The Debt Machine Roars On

Well, the national debt has reached a staggering $18.2 TRILLION and shows no signs of decreasing. Each of us, unwilling slaves to that debt, now owe $154,161. Most of us couldn't afford to pay our "fair share" of that number even if they came and confiscated all of our yearly earnings and left us thoroughly skinned.

   The congress, for all their talk of being fiscally responsible republicrats have managed to slow our economy and hasten the demise of the shrinking middle class with their spending on their pet projects and lobbyist masters in various industries. Their democrat buddies have been no better, saddling us with historically high levels of social spending. And the president shows no signs of that he won't sign spending that comes across his desk. None of these cretins has anything approaching the best interests of this country and its future in mind. They simply do not care about anything but their partisan politics and appeasing their monied constituencies and masters.
   We have reached the point where pumping the brakes is not even nearly enough. Slowing the accrual of further debt is untenable. The brakes must be applied and the course reversed, if we are to avoid catastrophe. The debt currently stands at 102.6% of GDP and is going to rise to more than 105.7% by 2019, by some estimates. I have no faith that it won't be higher than current estimates, because no-one within the DC Beltway has any intentions of actually cutting spending and ridding us of this onerous debt that they have accrued in our name with their endless programs, conflicts and cronyism.
   This is a drum we libertarians must be beating. The two wings of the Boot On Your Neck Party have shown their clear intention to continue business as usual, using us and our economy as their personal piggy banks to fund their draconian dreams. Their avarice, where our money and future are concerned, knows no bounds. We must, somehow, force these political robber barons to cease their spending. They must all be replaced with people who will actually act as stewards of the nation, its economy and our future, not as masters within their own petty fiefdoms. I would encourage any reader to forward the linked article, or this one, to their representatives, if I thought it would make any difference, but I fear we are beyond that point. The people who are robbing our children and grandchildren of their futures have no interest in having their crimes pointed out to them. They are safe in their partisan electoral havens and the people who continue to put them there are seemingly oblivious to the coming train wreck. Perhaps all we can do is take some small measures to soften the blows for ourselves, as we continue to cannonball towards the inevitable.
   Best of luck to everyone. We're going to need it.

After The Iceberg

What are you willing to get rid of to avoid the inevitable catastrophic debt driven crash that is coming due in the next few years? Are you truly willing to do whatever it takes to make sure that your family survives? Even if it means jettisoning your favourite sacred, political entitlement cow? I am. For the sake of my children I will gladly forgo Social Security, Medicare, Medicaid and the empire building military. It's all a matter of simple math and Jacob G. Hornberger, over at the Future of Freedom Foundation breaks it down into easily understandable parable for us.

Ship Captain: Ladies and gentlemen, the Titanic is sinking, but calculations made by our engineers show that there is still one way to save the ship and all the passengers. That’s the reason I have summoned you to this meeting. All of you have brought with you large suitcases containing your welfare-state benefits of Social Security, Medicare, and Medicaid and your warfare-state benefits of military contracts. Our officials have made careful calculations and concluded that if you will just throw these suitcases overboard, the ship — and everyone on it — will be saved. Therefore, would you please proceed to your cabins, grab your suitcases, and toss them overboard?

We're going to hit that iceberg. It's now inevitable and unavoidable. The only question remains is whether we go down with the ship, make it to a life boat or manage to save the vessel.

Something Wicked This Way Comes

我想昧耳，昧心，變石頭・我想昧耳，昧心，变石头
Wo shang mei er, mei xin, bian shi tou. Please God, make me a stone. - River Tam, Serenity

We are all going to enter into a new and devastating world sooner than we wish and our children and grandchildren will be the ones bearing the burdens of today's willful ignorance. USA Today reported that the current US debt has risen another 12%, to a whopping $63.8 trillion, and the destructive spending coming from Washington and the cretins who dwell there shows no signs of slowing. The new President is more than willing to not only continue spending, but to add more trillions of dollars in debt to further his destructive socialist agenda.

The latest increase raises federal obligations to a record $546,668 per household in 2008, according to the USA TODAY analysis. That's quadruple what the average U.S. household owes for all mortgages, car loans, credit cards and other debt combined.

"We have a huge implicit mortgage on every household in America — except, unlike a real mortgage, it's not backed up by a house," says David Walker, former U.S. comptroller general, the government's top auditor.

USA TODAY used federal data to compute all government liabilities, from Treasury bonds to Medicare to military pensions.

Bottom line: The government took on $6.8 trillion in new obligations in 2008, pushing the total owed to a record $63.8 trillion.

The numbers measure what's needed today — set aside in a lump sum, earning interest — to pay benefits that won't be covered by future taxes.

Despite these numbers, which the politicians must know about, unless they are blind, deaf, dumb and illiterate, Obama and his regime plan on saddling us with a multi-trillion dollar "health care" system, as well as other programs that will push this country, and everyone in it, further into soul crushing debt. Children as yet unborn will enter the world 10's, if not 100's of thousands of dollars in debt. They will spend their lives in toil to repay a the money that politicians and their supporters saddle them with today. They shall live, work and die as debtors for the governments follies.

Even if the government were to tax everyone at 100%, this debt would never be able to be repaid. This country may be left with no other recourse than to repudiate the debts foisted on us by this and past regimes and declare bankruptcy as a nation. That is something we are likely to never recover from.

The people leading us to this fiscally irresponsible horror have no care for the future, beyond maintaining their power through the broken electoral system. They will continue their assault on us, despite the fact that The Great Leader admits that the country is broke. When and where will it end? We will either have to harden our hearts and become stones to bear this or it will end in violence when no more may be borne by the peasantry.

We may well be past the point where there are "libertarian" or "conservative" or any political solution for this. Ceasing spending alone is not the answer. That $63.8 trillion will still be out there hanging over our heads like the sword of Damocles. Only a dismantling of government, programs and entitlements will have any effect. Even that is unlikely to do the job, since people will inevitably wish for "pragmatism" and a slow dismantling, (which is unlikely, as they'll wish to maintain their power base and the bureaucracy).

I fear for my children and theirs to come. The world they will inhabit will be vastly worse than that we once inhabited. Thanks entirely to politicians and their quests for power.

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Libertarian, National Debt, Obama, Spending

Just Say No

As a parent I am often faced with the onerous task of telling my children no, for one reason or another. It's sometimes a necessity that all parents are familiar with, because we wish to preserve the lives and limbs of our charges. What surprises me these days is that so many of the people in Washington, (many of whom are parents) forget to say no when "adults" show up at their doors after engaging in behaviours that have led them to ruin. I doubt many of us would say yes to an alcoholic or drug addict when they asked for a fix, so why do politicians "have" to say yes when companies addicted to bad habits come begging for a fix from the "lender of last resort"?

The latest to put out the begging bowl are the "Big Three" auto makers from Detroit. This is not the newest of stories, since they were just there a couple of weeks ago. What is new is that they are now asking for much more money than before.

The heads of struggling auto giants General Motors, Ford, and Chrysler reappeared on the Hill yesterday to make their case anew. This time, they came more prepared. The most ambitious business plan proposed was by General Motors, the world's largest auto company, currently teetering on the verge of collapse. It set out a plan to recapture revenue through deep cuts—including slashing 20 percent of its jobs, shutting nine factories, and trying to reduce pay through talks with the United Automobile Workers union.

Along with a more structured plan, however, the Big 3 also had an even bigger request: $34 billion in loans, compared with the $25 billion they'd asked for two weeks ago.

Talk about chutzpah.No doubt the Democrats and their buddies across the aisle are more than willing to add them to the $8.5 trillion dollar plan, after all what's a few measly billion when we're already in the trillions, right? Well, the time has come to just say no.

It might sound cruel and the repercussions may be grave, but the precedent a bailout would set would be vastly worse. Despite Nancy Pelosi's cries that bankruptcy is not an option, the facts speak louder than her political grandstanding. This country cannot afford to continue bailing out companies in distress, unless we wish to end up like Zimbabwe or the Weimar Republic. Allowing the Big 3 to file bankruptcy is the only solution sane people can accept. It worked for the airlines, it will certainly work for Detroit. Continuing to throw money at things will not make the situation better, (as we have seen with the banks and their "lending crisis").

The American auto industry has been, and will continue to be hampered by government, not aided. Any funds that come from the Congress will be attended by more stringent regulations, defacto nationalisation and an acceptance of fraudulent environmental rules that will insure the continued failure to compete. There is no aid to be found in Washington. At least bankruptcy will allow them to be rid of the onerous UAW contracts weighting them down and will allow them the time to restructure in a rational manner. If one of them cannot find its way back to solvency, then so be it. That's the harsh reality of a free market.

Ford could make their way back in time. They already offer a host of vehicles in their overseas markets which are soundly embraced by countries that always have gasoline over $5 a gallon. For some reason they have refused to embrace the same strategies for their US customers, as they do for their European and Asian bases. How many Americans would buy a car that got more than 65 MPG? I bet it would be a rather high number. Ford makes just such a vehicle, the Ford Fiesta Econetic, rated as a winning "green car". Too bad that the US government, and their global warming fascists, make it so hard to sell a clean diesel in this country that Ford can't or won't, sell it here. Even with artificially inflated diesel prices the car would save a driver loads of money in the long run. And, unlike hybrids, it's not a scam where cleanliness is concerned. Making vehicles like this is what would turn the tables for Detroit, not the bogus plans they are presenting to the Beltway Boys. No matter what plans they put forth, it will be too little.

It's time for the Washington crew to start saying no. Yes, the impact on Detroit and other auto states will be considerable. Indiana has something like 60,000 auto industry related jobs that would no doubt be affected. It would be a serious blow to the state government, which is already facing an unemployment insurance insolvency and the taxpayers, who would undoubtedly be called upon to foot the inevitable tax increases, but saying yes to any further bailouts would be much worse in the long run. We have to stop adding to the debt. Especially with the states now lining up for their slice of the bailout pie. It has to stop somewhere, let it begin here.

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Bailout, Detroit, Politics, Libertarian, Debt, Automakers

Hard Truth

I recently blogged about the looming financial and economic crisis headed our way, due to the burgeoning debt created by the government, its policies and spending. Now, I'm doing it again. Well, sort of. What I'd like you to do is to take 9 minutes and 5 seconds out of your day to watch a video from the Comptroller of the United States, David Walker. Mr. Walker lays out the problem directly and succinctly so you'll understand it. This is quite possibly the single most important video you might watch this year, (if it succeeds in waking you up).

The Democrats and Republicans are in the process of ruining this country with their profligate spending and their current march towards a new fascist state. The front runners in the upcoming presidential contest are set to make matters worse than they currently are, (and that's pretty damned bad). Both of the Democrats are looking to raise taxes and increase spending to new and unheard of levels, creating a fascist state the likes of which hasn't been seen since the 1930's. In the process they will literally bankrupt the country and enslave our children and grandchildren to the debt that has been and will be created. The Republican will certainly do no better.

Unless people are made aware of Mr. Walkers words, (here and elsewhere), things shall continue as they are currently are and we will face an economic crisis of monumental proportions. The "Great Depression" will look like a minor blip by comparison. None of us will be able to prepare for what's likely to come, no matter how far back in the mountains you choose to run. There will be no escape from this looming economic catastrophe.

So, please take a minute. Watch. Listen. Learn. Act. Link to this video and spread the word, while there's still time.





via kdt

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Libertarian, National Debt, Election 2008, David Walker, The Coming Depression, Politics, Fascists

None So Blind

Were you aware that you owed roughly $500,000 dollars as your part of the "National Debt"? Were you also aware that your government has been lying to you about that same debt? Using 3 sets of books for their accounting purposes the US Government has understated the debt by $50 TRILLION. The US government would have you believe that the Debt is a measly $9.19 trillion. If a corporation or small business kept their books in such a manner they would already be in prison and their company would be defunct.

The real current National Debt is $59 Trillion dollars and growing by the day. It may well have already reached the point where this country cannot even afford to pay the interest on this debt. This is not something you're likely to hear on the evening news since the powers that be would much rather the public stayed ignorant of the truth. If the truth of the matter were well known those who valued their families would likely break out the torches and ropes. US Today reported on the matter last year and guess what? Not a peep from the establishment or the other media.

Modern accounting requires that corporations, state governments and local governments count expenses immediately when a transaction occurs, even if the payment will be made later.

The federal government does not follow the rule, so promises for Social Security and Medicare don't show up when the government reports its financial condition.

Bottom line: Taxpayers are now on the hook for a record $59.1 trillion in liabilities, a 2.3% increase from 2006. That amount is equal to $516,348 for every U.S. household. By comparison, U.S. households owe an average of $112,043 for mortgages, car loans, credit cards and all other debt combined.

Unfunded promises made for Medicare, Social Security and federal retirement programs account for 85% of taxpayer liabilities. State and local government retirement plans account for much of the rest.

This hidden debt is the amount taxpayers would have to pay immediately to cover government's financial obligations. Like a mortgage, it will cost more to repay the debt over time. Every U.S. household would have to pay about $31,000 a year to do so in 75 years.

Your elected representatives have screwed us and continue to screw us. With every dollar they spend on ANYTHING that debt grows some more. Our children will be no more than indentured servants, more like slaves in reality in order to pay this debt. We also shall have to pay our part as it is going to be coming due with a vengeance as the Boomers retire and start collecting all of their "benefits" like Social Security and Medicare.

Tax rates in this country will be skyrocketing as reality catches up with the obligations the power brokers have taken on in our names. There is a solution, according to the government, tho. They allude to it in the US Today article, (it's their "reason" for not including SS and the like in calculations).

The White House and the Congressional Budget Office oppose the change, arguing that the programs are not true liabilities because government can cancel or cut them.

Cancel and cut Social Security and Medicare. That'll go over real well, eh?

The Comptroller of the US, (the head bean counter at the GAO) has been speaking about this debt for years and, for years he has been ignored. He even went so far as to create a "Menu of Delayed Pain" to insert into the budget back in 2003. The powers that be removed it. He did manage to get it inserted in the back of a Social Security budget, tho. It gives you an idea of what is necessary to fix things. It ain't pretty.

Menu of Delayed Pain

• Increase Federal Income Taxes: 2003 - 69% 2008 - 74%
• Increase Payroll Taxes: 2003 - 95% 2008 - 103%
• Cut Federal Purchases: 2003 - 106% 2008 - 115%
• Cut Social Security and Medicare: 2003 - 45% 2008 - 47%
  

The Menu shows what needed to be done in 2003, when he first started sounding the alarm bells. The 2008 figures show what we need to do right now. Doesn't look very nice, does it? The government actually needs to start selling "its" assets. They have to cease their wars, foreign aid and spending. They must downsize. You know what, tho? Nothing's going to be done this year. Or next year. Or the one after that. Politicians are notably silent on this matter and will continue their silence until it is too late and we reach a tipping point. If we do reach a tipping point we will likely be looking at an economic catastrophe that makes 1928 pale in comparison.

The politicians are silent, along with their partners in the media. With one exception. CNN's Glenn Beck has actually had the Comptroller on his show to highlight the situation. Judging from the stunning silence it looks like no-one cares. Perhaps they'll care when the house of cards comes crashing down. Perhaps they'll care when they realise what has been done to future generations of Americans. All in the name of expanding government power. Perhaps we'll get lucky and the masses who are currently hypnotised by American Idol, Oprah and the race for the White House will finally wake the hell up and grab their pitchforks. I'm not going to hold my breath for any of those, tho.

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National Debt, Republican, Democrats, Libertarian, Politics, Disaster Economics, Economics