Tuesday, August 2, 2011

Huge sucking sound!

Debt Limit Debate

My Ex hunter friend sent me a speech he gave just the other night. It is worth reading and passing on to all your friends. Remember, you are not alone. Many common sense Americans have the answers that congress avoids at all cost. Show your support, get out to vote and get all your friends and family members to vote for conservative, smaller government. Knowing that what ever happens in the future, people will have to understand that programs they like, must be cut just as well as those programs they do not like. 
We all are in this together!

·      The federal government is over 14 TRILLION dollars in debt, and now wants to add another $2.4 Trillion.  When I voice my concern and strong opposition, I am called a Hobbit and a moron by the Democratic leadership, and a “Terrorist” by Vice-President Biden.  Our politicians have shown that they are no longer “Ladies” and “Gentlemen”, and will now have to earn my respect.  The gloves are coming off.  I am now “mad-as-hell”, and I’m not going to take it laying down any more. 
·      Currently, the United States is borrowing 42¢ for every dollar the federal government spends.  Simple mathematics dictates that to stop increasing the debt, we must cut spending by 42%, (or grow taxes enough to pay that excess 42%).  In other words, instead of spending a dollar, we can only spend 58¢, without adding to the total debt.  In order to actually reduce the debt, spending must be cut significantly and the economy must recover to near full employment, allowing more revenue to go into the government coffers.  This is the only “balanced” approach which will work.
·      As several past experiences have shown, increasing the tax rate does not translate to equally increasing revenue, because of unintended consequences.  Just look at the loss of revenue in New Jersey and New York City, when they raised the tax rates on the ‘very wealthy’.  A large percentage of those same ‘very wealthy’ packed up and left, which ended up greatly reducing the tax revenue for both areas. 
·      Something like 50 wealthy New Yorkers were paying over 30% of the total tax bill.  When the dust settled, over half had moved out of the city, reducing the overall tax revenue by about 15%. 
·      This will happen every time.  When the government overburdens one small segment of the taxpayers, they will change their behavior and situation to reduce this burden. 
·      Conversely, when the tax rates are lowered to reasonable levels, the economy will grow, because investors and entrepreneurs will then be willing take risks to start or expand businesses.  This will also result in an increase of tax revenue, because of the strong and expanded private sector.
·      If the “Debt Limit” bill in Congress passes, it will be the largest debt increase in U.S. history, regardless of what the spin-masters say.  According to the records published by the Congressional Research Service, if the current bill is passed and the debt limit is increased by $2.4 trillion, the two largest debt-limit increases in U.S. history would come in back-to-back years, both during the presidency of Barack Obama.
·      This deal does not actually reduce spending at all, much less by anything close to 42%, so the total debt will actually increase by $7-9 Trillion in the next 10 years.  However, it will probably increase much more, because almost all promised spending cuts will take place years down the road, where the next Congress can refuse to implement them, just like what happened during Reagan’s term.
·      The games being played by Washington politicians are almost beyond belief.  Quoting numbers from the Congressional Budget Office (CBO), the claim is that the debt is being “Cut” by almost a trillion dollars.  This is because the CBO can only ‘score’ the numbers based on strict narrow criteria, given to them by the Senate or Congress.  They are NOT like an honest independent outside accounting firm.  One restriction is that the Bush tax cuts will be allowed to expire; thereby raising billions more in ‘Revenue’ (can we say “Higher Taxes”)?  If the Bush tax cuts are extended, then there will be an additional 5-6 Trillion dollars of unmatched spending, and it will all be added to the existing debt.
·      Except for a small minority, our elected representatives have no real desire to ‘fix’ this problem.  They prefer to ‘kick the can down the road’, for some other politicians to solve.  It actually takes people who have a spine and the courage to do what is best for the country, rather than do what might help them get re-elected. 
·      The courageous thing to do, would be to NOT pass this bill, and allow the debt ceiling deadline to arrive.  If we simply paid the interest on the debt (roughly $30 Billion a month), we would not be in default.  After paying the interest on the federal debt, there would be enough additional money coming in every month to pay Social Security, Medicare, Medicaid, the military, and still have over $30-40 Billion left over.
·      At this point, our spineless pathetic pretentious pompous posturing political parasites would actually have to make decisions about which programs would not be funded.   Washington was originally built on a swamp, and unfortunately, we will never see the political courage or selfless statesmen from the current school of self-puffed up bullfrogs in that cesspool of political scum we call Washington DC, to actually solve our fiscal problems.  They must all be replaced, before our once great country is totally destroyed.  

We could learn a lot from history, if we were willing to look.  Here are some men in the past who have learned about national debt:

·      “Democracy will cease to exist when you take away from those who are willing to work and give to those who would not”.  "I predict future happiness for Americans if they can prevent the government from wasting the labors of the people under the pretense of taking care of them".  -- Thomas Jefferson
·      "The national budget must be balanced. The public debt must be reduced; the arrogance of the authorities must be moderated and controlled. Payments to foreign governments must be reduced, if the nation doesn't want to go bankrupt. People must again learn to work, instead of living on public assistance." -- Marcus Tullius Cicero, 55 B.C.
·      "The multiplication of public offices, increase of expense beyond income, growth and entailment of a public debt, are indications soliciting the employment of the pruning knife."  -- Thomas Jefferson (letter to Spencer Roane, 9 March 1821)
·      "You don't make the poor richer by making the rich poorer." -- Sir Winston Churchill (1874-1965)
·      "Wars in old times were made to get slaves. The modern implement of imposing slavery is debt." --American poet Ezra Pound (1885-1972)
·      "We must not let our rulers load us with perpetual debt."  -- Thomas Jefferson, letter to Samuel Kercheval, 12 July 1816
·      “It is incumbent on every generation to pay its own debts as it goes. A principle which if acted on would save one-half the wars of the world.“ -- Thomas Jefferson  -  
·      “I predict future happiness for Americans if they can prevent the government from wasting the labors of the people under the pretense of taking care of them.”  -- Thomas Jefferson
·      “No pecuniary consideration is more urgent, than the regular redemption and discharge of the public debt:  on none can delay be more injurious, or an economy of time more valuable.”  -- George Washington,  Message to the House of Representatives, 1793
·      “My reading of history convinces me that most bad government results from too much government.” – Thomas Jefferson
·      "I cannot undertake to lay my finger on that article of the Constitution which granted a right to Congress of expending, on the objects of benevolence, the money of their constituents." -- James Madison
·      "A wise prince will seek means by which his subjects will always and in every possible condition of things have need of his government, and then they will always be faithful to him." -- Niccolo Machiavelli (1469-1527)
·      "The same prudence which in private life would forbid our paying our own money for unexplained projects, forbids it in the dispensation of the public moneys." -- Thomas Jefferson
·      "I think we have more machinery of government than is necessary, too many parasites living on the labor of the industrious."  -- Thomas Jefferson, letter to Thomas Cooper, 29 November 1802
·      "I believe that banking institutions are more dangerous to our liberties than standing armies.  If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered."  - Thomas Jefferson
·       "A progressive income tax is needed to transfer wealth and power to the state.”   - 1848, Karl Marx

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