Archive for the ‘Spending’ Category

IT’S TIME TO END THE CREDIT CARD SPENDING AND PAY THE BILLS

December 7, 2016

For just shy of eight years now the United States has been economically hindered by the distorted interpretation of economist John Maynard Keynes’ twentieth century economic theory. Application of Keynesian economics extended the Great Depression longer than necessary as it has for the recent recession.

Classic economic theory suggests that world and national economies experience rises and falls. Periods of stagnation can be moderated with reasoned spending and by controlling variable expenses. Keynesian economic theory, on the other hand, advocates that increased government spending in times of downturn spurs the economy resulting in shorter downswings. The flawed theory doesn’t work in a personal or household situation and it most certainly doesn’t work for individual states or nations. In fact, the larger the entity and economic platform the more incongruent the premise becomes.

Take the economic basis to the personal level for a moment. If you’re out of work, out of savings and your unemployment ends, your only legal choices are to live off your credit cards or borrow from friends and family to pay your bills. When you begin borrowing to continue spending more than you can repay, this is called deficit spending. Increasing that spending is simply beyond foolish. To continue this path without obtaining gainful employment or other legitimate income sources, severely limits your choices. When debt increases and money shuffling through borrowing and making minimum payments is no longer an option, selling your assets and bankruptcy become reality.

Governments have opportunities that individuals do not. They can print more money to cover their debt. You cannot. However, when the government prints more money, each one of your dollars, each one of your pennies is worth less. Therefore. it costs you proportionately more for groceries, clothing, gasoline, heating and cooling…everything. They can take more of your money in the form of taxes, levies, tolls, etc. You, on the other hand, have to make do with less or borrow more without concern for repayment.

For eight years now we have had a government that spends without concern for repaying the lenders. Congress is complicit, if not primarily responsible for repressing economic growth by allowing this to happen. Each bill passed with government spending appropriations only stagnates growth, indebts each American and prevents GDP increases.

It’s time to free the reins and allow the private sector to flourish. It shouldn’t matter if those at the top also benefit. Let them elevate their status as long as the rest of us increase ours!

Let’s treat the national economy as if it were a for-profit business we care about. Let’s stop the useless spending on studies to justify more spending. Let’s stop the deficit spending and begin reducing the debt. Let’s make government (agencies and departments, teachers, public works employees and everybody receiving taxpayer funded paychecks) accountable for performance. Let’s make public wages and salaries merit based.  Let’s downsize (or rightsize) the government and allow those non-critical employees an opportunity to contribute to the economy in the private sector rather than burdening it.

LET’S MAKE AMERICA GREAT AGAIN!

HOW TO BANKRUPT A COUNTRY

January 26, 2016

Over the past seven years, and even before that, the federal administrative bureaucracy has grown and grown. Now, you have another new agency to usurp your tax dollars and cause greater borrowing from our enemies – and I don’t mean just Hillary’s and Barack’s Republican opposition this time.

With the formation of each new federal entity, there is office space to be leased or purchased, desks and other furniture to fill the space.  There are people to hire, pay, allow expense accounts, provide health care for, and continue paying when they leave their post. Either they receive ongoing retirement pay or separation pay or both, but they still get paid after leaving the job.

This time it is the creation of the National Background Investigations Bureau (NBIB). The ineptness of the Federal Investigation Services (not to be confused with the Federal Bureau of Investigation, FBI) apparently didn’t have a large enough staff and management team to foolishly spend enough of your hard-earned money. Thus, $97 million more of your money is now going to an expanded but still ineffective and inept background check and data security agency.

Liberals never think in terms of streamlining, efficiency, accountability and responsibility. They only, and always, seek ways to spend more of your money and employ greater mediocrity.

Got a problem? Hey, that gives us the opportunity to add a new division or agency or bureaucratic offshoot with little oversight that’s even more intrusive.  We guarantee the new entity will only make your life more uncomfortable and more costly. We’ll give it a cool name that sounds like it may actually do something. Don’t fret though, we’ll keep the bumbling know-for-naughts employed that couldn’t do the job in the first place to make the unemployment numbers look better. In fact, we’ll hire more!

Pay attention now! This new taxpayer burden is in addition to Atty Gen. Loretta Lynch’s request for $80 million.  That money is to implement the invasive and unmanageable background checks that President Obama has deemed into existence by Executive Order.

Even with the new agency at full staffing with morning donuts and coffee provided, there is still no guarantee that unvetted “refugees” and illegal aliens from around the world will be properly scrutinized. Many illegal aliens and refugees are allowed to remain in the U.S. without the government verifying their full names, medical or global criminal history.

Two thousand more daydreaming, porn watching government pencil pushers will still authorize full citizenship benefits to 90% of the gang members, cartel bosses or psych ward escapees applying for federal positions or gun permits.  It will, however, take the U.S. one step closer to the financial meltdown we see in Greece and Italy.

WHEN WILL IT END?

October 17, 2015

The government, the news cycles, the debates all continue to pound us with the fact that we now have $18 trillion in debt. That’s scary.   However, what they fail to present is that the United States is suffering under a burden that lies somewhere between $125 trillion to $130 trillion in unfunded liabilities beyond the announced $18 trillion “debt”.

The true amount is difficult to accurately identify because it depends on the accounting method used by the government. The method du jour varies according to what they want to present or hide.

Hellooo!  Unfunded liabilities are debt, too. It is money obligated for contracted purchases of goods, services and programs. It is the government’s credit card spending; obligate the money now and pay for it on time, with interest, hoping that some money will come in to cover it before the next minimum payment comes due.  It’s money promised for Welfare, health care, school subsidies, subsidies to state governments, grants and subsidies to foreign governments, etc. Our government has promised, but has not yet figured out how to pay for, over $127,000,000,000,000 in liabilities.

This is what is known as a national security threat! Climate change will not be a concern when the master banker of the world collapses.

Political Cartoons by Gary Varvel

Unbelievably, a majority of our elected elite are willing to again raise the debt ceiling and continue spending into oblivion. It’s not like the coming chaos is unforeseen. When you have $X coming in and $X+4 being spent and obligated, you’re going to run out of money at some point.

The logical way of easing the problem is to cut back on spending. The current way is continue with status quo; blame the previous president and congress but continue spending. Congress after congress, Democrat controlled and Republican controlled, there has not been a budget passed by congress in over ten years. This country has been operating on continuing resolutions with projected escalation since well before Bush left office. Congress continues to appropriate nonexistent funds.

This is like your neighbor who knew his continued employment was tenuous, had no savings to fall back on, yet continued his extravagant life paying the minimum on his maxed limit credit cards with what he could borrow from friends. He kept asking for higher limits on his accounts until he could no longer make the minimum payments and his car payment so he lost his car…then his house…then his wife before declaring bankruptcy to relieve his burden. All could have been saved if he just quit buying more unneeded stuff and spending frivolously a couple of years earlier.

So, free college for all. Free medical care for all. Free public transportation for all. Free meals for all. Free housing for all. Open the borders and let more people in.  No need to work, the government is here for you.  They’ll just keep borrowing and spending until our creditors cut us off. Enjoy the ride, it’s all free.  IT’S ALL FREE!

GOVERNMENT ACCOUNTING

January 7, 2015

Government Says It Lost “Only” $9.26 Billion On Auto Bailout.

$9.26 billion is the number offered by a Department of Treasury report issued this week.

To a government mindset, this headline indicates quite a coup. The U.S. government’s automotive industry rescue program, that most benefited the UAW and other unions, recovered $70.42 billion (88%) of the $79.68 billion in loan guarantees awarded. That amounts to a thank you payment of $9.26 billion to those who contributed heavily to Democrats and the presidential campaign of Obama in particular in 2008.  Everybody gets what they want with your money!

Bear in mind, the politicians who are high fiving and patting one another on the back are the same people who vote themselves a per diem of $150 for their meals when at work.  That’s because their place of work is over 100 miles from their homes of record. When at home, they simply expense their meals.

They commend one another for the minimal loss. They “ONLY” lost $9,260,000,000 of your money. Eh, it’s not their money. But damn, it does amount to almost a full week’s wages for most of us. Before taxes, that is.

I think what we need is a larger, less accountable, perhaps completely socialist government. As it is, what we have is only a small group of people whose spending authority is far too restricted.

APPROPRIATION AND ALLOCATION

December 21, 2014

Let us all bow our heads in shame on behalf of Congress. The IRS will be short of money to carry out their nefarious acts.

IRS Commissioner John Koskinen is threatening a shutdown because Congress “cut” their budget by $346 million. His answer to the fictitious budget cut is to furlough employees. First, there is no budget to cut. This is just a reduction in the additional money they requested. They’re still getting more money, just not as much as they wanted.

As I wrote a couple of days ago in “JUST TYPICAL”, there is no budget. If government agencies would just submit a budget for approval, then follow the spending plan outlined in such budget, there would be plenty of money. If they spent the money wisely, there might even be some left over at the end of the CR term. There would be no deficit and the debt could be reduced rather than continuously increasing.

What I don’t understand is where the IRS may be saving money by furloughing employees. The employees still get paid for doing about the same thing as normal – little to nothing.  Additionally, they will save gasoline by having the opportunity to do it at home. They may have to wait until Boehner gives in to get all the back pay, but government employees never lose pay!!!  In fact, there is a pay raise outlined in the request.

If the IRS, and every government agency, would not waste the money they get, there would be more than enough to carry them through meager times. Example: Over the past five years, the IRS has spent valuable time and money harassing conservative groups applying for non-profit status. They have sent hundreds of millions of dollars in tax refunds to people in foreign countries who never paid into the system, some of whom have never even stepped foot in the United States.  They have spent money on lavish and unnecessary retreats, producing videos and promoting the fraud that is Obamacare and paid out ridiculous bonuses to top officials responsible for the unchecked and unwarranted overspending.

To those of you who say, “Yeah, but a couple million dollars is a drop in the bucket”, I say wait a minute and think it through. There are over 500 government agencies and departments, each with spending authority in multiple millions of dollars. If each entity overspends what is necessary by an average of only $3 million per year, that is over $1.5 TRILLION wasted every year. Bonuses for overpaid department heads and administrators for doing a mediocre job might be an easy place to start cutting. Perhaps then we would see some accountability.

It’s a simple matter of budgeting and allocating the appropriated money appropriately.