And So I Go: Yesterday, Today and Tomorrow

Posts Tagged ‘Stimulus 2009

A Historic Flood of Red Ink | The Weekly Standard.

Obama has cause a historic flood of red ink and his latest budget will put our nation $7 TRILLION  further in debt (he is trying to tell us it will “save” $3 trillion!).  Yet this “Thing” rather than sticking to his own business is sticking his nose and his political organization Organizing for America in the middle of  a battle to save the state of Wisconsin.   There are simply no words for Obama  anymore, simply none that I and my dictionary find adequate at any rate.

 

The following article from the Weekly Standard is an eye opener.  I have only copied over a portion of the article so to read the entire article do click the reference above.  BB

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Let’s try to put that into historical perspective (the source for all of these figures is the White House Office of Management and Budget’s historical tables):

* In actual dollars, President Obama’s $4.4 trillion in deficit spending in just three years is 37 percent higher than the previous record of $3.2 trillion (held by President George W. Bush) in deficit spending for an entire presidency. It’s no small feat to demolish an 8-year record in just 3 years.  (And yet the MSM aren’t saying a word about this.  In fact they are out there praising their presidents efforts at “budget reform”. BB

* In inflation-adjusted dollars, President Obama’s $3.8 trillion (in constant fiscal-year 2005 dollars) in deficit spending in just three years is nearly double our $2 trillion (in constant fiscal-year 2005 dollars) in deficit spending in the five fiscal years during which we were fighting World War II (FY 1942-46). It’s no small feat to nearly double the United States’ inflation-adjusted deficits during the largest conflict in human history, and to do so in less time than it took American GIs to fight that two-front war.

* As a percentage of the gross domestic product (GDP), President Obama’s average annual deficit spending is 9.7 percent of GDP. That’s higher than during any single year of the Great Depression, the Cold War, the Korean War, or Vietnam. In fact, the only deficits in more than 200 years of American history that have exceeded even 6 percent of GDP have all involved either the Civil War, World War I, World War II, or President Obama.

* In average annual deficit spending as a percentage of GDP, the nearby chart shows how President Obama stacks up against other presidents who have served during the past four decades.

* The Obama deficit legacy, moreover, will be felt well beyond his tenure in office, especially if that tenure extends beyond a single term. First, Obama’s spending through 2012 essentially doesn’t include Obama-care. The CBO projects that Obama-care will increase spending by more than $2 trillion in the overhaul’s real first decade (2014 to 2023). That’s more than $2 trillion that could -otherwise be used to pay down the debt, rather than allowing the debt to rise continually and then piling a massive new entitlement program on top of it.

Second, President Obama’s gargantuan deficit spending will hamstring future efforts to make ends meet. Under Obama’s own projections, interest payments on the debt are on course to triple from 2010 (his first budgetary year) to 2018, climbing from $196 billion to $685 billion annually. Under his projections for 2018, interest payments on the debt will exceed all defense spending, including wartime spending. Think about that: In the first budgetary year after the next presidential term, our creditors are projected to get more money than our military.

At the end of 2008, just before President Obama took office, the national debt was $9.986 trillion and 69 percent of GDP. Under his projections, eight years later it will be $20.825 trillion and 104 percent of GDP. That’s right: Our debt will soon exceed our national economic output for an entire year. And that’s even if you believe the president’s rosy projections of 4 percent real GDP growth over the next four years, considerably higher than the 2.7 percent achieved over the past quarter-century and the 3.2 percent over the past half-century.

To correct our course, we need to advance real entitlement reform and repeal the looming entitlement that could be the boulder that breaks the camel’s back: Obamacare. House Republicans need to produce a serious budget that offers real entitlement reform, as they appear poised to do. (I very much disagree with this authors opinion because the Old Dog Republicans are pansy butts too!  BB) Actually enacting entitlement reform, however, will require presidential leadership. The most effective champions of bold fiscal prudence on Capitol Hill and in the statehouses, respectively, have been Representative Paul Ryan and Governor Chris Christie. In the wake of President Obama’s wildly unprecedented deficit spending, such leadership is now needed at the presidential level.

Jeffrey H. Anderson was the senior speechwriter for Secretary Mike Leavitt at the U.S. Department of Health and Human Services.

Nearly half of US households escape fed income tax – Yahoo! Finance.

I get so angry when I hear people saying, “Tax the rich!”  I get even more angry when the Democrats  use this as a tool to try to  divide the country  in Haves and Have-nots.   The so-called “rich” are already being taxed to support the other half of the people in the United States who pay no taxes at all!  The very rich billionaires   pay 35% of the taxes in the United States although they represent less than 1% of the population. The Democrats have pushed this lie that the rich are oppressing the poor so long that the truth has been lost. It is a case of say it often enough and it becomes the truth regardless.  Now the Democrats have spent so much that even they have become aware of the dire straits this country is in. Suddenly after spending like money grew on trees  and the need for money  to keep spending since the world has put the brakes on their borrowing  the Democrats  want to cut the tax cuts given under President Bush.  Cutting taxes and putting more money in the hands of the people has proven again and again to be the most effective way for the government to GET MORE MONEY THRU TAXING INCOME.  When the people have more money to spend and invest in business there are more people working and therefore more income to tax.  It is so easy to understand but apparently the Democrats and Progressives have a mental block here.

Another fact: it wasn’t until the Democrats came into power in 2006 that our nation began the long dip into the depression we are in now.  It was the  wheeling and dealing that Democrat Barney Frank Chairman of the House Finance Committee and Democrat Sen. Chris Dodd Chairman of the Senate Banking  Committee  stuck their grasping fingers into the  mortgage market demanding banks lend money to people who could not afford to buy a house and then covered these dirty deals up by insisting all was well when President Bush was calling for investigations into Freddie Mac and Fanny Mae that the crisis finally came to a head and the finance industry  came crashing down.

President Bush was in the White House and got suckered into this mess of Bail Outs but it was the Democrats in Congress who voted for them.  Many Republicants and a good many citizens were against the Bail Outs!

So when the crisis that had been allowed to occur  when the Democrats controlled Congress what did the Democrats do?  They did what the Democrats always do: they threw a lot of money at the banks and  even more into the federal government.  Yes all this money was first given to federal agencies to  then give to the banks.  Of course the agencies had to be funded for this service so they took their cut off the top.  They then hired more people so that the agencies in the government could keep growing and growing and spending and spending.   Bigger and Bigger government.  The government agencies got the lions share of the TARP money and the Stimulus money!  Money the nation did not have and had to borrow!

Now the Democrats can only think of taxing the “rich”.  They consider the ‘rich” any couple who makes over $250,000 a year.  People please understand these are  the small business people who employ most of the working people in this country.  By letting the Bush Tax cuts expire the taxes on these people will go back up to the 40%.   This at a time when   money is needed by the people who do the hiring and creating jobs for the rest of us!  Of course they are now referring to just allowing the Bush Tax Cuts to continue as the Obama Tax Cuts.

Anyhow, this article tells exactly who pays taxes in this country and believe me it is not me because I am part of the 47% of people who pay no  INCOME taxes.  In fact, being retired on Social Security I was one who  received   a check from the government on two occasions to boost my income from tax payers who had paid taxes.  It is one thing to get some of your own taxes back but it is an  entirely different thing to get money from the government that comes from other tax payers because you personally do not pay taxes.  I and a good many of you ( 47% of us in fact)  PAY NO INCOME TAXES.  What we do pay is the Social Security and Medicare/Medicaid taxes.  BB

Stephen Ohlemacher, Associated Press Writer, On Wednesday April 7, 2010, 5:38 pm EDT

WASHINGTON (AP) — Tax Day is a dreaded deadline for millions, but for nearly half of U.S. households it’s simply somebody else’s problem.

About 47 percent will pay no federal income taxes at all for 2009. Either their incomes were too low, or they qualified for enough credits, deductions and exemptions to eliminate their liability. That’s according to projections by the Tax Policy Center, a Washington research organization.

Most people still are required to file returns by the April 15 deadline. The penalty for skipping it is limited to the amount of taxes owed, but it’s still almost always better to file: That’s the only way to get a refund of all the income taxes withheld by employers.

In recent years, credits for low- and middle-income families have grown so much that a family of four making as much as $50,000 will owe no federal income tax for 2009, as long as there are two children younger than 17, according to a separate analysis by the consulting firm Deloitte Tax.

Tax cuts enacted in the past decade have been generous to wealthy taxpayers, too, making them a target for President Barack Obama and Democrats in Congress. Less noticed were tax cuts for low- and middle-income families, which were expanded when Obama signed the massive economic recovery package last year.

The result is a tax system that exempts almost half the country from paying for programs that benefit everyone, including national defense, public safety, infrastructure and education. It is a system in which the top 10 percent of earners — households making an average of $366,400 in 2006 — paid about 73 percent of the income taxes collected by the federal government.

The bottom 40 percent, on average, make a profit from the federal income tax, meaning they get more money in tax credits than they would otherwise owe in taxes. For those people, the government sends them a payment.

“We have 50 percent of people who are getting something for nothing,” said Curtis Dubay, senior tax policy analyst at the Heritage Foundation.

The vast majority of people who escape federal income taxes still pay other taxes, including federal payroll taxes that fund Social Security and Medicare, and excise taxes on gasoline, aviation, alcohol and cigarettes. Many also pay state or local taxes on sales, income and property.

That helps explain the country’s aversion to taxes, said Clint Stretch, a tax policy expert Deloitte Tax. He said many people simply look at the difference between their gross pay and their take-home pay and blame the government for the disparity.

“It’s not uncommon for people to think that their Social Security taxes, their 401(k) contributions, their share of employer health premiums, all of that stuff in their mind gets lumped into income taxes,” Stretch said.

The federal income tax is the government’s largest source of revenue, raising more than $900 billion — or a little less than half of all government receipts — in the budget year that ended last Sept. 30. But with deductions and credits, especially for families with children, there have long been people who don’t pay it, mainly lower-income families.

The number of households that don’t pay federal income taxes increased substantially in 2008, when the poor economy reduced incomes and Congress cut taxes in an attempt to help recovery.

In 2007, about 38 percent of households paid no federal income tax, a figure that jumped to 49 percent in 2008, according to estimates by the Tax Policy Center.

In 2008, President George W. Bush signed a law providing most families with rebate checks of $300 to $1,200. Last year, Obama signed the economic recovery law that expanded some tax credits and created others. Most targeted low- and middle-income families.

Obama’s Making Work Pay credit provides as much as $800 to couples and $400 to individuals. The expanded child tax credit provides $1,000 for each child under 17. The Earned Income Tax Credit provides up to $5,657 to low-income families with at least three children.

There are also tax credits for college expenses, buying a new home and upgrading an existing home with energy-efficient doors, windows, furnaces and other appliances. Many of the credits are refundable, meaning if the credits exceed the amount of income taxes owed, the taxpayer gets a payment from the government for the difference.

“All these things are ways the government says, if you do this, we’ll reduce your tax bill by some amount,” said Roberton Williams, a senior fellow at the Tax Policy Center.

The government could provide the same benefits through spending programs, with the same effect on the federal budget, Williams said. But it sounds better for politicians to say they cut taxes rather than they started a new spending program, he added.

Obama has pushed tax cuts for low- and middle-income families and tax increases for the wealthy, arguing that wealthier taxpayers fared well in the past decade, so it’s time to pay up. The nation’s wealthiest taxpayers did get big tax breaks under Bush, with the top marginal tax rate reduced from 39.6 percent to 35 percent, and the second-highest rate reduced from 36 percent to 33 percent.

But income tax rates were lowered at every income level. The changes made it relatively easy for families of four making $50,000 to eliminate their income tax liability.

Here’s how they did it, according to Deloitte Tax:

The family was entitled to a standard deduction of $11,400 and four personal exemptions of $3,650 apiece, leaving a taxable income of $24,000. The federal income tax on $24,000 is $2,769.

With two children younger than 17, the family qualified for two $1,000 child tax credits. Its Making Work Pay credit was $800 because the parents were married filing jointly.

The $2,800 in credits exceeds the $2,769 in taxes, so the family makes a $31 profit from the federal income tax. That ought to take the sting out of April 15.

Internal Revenue Service: http://www.irs.gov

Tax Policy Center: http://www.taxpolicycenter.org

 

Star Parker is one o my favorite columnist because shespeaksd from experience.  She was born and raise in the ghetto and rose above it with hard work and talent.  Her book,  “Back on Uncle Sam’s Plantation”  should be read by anyone who believes in government handouts.  BB

Star Parker

In Washington, It’s the Money that Talks

by Star Parker

Washington’s latest bailout of bleeding state governments, $26 billion worth, has gotten attention because, among other things, almost half the bailout is financed by cutting $12 billion from food stamps.

But isn’t food stamps a signature program for the liberal Democrats who passed this spending bill? Isn’t government money for the poor what Democrats are supposed to be about?

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How, in these tough times, do Democrats who control congress decide who’ll get funded and who not?

This is the latest example, particularly illustrative, showing that Washington is less and less about ideas and values, and more and more about interests, power, and money.

In this case, we’re talking about unions. Of the $26 billion the bill appropriates, $16 billion goes to state Medicaid programs and the other $10 billion to unionized state and local government employees.

Of the top twenty PACs in the country, eleven are union PACs. Number eight on the list is the American Federation of State, County, and Municipal Workers ($1.8 million dollars in campaign contributions in the current election cycle). Number seventeen on the list is the American Federation of Teachers ($1.5 million in contributions).

Needless to say, around 100% of these union political contributions go to Democrats.

Union membership today is mostly a government phenomenon.

Whereas 7% of private sector employees are unionized, 35% of government employees are.

So with each incremental growth in government, unionized workers gain disproportionate power and influence over all our lives. Unions understand that big government is their bread and butter, so unions, that represent 15% of all American workers, account for more than 50% of the nation’s largest Political Action Committees.

The problem should be clear. Regardless of the narrative you want to use to explain how we got into the current difficult economic times, there is only one way out. That’s flexibility, creativity, and innovation.

But in areas that are unionized – mostly government – we hit the wall. Union contracts prohibit wage adjustments or any kind of market flexibility.

Over the last ten years, wages have risen for state and local government workers by 19% compared to 9% in the private sector.

Nobel laureate economist Gary Becker writes: “During this recession, wages did fall for many workers, but mainly among non-union workers….For example, the state of Illinois has the largest fiscal deficit as a percent of its budget of any state… It required many of its high level non-union employees to take 24 unpaid leave days, or about a 9% cut in their salaries, since the state government cannot touch the wages of their many unionized employees.”

Regarding pleas about saving teachers’ jobs, it’s not about this at all. It’s about teachers’ unions refusing to make concessions and hard adjustments like all Americans are making.

Steve Moore of the Wall Street Journal recently wrote about the refusal of the teachers’ union in Milwaukee to negotiate with the local school board and make any concession in which teachers would have to contribute something to their health plan. Their plan, according to Moore, costs taxpayers $26, 844 per family, compared to $14,500 which typifies private employer plans.

The union held out, letting some teachers get laid off, waiting for bailout from Washington.

Priorities in Washington have always been influenced by who’s got the money as opposed to who’s got the ideas. Today mores than ever.

And for the poor?

The main way to end the poverty cycle is to get poor children educated. And it’s the teachers’ unions that fight school choice.

A major driver of poor youth unemployment is the minimum wage, aggressively supported by unions.

But unions have campaign funds. So they will step ahead of the poor in line when Washington sets priorities. This will be true whether it’s a question of funding existing programs for the poor, like food stamps, or pushing forward innovative market based ideas to combat poverty.

The People Versus the Government.

This is a good article by Alan  Caruba stating some hard factsx and things going on in the Democratic Party and the states that are in disagreement with Obama.  But the most significant thing he wrote was:

Obama is Marxist ideologue

All this comes back to the fact that Obama is Marxist ideologue. He is also a liar, a trait no one likes, and a narcissist who gives continued evidence of regarding the presidency as a daily opportunity for self-indulgence and bottomless ego satisfaction.

A recent Investor’s Business Daily editorial said, “As Americans suffer economically, President Obama golfs, vacations, campaigns, appears on a frivolous talk show—and vacations some more. Gee, don’t we have a war and other problems to attend to?”

Obama may not be easily removed, but he can be politically neutralized if Republicans can gain control of Congress in November. There are barely 900 days left in his first and hopefully last term; still time for him and his cadre of czars to do more damage.

Another really great article: Deceit and Denial upon Our Ramparts

Pundits and talking heads keep saying that Obama and his administration just don’t get it, can’t learn from their mistakes, aren’t listening or don’t understand the average American citizen. Nothing could be further from the truth. Obama is listening, he does understand us and he gets it. He just hates what we stand for. It’s the Republicans that aren’t listening, don’t get it and don’t understand that we get it, we understand and we will do something about it. We are tired of being collateral damage to a deceitful, disdaining administration run by ideologues with no practical experience at any level and by politicians who lie, cheat and steal from every living human on this planet by virtue of their supposed elitist entitlement as members of a “ruling class”.

Obama is not incompetent either. He knows precisely what he is doing. His ancient agenda is deliberate and premeditated, full of disdain for everything America stands for, full of contempt for “rich people”, “poor people”, free enterprise, white people, black people, brown people, white women in particular, Jews, Christians, Catholics, Mormons, freedom, American tradition and American law. Want proof, just read his books.  He is clever, deceitful and damaged goods with no shame and no conscience. To a nation of ordained free patriots, Obama’s appearance of total incompetency is simply the measure of his intent and his refusal to accept the reality that socialism is not an acceptable form of government to Americans and a historically failed, incompetent system. Each day, while Europe scrambles to free and save itself from another miserably failed socialist experiment, Obama drives another nail into the coffin of our Republic.


Tipping Points – Michael G. Franc – National Review Online.

This is a good article that spells out in plain language just where we are fiscally and how we got  to this point.  There are also some pointers as to what to do and if we are not to sink but don’t expect Congress to take these actions because they are on a frenzied roll to spend, spend, spend.  BB

June 9, 2010 4:00 A.M.

Tipping Points
We need swift, wise fiscal action to fend off financial disaster.

More and more Americans now share the unpleasant feeling that our nation (indeed, the entire Western world) has edged up to some sort of fiscal precipice. Moreover, the concern is not sparked by a specific policy or confined to a particular demographic or interest group.

A clear majority of Americans now expect our military might to fade over the next two decades, polls show. By a three-to-one margin, they believe their children will inherit a country on a downward trajectory. Nearly half say it is no longer possible for a person to work hard and become rich. As President Obama said at Carnegie Mellon University this week, there is a growing “sense that the American dream might slowly be slipping away.”

Unsurprisingly, trust in government has cratered. “Just 22% say they can trust the government in Washington almost always or most of the time,” the Pew Research Center recently found. It’s among the lowest ratings in half a century. Congress now suffers the lowest favorable rating (25 percent) in a quarter century of Pew surveys. Call it the New American Malaise.

For starters, soon foreigners will own a majority of our debt — and we are getting deeper into hock to them every day. Last year marked the single largest expansion in government debt ever. Federal debt alone accelerated past the $13 trillion mark last week.

President Obama’s budget forecast reflects a cock-eyed optimism about our fiscal future, yet even it projects total U.S. debt will rise from 2009’s 53 percent of GDP to 90 percent by 2019. “Most economists,” Sen. Judd Gregg (R., N.H.) notes, “will tell you that an economy can handle between 30 and 40 percent debt as a percentage of GDP. But a nation’s economy starts to get into trouble when that ratio gets up around 60 percent of GDP. When it gets up to 80 percent of GDP, basically an economy can’t handle that for very long.”

The day of reckoning may already be here, according to a new study by the International Monetary Fund. It pegs our “general government gross debt” for 2010 at 92.6 percent of GDP. By 2014, the IMF estimates, government debt will pass the 100 percent–of–GDP tipping point (hitting 106.4 percent to be exact) and keep on going. To forestall a Greece-like fiscal catastrophe, the IMF says, lawmakers must act now to reduce government debt by more than $1.6 trillion. Instead, Congress is looking to pass an “extenders” bill that will run up hundreds of billions more in debt.

And the economic consequences are severe. Each 10 percent–of–GDP increase in debt, the IMF has found, slows economic growth by 0.25 percentage points per year.

Another just-reached tipping point makes it harder for Congress to paper over its excess spending. Social Security is now operating in the red, six years earlier than expected. Until recently, Social Security payroll taxes were Uncle Sam’s cash cow, subsidizing other federal programs to the tune of $100 billion–plus annually. Now, all those revenues — and then some — are needed just to cover each month’s Social Security payments.

For now, it’s debt and more debt, as far as the eye can see. And debt is expensive. How expensive? Interest on the national debt will triple over the next six years, to approximately $600 billion per year. By 2017, interest payments on the debt will exceed federal spending on education, energy, transportation, housing, and environmental protection combined.

But the real malaise makers are tipping points that suggest bigger government and higher taxes may be irresistible:

Last year, 47 percent of all American households paid no income taxes. (It was only 32.6 percent in 2007.) Soon a majority of Americans may see government spending as a free lunch — a fount of more and more benefits that costs them nothing.

The government’s role in our health sector is growing so fast that before long, government programs will account for a majority of all heath-care spending. By 2012, nearly three of every four American children could be eligible for government-run health care. Can we really “bend the health-care cost curve” down when so much health care is “free”?

USA Today recently identified “a major shift in the source of personal income from private wages to government programs.” As a share of personal income, paychecks from private business are now at an all-time low, while government-provided benefits have never been so high.

Unions now represent more government employees than private-sector workers. It’s no accident that public-sector unions have injected themselves forcefully into virtually every recent state and federal battle over taxes and spending. Their interests are higher taxes and bigger government.

It really adds up. Preliminary research for the Heritage Foundation’s next Index of Dependence on Government indicates that dependency increased more in 2009 than at any time since the Jimmy Carter era. The largest spike in dependency came in the areas of health and welfare.

As dependency soared, economic freedom waned. Last year, the United States fell from the ranks of “economically free” nations, according to Heritage’s Index of Economic Freedom. Today we are the Land of the “Mostly” Free. The prime reason for our historically poor showing: our internationally high levels of debt, spending, and taxation.

We are on the way to following all other empires  into decline and failure.  Our “American Empire”  sometimes called the “Western Empire” when Europe is included  is failing for the very same reasons all the others failed: “cataclysmic financial meltdown”.  Too much spending and dependency on government to the point where spending out paces income.   Sad.  BB

Morning Bell: This Congress Has No Shame | The Foundry: Conservative Policy News.

The people we have elected to lead this country have grown rich on our apathy.  We have elected the same people again and again and ignored their  crimes against our laws.  We have ignored them to our detriment.  Now after all the spending and the understanding by everyone in the United States that we are broke and going bankrupt the Congress continues to spend.

The following article is a reminder of what congress has done and what they are continuing to do.  A Financial Reform Bill was passed by the Senate in the dead of night ( remember the thief would come in the night? Both Obamacare and the Financial Reform bill were passed at night.  Ironic?  ) Now they are considering a Defense spending bill that is over 1/2 other frivolous perks  to their unionized supporters and  earmarks to take home.  In some cases the ear marks are to build monuments to themselves on the order of Murtha’s Airport.  This is especially the case for those congressmen who know they probably will not be reelected and they are frantic to mark their place in history.

They have no regard for the needs or wants of the public and they indeed have no shame. BB

Morning Bell: This Congress Has No Shame

Posted May 27th, 2010 at 9:38am in Ongoing Priorities

On February 4, 2010, pushing for passage of her pay-as-you-go (PAYGO) legislation, House Speaker Nancy Pelosi (D-CA) said on the House floor: “When I became Speaker of the House, the very first day we passed legislation that made PAYGO the rule of the House. Today we will make it the law of the land. … So the time is long overdue for this to be taken for granted. The federal government will pay as it goes.” That was the promise. But here is the reality: in the three years that Speaker Pelosi has enforced her PAYGO rule, the House has violated it by nearly $1 trillion.

And now with the U.S. Debt Clock officially passing the $13 trillion milestone Wednesday, the House is set to violate their own PAYGO law yet again, this time to the tune of around $150 billion. The legislation clocks-in at almost one-fifth the size of President Barack Obama’s original $862 billion failed economic stimulus, and the leftist majority in Congress has titled it “The American Jobs and Closing Tax Loopholes Act.” And it is a tax-hiking, spending-exploding, job-killing, deficit-hiking wonder.

The Tax Hikes: The entire purpose of this bill was originally to extend some popular and well-established tax cuts that have been around for years but have to be reapproved every year. But being the big government lovers that they are, the left has crafted a bill that actually increases tax revenues by $57 billion over ten years. The biggest items are a job-killing tax on American corporations that compete overseas, a job-killing tax on innovation-creating venture capital partnerships, and a four-fold increase in the tax on oil production that ostensibly is supposed to go to the Oil Spill Liability Trust Fund, but is instead being siphoned off to help pay for completely unrelated new domestic spending.

The Spending: The bill originally clocked-in at almost $200 billion, and Democrats have since cut the spending to just under $150 billion, $95 billion of which will go straight onto our children’s credit card bill in flagrant violation of Congress’ own PAYGO rules. Goodies include $26 billion for infrastructure, more than $40 billion for yet another unemployment insurance extension, another $24 billion bailout of state Medicaid programs, $8 billion in needlessly expensive health insurance subsidies, and $2.5 billion for states to increase their welfare rolls.  Even some Democrats are beginning to question the endless UI extensions, with Rep. Kathy Dahlkemper (D-PA) telling The Washington Post that businesses back home complain that they want to start hiring but are getting few applicants because Congress has repeatedly extended unemployment benefits.  (why should people work when they are ENTITLED to what comes to almost two years of unemployment benefits?  BB)

And then there is what was originally the largest-ticket item in the bill: $65 billion over three and a half years for increasing physician Medicare reimbursements, aka the “doc fix.” This one item alone proves that all of President Barack Obama’s claims that his health care law reduces the deficit are 100% false. The CBO report this month estimated that $276 billion would be required to shore up the “doc fix” over the next decade. Adding that spending to Obamacare’s already $940 billion total would easily push it into the red. That is why Congress did not address the problem in Obamacare. Brandeis University professor Stuart Altman calls the “doc fix” charade “one of the worst pieces of legislation I’ve ever seen.” The House has cut this version of the “doc fix” down to $21.8 billion just through December 2011.

Across the country, millions of American families are struggling to make family budgets and keep to them. Not Congress. For the first time in the history of the budget process, the House of Representatives has failed to plan how they will spend your tax dollars. ( The House is not going to submit a budget for the first time in history because they don’t want to admit to you just how much they have spent and plan to spend.  BB) Instead they will recklessly continue to flagrantly violate their own PAYGO rules as they add billions and billions worth of debt onto your children. This Congress has no shame.

See also:

Morning Bell: Slouching Towards Irrelevance | The Foundry: Conservative Policy News.

This article has much great information  and analysis in it as to where America is heading under Obama and the elitists traitors against the United States.  The presidents speech at West Point this weekend was a warning of what is to come if one would but listen.  The cadets did listen and the military is listening according to some reports I have gotten.  Will America be saved from this?  BB

Slouching Towards Irrelevance

Earlier this month while in Brussels, Vice President Joe Biden told the European Parliament that while “some American politicians and American journalists refer to Washington, DC as the ‘capital of the free world’ … it seems to me that this great city, which boasts 1,000 years of history and which serves as the capital of Belgium, the home of the European Union, and the headquarters for NATO, this city has its own legitimate claim to that title.” How revealing.

The European Union is a profoundly anti-democratic institution, created and forced on member states by internationalist leftist elites despite widespread public disapproval. It should be no surprise that the same administration that can’t bring itself to enforce our laws and protect our borders would give such strong support to an institution that has so undermined national sovereignty in Europe. And given that the EU’s unelected and unaccountable bureaucracy employs more people than the entire British Army it is no wonder that NATO member nations have been unwilling/unable to pull their weight in the Long War.

One might hope that the Obama administration would look at the path Europe has gone down (a bloated welfare state that saps economic growth and bleeds military spending) and decide to change course. But President Barack Obama’s speech at West Point on Sunday quashed any such hopes. Speaking to graduating Cadets, President Obama laid out the increasingly identifiable pillars of the Obama Doctrine: greater reliance on international institutions; substituting soft power for hard power; and a more subdued and less self-reliant America – a scheme designed more to manage American decline than to ensure its people remain safe, free and prosperous.

Last Friday Charles Krauthammer gave us a whirlwind tour of what the Obama Doctrinehas looked like in action: failed engagement with Iran, surrender to Russia on missile defense, appeasement of Syria, support for pro-Chavez leftists in Honduras, and a gratuitous slap at Britain over the Falkland Islands. And what has it secured? A completely fake deal between Turkey, Brazil and Iran that will do nothing to slow Iran’s nuclear weapons program but has already made new meaningful sanctions next to impossible.

Instead of cutting domestic spending and reining in entitlements, President Obama passed a $862 billion failed stimulus and created a brand new health care entitlement all while laying the ground work for future cuts to our nation’s defenses. As Krauthammer wrote Friday: “This is retreat by design and, indeed, on principle.”

Perhaps, the worst thing about the speech was that the President made it in front of the men and women who will have to live with the immediate consequences of his actions. The Obama Doctrine will put them in harm’s way without the modern equipment they will need; with allies who will increasingly doubt our resolve; and at the mercy of an international order that will value their lives for less than the power which the White House wants to put in their hands.

The Gathering Revolt against Government Spending – Michael Barone – National Review Online

We the People are angry and the anger is about spending rather than the usual target which has been taxes.   But by attacking taxes you are putting the cart before the horse  as you get taxes after or because of the spending.   When the Tea Party Patriots started their campaign you will recall taxes was the target and now that has changed.  The people have voted their outrage against spending.  You might recall the sweetheart deal the Nebraska Senator made for his state before he would sign on to Obamacare in the Senate.  The Governor of Nebraska and the people of Nebraska threw that sweetheart deal back in his face and took him out behind the woodshed.  Now the recent election have also seen a couple  tax payers money grabbers  rejected by the very people they have been grabbing the money for.  This is so confusing to politicians and so has Washington in a dither, and I hope the people continue to speak with their votes in November!

May 24, 2010 12:00 A.M.

The Gathering Revolt against Government Spending

In the past, rebellions against fiscal policy have concentrated on taxes rather than spending. This time is different.

This month, three members of Congress have been beaten in their bids for reelection — a Republican senator from Utah, a Democratic congressman from West Virginia, and a Republican-turned-Democratic senator from Pennsylvania. Their records and their curricula vitae are different. But they all have one thing in common: They are members of an appropriations committee.

Like most appropriators, they have based much of their careers on bringing money to their states and districts. There is an old saying on Capitol Hill that there are three parties — Democrats, Republicans, and appropriators. One reason that it has been hard to hold down government spending is that appropriators of both parties have an institutional and political interest in spending.

Their defeats are an indication that spending is not popular this year. So is the decision, shocking to many Democrats, of House Appropriations Committee chairman David Obey to retire after a career of 41 years. Obey maintains that the vigorous campaign of a young Republican in his district didn’t prompt his decision. But his retirement is evidence that, suddenly this year, pork is not kosher.

It has long been a maxim of political scientists that American voters are ideologically conservative and operationally liberal. That is another way of saying that they tend to oppose government spending in the abstract but tend to favor spending on particular programs. It’s another explanation of why the culture of appropriators continued to thrive after the Republican takeover of Congress in 1994 and during the eight years of George W. Bush’s presidency.

In the past, rebellions against fiscal policy have concentrated on taxes rather than spending.…Ronald Reagan’s tax cuts were popular, but spending cuts did not follow. Bill Clinton’s tax increases led to the Republican takeover and to tax cuts at both the federal and state levels, but spending boomed under George W. Bush.

What we are seeing is a spontaneous rush of previously inactive citizens into political activity, a movement symbolized but not limited to the tea-party movement, in response to the vast increases in federal spending that began with the TARP legislation in fall 2008 and accelerated with the Obama Democrats’ stimulus-package, budget, and health-care bills.
The tea-party folk are focusing on something real. Federal spending is rising from about 21 percent to about 25 percent of gross domestic product — a huge increase in historic terms — and the national debt is on a trajectory to double as a percentage of gross domestic product within a decade. That is a bigger increase than anything since World War II.

// //
// Will Republicans come forward with a bold plan to roll back government spending? The natural instinct of politicians is to avoid anything bold. The British Conservatives faced this question before the election this month. When Britain was prosperous, they promised no cuts at all. When recession hit, they were skittish about proposing cuts and mostly unspecific when they did.
That may have been why they fell short on May 6 of the absolute majority they expected. Now they’re in a coalition with the third-party Liberal Democrats, who proposed more cuts, and the cuts they’ve announced have been widely popular. Boldness seems to work where skittishness did not.

Unlike the Conservatives, Republicans have no elected party leader. But House Republicans like Eric Cantor, Kevin McCarthy, and Peter Roskam are setting up websites to solicit voters’ proposals for spending cuts, while Paul Ryan has set out a long-term road map toward fiscal probity. Worthy first steps. I think voters are demanding a specific plan to roll back Democrats’ spending. Republicans need to supply it.

Michael Barone is senior political analyst for the Washington Examiner. © 2010 The Washington Examiner.

I too am looking for specific cuts in spending and I mean the big social entitlements that are killing us as a nation and as a people.  As a nation because we are going bankrupt.  But the toll on our people is far greater in that we have created and are continuing to create a permanent class of useless takers lacking in pride and therefore bereft of any other morals.  If a person allows themselves to be taken care off they soon lose pride in self; soon lose any identity as  to who they are as individuals.  This leads to a loss of  any initiative  not only for working and self support but for any other endeavor.  They drift thru life  with no goals, no hopes for a future and seeking only instant gratification.

What this means in the ghetto is drugs, drink and sex.  All of which are destructive  and all of which have destroyed the Black lower classes for 60 years.  I keep pointing out that 70+ % of all Black babies are born with no father in sight!  And they are raised with no fathers in sight (tho many “uncles” drift thru their lives.)  I am not going to get into prison statistics here because you have all heard them.

In the middle classes the entitlements of choice are Social Security and Medicare.  Both Ponzi Schemes for which perpetrators of such go to prison for long periods of time.  How do we send Congress to prison?  And what about the Presidents who pushed thru these scams on the people?  And most of all, how do we convince the middle-class  Senior Citizens who are the beneficiaries of these  two monster and monstrous Ponzi Schemes  that they are the problem and that no! THEY DID NOT PAY FOR THEM AT ALL.  Every person who gets Social Security will get back every cent they paid in within two years of retirement—FACT.  So will people who really don’t need this government welfare for the elderly give it up and live on their savings and other means of support?   I truly don’t think so because they too have been corrupted by the government handout into a belief of being worthy of such from their children.  I guess because they have simply had the bad manners to live long and prosper!  That their own children and grandchildren won’t prosper is just too bad.   They sweep it off with, “Oh they’ll do something.”  Who are “they” and what will they do when the tax payers can’t pay any more?

These Seniors too have lost pride in self and have fallen into the drifting pattern of seeking immediate gratification.   Really no unlike those in the ghettos, only  their enjoyments are more expensive because they have the money to spend.  Who takes RV winter vacations?  Who takes  the most cruises?  What is the predominant color of the hair in casinos?  Look closely at the people in the stores who are buying and give a guess at their ages.  Even tho the seniors are currently the smallest segment of the population.

I did a blog asking “What are You willing to Give Up?”  No one answered me.

One more thing:  There is a big fuss about illegal aliens and how much they are costing the states.  63% of the American people support the Arizona law and want the illegal aliens sent back to their own country and decry the cost of these people.  Agreed that we tax payers spend billions every year to support illegal aliens, but it is only a drop in the bucket in comparison to Social Security and Medicare!

Oh and I too very much support the Arizona law in case you are thinking to attack me there.  BB

When Will America Face Its Fiscal Crisis? – Forbes.com

“Given that almost everyone now agrees that the national debt is on an unsustainable course, knowing exactly how and when that unsustainability will come to an end is critically important.Many doomsayers believe that our fiscal profligacy will end in a bang, as happened recently to Greece and previously to many other countries. However, it’s very unlikely that the U.S. would ever suffer the sort of abrupt inability to sell its bonds that triggered a fiscal crisis in other countries.

Well written article that explains our fiscal position without using too many  words that we laymen have to look up in a dictionary  to gain some understanding of what the author is saying.  It is 3 pages long but well worth the reading if for no other reason than as a brush up for those of you who have been following the actions of the federal government for the past  two decades and more specifically for the past 18 months.

WE are going down;everyone knows it and some of us even know why  because we know our history.  However those in power seem not to understand that the route they are taking us is the wrong way on a one way street.  Like lemming Congress is racing to the edge of the cliff and dragging  us with them no matter how hard we resist what they are doing and show them in every way possible that  We the People disagree with them.

This Congress and  President  Obama in the past 18 months have taken this nation into an additional almost $2 trillion  of NEW debt and they are not finished yet.  After the disaster of  a bail out that should not have been in a $874 billion TARP bill, they followed with a Stimulus Bill of equal  size then a budget  the size of every budget presented by Presidents  from Washington to Bush combined.  These bills and this money did nothing at all but nationalize  (buy)  three huge failing private companies:  Fannie Mae and Freddy Mac (the two largest mortgage companies in the country) and AIG a failing world wide insurance company riddled with debt.

This year the Congress and President loaded our great grandchildren with an impossible federal health care plan that all knew and admitted was unsustainable,   a  financial reform bill that nationalizes our banking system in all ways except by name and is a perpetual bail out for bankers and are now diligently working on a plan to spend another  $265 billion  bail outs for states who have failed to control their spending.  These states will receive  funding to pay their teachers, law officers and Medicaid.  The unemployed will receive what now amounts to an unbelieveable 196 weeks of unemployment benefits.  Since approximately 17% of our population is now unemployed due to the wrong headedness of the President and Congress  and these unemployed have almost 4 years of  the unemployment benefits “entitlement” then there is certainly no reason for many of them to rush out to find a job.

Yes we are on our way down the road to national bankruptcy and an end to our American way of life.    The once great United States of America will wallow in the doldrums of a third world country while our  natural resources are taken from us by a global government and  the “wealth is spread around”.  That is a good thing President Obama tells us.  BB

Morning Bell: Fannie and Freddie Failure Forever | The Foundry: Conservative Policy News.

The Democrats and Obama are stridently backing a Financial Reform Bill that does nothing to address the real problems that caused the financial crisis of 2008-2009.  Nothing!   Why? Because they are putting the blame, and therefore the regulations, where it does not belong: on the banks.  So with the help of the big Banks on Wall Street Senator Dodd and friends have concocted a reform bill that does nothing but regulate and kill the smaller banks with paperwork.  This gives the big banks and Wall Street an edge over smaller banks and will help the big banks absorb all competition, or all the smaller banks.  The big banks will then control the entire financial sector of the economy.  They will have a monopoly on all financial dealings from  stock market to insurances to mortgages.  Mortgages they will sell to Fannie and Freddie as soon as they are made so they get their money and could care less if the loans are  good or not, and with the stock market and insurance markets they are covered because they are just “too big to fail”.  Yes, even though that “too big to fail” bail out fund and provision was taken out of  Sen. Dodd’s  bill,  the next crisis (which this bill guarantees will happen by the way) the federal government will hop right in like they did this time and bail the Big Banks out letting the tax payers pick up the tab because to let they go down would indeed take down the entire economy!

Where do the real problems lie?    Smack dab on Congress.   Sen Dodd and
Rep. Barney Frank! and the way they assured the public that Fannie Mae and Freddie Mac, the two large PRIVATE mortgage holding companies, were doing fine when they were going down with toxic (bad/foreclosed/undervalued)  mortgages.   So bad in fact that the federal government had to buy up these mortgages and now owns Fannie and Freddie.  Actually the tax payers own Fannie and Freddie and any thing the tax payers/government owns is of course failure proof because the government just keeps propping it up with more tax payers dollars—-think the US Postal Service and Amtrack.

This article explains why  Fannie and Freddie are failure proof and really have to be failure proof under this Senator Dodd’s Financial Reform Bill that does not address or even mention Fannie and Freddie.

A good thing:  Sen. Dodd has basically screwed the American people for 24 years and now the people have finally caught on so he knew he could not be reelected and has now decided not to run for reelection.  He “needs to spend  more time with his family”.

Morning Bell: Fannie and Freddie Failure Forever

Posted May 6th, 2010 at 9:29am in Enterprise and Free Markets with 54 commentsPrint This Post Print This Post

Yesterday, Sen. Chris Dodd (D-CT) told reporters about his financial regulation bill, “We’ve ended the ‘too big to fail’ debate. So no longer do I expect any argument to be made that this bill exposes the American taxpayer.” Really. Someone might want to tell Sen. Dodd that in other news yesterday, Freddie Mac announced that it lost another $6.7 billion in the first quarter of 2010 and therefore needed another $10.6 billion in cash from U.S. taxpayers. Since formally nationalizing Freddie in 2008, the federal government has already spent $50.7 billion bringing the Freddie bailout total to $61.3 billion so far. Combined with Fannie Mae’s raid on the Treasury, the Congressional Budget Office estimates that the American people will spend $389 billion bailing out the two Government Sponsored Entities by 2019. So much for American taxpayers no longer being exposed to “too big to fail.”

In fact, nothing in the Dodd bill does anything to reform Fannie Mae and Freddie Mac. This despite the fact that Fannie and Freddie were key components in causing the very financial crises Dodd claims his bill will forever prevent. Fannie and Freddie were both created for the specific purpose of making it easier for Americans to buy more expensive housing. Starting in 1993, political forces pushed Fannie and Freddie to loosen their once strict loan purchasing requirements. By 1996, regulations required that 40% of all Fannie and Freddie-bought loans must come from individuals with below median incomes. In 1995, Fannie and Freddie began buying subprime securities originally bought and bundled by private firms. One of these firms was Countrywide Financial who, thanks to their status as Fannie Mae’s biggest customer, delivered investors a 23,000% return between 1985 and 2003. By 2004, Fannie and Freddie were purchasing $175 billion worth of subprime securities per year from Countrywide and their brethren…  a 44% share of the entire market. There are other factors that helped contribute to the 2008 financial crisis, but Fannie and Freddie’s use of their “too big to fail” status to create and grow the subprime security market was essential.

But Sen. Dodd, who received V.I.P. treatment from Countrywide CEO Angelo Mozilo, never saw any problem with Fannie and Freddie. On July 13, 2008, Senator Dodd said on national television, “To suggest somehow that [Fannie Mae and Freddie Mac] are in trouble is simply not accurate.” Less than two months later the bailouts of Fannie and Freddie began. Keep these facts in mind when Dodd says his bill solves the “too big to fail” problem.

The problems with the Dodd bill go beyond its failure to let Fannie and Freddie wither into extinction. While Dodd has agreed to get rid of the $50 billion bailout fund, the underlying bailout authority still remains. Now taxpayers are expected to front the government money while firms are liquidated. But the irresponsible creditors who let those firms borrow money irresponsibly would still be eligible for taxpayer bailouts. According to The Washington Post, “a failing firm would be forced to pay back the government any money they received above what they would have gotten under a bankruptcy proceeding.” But how does the government know what creditors would have got if the company went into bankruptcy? Why not just strengthen the existing bankruptcy system and actually allow these too big to fail firms to, ya know, fail?

But Dodd and the Obama administration would never allow that. It would defeat the whole purpose of this financial regulation bill, which is to transfer as much power to the federal government as possible. Never mind that these are the same government regulators who failed to see the last crisis coming.


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