Posts Tagged ‘National Debt’

What Has Become Of The American Dream?

The original settlers saw the American dream as an opportunity to live and worship as they pleased, without an oppressive government violating their freedoms and limiting their liberties. As our country grew and prospered, the American dream became about opportunity and the ability to make a good living, own a home, and raise a family in accordance with one’s beliefs, all the while looking to provide a better nation for future generations.

But, what is the American dream in the world we live in today?

Consider that as soon as a person reaches the age of 18, they are encouraged to take out a student loan. They spend 2 to 7 years attending college (indoctrination camp) and if all goes well, they graduate with a massive debt hanging over their heads. Not only their own personal debt, but also the massive national debt incurred by our government, which has been out of control for several decades.

If a graduate is lucky enough to find a job these days, they begin their entry level position with a huge portion of their salary going to pay interest on their debt, and another huge portion of their salary going to pay interest on the government’s debt. God forbid they used one of the “ever so easy to get” credit cards while they were a student. If they happened to go down that path, they might be paying 30% interest on credit cards, on top of all the interest they are already paying.

We need to realize that very little of this money is actually going to pay back the principal on borrowed funds. The majority of the money is going to pay interest charges on the debt, which is simply a transfer of money directly to bottom line of the banks who originally lent the funds. I would suggest that the banks are not at fault. It’s foolish borrowers who are to blame.

For most of us, home ownership is also part of the American dream. Following that dream, a person takes out a 30 year mortgage on a home. During the first 15 years of the loan, most of the payment is going to payback front loaded interest on the debt. There’s a good chance the home owner will move on to occupy another home, well before paying off any significant portion of the principle. In the past, the price of a home would tend to rise over time, so that the home owner recouped some of the money they have paid out as interest. Unfortunately, that might no longer the case.

At every step along the path to the American dream, most of the money one earns actually goes directly to the banks, or into the coffers of government. In the end, many individuals have very little to show for their lifetime of hard work, except surviving on the measly scraps our kind government has so graciously decided to give back, with funds from the insolvent Ponzi scheme we call Social Security. Sadly, this is the new consumer driven, debt based economy we find ourselves in today.

When an individual goes into debt, it’s their own personal decision. However, they need to be aware of the consequences of that debt. When the government goes into debt, the citizens have little or no say in the matter. Due to the reckless spending of our political class, average citizens are destined to become enslaved. Future generations will be working for foreign countries and international banks, against their will, in order to pay for the sins of their fathers.

Government debt is not a new phenomena, and neither is the interest on the debt. Since 1988, the U.S. government has paid out trillions in interest payments alone, trillions that could have been spent on infrastructure, social programs or simply given back to the American people in the form of lower taxes.

A National Review Online article from 2010 outlined the point of no return.

The publicly held debt as a share of GDP will exceed 60 percent this year. According to the nonpartisan Congressional Budget Office (CBO), debt will reach 90 percent of GDP by 2020. The interest on this debt alone will be $916 billion annually, meaning that one in five tax dollars will be dedicated to making interest payments.

If we don’t change our mindset regarding debt, the future is certain. Trillions more in tax payer dollars will go directly to foreign countries like China, in interest payments alone. Clearly, this is unsustainable.

It’s now time to get our fiscal house in order. No longer are we going to be able to live and spend beyond our means, either as individual households, or collectively as a people. The manufacturing base in America has been devastated, due to the outsourcing of our manufacturing to cheap foreign labor markets. With manufacturing gone and with service/tech industries being increasingly in-sourced, we are left with an unsustainable consumer driven, debt based economy. The wealth is slowly being sucked out of our country, both through the purchase of cheap foreign goods/services and because of the rigged “bubble” based economic system that is in place now. We lost trillions when the Internet bubble popped in the 90s, then trillions more after the recent housing bubble burst.

For most Americans, their wealth is contained in their 401k’s and in the value of their homes, both of which were seriously degraded and/or wiped out during the financial crisis. With our economy and stock markets on shaky ground, where does that leave us now? Doesn’t it leave us broke, with no real plans to dig our way out? That is certainly the way it appears.

The “Green Jobs” mantra is a red herring. When it comes to manufacturing solar panels and wind turbines, we can’t compete with cheap labor markets. Those technologies aren’t the solution to our energy needs anyway. Private sector investments in nuclear technology and leveraging our own natural resources are options we should be seriously pursuing. We will need to abandon the hysteria created by environmental alarmists, who are pushing the fallacy that humans are somehow responsible for climate change. Real science has shown that climate has always changed, will continue to change and that human contribution is negligible in these natural processes.

Unleashed, the U.S. can maintain its position as the greatest economic force in the world today. America has always had a proclivity for innovation and a strong entrepreneurial spirit. However, a large progressive government stifles both. Entrenched establishment politicians, who have brought us to the brink, must be removed from office. At the same time, we the people must be willing to change our ways as well. We must curtail our spending, pay down our debt and not look to government to solve all of our problems. It is now time to take responsibility for ourselves.

The American dream hasn’t changed much over the last 200+ years, but if we don’t make the right choices in our own lives, and in the politicians we elect to represent our interests, the opportunity to fulfill the American dream will soon slip away, never to return.

Tea Party To GOP Establishment: Where are the cuts?

The phrase; “We need to work together, in a bi-partisan manner, to get things done” is a nice sounding, focus group tested, little sound bite, which usually draws applause from constituents on all sides of the political spectrum, but what does it really mean? Well, it really means that the political class wants to come together to pass new legislation, the purpose of which is to grow the size and scope of government, institute new taxes and fees, pass new regulations or create another unaccountable bureaucracy, which is what politicians do and what most of the ruling class think their job is. This is not what Tea Party backed representatives were elected to do. As a matter of fact, this is just the opposite of what Tea Party backed representatives were elected to do.

Does John Boehner actually think the Tea Party sent representatives to congress so they could negotiate with Democrats to increase the size and scope of Government and capitulate to Obama’s “Tax and Spend” agenda? The TEA in Tea party literally means “Taxed Enough Already”. Where are the cuts, Congressman Boehner? I’m referring to real cuts, not faux cuts, like smaller increases in growth. An increase is not a cut, no matter how you “slice” it. Where is the effort to decrease the size of scope of government and eliminate our massive debt? When was the last time politicians actually eliminated a government agency or decreased the size and reach of the Federal government? In the past, politicians have cut taxes, but they didn’t cut spending. They just ballooned the debt. These destructive policies must end.

The U.S. debt is now over 17 Trillion dollars. I just used this calculator to determine how much of the debt I owe, which is: $175,811. Please feel free to calculate the amount you owe. The average American citizen is now on the hook for approximately $120,000. This kind of outrageous debt is obviously unsustainable.

We all need to realize that there needs to be measurable decreases in the size of government or the entire system is going to collapse. Kicking the can down the road is not a strategy to solve this crisis. The Tea Party sounded the alarm but were demonized by the left, the right and the media. The demonetization needs to end. Politicians and voters need to face up to the crisis at our door and do something about it now, before it’s too late.

Obama Holds America Hostage In Attempt To Punish Success

Barack Obama is threatening to allow Federal taxes to increase on the 54% of Americans who actually pay Federal taxes, unless the GOP agrees to increase taxes on families and small businesses who earn more than 250k per year. There is no justification for increasing these taxes, being the tax increase does nothing to offset deficit spending or pay down the national debt.

Economists warn that the increased taxes would actually hurt the economy by limiting growth, resulting in fewer tax dollars flowing into the treasury, which would actually balloon the debt and deficit.

So why would Obama push for this? Well, Obama has stated that it’s just a matter of “fairness”. Clearly, the president cares more about punishing successful families and businesses, than solving the dire fiscal issues that we face as a nation.

The NYT and other media outlets have calculated that the increased taxes would generate $850 billion over 10 years, which works out to only $85 billion per year. Considering the U.S. government spent $3.5 trillion in 2011, $1.3 trillion in borrowed money, it’s clear the $85 billion per year in increased taxes does nothing to solve the fiscal issues that face all Americans. When you factor in the decrease in economic growth that comes with higher taxes, Obama’s misguided tax policy, based on some leftist notion of “fairness”, is much more detrimental to solving America’s fiscal problems, than it is beneficial.

Isn’t it time for America to reject the device class warfare policies that do nothing to solve problems? Aren’t we tired of politicians, on both sides of the aisle, who refuse to limit the size and scope of government? Perhaps it is time to point the finger at the Democrat and Republican parities for their utter failure and place the blame on squarely on them. It’s time for voters to recognize that the two parties are simply blaming one another for the problems that both of the them are equally responsible for causing.

If the two parties are unwilling to take responsibility for the problems they have caused, perhaps it’s time to consider rejecting both parties and supporting a 3rd party of responsible citizens who are actually interested in solving the critical issues we face.

Super Committee or Stupor Committee?

The gaggle of cowardly political establishment hacks, known sarcastically as the “Super Committee”, failed to come up with any more fake spending cuts in their insincere effort to decrease America’s $15 trillion dollar debt. I would strongly urge the reader to take a look at the real purpose of the “Stupor Committee”, previously explained on Upstate Voice in the article entitled: The Truth Behind The Debt Ceiling Bill (S.627)

The fact of the matter is that there were never any “cuts” on the table. Even with the $2.1 trillion of so called “cuts”, the deficit will balloon to well over $23 trillion dollars over the next 10 years. From where I stand, that amounts to a HUGE increase in the national debt, NOT a cut. Decreasing the “rate of growth” is not a “cut” and those who claim otherwise are being dishonest with the American people. Why isn’t the press setting the record straight?

It is the responsibility of the press to make clear to American citizens that there were never any “cuts” on the table. Increasing the national debt from $15 trillion dollars to over $23 trillion dollars is not a cut by any stretch of the imagination. The press should never use the term “cut” when referring to what amounts to little more than financial gimmicks used by politicians who pretend they are concerned about the debt. One can only conclude that the press is complicit in the lies and are helping to promote the scam being perpetrated on the American people.

As noted by Senator Rand Paul, a simple spending freeze would save the country $9 trillion dollars over the next 10 years. A REAL “cut” of 1% of actual spending would balance the budget in only 8 years.

The above video does an excellent job of explaining the real situation the United States finds itself in. It’s almost criminal that most of the the media refuse to report the facts and refuse to tell the truth to the American people.

I would urge everyone who happens to stumble upon this post to share it with as many people as they can, in a effort to expose the deception of entrenched politicians and their dishonest cohorts in the lamestream media.

Obama Calls For More Spending After First Stimulus Failed Miserably

As expected, Obama called for another round of stimulus spending during his much ballyhooed “Jobs Speech” before a joint session of Congress on Thursday night.

Obama proposed $450 billion in new spending while announcing the so called “American Jobs Act”, but as usual, he gave few details on how or when the new speeding would be “paid for”. According to Obama, the “rich” will be taxed more. But, who defines “rich”? If the “rich” are those making 200K or more a year, that would mean taxing small businesses, at the time we should be incentivizing small businesses. Obama went on to engage in an incomprehensible, out of both sides of the mouth, disgusting display of class warfare that brought forth a well deserved round of load moans from conservatives in the chamber.

Obama referred to the new spending as being “targeted” and I’m sure that will be the case. Just as with the first stimulus, it will be targeted to bail out liberal states whose public sector unions and their political cronies have bankrupted their treasury with ridiculous benefits and Cadillac pension/health care plans. The only jobs this stimulus will save is unionized government jobs, at the very time in our history that big government bureaucracy should be cut.


Democrats Attempt To Shift Blame For The Obama Downgrade

In a transparent attempt to shift the blame for S&P’s credit downgrade of the federal government, Obama trots out his surrogates to blame the Tea Party movement and S&P for his disastrous fiscal policy. The administration’s allies in the media are also on board with the narrative, as websites from Salon to Huffpo attempt to deflect attention away from Obama’s epic failure to lead us out of our financial crisis.

In yet another out of touch and meaningless speech, President Obama steps in front of the microphone today and proposes new taxes be raised to pay for even more stimulus sending. Not even the lowering of America’s credit rating can move President Downgrade away from his ideological tax and spend agenda.

Obama doesn’t deserve all the blame for America’s massive debt but he (and his party) are certainly to blame for the credit downgrade. The Democrats intransigent stance regarding the amount and timeliness of spending cuts led directly to the credit downgrade. The GOP had offered several plans that would have satisfied S&P, including Cut, Cap & Balance. Evidently, the idea of a balanced budget is a radical notion (and DOA) in the hotbed of progressivism known as the U.S. Senate.

The problem is that Bush increased the national debt from $6 trillion to over $10 trillion during his eight years in office, an increase in the debt of over $4 trillion, which is outrageous.

Instead of solving our debt problems as promised, Obama has increased the national debt by $4 trillion in less than four years and is now increasing the debt by $1.5 trillion a year. At that rate, Obama will have increased the national debt by more than $10 trillion in an eight year period, which is even more outrageous. At the current rate of spending, by the end of two terms, Obama will have incurred more debt than all of the previous presidents combined, including Bush.

The very enlightening chart below shows how the national debt has been increased, depending whether the Democrats or Republicans control congress.

Click for larger image

It is interesting that when Democrats are in control of Congress or when the Congress is split (as it is now), debt as a percentage of GDP increases. However, when the GOP are in control or Congress, debt as a percentage of GDP decreases or stays flat.

Regardless of who is in control of congress and in light of Obama’s failed stimulus, it should be clear that increasing taxes and massive federal spending will never solve America’s debt crisis.

The idea that increased revenue would be used by politicians to pay down the debt is patently absurd. History has shown us that any increased tax revenue will most certainly be used to grow the size of government, not to decrease our national debt. That is the sad truth, no matter what the politicians are currently claiming.

America’s Credit Rating Downgraded – The Tea Party Was Right

The Tea Party movement warned that failure to address our massive government debt as part of the recent debt ceiling debate could result in downgrading of America’s credit rating.

Instead of making tough decisions and real spending cuts, progressive Democrats attacked the Tea Party as being racists and terrorist. The Obama administration refused to cut spending and instead chose to play partisan politics, which has now resulted in the S&P downgrading America’s credit rating for the first time in history.

A cornerstone of the global financial system was shaken Friday when officials at ratings firm Standard & Poor’s said U.S. Treasury debt no longer deserved to be considered among the safest investments in the world.

S&P removed for the first time the triple-A rating the U.S. has held for 70 years, saying the budget deal recently brokered in Washington didn’t do enough to address the gloomy long-term picture for America’s finances. It downgraded U.S. debt to AA+, a score that ranks below Liechtenstein and more than a dozen other countries, and on par with Belgium and New Zealand.

The GOP placed multiple plans on the table and passed three bills though the House which would have averted this downgrade. Instead of supporting and passing these bills, Harry Reid and his progressive allies in the Senate held a gun to the head of senior citizens and proclaimed that Grandma would be tossed off a cliff if any of these spending cuts were enacted.

This epic failure by the president and the progressives in Congress could be very damaging, causing interest rates to spike and making it more difficult to get a loan. It’s not those in the Tea Party movement who are acting like terrorists, it’s those who refuse to address the out of control spending and debt. The entire economic system will explode and come crashing down around us if America doesn’t change direction, and soon.

The Truth Behind The Debt Ceiling Bill (S.627)

The laughably entitled “Budget Control Act of 2011” cleared it’s final hurdle in the Senate, passing with a bipartisan vote of 74-26. Nineteen Republicans, five Democrats and Socialist Bernie Sanders opposed the bill. The House passed the compromise deal on Monday with a final vote of 269-161.

The Truth

Contrary to what is being reported by the mainstream media, the bill contains no cuts in spending. The bill actually allows the government to borrow an additional $2.1 trillion to pay its bills, while increasing the national debt from $14 trillion dollars to more than $20 trillion dollars over the next 10 years. Only by using Washington DC logic can one claim that borrowing and spending $7 trillion dollars, rather than borrowing and spending $10 trillion dollars, amounts to a cut. It does not. There are no cuts, only increased borrowing and spending to the tune of $2.1 trillion dollars.

The bill also spends an additional $17 billion to fund the Pell grant program for the next two years.

The Politics

In a complete abdication of their constitutional responsibility, Congress gives the President the power to raise the nation’s debt limit.  This provides political cover by allowing Congress to oppose any debt increase. With a two thirds “veto proof” majority required to deny the President’s request for a debt limit increase, cowardly politicians can simply say they voted against raising the limit.

President Obama also gets what he wants, which is to kick the can down the road past the 2012 elections.


Let’s Blame The Tea Party For America’s Debt Crisis

The Tea Party movement is composed of average American citizens who simply decided to point out the fiscal ineptitude of their elected politicians. Why? Perhaps it’s because most of the politically ideological driven sheep-like citizenry of America have allowed politicians to kick the can, finger-point, and name call their way into office, while using our tax dollars to buy reelection. Apparently, the mainstream media has abdicated it’s once cherished role as “watchdog” and have become nothing more than a mouthpiece for the statist policies of Washington’s political elite. The citizens of America are as responsible as the politicians for the fiscal train-wreck that has befallen our great country because we have allowed ourselves to become uninformed. Since most Americans are too complacent and caught up in their own lives to educate themselves as to why D.C. politics has become detrimental to the sovereignty of our country, a force was needed to combat the apparent European-style socialist driven policies that are responsible for the impending financial crisis. A group of informed citizens was needed to act as a firewall to slow down and eventually stop this mad race to implement “The American Financial Insanity Act”, which serves to enslave future generations with unmanageable and perpetual debt.

The Tea Party formed as the voice of fiscal sanity, constitutional government and maximum individual liberty. Contrary to media blather, members of the Tea Party movement have became a needed voice of reason in American politics, a voice in opposition to endless government spending and growth. They have demanded politicians stop using tax increases to continue to grow the federal government and debt. The Tea Party wants to see an end to irresponsibility, unaccountability and the increasing level of corruption in government we now see, a government driven by a progressive ideology from both the Republican and Democrat parties. The Tea Party movement brought to the forefront these issues and have revealed the fraud on both sides of the political spectrum, and seeks to expose those who benefit from the corrupt system. The political elite’s game of “shadow-play” is now out in the open, and they don’t like it one bit.