” (they actually use that term repeatedly) and the manipulation by the far left of a Maid of California Gubernatorial Candidate Meg Whitman who was an illegal alien (she was fired last year for this by Whitman) and now is being paraded around the media with a prepared speech and lots of crying in the most cynical of acts.
And the Liberal media eats it up and regurgitates it.
So don’t expect anything from them expect spin.
I’m sad to report today a death of a good friend to all of us…..Journalism, the once esteemed 4th estate of our nation and the protector of our freedoms and a watchdog of our rights has passed away after a long struggle with a crippling and debilitating disease of acute dishonesty aggravated by advanced laziness and the loss of brain function.” — Gov. Mike Huckabee in 2009.

Doubt me:
Watch ABC’s World News Runs White House Produced Pro-ObamaCare Video as ‘News’: http://www.eyeblast.tv/public/video.aspx?v=hdkUkUQueu

CNN urging liberals to promote the “Amazing Achievements” of the liberals: http://www.eyeblast.tv/public/video.aspx?v=hdkUSUZunz
Matt Lauer (Today Show) urging the President to be more forceful about attacking the Republicans: http://www.eyeblast.tv/public/video.aspx?v=hdkUSUqG6U
And that’s just the tip of the iceberg.
All aboard the Democrats Unsinkable Ship of Keynesian Economic  State, The Titanic!
And don’t forget to destroy the land behind you.
If they can’t have it, no one can!
Film at 11.

A New Hope & Change

“If you are going through hell, keep going.” –—  Winston Churchill

Despite putting up some great blogs, in my opinion, this month professionally it has been the worst in probably 20 years.

I was so stressed out I barely slept.

I can barely eat.

I have visions of foreclosure, bankruptcy and ruin, dancing in my dreams.

But I have had a good cry.

But I am not about to quit.

I may not win, but if I give it my all, then that at least is consolation.

But take nothing for granted.

I used to.

And that is what I would tell the Republicans right about now.

They are facing an enemy that goes by the rule of there are no rules.

The end justifies the means.

Winning is the only acceptable outcome. Morals and ethics mean nothing.

They are a hindrance.

For winning is power. And power is all that matters.

But the Republicans have also got to bring hope back.

The “Hope & Change” that was stolen from us by the Democrats.

And they can’t fail.

It’s a very high bar in a very partisan raptor-eat-piranha world.

The Mainstream Media is most definite NOT on your side.

So you are going to have to get to the people. Expecting the Mainstream Media to be anything else but totally in the tank for the Democrats is a mistake.

I still have to pick myself up. The Punches are going to still be coming.

Hell awaits.

But you just have to keep going.

Keep Believing.

Keep Hope alive.

And for a devout pessimist like myself that is a tough task.

But it’s necessary.

It must be fought.

And to regain the soul of this country that has been invaded by the terminal cancer of Liberal socialism, it’s a tough disease to fight.

But if you don’t all hope is lost.

The Country is the Titanic, she’s hit an iceberg of cold socialism, the question is will she sink?

That is the question.

And the vote on November 2nd by you and me determines that.

No equivocation. This is do or die for Old Glory.

Are we a nation of innovations and rugged individualists and idealists or are we a country that says all I want is the spoils but none of pain or responsibility for it.

Gimme….Gimme…Gimme

What’s mine is mine and what’s your is also mine because I deserve it!

Do you earn it or are you entitled to it?

Is the spoils of others’ labors superior to the spoils of your own?

Is it all about you?

Are you center of your own universe and everything MUST spin around you and do your bidding and if it doesn’t you are entitled to it anyhow.

Because it’s only “fair”.

Or are you Galileo who dares to be the heretic against the tidal wave of political correctness, fear, and division.

We are in the midst of a great Un-Civil War and one of the greatest speechs in the history of mankind is very approriate at this time.

The Gettysburg Address By Abraham Lincoln  (Modernized)

Eleven score and fourteen years ago our fathers brought forth, upon this continent, a new nation, conceived in Liberty, and dedicated to the proposition that all men are created equal regardless of differences.

Now we are engaged in a great civil war, testing whether that nation, or any nation so conceived, and so dedicated, can long endure. The politically correct wolves are at the door and their teeth are bared.

We are met here on a great battlefield of that war. We have come to dedicate a portion of it as a final resting place for those who here gave their lives that that nation might live. It is altogether fitting and proper that we should do this.

The Voting Booth. That most hallowed of ground.

But in a larger sense we can not dedicate – we can not consecrate – we can not hallow this ground. The brave men, living and dead, who struggled, here, have consecrated it far above our poor power to add or detract. The world will little note, nor long remember, what we say here, but can never forget what they did here.

November 2, 2010.

It is for us, the living, rather to be dedicated here to the unfinished work which they have, thus far, so nobly carried on. It is rather for us to be here dedicated to the great task remaining before us – that from these honored dead we take increased devotion to that cause for which they here gave the last full measure of devotion – that we here highly resolve that these dead shall not have died in vain; that this nation shall have a new birth of freedom; and that this government of the people, by the people, for the people, shall not perish from the earth.

AMEN!