Economic Armageddon

Is the U.S. Economy Headed for Collapse?

          Last week the United States federal debt surpassed the $19 trillion mark. Almost half of that has accrued since Barack Obama took office in 2009, highlighting the exponential growth rate of our indebtedness. While it is true that both the Democrats and the Republicans are responsible for this national disaster waiting to happen, it is the spending frenzy of the left that has pushed us to the brink. In 1980 the federal debt was about 30% of the Gross Domestic Product (GDP or total value of goods and services produced by the people of the United States during a year). The federal debt has now surpassed 100% of the GDP.

Borrowing from China to Give Aid to Pakistan

          It is of grave concern that foreign countries, not necessarily friendly to the United States, are loaning us money so that we can pay for all the goodies and then collecting interest on that debt. In 2015 the United States paid $223 billion (more than 6% of the federal budget) in interest on the national debt. As interest rates rise and we borrow more and more money, the amount of interest we pay will go up significantly. If you are not happy that your hard earned tax money is given as foreign aid to countries like Pakistan, consider this. Now, your taxes are going to pay for the interest on the money we borrowed from China so that we could give it to Pakistan!

Irresponsible Mismanagement of the Federal Budget

          This reckless and irresponsible mismanagement of the federal budget simply cannot be sustained. Many wonder if the recent wild volatility of the stock markets could be a harbinger of impending economic collapse in the United States. If and when that time comes, it is ironic that a new, fiscally responsible Republican president could be blamed for it if it occurs during his or her term in office. With so much at stake, is it any wonder that many Americans are sheltering their money in UTMs*!

*Under the Mattress

Socialism Doesn’t Work!

Democrat Talking Points

Socialism is a broad term describing an economic system where the means of producing and distributing goods is owned supposedly by ‘the people’, but more often by a centralized government run by a small group of elite individuals (think Haavaad professors) who plan and control the economy.  The goal of socialism is to eliminate competition and private property and to redistribute wealth.  While this sounds an awful lot like the Democrat Party talking points, this brief explanation actually describes the main theories of socialism.  In Marxist-Leninist theory socialism is considered to be a transitional state between the overthrow of capitalism and the realization of communism, which includes political control as wells as economic control of its subjects.

Capitalism Does the Most Good for the Most People

Socialism doesn’t work and never has.  Capitalism does work and has proven to be the economic system that does the most good for the most people.  We are now witnessing the tragic and frightening consequences of Europe’s dalliance with socialism and would be well advised to see this as a warning before it’s too late.  The general election of November 2012 will be the most important election of our lifetime, because it will be our last opportunity to turn away from the socialist path down which the current administration has led us.  The following video gives a succinct (see WOW) account of socialism which is illustrated through an exchange between the best president and the worst president in recent U. S. history.  Even Debbie Wasserman-Schultz might be able to understand this!

Where Did California’s Education Money Go?

Outrageous Benefits 

          Simply stated, California is bankrupt and can no longer fund higher education at the level it had previously.  The state’s financial crisis has been caused by the typical liberal scenario of overtaxing its citizens and then spending the state’s treasure on everything but that for which it was meant, in this case higher education.  How did Sacramento squander the funds meant for the California State College and University system, you ask?  Let me count the ways!  Public employee unions have managed to secure outrageous benefits for their members, including early retirement with pensions that put many in the ‘100K Club’, as well as disability and medical benefits that us ordinary working folks would literally die for. 

          As just one example of the abuse, the spiking of retirement pensions with disability claims is so common that it became known as ‘Chief’s Disease’ in the California Highway Patrol.  It is estimated that 4 out of 5 CHP senior managers become disabled in the final year before they retire and two thirds of the regular officers retire with a disability.  Add this to their yearly retirement pay of up to 90% of their salary beginning as early as age 50 and you can begin to see the problem.  California taxpayers will now be stuck for years funding these benefits.  Some of it will have to be paid with money that was meant for higher education, so unfortunately students will have to share in this burden. 

Squandered Treasure 

          Thanks to these same Democrat legislators, taxpayer’s money is also being used to provide generous benefits for those who are in the country and therefore the state illegally.  Illegal immigration is estimated to cost California $22 billion each year.  Wow!  That’s almost the entire $25 billion budget deficit projected for California in 2012.  So what did the legislators do to stop this fiscal hemorrhage?  They passed the California Dream Act which provides taxpayer funded scholarships to students whose families are in the country illegally!  As magnanimous as this may sound, some would argue that it provides a privilege for these students which students from other states are not accorded.  I think we can all agree that this program simply spends more money that California does not have!  The end result will be to encourage more people to come to California illegally, which will in turn perpetuate the fiscal crisis. 

          In addition, with the state now insinuating itself into every aspect of its citizens’ lives, the accompanying bureaucracy devours money like a slot machine at an Indian Casino.  With the growing state workforce needed to administer all the new regulations there will be even more people getting outrageous retirement, medical and disability benefits.  The Democrat packed legislature just doesn’t understand that by increasing regulations and raising taxes and fees on just about everything they have also driven businesses out of California at an alarming rate.  The resulting increase in unemployment and loss of tax revenue complete the vicious cycle.  It is indeed a sad state of affairs in the ‘left coast’ state of California where for many years the ‘tax and spend’ liberals have had an iron grip on the legislature.  Higher education is one of the casualties, so college students are now being asked to pay more tuition and fees…and they are rightfully upset. 

Coming Next:  California’s Failing Public School System 

California College Students Redeem Themselves…Sort Of

Facing Rising Tuition and Fees 

          Just when we were beginning to wonder about the students attending schools in the California State College and University system, some of them have given us reason to believe that they actually do have the ability to analyze problems and think for themselves.  Faced with mounting tuition and other fees, students had up to now been protesting everyone except those actually responsible for the problem.  It seems that they may finally have put two and two together this week when they took their protest to the union-owned, Democrat-run capital in Sacramento, correctly placing the blame for this crisis on the legislators who have plundered the state’s treasury.  Maybe their thinking has not yet completely evolved to this conclusion, but at least they are protesting in the right location! 

          Through no fault of their own, many of these students are the products of the failing education system in California.  It is no small feat, then, for them to have come to this difficult conclusion.  In doing so, they had to abandon the prevailing liberal view extant at most of their institutions of higher learning and they even had to make a point of distancing themselves from the Occupy Movement that was in Sacramento at the same time.  We cannot hold these college students responsible for the faulty reasoning that led to their previously misplaced anger.  Instead, we salute them for being able to make the tough choices, admit that they were wrong and refocus their energy in the right direction. 

California…A Horrible Example the Rest of the Country Should Heed 

          The rest of the country should take a good, long look at what has happened to California, because it is a harbinger (see WOW) of what is in store for them unless they take immediate action to change course.  The education systems in many other states are also at risk of financial collapse due to the reckless spending of their legislators.  Fortunately, the tax and spend liberals were thrown out of many legislatures in the 2010 midterm elections.  Courageous individuals like Governor Scott Walker of Wisconsin are making good progress in bringing their states back from the brink by getting their fiscal affairs in order.  But union bosses who see a threat to their tight, controlling grip on dues paying members are fighting back like caged weasels.  Consequently, Governor Walker is facing a recall election in spite of the good work he has done for the people of his state. 

          Unfortunately, there is no easy solution now for California.  It will take years to undue the harm that has been done.  The only hopeful sign is that we appear to have some students in our college system who finally see the light and are taking the fight to the real perpetrators of this fraud.  What they are doing to bring this situation to the attention of the public is important, because a well funded system of higher education, available to all qualified students regardless of financial means, is in the best interest of every citizen of the State of California. 

Coming Next:  Where Did California’s Education Money Go?      

Because He’s Stupid or On Purpose?

Why is Obama Ruining the American Economy? 

          We’d like to hear from you.  Do you think Obama is ruining the American economy because he’s stupid, inexperienced and doesn’t know any better or because he purposely wants to diminish our role in the world and convert America from a capitalist economy to a socialist state?  Much has been said to support either assertion and there are good arguments on both sides.  Let us know what you think by voting in our poll, located at the top of our right sidebar. 

The Case for Stupidity 

          It has been well established that Barack Obama came to the presidency with very little experience.  Other than being a community organizer, a euphemism (see WOW) for rabble-rouser, he never actually held down a real job and certainly never ran anything even close to a lemonade stand.  On the other hand, he is very good at making regulations for lemonade stands!  Calling into question his elitist educational credentials, some have suggested that Mr. Obama may be the first Affirmative Action President, having been advanced along the way for reasons other than his qualifications. 

          Others point to Obama’s history of snorting cocaine, an act which in itself indicates stupidity, not to mention that it is a dangerous habit which can have lasting effects on the brain.  Oh, and did I mention that it’s against the law?  Another argument supporting the case for stupidity is that every intervention Obama has made to manipulate the economy has made it worse and he has repeated or attempted to repeat what failed before.  An inability to learn from your mistakes is a hallmark of low intelligence.  For these and other reasons most Americans now believe that Obama’s handling of the economy has indeed been stupid and many conclude that it is because he is stupid. 

The Case for Purposefully Ruining our Economy 

          If Obama isn’t stupid, then the only conclusion one can draw is that he is purposely trying to diminish the United States on the world stage and reshape it after his own socialist ideology.  And there can be no question that Obama is a committed socialist and a radical left wing ideologue!  As has often been pointed out, it does not seem likely that someone who graduated from Harvard Law School, as Mr. Obama did, could be stupid.  After all, Harvard is the most elite and most expensive university in the world, having graduated such notables as Unabomber, Ted Kaczynski; climate scientist, Al Gore; communist, W.E.B. Du Bois; and former President of Enron, Jeffrey K. Skilling! 

          It seems reasonable to think that with all the elitist, Ivy League professors in his administration, one of them would know something about how capitalism works.  Between them they should have figured out that reckless spending, massive debt and higher taxes mean fewer jobs!  Could it be they really do know what they’re doing and actually want the country to fail?  Others point out that Mr. Obama’s silver tongue and articulate manner of speaking are additional signs of high intelligence.  Finally, for someone with Mr. Obama’s radical background to have convinced a majority of Americans to vote for him is an indication of a very clever man. 

What Do You Think? 

          Vote in our poll and feel free to speak your mind in the comments section below.  Whether the ‘president’ is ruining the U.S. economy because he is stupid or on purpose (and it has to be either one or the other), the end result is the same.  We are on the brink of disaster and we must all work together to make him a one term president!  How disappointing for those of us who rejoice at the idea of having an African-American president, that the first one would be such a dud.  Check back later and I will tell you whether I think Mr. Obama is ruining the U.S. economy because he is stupid or purposefully.          

The Obamunists Just Don’t Get It!

The Obamunitsts Just Don’t Get It!

          For all the Ivy League educated elitists in their ranks, the Obamunists simply have not been able to grasp the inverse relationship between taxes and jobs.  This simple equation was definitively confirmed by President Ronald Reagan and was subscribed to even by Democrats such as President John Kennedy and Impeached President Bill Clinton.  One would think that after more than two years of failed policies and an economy worsening by the day under his (lack of) leadership that Mr. Obama would finally give up his dream for a Socialist States of America.  But, NO!  He’s still clinging to his radical left wing ideology like the proverbial ivy on those hallowed brick walls.

The Hallowed Ivy Covered Walls

The Hallowed Ivy Covered Walls

Where Are They Now

No wonder all but one member of Mr. Obama’s original team of erudite (see WOW) economic advisors have bailed out like rats from a sinking ship.  The American people were way out ahead of the professors in Washington on this one.  Of the original group that voted for Mr. Obama in 2008, a substantial number seem to now realize they were duped into believing that this slick-tongued young man could really lead our great country.  Hats off to all of you for admitting your mistake and returning to the ranks of the Independents, Republicans and Tea Party Patriots!

What about the rest of his original supporters? Well, about 25 percent of them comprise that ever present bedrock of the Democrat Party…those rigid liberal ideologues bent on changing our country forever in a way that would decrease the quality of life for everyone and diminish our stature in the world.  At least they have a sincere belief and know why they believe.  But shame on the remainder of Obama’s original supporters who have no clue as to what’s going on and still support him for the same reason they voted for him in the first place…because ‘he seems like such a nice guy’.

Back to the Equation…Here’s How it Works, Mr. President

I know you are a regular reader of my postings, Mr. Obama, because I can see that a visitor has logged on to my blog at least once each day from such places as Martha’s Vineyard, the Augusta National Golf Club in Georgia, Woody’s  L Street Tavern in Boston, and the Four Seasons Restaurant in New York City.  So I am going to take this opportunity to spell it out for you in terms that even a Ha’va’d lawyer can understand.  By the way, just curious, but was that you logging in from Pinky’s D.C. Lounge after your meeting with the Republicans the other day?  Anyway, here goes.

A very simple equation:

-Successful businesses, large and small, run by hard working people, make profits.  That’s what they’re supposed to do.

-Many of them want to invest some of that profit in expanding or starting a new business.

-This requires hiring additional people (creating jobs) to support those businesses.

-More people working means more people paying their legitimate share of income taxes.

-Punishing success by increasing taxes on those with more money (or even the threat thereof) causes these potential entrepreneurs to hold on to their money rather than to reinvest it and hire more workers.

-Ergo: when taxes go up, the number of jobs goes down.

Is that simple enough for you, Sir?  How ‘bout this:

Taxes↑ = Jobs↓

          Can you not see that you will bring in more tax revenue from all the new jobs created when you enable entrepreneurs to expand or start new businesses…simply by leaving them alone?  Just cut their taxes and lift the burden of regulations on businesses and you will be amazed at how the unemployment rate will go down and the economy will grow.

Sadly, most of us are sitting on our money until we elect a new president in 2012 because we have little hope of any change while the Obamunists are in charge.  Let us hope the Obama Depression doesn’t get even worse in the interim.