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Posts Tagged ‘Budget’

Our President Budgets Like My Ex-Wife

by Flyovercountry ( 34 Comments › )
Filed under Economy, Special Report at March 13th, 2013 - 11:30 am

          Political Cartoons by Jerry Holbert

During the less than blissful early days of my first marriage, (unfortunately, a list that can be said to have numerous entries,) I would come home from work on certain days to find my young bride sitting in our apartment’s small living room with what appeared to be at first glance, about a dozen shopping bags. These bags would invariably have hempen handles and be made of that sturdier form of paper that was pretty close to corrugated cardboard in quality. The bags served two purposes. First, they served to help transport the contents from store to home and let everyone who saw them know that the store who provided the shopper with such happiness was where the purchases were made. The second and more subtle purpose was to let the entire world know that the prices exacted for the contents of those bags resided in a region somewhat North of the prices exacted at one’s local Wal-Mart. Her admittedly cute brown eyes would look up at me each and every time, while she made the same statement, “you’ll never guess how much I saved you at Hudson’s today.”

Welcome to the world of spin. Those shoes, that anyone with two functioning grey cells would have to have recognized as not only being unnecessary, but also soon to be abandoned, were supposed to be viewed by me as some sort of bargain that could not be passed up. They were half off you see, which means that we saved half of the price listed, and only paid the price exacted. I was too insistent on concentrating on the latter number for her tastes, and anger ensued when she wanted credit for the, “budget savings,” from the full price listed with only half being paid. Our car you see needed repairs, or groceries needed to be purchased, or heat paid, or savings invested for those golden years far off in an unseen future.

I told you that story so that you would understand this latest gem, in its proper context. Recently I heard the President, during his latest campaign tour, which has been termed a, “charm offensive?” convincing us of his bipartisan bona fides, make this statement.

I’ve already cut $2.5 Trillion in spending from the budget over the next 10 years.

We’ve gone over this nefarious ground before, you and I. It is that bit of Legislative Kabuki Theater known as Baseline Budgeting, and ridding ourselves of it should definitely be the first order of business once sane people start winning elections again in sufficient numbers. You would have to be from some woozy Unicorn Infested alternate dream Universe to believe that anything this President has done or advocated can in any way be termed, a spending cut.

In 2008, the last year that George W. Bush was our President, he presided over an amount of spending that was admittedly alarming in both size and scope. His deficits, (which during his last two years in office were partly the doing of a Nancy Pelosi led House and a Harry Reid led Senate,) rang all sorts of bells at the astronomically absurd number of $450 Billion. (I say partly, because they still required the man’s signature in order to become law.) Today, those $450 Billion deficits would be a welcome change of pace, since Barack Obama’s promise to, “cut them in half,” came with the usual Obama Promise Expiration Date, which is about 5 whole minutes after he’s left what ever stage he was on at the time. Our deficits are now North of $1.4 Trillion, and will automatically grow at a staggering 8% per year according to the baseline law. Any growth less than that 8% is, as a matter of the magical baseline law, now labeled a cut in spending. It should also be noted that President Obama as of now, has not yet signed his name to a budget, as is Constitutionally required. Perhaps, and I’m just spit balling here, this is part of the problem.

A new demographic in American society has been identified this year, and it has been given credit for the election of our current President. That demographic has been labeled, and appropriately so by the way, as the low information voter. That group of people who vote in our national elections, helping to decide our collective fate as it were, without bothering to familiarize themselves with trite little things such as actual policy positions, basic economics, foreign policy beliefs, or even the cursory perusal of a candidate’s resume. I’ve talked to these people plenty over the last 5 years, and one thing is certain, they were all Obama voters, and proud of their choice. The astounding thing for me is this, many of them were well aware of the fact that they were low information voters, and just plainly felt that the banality of the Obama campaign and the endless stream of mindless platitudes emanating from that high tech internet driven cult group known as OFA, (Organizing For America,) would somehow translate into real world results that would match the dream and not the nightmare.

Hopety Change has led to some real world disaster. Unemployment has been reported as having ticked down, but only the economically illiterate believe that fairy tale being told by the Solis Labor Department. The Labor Force Participation Rate is the lowest since just prior to World War II, a period of time commonly referred to as, “The Great Depression.” Per Capita Income has dropped each and every year of the Obama Presidency, and every single commodity requires more of our devalued dollars to purchase on a world market that has clearly not been fooled by the single greatest currency manipulation in world history. Our President’s goal, clearly is to follow this path, knowing full well that the ramifications of such an action will mean tremendous economic hardship for Millions of Americans. At the same time that he is doing what ever he can to destroy our nation, he is telling those irresponsible minions who make up the low information voter demographic, (unfortunately one of the largest American demographics,) that he has indeed seen to the greatest spending cut of any President in American history.

Please for the love of God America, buy one of those $1.00 calculators that are available in dollar stores all around this great nation and perform some simple math. You don’t cut spending by increasing the amount on the checks you write from $2.5 Trillion to $3.8 Trillion. That, at least to people not operating in the Unicorn filled world of the baseline scam, is what is termed a spending increase.

Cross Posted from Musings of a Mad Conservative.

Obama and Democrats are not serious about the budget negotiations

by Phantom Ace ( 197 Comments › )
Filed under Barack Obama, Economy, Progressives, Republican Party at November 28th, 2012 - 3:31 pm

The new lord and savior of America, the almighty god-king Obama has not stop campaigning. He is making daily appearances demonizing Republicans over the fiscal cliff. The only item Obama even mentions is raising taxes on those making $250,000. As with the election, Obama is winning the argument. Over 60% of Americans support raising taxes on those making over $250,000 a year. The truth is raising rates on that segment of tax payers will only bring in an extra 80 billion a year. Personally, I think the Republicans should counter propose an call for raising rates on those making over 1 million a year, a 30% Entertainment industry excise tax and eliminate state income tax deductions. This will hit the affluent Democratic voters.

The Republicans lacking imagination have not counter propose. Instead they are offering to eliminate some tax deductions to raise revenues. This is not good enough for Obama, who continues to demagogue the issue and has not come up with any concessions of his own.

House Republican leaders said Wednesday they’ve done their job in negotiations to solve the looming fiscal crisis, while President Obama is returning to the campaign trail to sell tax hikes that studies show won’t have much, if any, effect on solving the problem.

“We have done our part by putting revenue on the table,” said House Majority Leader Eric Cantor.  

Cantor and fellow House leaders have agreed to close tax loopholes to generate revenue to reduce the $1.1 trillion annual deficit. But they argue the president has yet to say publicly what cuts he will make to the federal budget — specifically to costly entitlement programs such as Medicare, Medicaid and Social Security —  to reduce the deficit.

They also say the president’s plan to extend tax cuts only to middle-class Americans will not generate enough revenue to significantly reduce the deficit.

Jamie Foxx’s lord and savior is not serious about the budget deficit. He honestly could care less about it and just wants to raise taxes on people making over 250,000 to make people feel better. The Obama regime is about feelings and not concrete results. The almighty philosophizer king  has a combination of a incompetent opposition and an adoring media, which allows him to get away with it. 51% of Americans love this man and don’t care about any results.

Some where In Between.

by Flyovercountry ( 123 Comments › )
Filed under Business, Economy at March 26th, 2012 - 2:30 pm

Political Cartoons by Michael Ramirez

The problem with paying attention and studying history and economics is that life holds precious few surprises along those areas of consideration for me any more. I pretty much know what is coming next. During the campaign of 2008, when my coworkers asked me what was wrong with the specter of an Obama Presidency, even before it happened, I told them in detail, what exactly the next 4 years would look like. Here we are in 2012, and not a single prediction was off the mark. Stagflation has taken root, new regulations are choking private sector growth, the federal behemoth has grown in size and increased its own scope, and America is seen as a fat bloated paper tiger by some very dangerous and by the way insane tin pot dictators who are hell bent on destroying both Israel and the United States. We have seen a half dozen revolutions by dumb college aged students in several formerly benign Middle Eastern nations in which the hard line Islamists wasted no time in taking over and summarily killed off the college aged flower eyed revolutionaries. One of those new Islamist nightmare states even took the step of taking American citizens as hostages.  Something else looms however, and it truly transcends political party lines.

In case you missed it, Timothy Geitner, the tax cheat who we were all told to overlook his felonious behavior since he was the only living American smart enough to lead us out of our economic malaise, admitted the following in his testimony to the House Budget Committee. Our Statutory spending is greater currently than our tax revenue, both now and during any time in the future. That is to say, under our current course of action, there will never be a point in time when that this will not be the case. He also admitted that there is no plan under consideration by the Obama Administration where this will ever be addressed. Addressing the problem is not considered a favorable course of action by these people. He also admitted that our economic collapse will occur in 2027, which for those of you keeping score at home is just 15 short years from now.

Our budget is comprised of two constituent parts. Discretionary spending is what it takes to actually operate our government. Entitlement spending is that portion that is mandated spending as a matter of law, it was voted in by our Congress at some point in the past and then signed into law by a past or present President. We have all sat and listened to people scream and yell about some wasteful program that they want to see cut, but the truth of the matter is that our budget has zero chance of ever being fiscally sane until we change those laws which require the entitlement spending. We can cut every penny of Discretionary spending, end the EPA, Department of Defense, Education, HHS, Labor, Energy, State, Transportation, Interior, all foreign aid, the SBA, and that will still leave us with an unmanageable budget shortfall, which will put off our demise perhaps until June of 2027 rather than January of that year.

Today, our Supreme Court is deciding if one piece of those massive entitlements is in fact Constitutional. If the court does indeed strike that law down, then the crisis will be averted for a decent amount of time, at least on paper, but that is only the beginning. It was Art Laffer who identified the trend with revenues raised through taxation. Our revenue will always be between 19% and 21% of our GDP. No matter how much we soak the rich or stimulate the economy, this level of revenue has always been consistent. During our entire history as a nation, 19% and 21% of GDP has been the limits of money flowing into the federal government. If we place ourselves, as we have done, in the position of spending more than that on our various bag of free goodies from the public largess, we will eventually collapse. Knowing that we can no longer afford to repay those bills, our boys in Washington have taken to printing more paper which looks like money and are easing that into the economy. As a nation, we are shocked that things are beginning to take more of that worthless paper in order to buy things, such as gasoline or groceries.

There is ultimately a problem with this approach to our fiscal problems with this thinking however, and that is that at some point in time, as history has already shown by the way, people around the globe will simply stop accepting our currency for anything other than lining the bottoms of bird cages, lighting fires, or wrapping raw fish with. We will revert to the barter system, or cigarettes will once again become our new money. (From 1777 through 1791, three states used tobacco as the official currency. Tobacco was also accepted as payment by many foreign governments as well.) Fiat money being created by tin pot dictators to pay for their massive appetites is nothing new. Neither is the concept that it has never worked in the past. It may surprise some of you to know that it is not even new here in America. Franklin Roosevelt, Richard Nixon, and Jimmy Carter all took up the practice. What is new in America this time around is the fact that we now have a predicted end date for our demise as a nation. If your child is born this year, he or she will not have graduated high school before the end is reached. We are doomed about the same time as those religious school confirmations of faith will be occurring. That is not what scares me however. What scares me is that the people in charge have just admitted to knowing that this is true, and have told us that they plan to do not one single thing about it. They plan on continuing their spending anyhow. The Federal Government has an appetite you see, and it is large indeed. The sacrifice, in their eyes anyhow, is for we the people to make, and not for them to do with any less. My fear is that we, as a nation have not already risen up to put these people out of our misery.

Those of you who have read my stuff before know that I am not in favor of a standard which ties our economy to a hard asset either. Gold for example, made such a poor currency in the past, that even when we used it, people printed up paper to take its place. We had the exact opposite problems with Gold, which resulted in crippling deflation and depressions. There has to be a solution some where in the middle. The Federal Reserve system was put into place precisely to prevent these people from doing that which they are doing today. Currency in itself, whether it be tied to a hard asset, or just based on faith such as today’s was never more than a substitute for the sum of our labors which facilitated an ease of trade. If you grew Lima Beans and I shod horses, when I wanted windows installed, there was no way in which I could trade my services to the window installer if he wanted steak. Currency allows for me to sell my services of putting iron on the feet of horses, indirectly trading with the entire community as I do so, and making it easy to purchase the services of the window maker who does not even own a horse, and does not like Lima Beans. For this purpose, Gold was chosen as the standard measure of value, and since the beginning of time, its value has been assigned to it by people. Paper can receive the same assignment, except that printing more of it creates its own problems. Gold was too scarce, and paper too abundant. The Fed was supposed to keep our printing proclivities in check, while allowing that supply to grow in pace with the population and the size of our economy, epic failure.

Our system’s breakdown was in the fact that we depended upon our society always being led by sane people. It was when we allowed ourselves to be convinced that only geniuses could lead us that we started down this destructive path. The well educated Ivy League crowd has always been able to explain and spin why the malaise has not in fact been their fault, and indeed someone else’s doing. They have eloquently told us time and again how if we just followed them a little further down the road to our fiscal implosion, that the impossible would somehow become possible. A decade and a half is what we now have left to not only change our path, but to start actually correcting our past mistakes. Other wise, our currency will be canned foods, shot guns, and ammunition. I would rather not live in that world, but one positive thing is this, the hippies would be the first to lose.

Cross Posted at Musings of a Mad Conservative.

Budget Battle Redux! Maybe We’ll Actually Pass One This Time.

by Flyovercountry ( 104 Comments › )
Filed under Conservatism, Economy, Regulation, Republican Party, taxation, Tea Parties, The Political Right at March 22nd, 2012 - 11:00 am

Political Cartoons by Bob Gorrell

So, here we are in familiar territory, again. Yogi Berra, famous as much for his Malaprops as for his stellar baseball play, once noted that a situation was like deja vu all over again. That’s where I am. Once again, at some time in the past, a budget was, according to law, supposed to be passed by our congress and signed into law by our President. A deal was struck which allowed the Federal Government to continue on without any budgetary constraints on its spending and the can was kicked further down the road to some point in the future. Once again, here we are in that future, and the debt, spending, lack of budget, are all here waiting for us taking up that all too familiar position of a looming crisis. Once again, this looming crisis will be dutifully reported on, as the end of all financial life on the planet as we have known it, should we fail to just allow the President and his Marxist allies have their own way.

Let’s review a few pertinent facts this time around. Passing a budget is one of the very few Constitutional Duties our Congress actually has. The last budget passed in this country actually occurred during a year when the Republicans held the Presidency, and both Houses of Congress. When the Democrats held all three of these things, they not only failed to produce a budget, but failed to even discuss one. They passed their monstrous destruction of our Health Care System instead. Since the Republicans retook the House in 2011, they have produced a budget for both years where such a budget was statutorily called for. The Democrats have not only failed to hold any kind of a vote on these budgets in the Senate, they have not even held a discussion on anything related to a budget within the confines of their chamber. (Harry Reid appearing all over television and carping about it does not count as a Senatorial Discussion.) Again, as is always the case, the Media will report it to the American People as though it is Republican Obstructionism that is preventing a budget from being passed. Republicans do not hate old people and or puppy dogs.

The media, and not coincidentally the Democrats in Washington are of course blasting Paul Ryan’s latest effort to bring some sort of fiscal sanity to our Government. They are painting a picture of Ryan’s America straight out of the darkest ramblings of the bleakest Charles Dickens Novel. Even if these portraits turned out to be true, there is one inescapable fact. Paul Ryan has at the very least come up with a budget, as is the duty of Congress. The Democrats in Washington have not so much as discussed a budget since the ancient date of 2007. Paul Ryan’s budget addresses the only area in which our out of control debt situation can successfully be addressed. That is the statutory spending, otherwise known as entitlement spending. As of 2010, entitlements have grown larger than our revenues of $2.3 Trillion. The fiscal problems that we are experiencing today are entirely related to our spending, as a nation, and not at all related to the revenue confiscated by our government. The economic debates over this fact have been proven so many times now, by every competent economist, (which Paul Krugman does not qualify,) that it has become beyond tiresome to mention or write about it yet again. I suppose that is the goal of the political left in some fashion, just tire us out by making the same idiotic arguments over and over and over again. I believe Joseph Goebbels referred to this as white noise.

Maybe this time, the Republican leadership will actually stay and have this fight. I am hopeful, but not optimistic. By drawing the line in the sand, the GOP held House could in fact inflict a balanced budget upon the country very suddenly. In the long run, and possibly the short term, this would in fact be a very positive thing for the United States of America. My suspicion though is that a new deal will be struck which will allow for another period of time in which our Government is allowed to spend money without anyone controlling the purse strings. A future date to address the now increased problem of fiscal insanity will be set, and I will be writing this very same article again.

Here is the Daily Caller take on the Ryan Budget.

Cross Posted at Musings of a Mad Conservative.