Thursday, September 19, 2013

The President and the Budget Crises - Shut Down the Government

The U.S. Senate has not done its job during the last eight years the Democrats have controlled the Senate. They have not passed a budget, let a lone on time. Now we have another new fiscal year, starting October 1st, with no budget in sight and the Democrats are blaming the Republicans, although they control the Senate.

The major issue in this year's budget confrontation is Obamacare. Some Republicans are in favor of funding the government at the levels that were agreed to last year in the Budget Control Act and not spending a single penny more of hardworking taxpayer dollars on the Obamacare train wreck.

It appears that one side agrees that Obamacare should be stopped but cannot decide how to stop the train wreck. The administration has admitted that Obamacare is a disaster because they've had to delay major portions of the law, even though it does not have the legal authority to do so. Labor unions that strongly supported Obamacare are now asking to be exempted from it. Congress and its staffers are now exempt from it as are the president's advisers. Even though it is not good enough for them it is good enough for the people.

Congress should be doing anything and everything it can to prevent this law from going into effect. They have exempted themselves but now they need to defund the entire program. Congress should pass a budget that defunds Obamacare even if it cannot pass a bill that repeals the law completely. Once it goes into effect it starts to hurt people and it's going to hurt our economy in ways that are very difficult to undo in the future.

The President is willing to shutdown the government over his health care "reform" bill. He thinks he has the support of the people to do this but even more, he plans to blame the Republicans if the government is shut down. It is not the Republicans, it is the President and his lackeys who will not see reason and defund/repeal Obamacare that will shut the government down.

The president is basically looking for a political win, and I guess his political people have told him that this is a political win: shut down the government and blame the Republicans. The problem is that it is not the Republican position. In fact, if the government shuts down it will be unfortunately because the president and his allies believe that Obamacare is so important to them that they are willing to shut down the government over it.

That is shortsighted, primarily because they are going to fight to the end to defend a disaster, something that even their own allies and labor unions are asking to be let out from.

Here's what I know to be true: The American free-enterprise system is the only economic system in human history where anyone from anywhere can accomplish anything, where people through hard work and sacrifice can achieve a better life. It has eradicated more poverty than all the government programs in the world combined. That's what free enterprise does. 

One of the things that comes to mind in free enterprise is unpredictability about the future, because people are afraid to open up new businesses or expand existing ones or invest in new products and invent new things if they're uncertain about the future. This lack of a federal budget and the certainty about future spending worries people. It's holding growth back.

So I would prefer to have a real budget. Unfortunately, for Democrats budgets are nothing but an opportunity to grow the size and scope of the government.

Sea World in Florida has just announced that 2000 people who work part time are going to have their hours reduced from 32 hours to 28 hours. This is devastating for those families but is the real world impact of Obamacare.

As for Democrats' charge that Republicans have not offered an alternative to Obamacare, Actually I don't think that's a very fair analysis. First of all, over 80 percent of Americans have healthcare coverage and most of them are happy with the coverage that they have. We do have a significant number of Americans that are uninsured for a variety of different reasons and that's what we should be focused on.

But that's not what Obamacare does. Obamacare basically takes everybody, including people that are happy with their existing coverage, and lumps them all in together in this one-size-fits-all approach that's actually hurting people that are happy with their coverage and not doing much to help people that don't have coverage now.

We need to get out the vote, particularly in the Senate, to defund/repeal Obamacare and not allow the president to shut down the government. If Obamacare was defunded huge amounts of money would be freed up to handle other budget issues.

Preident Obama: Don't Pat Yourself on the back about the short-term cuts to the deficit

This week, the CBO bean counters — billed as non-partisan — released a report titled, simply, “The 2013 Long-Term Budget Outlook.” No alarm bells there.
 The report plainly states that the federal government should forget about patting itself on the back over the short-term effects of sequestration — those automatic budget cuts that are hitting discretionary spending across the board, including the military. 

Sure, things will look better for a while, even into the next administration. Then things go very, very wrong. The enormity of the problem means that we will feel its impact far sooner than most think is possible — perhaps just a few years from now. The tide rushing out is a tsunami approaching, just over the horizon. 

 The CBO report predicts that federal spending by 2038 will hit 100 percent of GDP, driven largely by entitlement programs. Unless action is taken very soon, the CBO said, 

“The risk of a fiscal crisis — in which investors demanded very high interest rates to finance the government’s borrowing needs — would increase.”
 Let’s dig into the numbers a bit. The CBO sees the annual deficit falling to 2 percent by fiscal 2015. That’s just one-fifth of the number we hit as the 2009 recession was doing its worst.

Not surprising, really. The economy went into reverse. Tax receipts cratered. Spending rode along with the typical momentum of a government. We were conducting wars on multiple fronts. It’s a lot of money, which we largely borrowed.

Remember, we’re not talking about the debt but the deficit, the amount we overspend every single year. That deficit spending piles up and becomes the debt, which is a much larger number. CBO calls this number at 73 percent of GDP, but the Treasury takes a broader view, putting the real total debt at 101.6 percent.

A big difference I know, but for now let’s accept the idea that however you count things, it’s more money than we can raise with taxes alone and difficult to raise even with cuts and tax increases combined.

That’s now. In just a few years, about the time Obama’s successor — whomever it may be — takes office, things get worse. CBO projects that the number of recipients in the entitlement programs — Social Security, Medicare, Medicaid, and others — will mushroom out of control.

By 2023, the deficit is 3.5 percent of GDP, a red line for economists, the point of no return on sustainable spending for a healthy economy. Fifteen years, later we’re at 6.5 percent. CBO estimates that Congress needs to cut spending or raise taxes by $4 trillion now to make things go “back to normal.” That’s about a quarter of our entire economy, erased. Unlikely.

“But this is all years from now,” you might argue. Perhaps, but as the CBO points out, the effects of overspending will be felt much, much earlier. It will be a drag on the economy that will hurt tax receipts sooner than anyone expects. 

Thus my estimate of 10 years till the showdown comes — not the 25 years at which the CBO hints — is likely to be less than five years.

Even the CBO doesn’t believe we have much time left to act. From the report: “Unless substantial changes are made to the major health care programs and Social Security, those programs will absorb a much larger share of the economy’s total output in the future than they have in the past.”

When Europe went up in flames over the past few years, the weaker countries turned to their relatively rich partners for help. The big political problem was justifying robbing German savings account holders to finance Greek public-employee retirements.

A problem for sure. But when the United States hits that wall, to whom will we turn to for help? China? Japan? Europe?

No, we have only the Federal Reserve, and they have only a printing press. Yesterday, Fed Chief Ben Bernanke suddenly backed off the whole “tapering” argument, sending stocks higher. Wall Street loves free money. But it’s not free.

There will come a point when the market will fear money printing, not cheer it. The medicine will turn to poison and very quickly we’re on the road to high inflation. We won’t balance the budget because of a “grand bargain” or some other political compromise. We’ll be forced into it by panic and public outcry. 

Thursday, September 12, 2013

A Black Reporter Summarizes Barack

The below summation of Barack and Michelle Obama’s 5 year reign in the White House is by far the best I've ever read as it squarely hits the nail on the head. And it took a black reporter writing it to make it as effective as it is. A white man’s account would be instantly criticized by the liberal media as pure racism. But, how can anyone scream Racist when an exacting description of the Obama's is penned by a well known journalist of color?


Mychal Massie is a respected writer and talk show host in Los Angeles.

The other evening on my twitter, a person asked me why I didn't like the Obama's? Specifically I was asked: "I have to ask, why do you hate the Obama's? It seems personal, not policy related. You even dissed (disrespect) their Christmas family picture."

The truth is I do not like the Obamas, what they represent, their ideology, and I certainly do not like his policies and legislation. I've made no secret of my contempt for the Obamas. As I responded to the person who asked me the aforementioned question, I don't like them because they are committed to the fundamental change of my/our country into what can only be regarded as a Communist state.

I don't hate them per definition, but I condemn them because they are the worst kind of racialists, they are elitist Leninists with contempt for traditional America. They display disrespect for the sanctity of the office he holds, and for those who are willing to admit same, Michelle Obama's raw contempt for white America is transpicuous. I don't like them because they comport themselves as emperor and empress.

I expect, no I demand respect, for the Office of President and a love of our country and her citizenry from the leader entrusted with the governance of same. President and Mrs. Reagan displayed an unparalleled love for the country and her people.

The Reagan's made Americans feel good about themselves and about what we could accomplish. Obama's arrogance by appointing 32 leftist czars and constantly bypassing congress is impeachable. Eric Holder is probably the MOST incompetent and arrogant DOJ head to ever hold the job. Could you envision President Reagan instructing his Justice Department to act like jack-booted thugs?

Presidents are politicians and all politicians are known and pretty much expected to manipulate the truth, if not outright lie, but even using that low standard, the Obama's have taken lies, dishonesty, deceit, mendacity, subterfuge and obfuscation to new depths. They are verbally abusive to the citizenry, and they display an animus for civility.

I do not like them, because they both display bigotry overtly, as in the case of Harvard Professor Louis Gates, when he accused the Cambridge Police of acting stupidly, and her code speak pursuant to not being able to be proud of America. I view that statement and that mindset as an insult to those who died to provide a country where a Kenyan, his illegal alien relatives, and his alleged progeny, could come and not only live freely, but rise to the highest, most powerful, position in the world.

Michelle Obama is free to hate and disparage whites because Americans of every description paid with their blood to ensure her right to do same. I have a saying, that "the only reason a person hides things, is because they have something to hide." No president in history has spent millions of dollars to keep his records and his past sealed.

And what the two of them have shared has been proved to be lies. He lied about when and how they met, he lied about his mother's death and problems with insurance, Michelle lied to a crowd pursuant to nearly $500,000 bank stocks they inherited from his family. He has lied about his father's military service, about the civil rights movement, ad nausea. He lied to the world about the Supreme Court in a State of the Union address. He berated and publicly insulted a sitting Congressman. He has surrounded himself with the most rabidly, radical, socialist academicians today.

He opposed rulings that protected women and children that even Planned Parenthood did not seek to support. He is openly hostile to business and aggressively hostile to Israel. His wife treats being the First Lady as her personal American Express Black Card (arguably the most prestigious credit card in the world). I condemn them because, as people are suffering, losing their homes, their jobs, their retirements, he and his family are arrogantly showing off their life of entitlement - as he goes about creating and fomenting class warfare.

I don't like them, and I neither apologize nor retreat from my public condemnation of them and of his policies. We should condemn them for the disrespect they show our people, for his willful and unconstitutional actions pursuant to obeying the Constitutional parameters he is bound by, and his willful disregard for Congressional authority.

Dislike for them has nothing to do with the color of their skin; it has everything to do with their behavior, attitudes, and policies. And I have open scorn for their constantly playing the race card.
I could go on, but let me conclude with this. I condemn in the strongest possible terms the media for refusing to investigate them, as they did President Bush and President Clinton, and for refusing to label them for what they truly are. There is no scenario known to man, whereby a white president and his wife could ignore laws, flaunt their position, and lord over the people, as these two are permitted out of fear for their color.

As I wrote in a syndicated column titled, "Nero In The White House" - "Never in my life, inside or outside of politics, have I witnessed such dishonesty in a political leader. He is the most mendacious political figure I have ever witnessed. Even by the low standards of his presidential predecessors, his narcissistic, contumacious arrogance is unequaled. Using Obama as the bar, Nero would have to be elevated to sainthood...

Many in America wanted to be proud when the first person of color was elected president, but instead, they have been witness to a congenital liar, a woman who has been ashamed of America her entire life, failed policies, intimidation, and a commonality hitherto not witnessed in political leaders. He and his wife view their life at our expense as an entitlement - while America's people go homeless, hungry and unemployed."

Friday, September 6, 2013

Tax Free Retirement

How is YOUR 

Tax Free Retirement Plan 


Don't know what I am talking about. See IRC §7702(a) and then leave a comment or e-mail me so I can get back in touch with you.

Steven Potts