Category Archives: Taxes

Obama… the numbers don’t Lie!

So here are some stats to help you when you are discussing the election with your undecided friends. These are the facts and the numbers don’t lie. It doesn’t take a CPA to figure out if something doesn’t change quickly we are headed for an economic collapse. The tipping point is already on the horizon…

The Economy, Jobs & Taxes:

America’s Rank in Global Business Competitiveness: Before BO #1 Currently #7 (Source: US News & World Report)

Current National Debt – $16.2 Trillion   (Source: US Treasury)

New Debt Added Since Obama was elected – $5.5 Trillion  (Source: US Treasury)

Your share of the National Debt – $51,419 (Source: US Treasury)

Increase in your share since Obama took office – $17,554 (Source: US Treasury)

Federal Budget Deficits – 2 highest in history: 2009 – $1.416 Trillion & 2011 – $1.298 Trillion respectively (Source: CBO)

Proposed Tax Increases in Obama’s Proposed Budget – $1.9 Trillion (Source: OMB)

New Taxes Hidden in Obamacare – $810 Billion (Source: CBO)

Medicare cuts in Obamacare: $716 Billion (Source: CBO)

# of people Officially Unemployed: 12.014 Million (Source: US Labor Dept.)

# of people Unemployed, Underemployed or have given up – 22.728 Million (Source: US Labor Dept.)

The real Unemployment Rate: 14.7% (Source: US Labor Dept.)

# of people Unemployed More than 27 weeks: 5.0 Million (Source: US Labor Dept.)

Consecutive Months of Unemployment over 8% – 43 (Source: US Labor Dept.)

Pages of new Federal Regulations since Obama took office: 11,327 (Source: Federal Register)

Healthcare, Food, Gas & Education:

Avg. Increase in the cost of a family health plan since Obama took office: $3,065 or 24.2%  (Source: The Kaiser Foundation)

# of people on Food Stamps: 47,025,030 (Source: US Dept. of Agriculture)

Avg. increase in cost of Groceries for a family of 4: 5.15%  (Source: US Dept. of Agriculture)

Increase in the price of gas: 106%  up from $1.89 to $3.89 per gallon (Source: US Dept. of Transportation)

Avg. Increase for In-State Tuition since Obama took office: 25% (Source: The college Board)

So there you have it. The numbers speak for themselves. We can’t afford to keep spending at these levels and increasing taxes stunts growth while killing jobs. We saw the same trends during the Carter Administration. Reagan corrected the problem by managing down the size of government and cutting taxes to stimulate growth. We rode that wave all the way through the Clinton Administration. We can do it again but not with a president that is more interested in “redistribution” than growth and creating opportunity.

Wake up, America! Reject Socialism and Restore the Republic!

“If we can prevent the government from wasting the labors of the people, under the pretence of taking care of them, they must become happy” – Thomas Jefferson

Millions of US Tax $$ Repair Foreign Mosques

This is unbelievable! $770 million dollars in U.S. taxpayer funds are being used to save mosques overseas. No further comment is required watch this video…

http://www.wsbtv.com/video/25764282/index.html

The Tipping Point

The passage of the Healthcare Reform bill has accelerated the country down the road to financial disaster. By 2018 (if we don’t get there sooner) we will arrive at the tipping point. Here are the facts:

  • The President’s 2011 budget will generate nearly $10 trillion in cumulative budget deficits over the next 10 years
  • This is $1.2 trillion more than the administration projected. The White House Office of Management and Budget (OMB) originally projected a 10-year deficit total of $8.53 trillion.
  • The federal public debt was $6.3 trillion ($56,000 per household) when Obama took office. Today it stands at $8.2 trillion ($72,000 per household). Based on the new projections it will reach $20.3 trillion (more than $170,000 per household) by 2020, according to the CBO.
  • This will raise the federal debt to 90 percent of the nation’s economic output by 2020 according to the Congressional Budget Office. This is up from 40 percent at the end of fiscal 2008.
  • This means we are following in the foot prints of Greece. Their socialist and labor dominated government is on the verge of economic collapse with a debt to GDP ratio of 115%.
  • Typically in countries with debt-to-GDP ratios “above 90 percent, median growth rates fall by 1% and average growth falls considerably more,” according economists Kenneth S. Rogoff of Harvard and Carmen M. Reinhart of the University of Maryland.
  • The slower the job growth, the more the administration wants to spend “to stimulate the economy”. Yet spending is exactly what we must avoid according to Moody’s who says continued government spending could cause the U.S. to lose our AAA credit rating.
  • The loss of our AAA credit rating would result in higher interest rates on government borrowing that funds our spending deficits. This of course increases the deficit, creating the proverbial ‘vicious circle”.

 So what is the “tipping point” that could happen in 2018? The term “tipping point” can be applied to any process in which, beyond a certain point, the rate at which the process evolves (for better or worse) increases dramatically. United States is on the verge of reaching its’ tipping point (and not for the better) as it applies to the federal budget.

The event that may have marked the approaching tipping point may have recently occurred. The first Baby Boomer—born January 1, 1946—has applied for early retirement at age 62 and received her first Social Security check. An upturn in the Medicare growth rate is expected to begin in 2011 when the first Baby Boomers begin turning 65. From that point on, the number of retirees will continue to increase while at the same time, the number of workers per retiree will more rapidly start to decrease. This will result in the inevitable collapse of the Medicare & Social Security pyramid scheme.

Look at the chart below which shows the current distribution of funds taken in by the government.

Three Categories of Spending: Mandatory Spending, Interest on the National Debt and Discretionary Spending

Categories of Federal Spending for Selected=

Note: The percentage of the budget devoted to interest on the national debt was abnormally high in 1985 (14%) due to higher interest rates that were prevalent during the 1980s. Also in 2008, the  ratio of workers to retirees declined to 3.3 to 1. In 1945 it was 41.9 to 1. Simply put we have been burning up the reserves for years and judgment day is coming.

The other big factor affecting the federal budget is tax revenues which decline in a down economy. We have lost millions of jobs which will come back very slowly, if at all. So far this has been a jobless recovery. Yet the government must find ways to generate revenue to keep up with its’ obligations – not the least of which is all the entitlements owed to citizens who were forced to fund Social Security and Medicare throughout their work lives. Couple this with interest on the debt, the new healthcare reform and the results will be disastrous.

Indicative of the economy’s ongoing labor problems, is the fact that first-time claims for unemployment benefits remain relatively high at 442,000 last week. The number was a decline of only 14,000 over the previous week’s seasonally adjusted number.

“That level of debt (the deficit in the 2011 federal budget) is extremely problematic, particularly given the upward debt path beyond the 10-year budget window,” said Maya MacGuineas, president of the bipartisan Committee for a Responsible Federal Budget.

According to James R. Horney, a federal-budget analyst at the liberal Center on Budget and Policy Priorities, “The biggest part of the deficit difference (between the CBO and the OMB projections) is lower tax revenue due to the different economic assumptions. The administration assumes GDP and incomes will be higher, and that translates into higher revenues than CBO expects. Relatively small differences in economic assumptions can add up to big differences over 10 years.”

Ms. MacGuineas also added, “The proposed budget is woefully insufficient to achieve the president’s goal or the important fiscal goal of stabilizing the debt at a reasonable level in the medium and long term.” 

So here is the problem in a nutshell; many economists agree that the economy might get a short term bounce from all the corrective actions/interventions that the government has enacted. They project that it should result in a short downturn in the acceleration of the budget deficit but… they continue to fear the prospect of rising deficits later this decade, even after steady economic growth has returned and unemployment has declined. The CBO estimates that deficits will average more than 5% of GDP between 2016 -2020, even though they also project that the economy will be return to an average jobless rate of 5% during the same period.

Even Obama’s Director of the Office of Management and Budget, Peter Orszag, told reporters in March 2009, “Deficits in the, let’s say, 5 percent of GDP range would lead to rising debt-to-GDP ratios in a manner that would ultimately not be sustainable.”

The Spending Trend is not Sustainable

So who is going to pay for all this spending… if the administration has its’ way the “wealthy” and corporations are going to foot the bill. The question is how much more of the load can this group carry? Below is a table showing the current distribution of taxpayer burden. As you can see it is already disproportionate. 

Comparison of Share of Income to Income Taxes Paid in 2007

As this table clearly shows the top 10% of wage earners are now shouldering 61% of the total income tax load. Under a variety of ideas being discussed by the administration this imbalance will only get worse. To crack the top 10% you must have taxable income of just over $100K per year.

Wake up America! Many economists now say that the tipping point is in sight, with some saying that it could be as early as 2018. This means that there is still a small chance we can avert disaster… but time is running out. We must stop the spending and reduce taxes to stimulate the economy. A stimulated economy will result in government income growth but that alone will not fix the problem. Government can not be the sole guardian of the public. We must return to the model of government established by our founders. The federal government must let states and individuals become responsible for themselves. The federal government must focus on its’ enumerated constitutional powers. The states and local communities must take responsibility for everything else.

Healthcare Reform, rescue bills and all the entitlements are the straws that will break the camel’s back! The only way out of the mess we are in is to cut – spending and taxes – a lot! We have built a model that is unsustainable. We have to come to grips with the idea that big government is not the answer – it is the problem. The federal government must reduce its’ services to only those which are essential – national defense, infra structure and basic services. Social programs and luxury pork barrel spending must be eliminated. We ALL must sacrifice to fix this problem. Each citizen must be allowed to keep as much as possible so they can reinvest in their savings, in their communities or build businesses that will jump start the economy. If we don’t stop the wasteful spending now, we are headed for some form of socialistic government where we can all live together as peasants. 

Restore the Republic, Reject the Agenda of the Progressive Left, Stop Federal Spending! There is no other answer – Keynesian Economics do not work! We can not SPEND our way to prosperity! 

“Government’s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.” – Ronald Reagan  

“Entrepreneurs and their small enterprises are responsible for almost all the economic growth in the United States.” – Ronald Reagan

“The inherent vice of capitalism is the unequal sharing of blessings; the inherent virtue of socialism is the equal sharing of miseries.” – Winston Churchill

 

Government Employees are Tax Delinquents!

The IRS says that unpaid taxes by federal employees has reached about $3.04 billion.

According to Internal Revenue Service data the U.S. Postal Service has more employees who are delinquent on their taxes any other federal agency. Their total is $297.93 million which is almost 10% of the total.

The Treasury which includes the IRS (and Tim Geithner) owes $6.99 million. At the IRS employees can be fired for failing to pay taxes. (I sense an opportunity.)

And then there is the Congress and the Executive Branch: $2.47 million for the U.S. Senate; $5.81 million for the House of Representatives; and about $813,000 for the Executive Office of the President.

Ironic isn’t it? This should be embarrassing since the federal government has record deficits and wants to raise the debt limit to $12 trillion so that it can continue spending at record levels next year. You would think that they would at least want to avoid this type of press since all government employees re paid with tax revenue. They do not create wealth – their jobs consume wealth.

“If we can prevent the government from wasting the labors of the people, under the pretence of taking care of them, they must become happy.” – Thomas Jefferson

“To take from one, because it is thought his own industry and that of his fathers has acquired too much, in order to spare to others, who, or whose fathers, have not exercised equal industry and skill, is to violate arbitrarily the first principle of association, the guarantee to everyone the free exercise of his industry and the fruits acquired by it.” — Thomas Jefferson

A Tribute to the Mob…..

A reminder that the fight is just beginning…… not almost over. An inspirational look at how far we have come in the last 5 months, keep up the fight!

“The principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale”. – Thomas Jefferson

Things that make you go… Hmmmmmm……..

 

“We don’t have a trillion-dollar debt because we haven’t taxed enough; we have a trillion-dollar debt because we spend too much.” — Ronald Reagan

I have finally figured out the strategy being employed by the administration – if we do 50 insane things at once, they won’t be able to stop them all!

Here are a few examples of the strategy in action: 

Cash for Clunkers 

As if we haven’t done enough for the auto companies already there is a bill headed out of committee in the House to “jump start new car sales”.

This $4 billion program would provide federal vouchers of up to $4,500 for people to trade in their vehicles for new ones that get better mileage. 

How does the program work: The government would send up to $4,500 to the selling dealer on your behalf, if you: 

1. Trade in a car that — this is a key point — has been registered and in use for at least a year, and has a federal combined city/highway fuel-economy rating of 18 or fewer miles per gallon.

2. Buy a new car, priced at $45,000 or less and rated at least 4 mpg better than the old one (gets a $3,500 voucher). If the new one gets at least 10 mpg better, you get the full $4,500. 

Example: Trade that well-worn 1985 Chevrolet Impala V-8 police special, rated 14 mpg, for a 2009 Impala V-8 rated 19 mpg and the government will kick in $3,500. Downsize to Chevy Cobalt (27 mpg) or even a larger Honda Accord (24 mpg) and get $4,500. (source: USA Today) 

The bill also requires destruction of the trade in vehicles to keep them off the road. The money would be pulled from funds allocated to the Dept of Energy in the stimulus bill. Mileage ratings back to 1985 are available @ : http://www.fueleconomy.gov

President Obama is urging Congress to create consumer incentives for new car purchases but critics say this is an artificial attempt to boost car sales. 

“It’s defying the laws of economics and saying we can manufacture enough of a demand to keep the auto industry afloat,” said Rep. Jeff Flake, R-Ariz. 

Seriously, how many more “problems” can the government solve by stepping in and footing the bill. Oh, wait the taxpayers will foot the bill. In the long run, you can’t keep spending money you don’t have unless you raise taxes!  Good thing they didn’t think of this type of program sooner. If they had, instead of those crappy digital converter boxes, everyone without cable could have gotten $500 towards a new flat screen and a voucher for Direct TV. To read more go to: 

http://www.msnbc.msn.com/id/31183767/ 

http://www.usatoday.com/money/autos/2009-05-11-chrysler-gm-cash-clunkers_N.htm 

Business cell phones and laptops are an “employee benefit” and therefore, that’s right TAXABLE! 

In the 80’s the IRS treated cell phones like company cars requiring users to separate their personal use from business use so they could tax it like income. This was to prevent expensive personal cell phones from being written off as business expenses. (Phones were about$2,000 and air time was $2/minute) 

“The rationale behind this policy perhaps made sense in the 1980s, but it doesn’t reflect how people live their lives and the ubiquitous nature of cell phones,” Sprint Nextel spokesman John Taylor told The Washington Post

Under the proposed rule the IRS is asking companies to charge 25% of cell phone use as personal and treat it as taxable income. They are also looking at extending these rules to texting, email, the internet and use of a company laptop. This makes the rope that ties you to your job 24/7 a benefit! 

The alternative to the flat 25% tax approach would be to pay only for actual usage by creating a log to create a record of actual use. 

“Do we really want employees to, instead of being productive, spend their day logging every e-mail they send, every Web site they browse and every time they use GPS?” asked Howard Woolley, senior vice president of Verizon Wireless. 

For hard working Americans everywhere, this is another slap in the face. For most employees that carry a company phone or laptop it is not a choice – it is a requirement. Where will this end? This is just another clever attempt to raise money through taxes to fund all the programs we can’t afford but are implementing anyway. To read more, go to:

http://www.washingtonpost.com/wp-dyn/content/article/2009/06/12/AR2009061203897.html 

http://www.nbcbayarea.com/news/business/The-Tax-Man-Comes-Calling—-on-Your-Cell-Phone.html 

Soda you think we should tax pop? 

Speaking of things that we can’t afford to pay for what about healthcare reform – with an estimated price tag of $1.2 trillion, we will need to find some new sources of revenue. 

Fear not, the Senate has an idea. Presenting the “soda” tax. The plan is to place an excise tax on regular soda, certain fruit drinks, energy drinks, sports drinks and ready-to-drink teas. Diet drinks would be exempt. The proposed tax at 3 cents per 12 oz. can would raise an estimated $6 billion annually. 

The logic is that these drinks are bad for you and therefore taxing you for their consumption is a good way to help fund healthcare. Supporters of the tax point to research indicating that consumption of sugar-sweetened drinks can result in obesity and diabetes. The tax theoretically would save medical costs by lowering consumption which would reduce health problems. 

Michael Jacobson of the Center for Science in the Public Interest, which is pushing the idea, said in his testimony. “Soft drinks are nutritionally worthless…[and] are directly related to weight gain, partly because beverages are more conducive to weight gain than solid foods.” (source: CBS News)

So what’s next?  Alcohol is already foregone conclusion. Butw atch out ice cream, cookies, cakes and pies could be next. This might not be as far fetched as it seems. In our new environment of “change” nothing has proven to be off limits. 

This just another example of the new “nanny state” approach to government, you know where the government decides what is best for us in every aspect of our lives. For more details, go to: 

http://online.wsj.com/article/SB124208505896608647.html 

http://www.cbsnews.com/blogs/2009/05/12/politics/politicalhotsheet/entry5009316.shtml 

President to propose new government power to seize key businesses 

The Obama administration this week will propose the most significant new regulation of the financial industry since the Great Depression, including a new watchdog agency to look out for consumers’ interests.

Under the plan, expected to be released Wednesday, the government would have new powers to seize key companies — such as insurance giant American International Group Inc. — whose failure jeopardizes the financial system. Currently, the government’s authority to seize companies is mostly limited to banks. (source: L.A.Times) 

The Federal Reserve, already arguably the most powerful agency in the U.S. government, will get sweeping new authority to regulate any company whose failure could endanger the U.S. economy and markets under the Obama administration’s regulatory overhaul plan. (source: The Washington Post) 

Here we go again – sweeping change to SEIZE private businesses and more authority for the Federal Reserve the one “government agency” that can hide behind banker privileges and not be compelled to answer questions by Congress. More government power, more government oversight…. This looks less and less like America all the time! What is it going to take to scare people into fighting back? Read more at: 

http://www.washingtontimes.com/news/2009/jun/16/plan-gives-fed-sweeping-power-over-companies/?feat=home_headlines 

http://www.latimes.com/business/la-fi-financial-regs16-2009jun16,0,4262249.story 

Today’s Cool Quote: 

Liberals believe that men–left to their own devices–are not to be trusted. They also believe in the goodness of government; a government composed of men. This paradox may help explain why many liberals are angry much of the time.” –RE Bierce

“I believe there are more instances of the abridgement of freedom of the people by gradual and silent encroachments by those in power than by violent and sudden usurpations.” 
James Madison 

The Truth about Change…..there is plenty of change but is it really what you want……

“Sometimes I wonder whether the world is being run by smart people who are putting us on, or by imbeciles who really mean it.” -Mark Twain 

So in a 100+ days we have seen more sweeping changes in our government than we have in the last 25 years, but is it the change we want? We have witnessed a full scale assault on our system of government, our economy, our security, states’ rights and our national sovereignty. Government spending, intervention, regulation and oversight is at an all-time high. Our Constitution is being shredded by an arrogant approach to governing that starts with the premise that the government knows what is best for us. Ironically,  the Constitution was written and designed to protect our rights from just this type of governing. 

Here is a quick list of some of the adventures the new administration and the current Congress have taken us on so far, in no particular order: 

The Stimulus Bill – (N.Y. Times) Feb 14th “The president made clear when we started this process that this was about jobs,” Mr. Boehner (R) Ohio, said after the vote. “Jobs. Jobs. Jobs. And what it’s turned into is nothing more than spending, spending and more spending.” “Never let a serious crisis go to waste. What I mean by that is it’s an opportunity to do things you couldn’t do before.” – White House Chief of Staff Rahm Emanuel This was undoubtedly part of the logic behind the $787 million stimulus bill that nobody in Congress read. The bill was a democrat’s wish list which contained such stimulating items as $1 billion for Amtrak, the federal railroad that hasn’t turned a profit in 40 years; $2 billion for child-care subsidies; $50 million for that great engine of job creation, the National Endowment for the Arts; $400 million for global-warming research and another $2.4 billion for carbon-capture demonstration projects. There’s even $650 million on top of the billions already doled out to pay for digital TV conversion coupons.  Plus  $252 billion is for income-transfer payments — that is, not investments that arguably help everyone, but cash or benefits to individuals for doing nothing at all. There’s $81 billion for Medicaid, $36 billion for expanded unemployment benefits, $20 billion for food stamps, and $83 billion for the earned income credit for people who don’t pay income tax. While some of that may be justified to help poorer Americans ride out the recession, they aren’t job creators.*  source* -The Wall Street Journal  The only jobs we are creating are government jobs – 66,000 census workers and 800 IRS agents.  (Category – Excessive Spending) 

Closing Guantanamo Bay – On Jan. 22nd, President Obama signed an executive order to close Guantanamo Bay.  On May 18th, the democrats denied President Obama’s request for $80 million to close Guantanamo Bay. “When they (the administration) have a plan, they’re welcome to come back and talk to us about it.” – House Appropriations Chairman David Obey (D-WI) Apparently, lawmakers are concerned about what would happen to the roughly 245 current Guantanamo inmates, many considered hardened terrorists particularly which congressional districts they would land in. Rep. Frank Wolf (R., Va.) said the Justice Dept. was prepared earlier this month to release Guantanamo prisoners into his district — which the administration denied — and he called for a moratorium on such releases. “We need a plan. We need to know where these men will go,” Mr. Wolf said. (Category – National Security) 

Release of the “torture memos” – April16th,  (CBS News) -“Withholding these memos would only serve to deny facts that have been in the public domain for some time,” Mr. Obama said. “This could contribute to an inaccurate accounting of the past, and fuel erroneous and inflammatory assumptions about actions taken by the United States.”  (WSJ) – “The four memos from 2002 and 2005 revealed new details about the interrogations, including a detailed description of water boarding, or simulated drowning, and descriptions of lesser-known methods such as “walling” and using insects. Sections involving names of some detainees and the way techniques were applied to particular prisoners were blacked out.” This should really improve our national security and relations with Muslims everywhere. The administration’s arrogance was on full display as this was done over the objections of their own CIA Chief Leon Panetta and others in the U.S. intelligence community. (Category – National Security) 

Greenhouse gases are harmful – April 17th, The Obama Administration used its’ regulatory power to circumvent the need to try and force unpopular legislation. Instead, the EPA announced that greenhouse gas emissions were a threat to public health because they contribute to climate change. This sets the stage for the EPA to regulate emissions from a wide spectrum of sources including vehicles, power plants, manufacturing facilities, oil refineries and airplanes. The executive branch trumped the legislative process to further their agenda by cutting off a congressional debate that they couldn’t win. We still live in America – don’t we? (Category – Excessive Government Regulation) 

The apology tour – President Obama has made a habit of using his speeches abroad to apologize for American behavior in the past. Here are some highlights.

Ÿ         Jan. 26: “All too often the United States starts by dictating … and we don’t always know all the factors that are involved. So let’s listen. And I think if we do that, then there’s a possibility at least of achieving some breakthroughs. … My job to the Muslim world is to communicate that the Americans are not your enemy. We sometimes make mistakes. We have not been perfect.”
President Obama, in an interview with Al Arabiya

Ÿ         April 1: “If you look at the sources of this crisis, the United States certainly has some accounting to do with respect to a regulatory system that was inadequate.”
President Obama, at a press conference ahead of the G20 in London

Ÿ         April 2: “It is true, as my Italian friend has said, that the (economic) crisis began in the U.S. I take responsibility, even if I wasn’t even president at the time.”
President Obama, at the G20 in London, as reported by Germany’s Der Spiegel

Ÿ         April 6: “I know there have been difficulties these last few years. I know that the trust that binds us has been strained, and I know that strain is shared in many places where the Muslim faith is practiced. Let me say this as clearly as I can: the United States is not at war with Islam.”
President Obama, in Ankara, Turkey

Ÿ         April 16: “Too often, the United States has not pursued and sustained engagement with our neighbors. We have been too easily distracted by other priorities and have failed to see that our own progress is tied directly to progress throughout the Americas. My administration is committed to renewing and sustaining a broader partnership between the United States and the hemisphere on behalf of our common prosperity and our common security.”
President Obama, in an op-ed that appeared in U.S. and Latin American newspapers prior to the Summit of the Americas

Ÿ         April 18: “We have at times been disengaged, and at times we sought to dictate our terms. But I pledge to you that we seek an equal partnership. There is no senior partner and junior partner in our relations.”
President Obama, at the Summit of the Americas in Port of Spain, Trinidad

Ÿ         Is this a new form of “statesmanship”? Are these the positions that we want our leader expressing to the rest of the world. We are not a perfect nation but we are a good and generous one. We give the rest of the world billions of dollars a year in foreign aid and relief efforts trying to make it a better place. Let’s be honest – the hardworking people of our country are not the ones who are benefiting from the political hi-jinx that our politicians pull around the world – they and their cronies do! The only thing, “We, the people” need to apologize for is electing some of these idiots, in the first place. 

Remember the words of George Washington“’Tis folly in one Nation to look for disinterested favors from another; that it must pay with a portion of its Independence for whatever it may accept under that character; that by such acceptance, it may place itself in the condition of having given equivalents for nominal favors and yet of being reproached with ingratitude for not giving more. There can be no greater error than to expect, or calculate upon real favors from Nation to Nation. ‘Tis an illusion which experience must cure, which a just pride ought to discard. …….. ‘Tis our true policy to steer clear of permanent Alliances, with any portion of the foreign world.” (Categories – National Security/Foreign Policy/National Sovereignty) 

The Chrysler Bailout/Bankruptcy – (N.Y.Times) WASHINGTON — President Obama forced Chrysler into federal bankruptcy protection on Thursday so it could pursue a lifesaving alliance with the Italian automaker Fiat, in yet another extraordinary intervention into private industry by the federal government.  – This intervention resulted in the UAW getting a 55% ownership share in Chrysler for about $4.2 billion while the taxpayers got about 8% for our $12 billion. Really! This is the kind of good deals you get when the government gets involved with business. So far the buy out has only saved union and management jobs . On the other side of the equation, the 789 dealerships closing will result in the loss of another 30,000 jobs in communities of every size nationwide. Many of these are family run businesses left holding inventories of cars and parts. Watch out GM is next. (Categories – Excessive Spending/Government Intervention) 

The G20 Rollover –  (Telegraph.co.uk) A single clause in Point 19 of the communiqué issued by the G20 leaders amounts to revolution in the global financial order. “We have agreed to support a general SDR allocation which will inject $250bn (£170bn) into the world economy and increase global liquidity,” it said. SDRs are Special Drawing Rights, a synthetic paper currency issued by the International Monetary Fund that has lain dormant for half a century. In effect, the G20 leaders have activated the IMF’s power to create money and begin global “quantitative easing”. With this agreement President Obama helped lay the groundwork for global financial regulation. The creation of a Financial Stability Board is the first step towards an international financial regulator. These moves are designed to strengthen the World Bank, the International Monetary Fund and possibly create a new world currency. In the future, the FSB could/will technically be able to impose global financial regulations that the SEC would be obliged to follow. Welcome to the New World Order, goodbye sovereignty! (Categories – Economic Security/Foreign Policy/National Sovereignty) 

Executive Pay Limits – May 15th  , (N.Y. Times), Obama Administration officials are contemplating a major overhaul of the compensation practices in the financial services industry, moving beyond banks to include more loosely regulated hedge funds and private equity firms. Federal policymakers have been discussing ways to ensure that pay is more closely linked to performance. Representative Barney Frank, the Massachusetts Democrat who heads the Financial Services Committee, said he believed giving the government new authority to take over troubled companies could be adopted by the House. “This would give the government the same powers that you would get as if the company were in bankruptcy,” Mr. Frank said in an interview shortly after meeting with Mr. Geithner on the plan. But Mr. Frank and other lawmakers said other elements of the plan could take more time, like expanding the authority of the Federal Reserve to become a systemic regulator. Among the ideas under consideration are incorporating compensation as a “safety and soundness” concern on official bank examinations as well as expanding the existing regulatory powers of the Securities and Exchange Commission and Federal Reserve to obtain more information. This sounds an awful lot like socialism, today banks, financial services companies and hedge funds – tomorrow?  Is your job next?   And ….. Where in the constitution does the government get this authority? I guess if you control salaries the redistribution of wealth model is easier to manage.   (Categories – Government Intervention) 

The administration will tell you that all of this is being done to protect the country and for the general welfare of its’ citizens. To which our founding fathers would have responded as follows: 

“With respect to the two words ‘general welfare,’ I have always regarded them as qualified by the detail of powers connected with them. To take them in a literal and unlimited sense would be a metamorphosis of the Constitution into a character which there is a host of proofs was not contemplated by its creators.” James Madison 

This only a handful of the examples that illustrate that the federal government is out of control. There are many more spanning a broad spectrum of categories from nationalizing private businesses, retroactive taxes, state’s rights, financial regulation and continued bailouts to plans to “reform” health care , gun laws, cap & trade and card check. It is the time to this stop madness. 

We are careening down the road toward socialism at an incredible rate of speed. Politics long ago replaced leadership, statesmanship and governing. The elected officials and bureaucrats in Washington have thrown our constitution and all the values used to create it out the window. The federal government  has pushed citizens and the states aside, in an effort to take total control. We can not let this happen. You need to write or contact every elected official in your voting district. Tell them to cease and desist or they will lose their jobs. The time to act is now. Let’s take back America!