Archive for the ‘Spending’ Category

CONGRATULATIONS, WE MADE IT! $20,000,000,000,000 DEBT

September 15, 2017

The national debt has finally reached the point of abject irresponsibility. The unpaid debt accumulated in the past decade exceeds that accrued over the 220 years between the Constitutional Convention and 2007. According to the U.S.Treasury <link> the total recorded debt on September 30, 2007 was $9,007,653,372,262.

Each citizen now owes approximately $61,900 to the country in addition to any personal debt. Each taxpayer has an individual obligation to the federal government in the amount of $168,000 (that is after normal taxes are removed from your income, interest and dividends).

Eh, a few billion here, a few billion there…What difference, at this point, does it make?

When an individual decides to accept debt in exchange for satisfaction of their needs or wants, he or she must generally provide collateral to the lender. That collateral might be in the form of a mortgage on their home or other real estate or a provision allowing the lender to access a portion of their income commensurate to not-less-than the amount of regular interest on that loan. Most frequently, the terms include the interest plus the termed pro-rata repayment of principal. In either or any case, the lender wants an assurance that the loan will be repaid.

No such requirement is made of governments.

When an individual or entity such as a company or corporation defaults on their debt, the courts may act on a declaration of bankruptcy and remove a portion or all of the existing debt. However, the borrower is obligated to offset as much of the debt as possible by liquidating physical assets and providing the proceeds to the court. That individual or entity must then resume life without. He, she or it must start from nothing with only a possible ongoing subsistence income to survive. Friends and family may choose to help out for a time, but eventually the particular debtor must assume the burden for their lives, livelihoods and actions.

If and when a federal government defaults on massive outstanding debt, their recourse is to take as much as necessary from the citizens therein to cover the obligation. That might mean converting our businesses, our real and personal property as well as our income and savings to cover the obligations made by our elected officials. We, as a citizens and taxpayers, have no choice at that point.

We had choices when we elected our presidents and representatives over time. We had the choice to re-elect or reject them. We allowed them to fritter the tax money we worked to earn. They did so in often irresponsible ways and against our wishes and principles. We allowed it. We created this problem. At the point of default, we have only us to blame.

That, my friends, is how Communism comes about. Once the government controls the economic infrastructure of a country, the citizens become chattel. Once the government has complete control over our lives and livelihoods, it is a long and tough fight to regain what we now have and complain about.

It is time to make some major changes. There is no longer a defining line between conservatives and liberals when it comes to government spending…it is all liberal spending. The line must be redrawn by making a rapid and colossal change to the failing congress and their process.

It is okay to have two (or more) parties with differing viewpoints offering input to policies and procedures for the nation. However they both, or all, must be reasonable and responsible for the decisions on which they arrive. There must be a cost/benefit analysis done, not just a cost analysis. The Congress must explore and debate the potential consequences of the laws and conclusions as well as the perceived benefits without indicting the opposition or depicting them as evil or insane. But we must accept the responsibility to elect sane and reasonable people to represent us.

Good luck handling your portion of the debt. *BTW, the median household income according to the New York Times on September 12, 2017 <link> is currently $59,039.

Just because a congressional candidate has a (D), (R), (L) or (I) behind his or her name doesn’t mean they always have you in mind when they spend your tax dollars. They, in fact, most often exempt themselves from accountability for inclusion in the laws they write no matter what affiliation they proclaim.

Our current president most likely falls into the Independent category. He is attempting to effect changes from the norm. However, the established and entrenched members of Congress, of all dispositions, are fighting him simply because he is not a homogeneous Washingtonian. They would rather scuff the toes of their wingtips kicking the can (National Debt) down the road rather than taking charge and disposing of it. It might be time to replace the whole team with members concerned for future generations.

 

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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.