Daily Archives: March 30, 2010

Update: The Tipping Point

In an effort to prove they are part of the mainstream media and are totally clueless about the national situation, Parade Magazine published the following story last Sunday (3/28/10). They also ran an online poll for Americans to respond to. Both were on the subject of our out of control spending and associated national debt. 

Just Sunday I wrote a post on the subject in an attempt to bring focus on the potential disastrous effects the debt could have on our struggling economy. Later I found this article and was blown away by the nonchalant attitude of the writer with regard to the magnitude of the problem. See Parade article below: 

Parade Magazine 3/28/10 – Rebecca Webber 

Does America Owe Too Much?

Critics of government spending are voicing alarm about the growing national debt. In January, the U.S. public debt was $7.5 trillion—about 53% of the country’s total economic output, also known as gross domestic product (GDP). By comparison, Japan’s debt-to-GDP ratio was 192% and Saudi Arabia’s was 20% in 2009, according to the latest figures available. Economists use the ratio of public debt to GDP as an indicator of a country’s economic health. So what do these numbers mean? Is America’s debt level dangerous?

The short answer is, “No, but it might be soon.” A recent study from the National Bureau of Economic Research found that public-debt levels become perilous when they reach 90% of GDP. By that point, interest rates may be higher as investors demand greater returns on federal bonds, while massive interest payments detract from key government functions. “The interest can get so burdensome that the country can’t afford to repair its highways or educate its children or provide other essential services,” says Isabel Sawhill of the Brookings Institution. “You become a much weaker nation.” According to the Congressional Budget Office, U.S. public debt could approach 100% of GDP by 2020, given current spending levels and obligations for entitlement programs like Medicare, Medicaid, and Social Security.

Debt Around the World
America‘s public debt is now 53% of GDP. Here’s how other countries stack up.

France 80% of GDP
Canada 72%
U.K. 69%
India 60%
China 18%

So seriously, the debt level is not dangerous yet – but will be soon? How bad is bad? America – it is time to do something besides worry… like STOP spending money we don’t have! Maybe if there were some still serious journalists working somewhere they would use the space to give this issue appropriate coverage. It really doesn’t make me feel better to see that we are in the same boat with France or India. 

They also included a link to a poll you could vote on. Here are the results of their on line poll: 

Parade Magazine Poll Results

Do you fear that our national debt will hurt our economy? 

Yes 93%

No 7%  

Thank God, Americans are smarter than the writer! 

To read my original post which includes several interesting charts and analysis of the national debt, go to:  The Tipping Point http://wp.me/pv8jP-jO 

If you would like to see the real time debt clock, go to:  US Debt & Population Clocks http://wp.me/Pv8jP-6z

Restore the Republic, Reject the Agenda of the Progressive Left!

Howard Dean: “This is a form of Redistribution”

At last they are starting to admit what their real agenda is… if you haven’t figured it out yet the goals are socialism and redistribution of wealth! The rats are no longer afraid to come out of the dark.    

Shortly after taking office Obama told us what he was going to do, but most people refused to believe or failed to listen: 

If  you still have any doubts that the Democrat/Progressive Party equals Marxist/Socialism, let former DNC Chair Howard Dean explain it to you:

Communitarianism is the philosophy of community organizers. Ultimately this leads to Communism. The President, many in his administration and Congress clearly subscribe to the Cloward/Piven school of thought. They are a threat to the original Constitutional Republic put in place by the founding fathers. 

So what debate is Howard Dean referring to… we never had a debate of capitalism versus socialism. During the campaign, when Joe the plumber asked the President about his plan, Obama offered the “spread the wealth around” comment. When those opposed to the concept tried to make it an issue, it was shut down and ridiculed by the media. Conservatives across the country would welcome a debate on the Constitution, capitalism and freedom versus Socialism, centralized government and “nanny state” control. 

In a recent appearance on Squawk Box, Dean explained how the Healthcare Reform Bill is a form of redistribution of wealth.

Or Max Baucus who says this is an income shift…

Notice that the idea of redistribution some how never quite reaches the political class who so desperately believe it is the “right medicine” for the rest of us. Congress has balked at giving up their “Cadillac health coverage”. They are not at all interested in joining the rest of us in the public pool. Maybe the Congress, the President and his staff, all of whom feel that they should decide what appropriate compensation for executives should be, would rethink their salaries. After all, since it is a privilege to serve, maybe they should earn a salary more in line with the national median income of $50,000 per year.  

Each day more and more of the radical left show their true colors. When will the country wake up? Yes, there is growing awareness but the clock is ticking and time is running out. With each bill they pass and each regulation they change the Progressives are pushing us down a path from which recovery will become increasingly more difficult. 

Make your voice heard. Demand the return to a Constitutional Republic, fee market capitalism and American liberty. 

Restore the Republic, Reject the Agenda of the Progressive Left! 

“If all of this seems like a great deal of trouble, think what’s at stake. We are faced with the most evil enemy mankind has known in his long climb from the swamp to the stars. There can be no security anywhere in the free world if there is no fiscal and economic stability within the United States. Those who ask us to trade our freedom for the soup kitchen of the welfare state are architects of a policy of accommodation.” – Ronald Reagan 

“Government growing beyond our consent had become a lumbering giant, slamming shut the gates of opportunity, threatening to crush the very roots of our freedom. What brought America back? The American people brought us back — with quiet courage and common sense; with undying faith that in this nation under God the future will be ours, for the future belongs to the free.”  – Ronald Reagan