Economic Recovery

Balance the Budget: Now is the Time

 

ARRA News Service - Tina Korbe, Hot Air said: When “Cut, Cap and Balance” failed the Senate and both chambers of Congress regrouped around new plans, the first to go of the three crucial elements in the House’s original plan was a balanced budget amendment. Neither of the deficit reduction plans presently on the table provides for the passage of a BBA. It’s also the element of CCB most frequently decried as unrealistic. But political lights from Thomas Jefferson to Ronald Reagan have called for such an amendment, as this video from GOP Labs illustrates. Let President Obama say, “We don’t need more studies; we don’t need a balanced budget amendment.” If ever any unfolding drama proved the need for such an amendment, the drama of the past week has been it. Leave cuts to Congress and what do you get? CBO-certified gimmicks on both sides — even on the side of one sincerely trying to garner savings, one who says he also “wanted more.”

 

President Reagan Said in a Speech to the Nation on Federal Budget, 4/29/1982: As former President Ronald Reagan says in this video, “Most Americans understand the need for a balanced budget and most have seen how difficult it is for the Congress to withstand the pressures to spend more. … We tried the carrot and it failed. With the stick of a balanced budget amendment, we can stop government’s squandering and overtaxing ways and save our economy.”

Tags: balanced budget amendment, President, Barack Obama, Ronald Reagan, video, economic recovery, conservative, the Economy, taxes, bankrupt, Balance the Budget, Thomas Jefferson, American people

BOHICA!- Bend Over, Here It Comes Again.

Nineteen hundred pages… one point one trillion dollars. The DeMarxists are obviously going for a Guinness record on spending. An incredible 6,600 earmarks. This isn’t pork. It’s sausage manufacture on a grand scale. This is economics, Democrat style. Everyone take a good long look. God willing, this is their last gasp.

There were a lot of conservatives unhappy with the tax compromise. I also would have preferred stand-alone bills and up-or-down votes on these issues. But one overriding factor decided in favor of it, for me.

There have been ample warnings by some economists, whose opinions I respect, that if we permitted the sunset of the Bush tax cuts to occur, the negative effect on the nation’s economy and jobs would propel the country into a double dip recession.

As it is, the very first tendrils of real recovery have just now made an appearance on the American economic scene. Stocks have been doing well up until now, propelled mainly by corporations grinding every erg of earning capacity out of their severely reduced staffs and downsized operations. There are signs of confidence in the retail field with strong pre-Christmas sales being reported.

Yes, there are signs of life in the economy, most likely bolstered by the Republican tidal wave in November. People are just more optimistic now that they can see that Barack Obama’s march to totalitarianism will be severely curtailed, if not destroyed altogether.

Business can now count on a stable tax rate for the next two years. It means that we have these battles to fight again in two years. Better to fight them with a Republican Congress and a newly elected Conservative Republican President.

This latest, and hopefully last, spending extravaganza by the Obama Congress is just more salt on an open sore, but we cannot lose sight of the goals we have set.

Semper Vigilans, Semper Fidelis

© Skip MacLure 2010

America the Beautiful Cripple

Washington on Crutches

By Rose Pedenko and Tanya Simon

When the president alludes to his mandate the messages are delivered with the smug satisfaction that he need not explain himself nor defend the mind-boggling amount of taxpayer dollars he is throwing at every problem that comes his way, much like throwing spaghetti against the wall.  But in his case, if it sticks, we’re cooked.

His fan club, apparently so overwhelmed with his rock star “tude,” doggedly cling to the “hope” he promised.  “Hope” and “Change” were, after all, burned into his teleprompter.

What has become as dangerous as a truckload of C‑4 is that hope, by itself, is not always enough.  Those same BHO groupies are “stuck on hope” because they still subsist on the incessant superficial media coverage of President Bush’s financial blunders.

Obama’s followers have yet to understand or accept where their fearless leader has taken Americans in these first 100 days – straight down Thomas Crapper’s throne.  If they persist in their blind adoration, they’ll be enjoying their just desserts a la commode.

Former Assistant Secretary of the Treasury, Paul Craig Roberts, in his March 2008 article entitled The Collapse of American Power, offered this bleak assessment: “…the fact of the matter is that the U.S. is bankrupt.”  That statement was made during the Bush Administration.  What conservative Americans are learning, while liberals continue to savor the Chosen One, is that one trillion dollars of debt has morphed into several trillions, a staggering amount most humans cannot wrap their brain around.  It is turning recovery into a mathematical impossibility.

The “in the tank” media, reports every little Bear market rally as if recovery was at hand.  And whenever Ben Bernanke speaks, his presentation is reminiscent of “When E.F. Hutton talks, people listen.”  That’s the joke of course, because we all know what happened to E.F. Hutton.

And so goes Wall Street.  Not so very long ago, everyone listened to Alan Greenspan too.  And look where we are now.  “The thrill is gone” as B.B. King said, “free from the spell” of Wall Street economists.

For you recalcitrant liberals, there is the National Bankruptcy Survival Guide, in which Seth Van Brocklin explains the difficulty in quantifying the national debt.  As he states: “Once numbers start getting up into the trillions, they literally become mind-numbing.”

By way of illustration, Van Brocklin explains just how large one trillion dollars actually is:  “If you were able to earn $1 per second continuously, you would accumulate $1 Billion after 33 years.”  But, to make $1 Trillion at the rate of $1 per second, “it would take 33,000 years.”  We’re pretty sure you can now visualize twelve times that amount, which is roughly the national debt under the current Administration.

It’s difficult not to feel and sound morose at times.  The present Administration (as well as the numerous fiscal blunders and catastrophes of previous Administrations) have forced the American People to duck and dodge an unrelenting monetary meteor shower which is hitting us all left, right, and center.  Even the Administration’s indignation over Bernie Madoff seems rather comical when you step back in order to see a bigger picture, that is, the federal government now running the biggest Ponzi scheme in history.  But with a solid majority, the bad guys aren’t even getting a slap on the wrist.

The president rode into office on a wave of popularity with a promise to fix the economic mess he inherited (as we are constantly reminded).  He’s smart, but not that smart.  If he were the brainchild his followers touted he is during those nightmarish months of campaigning, he wouldn’t now be crushing the country with a spending tsunami.  And as the country is crushed, so are our lives, our livelihoods, our dreams and aspirations, and, most tragically, our children’s future.

As elected leader of the U.S., one would either have to be totally unprepared, inexperienced or ignorant to not understand the magnitude of this economic crisis.  A logical conclusion would be that this President is either too ignorant, OR fully understands and is lying to Americans -- perhaps running the economy, and thereby the nation, into the ground to realize a larger ideological agenda in the naïve belief it’s for the greater good.

The saddest part is this: even if conservatives were to reclaim the majority in Congress, slash taxes across the board, break the hold unions have on industry, resurrect manufacturing and purge entitlements to illegal immigrants, those efforts would only be a blip on the radar of history.

While the media doesn’t even try to conceal their bias anymore, they continue to squash the opposition through the denigration of patriotically concerned Americans who are now fighting back to save our Republic.  It is not a pretty picture, and there will be no honor at the end of the day for the media.

This is why the TEA party participant numbers are swelling.  No matter what kind of negative hype the media invents, citizens are on to them and there’s a new wave of optimism about to crush the Left’s favorite milieu – carefully crafted ignorance.

We know for a fact (and readily admit) that there are just as many academically intelligent people on the left as there are on the right. After all, America wasn’t conceived and built by dummies.  We, therefore, cannot understand why logical and common sense answers are being cast aside or rejected entirely—the way a demented fisherman tosses the filets of his catch into the drink and tries to sell us the innards.  Americans won’t be buying your stinking innards much longer.  Looming inflation won’t let them.

Our greatest fear is searching for, but not finding, viable solutions to reverse the trade and industry mess in which we find ourselves. The more research we find out, the more we realize it is becoming impossible to clean up after this disaster.

Americans must find a way to strike a balance between regulation, to protect against greed, but at the same time allow everyone to pursue their dreams unhindered by a parasitic socialist system designed to quash our freedoms.

The TEA party participants are looking for that balance and we will not settle for less.

My Own 35 Undeniable Truths of Life

Having quoted Rush earlier today, I can't help coming up with my own self-indulgent 35 undeniable truths of life:

1) The New York Yankees represent everything that is right with America.

2) The Chicago Cubs represent everything that is wrong with America.

3) The Greatest Threat to World Peace comes not from a strong America, but from a weak America.

4) The only way to acheive real Peace is by having superior firepower vis a vis our enemies.

5) Conservatives revere the United States Military.  Liberals are, at best, ambivalent.  At worst, liberals express outright contempt for the U.S. Military.

6) Karl Rove was right: After 9/11, liberals offered therapy to our enemies; conservatives prepared for war.

7) The Prision at Guantanamo Bay has (quite literally) saved American Lives.

8) Liberals are more concerned with conferring rights upon terrorists and criminals than with protecting decent people.

9) Over the Long Run, dictatorships kill far more people than the wars that end dictatorships .

10) Iraq proves undeniable truth # 9.

11) Since 2003, more people have been killed in Iran, North Korea, Zimbabwe, Sudan, and Burma than have been killed in Iraq.

12) There are only two ways to end wars: Victory or Defeat.

13) The Man who threw his shoe at George W. Bush would never have done that to Saddam Hussein.

14) Persons who whine about alleged U.S. torture have no idea what real torture is.  Such persons will whine about anything the U.S. Miltary does to give meaning to their insignificant lives.  They are best ignored.

15) Israelis are morally superior to Palestians. 

16) Palestinians cannot be trusted until they suffer overwhelming military defeat.

17) Free-Market Capitalism is the best, and only, path to prosperity.

18) The American Consumer is the greatest force for good in human history.  The American Military is second.

19) Free Trade creates jobs and prevents wars.

20) Taxes are not too low; government spending is too high.

21) When Investment Tax Rates are lowered, the government collects more tax revenue.

22) Joe the Plumber knows more about economics than President Obama.

23) Paul Krugman is a pathological liar.

24) When politicians talk about "investments," they're coming for your wallet.

25) Targeted Tax Cuts are a euphemism for welfare.

26) Reprductive Freedom is a euphemism for murder.

27) Medicare Part D is the model for all future entitlement reform.

28) Californians ruined California.

29) Rudy Giuliani personally saved New York City.

30) Motley Crue is the Greatest Band of All Time.

31) Dave Matthews sucks.  If you listen to Dave Matthews, you suck.

32) See undeniable truth #31; ditto Jack Johnson, John Mayer, The Killers, or Fallout Boy.

33) Instant Replay is Good for the NFL; Major League Baseball should incorporate it.

34) Any country that allows fans of the New York Mets to marry already practices Gay Marriage.

35) Liberals want to make America more like Cuba.  Their reason for wanting this will always baffle me.

Texas vs. California - #8

Real Estate Prices:

In Austin, we're down only 4 percent with signs of recovery.  Statewide, we're down even less.

In California, they're down 38 percent.

Which model works better?

The Limbaugh/Obama Bi-Partisan Economic Recovery Package

America's Doctor of Democracy made a bipartisan overture to the President today.  Money graf:

Mine is a genuine compromise.  So let's look at how the vote came out, shall we?  Fifty-three percent of voters in this country -- we'll say, for the sake of this proposal, 53% of Americans -- voted for Obama.  Forty-six percent voted for Senator McCain, and 1% voted for wackos.  Let's give the remaining 1% to President Obama, so let's say that 54% voted for President Obama and 46% voted for Senator McCain.  As a way to bring the country together and at the same time determine the most effective way to deal with recessions, under the Obama-Limbaugh Stimulus Plan of 2009, $540 billion of the one trillion will be spent on infrastructure as defined by President Obama and the Democrats.  The remaining $460 billion, or 46% that voted for Senator McCain, will be directed towards tax cuts, as determined by me.

I LOVE this idea.  The beauty is that it takes President Obama's words and throws them back at him.  Given all his talk of national unity and bi-partisanship, Obama was stupid to insult the EIB Audience.  The EIB audience has fueled populist revolts over Immigration and Drill, Baby, Drill over the past two years.  It's time for another one.

Let's put together a package that puts our views and their views on display side-by-side.  We'll see who wins!

Economic Recovery: A Choice, Not An Echo

Since none of our so-called leaders are going to present an alternative economic recovery package, I'll do it myself.  Items are in no particular order except the order in which they came to me.

1) Slash the Corporate Income Tax Rate to 15% - The United States currently has the Second Highest Corporate Tax Rate in the World.  This puts our companies at a gigantic competitive disadvantage internationally and retards both job growth and the stock market here at home.  Cutting corporate taxes will spur a business led investment boom in the United States.

2) Make Bush Reductions in Capital Gains and Dividends Permanent - While I would love to slash these grossly counterproductive rates further, that's not feasible politically at the moment.  The next best thing would be to send a permanent signal to financial markets.

3) Abolish the Employer Half of the Payroll Tax - As liberals frequently point out, 80% of taxpayers pay more in payroll taxes than income taxes.  They deserve a big tax cut.  This will also act as a major job creation mechanism.

4) Pass Colombia, South Korea, and Panama Free Trade Agreements - This move is more symbolic than substative, however, it is crucially important.  Passing these agreements would signal to our trading partners that the United States will not turn protectionist like we did in the 1930's.

Passing the Colombia agreement would also weaken an increasingly despotic Hugo Chavez.

5) Establish a 15% flat rate on All Income - This will leave Americans with more money to spend, invest, or do whatever the heck they want to do with it.  It will also do away with the deadweight loss from tax code complexity.  Many other Countries have done this successfully.

Should this prove politically unfeasable, we should still strive to do this for everyone except the top income tax bracket.

6) Create A National Market for Medical Insurance - Rising Medical Costs have been a major economic drag for the past decade.  While the reasons for this are worthy of their own blog post, creating a national market for Medical Insurance instead of 50 separate state markets is the easiest way to lower costs.

7) Drill, Baby, Drill - In addition to harming those nice guys in Tehran, Moscow, and Caracas, increased energy production at home will create oodles of jobs.  It might even make the auto bailout a moot point.

8) Immeadiate Expensing for Business Investment - This will also create a boom in business investment.

9) Boost Defense Spending - This is a policy I support for other reasons.  That said, defense spending has a higher Keynesian Multiplier than anything President Elect Obama is proposing.

10) Abolish the Alternative Maximum Tax - This wildly unfair tax should just be abolished.  I don't care about the rationale.

11) Abolish Sarbanes/Oxley - This onerous regulation, passed during the Enron panic, drives capital and businesses overseas without preventing fraud at home.  Repeal of SarBox would ignite a stock market boom!

12) Abolish Mark to Market - This obscure accounting rule forces companies unnecessarily to lower the value of their assets relative to what they could be sold for.  This was a major factor in the credit freeze.

13) Abolish the Death Tax - Any change in tax policy that both antagonizes liberals and hurts Warren Buffet must be a good idea.

Austin: We're officially in Bizarro world; I have proof!

In perusing our scandelously awful local paper, we learn how tin cup urbanism will come to Austin in President Elect Obama's trillion dollar pork program:

It asks for $1.5 million to create 15 jobs to replace light bulbs with more efficient ones across the city.

Let me get this straight: We're going to spend $1.5 million to hire 15 people to CHANGE LIGHTBULBS!!!

$1.5 million/15 = $100,000 per person hired.  Apparently, Austin's Wizards of Smart think this is a good use of taxpayer money.  I've heard of paying people to dig holes and fill them, but this is just silly.

Mugatu Indeed.

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