Thursday, April 28, 2011

Racism: Obama's 2012 Campaign Theme

The pathetic pawns in the media have decided on the theme to push during the 2012 Presidenttial campaign. One would like to believe that the media would be pushing an incumbents record. However, the media has chosen to push the theme of rcism instead.

WHoopi Goldberg and Tavis Smiley are busy pushing the idea that the 2012 Presidential race will be all about racism. Goldberg decided yesterday that she was going to be playing the race card. Instead of pushing the stagnant economy, high gasoline prices, Mideast turbulence, unpopular Obamacare, and a loss of world wide prestige, these race mongerers have decided that Obama's record won't be able to keep him in office another term. These two have decided that no matter how unpopular Obama's policies that it couldn't possibly be his incompetence but rather it must be race. It doesn't matter to them that America elected overcame racism and voted Obama in office once, no if he doesn't get elected again then race must be the reason.

The rest of the media is jumping on the birth certificate controversy as being motivated by race also. To the media why would anyone be asking for Obama's birth certificate if it was anything other than because of his race? It couldn't be that Obama felt he was above the law and didn't have to provide proof of meeting constitutional requirements. It couldn't have been motivated by the lack of transparancy on Obama's part. It couldn't possibly be due to the media not properly vetting their candidate of choice. It couldn't possibly be Obama's disdain for the American public. No it has to be because of racism. Of course little does the media offer the other side of the story, e=which is that John McCain had to go to court to receive a ruling on his constitutional eligibility. No the media uses phrases like "vaguely written natural born citizen" clause.

The bottom line here is the media understands that Obama does not have a record to run on. The economy is expected to grow very little this year into next. The unemployment rate is likely to remain high. Obama's signature piece of legislation is as unpopular as it has ever been. The tea party is a true grassroots American effort to clean up government while the left can only astroturf and send in professional activists to fake being grassroots efforts. The left is in decline and progressive (read liberal left)ideas are being tossed to the curb in favor of reducing the size of government. America is in debt over her head and the economy is sputtering along. Anemic growth is the key word surrounding the economy and Obama couldn't possibly keep blaming Bush for what ails the country. Obama can't run on foreign policy as his incoherent policy has led to civil unrest across the Middleeast. Obama has a bad record so the pathetic pawns have to use the race card in order to attempt to shame America into voting an incompetent President into another term.

Wednesday, April 27, 2011

Reich is Wrong; Debt is the problem not Wages

Today Robert Reich penned a piece for the Huffington Post bemoaning a recession rather than inflation being the biggest challenge facing America. Personally, they are not mutually independent of each other as Mr. Reich would have his readers believe. Telling readers that Wall Street doesn’t understand economics is ridiculous. It is like saying Einstein didn’t understand physics. To Mr. Reich I would say that inflation is the underlying cause of the current recessionary pressures rather than being a separate concern.

Mr. Reich like his progressive liberal readers believe in the “government can fix all that ails America” mantra. In order to keep the economy moving all that is needed is to have the Government spend more money in useless efforts to prop up the economy. Rather than say declining wages are the problem, I would venture a guess that problem is debt. The American government is in debt over $14 trillion or almost 100% of GDP. This by all accounts is unsustainable and places America on the brink of collapse. The Federal Government than leveraged the States by enacting unfunded mandates. States with Liberal governments (California, Michigan, Illinois) are completely leveraged out and have tapped all they can from the taxpayers. The tax payers are tapped out also. Homeowners leveraged their homes by taking the equity and turning it into adult toys to keep up with the neighbors. Now that home prices have fallen there is no place for consumers to turn. No longer are homeowners enabled to spend use their homes as ATM’s, the homes simply are not worth as much as they used to be.

Mr Reich is correct in assessing that consumers are not enabled to spend our way out of the recession. The problem in his analysis is that he blames it on falling incomes. The problem is not the falling incomes, the problem is that Americans were spoiled and were destined to failure because of their spendthrift ways. Americans saved very little and their spendthrift ways borrowed money they simply could not afford to repay without inflation. Americans needed inflated incomes just to keep their heads above water. Now that wages are stagnant and not keeping up with inflation the liberal left, represented by the likes of Mr. Reich, would have you believe that inflation is a good thing and the key to rescue our fledgling economy. If only prices of goods and services rise enough to force employers to increase wages will America be enabled to recover, is a wrong headed approach.

The recession is not the same as the other recessions since the Great Depression. For the most part the other recessions were cyclical in nature. The business cycle will always have its peaks and valleys. The key is to keep the overall trend rising, so the peaks are higher and the valleys shallower. The problem is that this recession was caused due to structural problems. The root cause in my opinion is American debt. The cumulative effect of leveraging every piece of property in the US to the max created bubbles that are now bursting. The problem is now there is no property left in the system to leverage. The last remaining available pool is to further tax incomes which will further erode the buying power of the American consumer.

There is an easy solution to the problem of debt. The American government as well as the States and individuals must again become frugal and clean up their debt problems. We as a country are not going to spend our way to prosperity, there is nothing left to spend, it has all been leveraged away. This is what happens under a system that promotes perpetual debt with ever increasing balances. It is our debt that is causing inflation and stagnating wages. It is our debt that is causing the recession to linger as the economy limps along. It is our debts that are unsustainable and inflation is no way to combat debt.

The American left would have everyone believe that government deficit spending is necessary. The American left believes inflation is good because it makes future payments of present debt less painful. The problem is our indebtedness has created the problem we see today. Fuel prices are rising for multiple reasons. Middle East unrest is part of the problem but so is the liberal lefts viewpoint to allow our own resources to go untapped. However the main reason for the current rise in oil prices is because the dollar is weak. The dollar is weak because the Federal Reserve has artificially kept interest rates low by printing dollars. In other words, inflation is making the value of the dollar much less than it was just yesterday. Along with the increase in the cost of oil, we also have an increase in the cost of food. Food prices are increasing because it cost more money to reap the harvest and also transport the goods from the fields to the processing plants and then to the grocery stores. Finally, wages are stagnating. Wages are stagnant because the American labor force has priced themselves out of the manufacturing competition. Companies are employing more people out of country because the labor costs are less. To me this makes sense, business are in the business to turn profits. However, the left believe businesses should be in the business to create jobs not profits. That philosophy my friends is why the left believes Government is the answer to everything. See if businesses were there to create jobs and could take losses then all would be right in the world.

Again the problem is debt. The debt is the cause of inflationary pressures. Inflation is the problem, we need a strong dollar not a weak dollar. Stagnant wages are a symptom of the debt problem and are not isolated from the effects of inflation. The two are integral problems that are feeding the structural problems we face. America needs to get its fiscal house in order. We must balance our budgets and stop taking on more and more debt. The left is living recessions from the past. The left does not understand ever increasing debt has consumed the ability of the consumer to spend our way out of this recession. Increasing taxes on an already fully leveraged citizenry will only prolong the agony. We must reduce spending now and it must be done in 4 areas. We must reduce Defense spending. NATO has shown to be inept and incapable without US leadership (Libya). Pull out of NATO and reduce the defense budget by the NATO savings ( a significant portion of the defense budget on the order of 25% of the total defense spending). Then tackle Social Security which is out of money. Don’t believe the lies about the money filled lock box. The lock box has no money but is rather filled with more liberal empty promises. Reform medicare and medicade. We need to reduce spending on these programs and we must do it now. The only way to fully recover from this recession and see the day America prospers again is to reduce the debt and keep inflation in check. Hyper inflation is not the right way to go.

Tuesday, April 26, 2011

Effectiveness Not Popularity Should Be The Driver

A government program has to be measured by its effectiveness and not its popularity. America is facing a slow and agonizing death spiral due to out of control spending and a government bent on power rather than service. A politician measures government programs by popularity. A politiican requires votes in order to stay in office and therein lies the problem. Politicians will refuse to cut entitlement spending out of fear of losing their office.

The liberalsand democrats along with their willing propagandists in the media are busy scaring the nations seniors and conjuring up images starvation amongst the children. To the left every government program is necessary and couldn't possibly be on the hook for budget cuts. Instead the American left pushes tax increases on the so called rich. Tax increases the left knows full well can't possibly cover the deficits even if they taxed the rich at 100%. The left pushes the increased taxation because they say the programs like Social Security, medicare, and medicade are "popular" with the American public. Well Dah! Anytime something is given to people it is popular.

Imagine the outrage that would be caused if as an individual I "gave" a friend $100 every year, that I didn't really have so I had to take a loan out. I knew I couldn't afford to give away the $100 but it was necessary to keep the friendship going. Now as the loan interest and principal became due, I needed to borrow even more money just to pay the interest. I had to borrow the $100 every year adding to my principal and thereby increasing my interest payments. After a few years I realize that I can't afford to continue paying so I approach my friend. I explain that I can't possible afford to be so generous any longer. What do you think is going to happen? Of course it is popular with my friend when I give him $100. Of course it is going to be tough on our friendship. See my friend will have become dependent on the payoff and it will have become an additional form of necessary income. To my friend I am now causing a hardship. To me this was always a hardship. It didn't matter that it was inefficient to my friend. My firend wouldn't care that it took $150 from me in order to give him $100. To my friend it is an entitlement, something that was taken for granted. This is the same thing that has been going on with our entitlement programs for years within our government.

The mantra is that these programs are popular. The mantra is that someone will get hurt if they don't keep receiving the entitlement. This was the same way Obama and the media pawns sold the cash for clunkers program. Of course it was wildly popular. Imagine receiving 4,5, or 10 times the money a car is worth just getting rid of it. Wouldn't anyone considering a new car be all for turning in a near worthless vehicle for many times its actual worth just for buying something newer? Of course the program was popular with those that participated. That of course does not make the program efficient or even worth while. In the long run this program did more harm to the market forces than it did good. Now we have a shortage of used vehicles which of course increases prices because demand outpaces supply.

Until America elects a political class that is only in politics to serve the public rather than themselves will we be saved. We need politiicans that will make the tough decisions at the risk of losing their public offices. For while the political class takes public service as a career rather than a service we are doomed to a future of high det, high interest, and high inflation. We need to reform our entitlement programs not enact new entitlement programs. We need government programs that are efficient rather than bureaucratic. A government program should be measured by its effectiveness and not its popularity.

I am not adverse to cutting defense budgets. I am not against increasing taxes on the more affluent. What I am against is inaction by the politiicans. I am against a career politician fear mongering so as to make politics a career. I am against increasing taxes simply because it is popular. I am against lying elitists that claim "if only we raised taxes on the wealthy all will be OK."

Saturday, April 16, 2011

Obama The Unserious

America is a the path of self destruction. Our entitlement programs will break this country and send it into insolvency. Social security is running yearly deficits and the Democrats have the nerve to say Social Security is not adding to the debt. Medicare and medicade costs are rising and we have no way to stop the increasing costs. The Baby boomers are retiring and will be for the next 20 years. The deficits we are running are unsustainable and can not be eliminated by raising taxes and cutting fluff from the budget.

The President clims the Republican plan will hurt America, yet he has no plan accept to disguise a tax increase as a IRS spending reduction. Obama bashes the rich and intends on raising their taxes. We as Americans know Obama intends on raising taxes that is nothing knew. Obama wants to rid the IRS of those nasty tax deductions that the middle class uses to reduce their tax bill. Obama calls this a IRS spending reduction as if all the American dollars are the government's to dole out. No wonder the fringe right wants to go back to a gold standard or a bartering system. At least then what merchants received for products and services would be something tangible rather than a piece of paper that government believes is rightfully theirs and theirs alone.

Obama asked a rhetorical question the other day "do they think we're stupid". This was in response the the Republicans and their budget maneuvering. I must ask the same question but aimed at Obama "Does he think the American people are stupid?" The answer of course is yes. Obama as all liberal elite believe they are smarter than Americans and believe that only they know what is best. The left always talks about fairness but they do not believe in fairness just wealth redistribution. They always point out that the poor are getting poorer and the rich richer. But they only look at from the perspective of their base. They never ask if it is fair to take from hard working Americans to give to the lazy Americans. The liberals believe they create fairness by taking from one and giving to the other. What they should be looking at is leveling the playing field and providing opportunity. Weed out the undeserving and let them flounder and give only to those the need a helping hand.

That is what welfare reform in the 1990's was all about. Instead of rewarding irresponsible and lazy behavior the Republicans demanded accountability. It was the Republicans that limited the number of years people were eligible and forced people to help themselves. The liberals just wanted endless gifts going to the welfare queens because they could always point to someone that was unfortunate and needed some assistance. The intent of course is not really to help the needy but rather to make the poor dependent on government. Liberal programs are designed to keep the poor people dependent on government so that they will continue to vote for them. There is not one example of a liberal program that was meant to level the playing field and making people less dependent on government. Every liberal program is designed to make people more dependent on them for existence.

The problem is that liberal governments eventually run out of other people's money to spend. It happened in Communist Russia, it happened in Greece, it happened in Ireland, it happened in Portugal, and it looks like it will happen to Spain in the very near future. None of these big government, government knows best, liberal government feel good economies ever thrived. They all failed and all will always fail.

Obama and the Democrats need to get serious with the budget. We can't balance our budget with taxes on the rich. We can't balance our budget on entitlement programs alone, we can't balance our budget on discretionary spending. We have to balance out spending reductions with responsible taxes. The Republicans have a plan that reduces spending by $4.4 trillion over the next 10 years. The spending reductions must come before any tax increases. The Democrats have always proved to be irresponsible. Just look at the Social Security lock box. Social Security was fixed with tax increases for the program. The problem is that the Democrats just increased their spending and replaced the money in the lock box with government IOU's. As long as money flows into the IRS cofers the left will spend it. Obama and the left need to get serious and actually make cuts in spending. Funny how the economy has been going in reverse since 2007 and even Social Security recipients are not receiving cost of living adjustments yet the budget spending just keeps increasing. Seems to me if inflation is low and there is no increase in the cost of living that government spending would not have to increase to keep up. So Mr. President, Why can't America stay at 2008 style budgets without the stimulus? Why can't we have a 2 trillion budget instead of a 3.6 trillion budget? Why can't the budget be balanced and balanced by the end of FY 2012. Unlike CNN I don't believe budget cuts are draconian, I think they are necessary and prudent.

Tuesday, April 12, 2011

Americans Won The Budget Battle

Last Friday the House, Senate, and the President came together and tentatively approved a Continuing Resolution to fund the government through FY 2011. Now the Republicnas won this battle and obtained around $38 billion in cuts. The Republicans are claiming victory. I believe the American people are the victors in this first battle. The Democrats and the media propaganda machine are claiming these miniscule cuts to be draconian in nature.

I read an OP-Ed by Eugene Robinson today that really irked me. From his perspective cutting 38 billion dollars from a 1.37 trillion bidget hinders the government from providing for the general welfare of the Republic. Think about it in smpler terms. This is the equivalent of cutting 38 dollars from a 1,370 dollar butget. It is hardly noticeable. This $38 billion dollar cut doesn't even cover our debt spending for one month. Media pawns like Robinson believe this is an impossible cut. They write OP-Ed claiming the government has no room whatsoever to reduce spending.

Please explain how deficit spending is good for the general welfare of the country? The general welfare of the country to me means that a majority of the country is able to produce and be successful participants in the community as a whole. To me the general welfare is not the same as everyone's welfare. That is the problem with the liberal logic. To them general welfare means that everyone is provided for by the government. To liberals the government exists to take all of the spoils and dish out to their voters. Take from the rich, that is the rallying cry from liberals. Funny how the liberals look to an inefficient government rather than more efficient charitable organizations. The liberals give very little to charity and see government as the only vehicle to provide. The return on government spending is miniscule. Sure the Government social programs are popular. Who doesn't like to receive free gifts?

I do believe there needs to be safety nets. Govenrment should be enabled to provide a helping hand. However, enabling our government to take over our lives goes against everything America was founded upon. We are the land of freedoms and are the envy of the world because of it. We do provide a safety net for the less fortunate but the government should not be in the business of promoting social welfare for all. Let there be no doubt Americans won this first budget battle. Americasn need to continue fighting the liberal establishment. We need a government that is looking out for the general welfare of the country and not the general welfare of the few.

Thursday, April 7, 2011

Government Shutdown? Good can we stop paying Federal Taxes

Tomorrow the Continuing Resolution to fund our government for fiscal year 2011 runs out. The government is set to shut down at midnight, Friday 08 APR 2011. The president has vowed to veto any bill that defunds the pro death and pro illegal activity (read prostitution) organization Planned Parenthood. The President tells the Republicans to stop playing politics but who is playing ideological games? The President is intent on shutting the government down. This is a government shutdown of his choosing. My question is why would Americans continue to pay Federal taxes if the government is not providing the services in which we are paying taxes for?

I am thinking the Federal government should not be allowed to collect taxes on people if they are not in business. After all if the government is shut down shouldn’t the tax collectors be at home? If the unemployment checks stop because the unemployment offices are closed should we still have to pay taxes? How about gasoline taxes? If the government can’t offer any services then how can they demand that anyone pays taxes?

Really the question is this “how can a non existent entity collect income?”. That is what the question is because if the government is shut down then there really isn’t a government is there. The politicians can’t claim to be shut down and yet still be vital to the American public. Our politicians on both sides have run this country into the ground and yet they will still be there to collect taxes and not provide the services they promised.

Now for the most part I blame this shutdown on a disengaged President and the Democrats in Congress who refused to complete their work when it was due. This would not even be a topic of discussion this year if the Democrats lead by Pelosi in the House and Reid in the Senate had done their mandated duties last year. The problem is the Democrats knew they were in for a rude awakening in November and knew a bad budget would make their margin of defeat even larger. Bottom line here is the Democrats decided to punt. Now the Republicans for their part have passed two Continuing Resolutions that incrementally funded the government for a total of 5 weeks. The Republicans also passed a long term Continuing Resolution that funded the government through the end of the fiscal year. That is three plans the Republicans passed. The Democrats in the Senate for their part have not passed a single Continuing Resolution. The Democrats have no plan, not when they were supposed and not when they should have been negotiating a deal.

Charles Shumer can talk all he wants about how the Republicans are extreme and how the republicans are beholden to the tea party. The problem is the republicans have passed a plan. Where’s your Charles? Let there be no doubt both parties have gotten us into this mess. The problem right now is the Democrats who didn’t govern when they held both the legislative and executive branches want to blame the republicans in the House. Yet I don’t see a President that is engaged with anything other than campaigning for 2012 and golfing. I don’t see Democrats in the Senate developing an alternative. All the Senate is doing is parroting the Democratic leadership talking points because they can’t think for themselves.

Just answer one question. If our government shuts down why would we as Americans continue to pay taxes for an organization that is dysfunctional and has threaten to shut off the services it promised to provide?