Tag Archives: Economic Meltdown

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

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!

Connect the Dots – Your Freedom has been Hijacked!

So here we are; today we are on the verge of the “fundamental transformation of America”. America is being stolen from its’ citizens and most remain unaware of the magnitude of what is happening. While many worry about how they are doing in their NCAA basketball pool or how they will spend their Sunday afternoon, the U.S. House of Representatives is set to vote on a healthcare reform bill which will alter the course of life in America.

If you still do not believe that the scope of this bill has this much impact on our country let me connect the dots for you. Since the election of President Obama the following things have happened:

  • We allowed the passage of a $787B economic stimulus bill. This bill according to the administration would ensure that unemployment would stay below 8%. Since the bill passed unemployment has been well north of 9% and above 10% at times. Worse yet most of the money has been wasted on meaningless projects.
  • The federal government has taken over two-thirds of the domestic auto industry and then wasted billions of taxpayer dollars on the phony “Cash for Clunkers” auto stimulus plan that had more benefit for foreign automakers than the domestic ones.
  • The T.A.R.P. program passed at the end of the Bush administration was the first step in nationalizing the domestic banking system. Now the government is regulating all manner of financial transactions under the guise of protecting consumers. A big part of the original meltdown was the government’s excessive involvement in the housing market through Fannie and Freddie. Have they learned their lessons after that train wreck? No! Instead they are busy trying to reinflate the housing market.
  • Using the EPA the government has declared cabon dioxide a harmful gas and is on the path of regulating energy and the environment without regulation to further its’ agenda – bigger, more controlling government.
  • The FCC is working on a bailout plan for the mainstream media as well as regulations to destroy free speech. Clearly in their sights – the internet and conservative talk radio.
  • Recently the President signed a land grab order.  Using the “1906 Antiquities Act” he ordered the federalization of 10 million acres of land in the west. This land grab will inhibit our ability to gain energy independence by cutting off access to needed resources.
  • The President continues his focus on “climate change” and “Cap & Trade” rather than job creation and economic growth. Instead the Congress keeps upping the ante on entitlements such as free healthcare, education and extending of unemployment benefits. Today the the national debt stands at $12.6 trillion. The ratio of debt to GDP  is now 88.1%. Our interest on the debt is accumulating at rate of $191 billion per year against revenue of $2.2 trillion per year. Revenue won’t grow unless employment increases. There are officially 14.9 million people unemployed. The actual number of unemployed is 26.1 million. Over 39 million of our citizens are now on food stamps.
  • Moody’s has repeatedly warned the government for the past 18 months that if we don’t reduce the debt and curtail government spending we will lose our national AAA credit rating. This will cause our interest rates to sky rocket and eventually our interst srevice of the debt will bankrupt the country. Yet the spending continues to increase. Our current entitlements (Social Security, Medicare/Medicaid, Federal Pensions) plus the interest on the debt now exceeds $1.9 trillion per year. This is unsustainable and will destroy our economy sooner than later.
  • Today, the House will vote on Healthcare Reform and higher education funding. In effect this bill will broaden the federal government’s control over both. More unfunded spending liabilities and government mandates will be the result. Education and Healthcare are not rights! Rights come from God not governments.  This bill also includes the funding to hire 16,000 new IRS agents to aid in the enforcement of the new laws. (Jobs by the way that are funded by taxes and do not create new revenue)

So America, can you connect the dots? In just 18 months we have watched the tightening of federal controls on states and citizens that is unprecedented in American history. Our freedom and our liberty is being usurped by an over reaching federal bureauracy that has put us on a fast track to socialism or maybe even communism.

The federal government has taken almost complete control of: our banks, Wall Street, the media, transportation (the car companies), the environment/energy (via the EPA), housing, higher education and now maybe healthcare. You should be livid or at the very least scared to death.  We are a few short steps away from a European socialist government. But this government will be unsustainable because it will result in bankruptcy.

However, before that happens we will slip into a nasty decline that will destroy the fabric of the greatest country in the history of the world. At the end of this ride will be the need for a “global solution” because most of Europe will join us in bankruptcy. The answer will be what the global elites have wanted all along… A global government that decides how much freedom and what liberties we can enjoy. Conspiracy theory, you say? That could never happen, you say?

Really? If anyone had told you in January of 2008 that we would be where we are today, would you have believed them? We are running out of time! Connect the dots… the federal government and the Progressives who are running it are hijacking your freedom! Wake up, Act Now! We are at the edge of the cliff but there is still time to save the Republic if we organize to take the country back. This can not be done without pain or sacrifice.

It is time to face the truth. 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. I am not just talking about the federal government either.

  • The federal government will have to 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.
  •  State governments must get smaller too. States need to narrow their focus to the basic services they should provide.
  • We are going to have to rely on communities to pull together and help their own. People are going to have to learn to fend for themselves. Everyone is going to have to sacrifice to fix this problem.
  • Each citizen must be allowed to keep as much as possible so they can reinvest in their savings, communities and build business that will restart the economy.

This is the only sane road back to prosperity. The alternatives involve deals with the devil which will lead us to a loss of sovereignty, a world government or some form of socialistic government where we can all live together as peasants.

Again I will include the famous speech by Ronald Reagan warning about the situation we find ourselves in:

A Time for Choosing

“Freedom is never more than one generation away from extinction. We didn’t pass it to our children in the bloodstream. It must be fought for, protected, and handed on for them to do the same, or one day we will spend our sunset years telling our children and our children’s children what it was once like in the United States where men were free”. – Ronald Reagan

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

Obama Approval Index Hits -21

According to Rasmussen Reports, President Obama has matched his lowest Approval Index rating. This is the second time his Approval Index has gone this low. The last time was in late December as the Senate prepared to approve its version of health care reform. It hardly seems a coincidence given this week’s health care summit.

Also a new Rasmussen Reports phone survey finds that 56% of those surveyed oppose the proposed health care reform plans. This includes 45% who strongly oppose the plans while only 23% strongly favor it. The level of opposition has remained strong and consistent since last November.

The president called for a bipartisan summit meeting to get his health care reform plan back on track. The meeting was held this week. In response to the meeting surveys show that 61% of voters said Congress should scrap the current proposals and go back to the drawing board. The president is adamant that he won’t start over and that he will pass something this year. This has resulted in 50% of those surveyed saying the president has done a poor job in handling the health care reform issue.

Other Observations from Rasmussen:

Eighty-three percent (83%) of Americans say the size of the federal budget deficit is due more to the unwillingness of politicians to cut government spending than to the reluctance of taxpayers to pay more in taxes.

Only 11% of American adults think the nation needs to increase its deficit spending to improve the economy. A new Rasmussen Reports national telephone survey finds that 70% disagree and say it would be better to cut the deficit.

Rasmussen By the Numbers:

Mood of the Country

The US is on the Wrong Track – 65%

Generic Congressional Ballot – GOP +9

Trust on the Issues: Democrats vs. Republicans

The Republicans now lead the Democrats by wide margins in trust factor on every major issue the country is facing:

Economy: D = 42% R = 46%

National Security: D = 40% R = 49%

War in Iraq: D = 38% R = 46%

Immigration: D = 36% R = 43%

Education: D = 36% R = 40%

Health Care: D = 37% R = 49%

Social Security: D = 35% R = 45%

Abortion: D = 32% R = 46%

Taxes: D = 34% R = 50%

President Obama – what will it take to get you to listen. The will of the people is clear. They want reduced spending, lower taxes and start over on health care reform. They want more jobs and they believe that the free market is the answer to solving that problem. The priority is jobs not health care.

For the second straight week there was bad news in the weekly job report. In the week ending Feb. 20, the advance figure for seasonally adjusted initial claims was 496,000, an increase of 22,000 from the previous week’s revised figure of 474,000. The previous week’s labor department job report showed initial claims for unemployment benefits increased 31,000 to 473,000.

Most of us do not believe the economy is growing stronger just because the bleeding has slowed. We are still losing jobs; more people have become discouraged and quit looking which is the only reason the unemployment rate dropped to 9.7% in January. Officially there are 14,453,421 unemployed but the real number is 24,197,207 with 38,917,749 receiving food stamps. The 2010 year to date figures show another 856,357 foreclosures have occurred as well as 1,406,434 bankruptcies were filed, indicating the problem is far from over.

Conservatives need to keep the heat on. The Republicans are not necessarily the answer as they have proven in the past. Hold everyone accountable! The free market and non governmental job growth coupled with tax cuts and a major spending reduction are the only things that will save our economy.

Restore the Republic, Restore the Free Market Economy – Reject the Agenda of the Progressive Left, Reject Big Government and Government Run Health Care!

“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, letter to Thomas Cooper, Nov 29, 1802 

“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, letter to John Taylor, May 28, 1816

The Economy – There is no magic wand!

Today’s labor department job report shows initial claims for unemployment benefits increased 31,000 to 473,000. There are now approximately 14,577,800 officially unemployed Americans. That is almost 9 million jobs lost since mid 2007.  

Further aggravating the situation, the Producer Price Index for Finished Goods rose 1.4% in January. This increase followed a 0.4% increase in December and a 1.5% increase in November. The index for finished goods excluding foods and energy rose 0.3 percent in January. This is a meaningless number as we all require both food and energy. The bad news is about 75% of the increase last month was due to a 5.1% jump on food and energy goods. Prices for finished goods moved up 4.6 percent for the 12 months ended January 2010, their third consecutive 12-month increase.

Here is your warning sign; the 1.4% increase in January could easily translate into a 10+% inflation rate if the trend continues. Unless this is an anomaly we could be on pace for a significant inflation ramp. All the rescue efforts by the Federal Reserve has set the stage for this inflation, so now the Fed is going to have some decisions to make at its next meeting to try to stop it. This is why Bernanke has been saying we’re probably going to have to raise rates soon.

We have dug ourselves a very deep hole. China is no longer buying our treasury bonds and they sold off many that they had. Japan is now the biggest foreign holder of U.S. debt. Now the Federal Reserve holds the biggest share of our total debt, over $5 trillion. With our AAA credit rating at risk, the next step will be to raise the interest paid on our treasury bonds to get new investors. Do you see where this is going? It is a vicious circle. So now the Fed will drive up interest rates to try to stop the inflation and reduce the money supply which will ultimately kill economic growth.

Remember both Bush and Obama administrations said, we must spend to fix the economy. We were told that printing money, borrowing money and spending money would stimulate the economy. We were told not to worry about inflation. Now all of a sudden inflation is barreling down the road at us. We’re repeating the mistakes of many European nations such as Greece, Italy, Spain, etc. all of whom are currently in deep shit! Keynesian Economics do not work!  

Wake up, America! It is time to face the truth. 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. I am not just talking about the federal government either. The federal government will have to 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. State governments must get smaller too. States need to narrow their focus to the basic services they should provide. We are going to have to rely on communities to pull together and help their own. People are going to have to learn to fend for themselves. Everyone is going to have to sacrifice to fix this problem. Each citizen must be allowed to keep as much as possible so they can reinvest in their savings, communities and build businesses that will restart the economy. This is the only sane road back to prosperity. The alternatives involve deals with the devil which will lead us to a loss of sovereignty, a world government or some form of socialistic government where we can all live together as peasants.

Restore the Republic, Reject the Agenda of the Progressive Left, Eliminate Big Government! This is the only answer. 

“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

Even the N.Y.Times gets it… Spending is out of control!

Are we on the edge of financial disaster as a nation? Is the entire economy a house of cards? Has a recovery really begun? Whether you believe it has or not read the article below from the New York Times. Even given their normally liberal stance, it is clear that the growing deficit raises fear everywhere – even at the N.Y. Times! This is an excellent explanation of the problem.

NY Times – Wave of Debt Payments Facing U.S. Government

By EDMUND L. ANDREWS

Published: November 22, 2009

WASHINGTON — The United States government is financing its more than trillion-dollar-a-year borrowing with i.o.u.’s on terms that seem too good to be true.

But that happy situation, aided by ultralow interest rates, may not last much longer.

Treasury officials now face a trifecta of headaches: a mountain of new debt, a balloon of short-term borrowings that come due in the months ahead, and interest rates that are sure to climb back to normal as soon as the Federal Reserve decides that the emergency has passed.

Even as Treasury officials are racing to lock in today’s low rates by exchanging short-term borrowings for long-term bonds, the government faces a payment shock similar to those that sent legions of overstretched homeowners into default on their mortgages.

With the national debt now topping $12 trillion, the White House estimates that the government’s tab for servicing the debt will exceed $700 billion a year in 2019, up from $202 billion this year, even if annual budget deficits shrink drastically. Other forecasters say the figure could be much higher.

In concrete terms, an additional $500 billion a year in interest expense would total more than the combined federal budgets this year for education, energy, homeland security and the wars in Iraq and Afghanistan.

The potential for rapidly escalating interest payouts is just one of the wrenching challenges facing the United States after decades of living beyond its means.

The surge in borrowing over the last year or two is widely judged to have been a necessary response to the financial crisis and the deep recession, and there is still a raging debate over how aggressively to bring down deficits over the next few years. But there is little doubt that the United States’ long-term budget crisis is becoming too big to postpone.

Americans now have to climb out of two deep holes: as debt-loaded consumers, whose personal wealth sank along with housing and stock prices; and as taxpayers, whose government debt has almost doubled in the last two years alone, just as costs tied to benefits for retiring baby boomers are set to explode.

The competing demands could deepen political battles over the size and role of the government, the trade-offs between taxes and spending, the choices between helping older generations versus younger ones, and the bottom-line questions about who should ultimately shoulder the burden.

“The government is on teaser rates,” said Robert Bixby, executive director of the Concord Coalition, a nonpartisan group that advocates lower deficits. “We’re taking out a huge mortgage right now, but we won’t feel the pain until later.”

So far, the demand for Treasury securities from investors and other governments around the world has remained strong enough to hold down the interest rates that the United States must offer to sell them. Indeed, the government paid less interest on its debt this year than in 2008, even though it added almost $2 trillion in debt.

The government’s average interest rate on new borrowing last year fell below 1 percent. For short-term i.o.u.’s like one-month Treasury bills, its average rate was only sixteen-hundredths of a percent.

“All of the auction results have been solid,” said Matthew Rutherford, the Treasury’s deputy assistant secretary in charge of finance operations. “Investor demand has been very broad, and it’s been increasing in the last couple of years.”

The problem, many analysts say, is that record government deficits have arrived just as the long-feared explosion begins in spending on benefits under Medicare and Social Security. The nation’s oldest baby boomers are approaching 65, setting off what experts have warned for years will be a fiscal nightmare for the government.

“What a good country or a good squirrel should be doing is stashing away nuts for the winter,” said William H. Gross, managing director of the Pimco Group, the giant bond-management firm. “The United States is not only not saving nuts, it’s eating the ones left over from the last winter.”

The current low rates on the country’s debt were caused by temporary factors that are already beginning to fade. One factor was the economic crisis itself, which caused panicked investors around the world to plow their money into the comparative safety of Treasury bills and notes. Even though the United States was the epicenter of the global crisis, investors viewed Treasury securities as the least dangerous place to park their money.

On top of that, the Fed used almost every tool in its arsenal to push interest rates down even further. It cut the overnight federal funds rate, the rate at which banks lend reserves to one another, to almost zero. And to reduce longer-term rates, it bought more than $1.5 trillion worth of Treasury bonds and government-guaranteed securities linked to mortgages.

Those conditions are already beginning to change. Global investors are shifting money into riskier investments like stocks and corporate bonds, and they have been pouring money into fast-growing countries like Brazil and China.

The Fed, meanwhile, is already halting its efforts at tamping down long-term interest rates. Fed officials ended their $300 billion program to buy up Treasury bonds last month, and they have announced plans to stop buying mortgage-backed securities by the end of next March.

Eventually, though probably not until at least mid-2010, the Fed will also start raising its benchmark interest rate back to more historically normal levels.

The United States will not be the only government competing to refinance huge debt. Japan, Germany, Britain and other industrialized countries have even higher government debt loads, measured as a share of their gross domestic product, and they too borrowed heavily to combat the financial crisis and economic downturn. As the global economy recovers and businesses raise capital to finance their growth, all that new government debt is likely to put more upward pressure on interest rates.

Even a small increase in interest rates has a big impact. An increase of one percentage point in the Treasury’s average cost of borrowing would cost American taxpayers an extra $80 billion this year — about equal to the combined budgets of the Department of Energy and the Department of Education.

But that could seem like a relatively modest pinch. Alan Levenson, chief economist at T. Rowe Price, estimated that the Treasury’s tab for debt service this year would have been $221 billion higher if it had faced the same interest rates as it did last year.

The White House estimates that the government will have to borrow about $3.5 trillion more over the next three years. On top of that, the Treasury has to refinance, or roll over, a huge amount of short-term debt that was issued during the financial crisis. Treasury officials estimate that about 36 percent of the government’s marketable debt — about $1.6 trillion — is coming due in the months ahead.

To lock in low interest rates in the years ahead, Treasury officials are trying to replace one-month and three-month bills with 10-year and 30-year Treasury securities. That strategy will save taxpayers money in the long run. But it pushes up costs drastically in the short run, because interest rates are higher for long-term debt.

Adding to the pressure, the Fed is set to begin reversing some of the policies it has been using to prop up the economy. Wall Street firms advising the Treasury recently estimated that the Fed’s purchases of Treasury bonds and mortgage-backed securities pushed down long-term interest rates by about one-half of a percentage point. Removing that support could in itself add $40 billion to the government’s annual tab for debt service.

This month, the Treasury Department’s private-sector advisory committee on debt management warned of the risks ahead.

“Inflation, higher interest rate and rollover risk should be the primary concerns,” declared the Treasury Borrowing Advisory Committee, a group of market experts that provide guidance to the government, on Nov. 4.

“Clever debt management strategy,” the group said, “can’t completely substitute for prudent fiscal policy.”

Look at numbers, they speak for themselves: http://www.usdebtclock.org/

Don’t fall for the recovery line. We need to remain vigilant and continue to fight for fiscal responsibility. We must shut down the runaway government spending and let the free markets “fix” the economy. It is time to worry about the future of our children. If we don’t get the economy back on track our children and grandchildren will be condemned to a country with a European style economy and a substantially reduced standard of living. Is that what we want our legacy to be?

Wakeup, America! Speak up and be heard. Hold them accountable, they had their chance, it didn’t work – time to return to what works; the private sector, a free market economy less government and lower taxes. To save the country we love, we must revive the original American Dream, we must trust the structure of our constitutional government and the freedom it nurtures or the dream will not survive.

I’ll close with some words of wisdom from a few of our founding fathers and great leaders:

“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

“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

As Thomas Jefferson said, “I sincerely believe… that the principle of spending money to be paid by posterity under the name of funding is but swindling futurity on a large scale.”  And…“With respect to future debts, would it not be wise and just for [a] nation to declare in [its] constitution that neither the legislature nor the nation itself can validly contract more debt than they may pay within their own age, or within the term of 19 years? And that all future contracts shall be deemed void as to what shall remain unpaid at the end of 19 years from their date?”

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

 

More Bad News for Obama – The Oct. Economic Report

  • The Labor Department said employers cut more jobs than expected in October, pushing the unemployment rate above 10 percent for the first time since 1983. Employers cut 190,000 jobs last month, 29,000 less than were lost in September, but more than the 175,000 than had been predicted. The unemployment rate jumped to 10.2 percent from 9.8 percent in September. The sectors hardest hit continue to be manufacturing, construction and retail. Total unemployment has reached 15.7 million.
  • Safe-haven assets like Treasury bonds were mixed. Oil prices are down to $77.12 a barrel. Gold is trading at a record high of $1,100 an ounce due to fear about a weak dollar and inflation.
  • The jobs report indicates a continued slump in consumer spending, a major component of economic activity. Economists say consumer spending must improve to sustain a recovery.
  • The administration said last week that the economy expanded 3.5 percent in the third quarter. Much of that growth was driven by stimulus measures and government expansion which is not true or sustainable growth. The Federal Reserve kept interest rates at a record low in an attempt to prop up the recovery. 

How’s that stimulus plan working for you? The economy keeps getting worse and the Obama administration continues to spend money like it comes from a printing press! Oh wait; apparently that is what they think because they are printing it like it is free. Printing currency, creating government jobs and phony economic stimulus gimmicks such as Cash for Clunkers and First time Homebuyers Credit will not create jobs. These are just artificial attempts to re-inflate the bubble. A jobless recovery is a false recovery and a precursor to the next downturn. The real question is; where is the bottom and have we hit it yet? 

For 15.7 million unemployed citizens until there are jobs and paychecks there is no recovery. With predictions of more home foreclosures in the 3rd and 4th quarters these families are hanging by a thread. The Obama plan IS NOT WORKING!

 We have lost an additional 3.5 million job since Feb. 2009. We have more people on food stamps than ever before. Since the stimulus is not creating jobs, maybe we should return all the unspent money to the Treasury. Then we can use it to pay down the debt, fund tax credits for business and capital investment to jump start the economy. 

Here are a few ideas to get “the free market” working again: 

  • Support targeted tax relief to stimulate investment
  • Eliminating job killing legislation such as:  
    •  the proposed cap-and-trade approach to climate change which will increase energy costs for all employers
    • the health care reform bill which will raise taxes on small businesses and hijack 17% of the economy

Don’t fall for the recovery line. We need to remain vigilant and continue to fight for fiscal responsibility. We must shut down the runaway government spending and let the free markets “fix” the economy. To hell with “The Dreams of his Father” it is time to worry about “the Dreams of our Children”. If we don’t get the economy back on track our children and grandchildren will be condemned to a country with a European style economy and a substantially reduced standard of living. Is that what we want our legacy to be?

Wakeup, America! Speak up and be heard. Hold them accountable, they had their chance, it didn’t work – time to return to what works; the private sector, a free market economy less government and lower taxes.

As Thomas Jefferson said, “I sincerely believe… that the principle of spending money to be paid by posterity under the name of funding is but swindling futurity on a large scale.”  And…“With respect to future debts, would it not be wise and just for [a] nation to declare in [its] constitution that neither the legislature nor the nation itself can validly contract more debt than they may pay within their own age, or within the term of 19 years? And that all future contracts shall be deemed void as to what shall remain unpaid at the end of 19 years from their date?”

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