U.S. debt spiral continues

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I am having trouble believing that the American people are so clueless about debt. You cannot continue spending more than you take in.

Suppose you take in $2,900 a year and spend $3,800. That is a deficit of $900. Suppose you have current debt of $17,000 and long-term debt of $71,000. You agree in August 2011 to immediately increase your current debt limit by $1,200 and cut your spending by $120 a year for 10 years. When the first actual cut is due 19 months later, you say police, firefighters, teachers and children in Head Start will be homeless on the streets.

Obama talks about deficit reduction – never debt reduction. In my example this means spending $3,680 and a deficit of $780 a year. For actual debt reduction to occur, the federal government must run a surplus. A balanced budget only stops the bleeding. The Senate has ignored the budgets passed by the House, and the President has not proposed even a balanced budget. The federal government has run on continuing resolutions for years. This means that programs from four years ago are still funded at the same level. The program may have ended or be unnecessary, or it may be counterproductive to the current economy. Congress and the president keep funding them while increasing the debt.

The Federal Reserve keeps buying Treasury notes and toxic mortgage debt. This artificially stimulates the government to spend and the banks to lend. Unfortunately, stimulating the banks has caused consolidation rather than increased lending. The 10 banks bailed out with $125 billion of taxpayer money in 2009 now control 77 percent of the financial industry. If they were “too big to fail,” now they are too bigger to fail. This money printing by the Fed also causes inflation – an illegal tax, since only the House of Representatives can take your money by law.

The “housing bubble” was partially caused by low interest rates at the Fed, overstimulating the real-estate industry. Fed rates are near 0 percent, and new bubbles are about to burst. The president talked about his college scorecard – although the employment data is not available – but you can see that colleges are graduating small percentages while the students are walking away from the loans. Colleges are taking many students who have little possibility of succeeding.

Ponzi schemes such as Social Security need new blood to pay for promises to the elderly. The liberal Supreme Court said in 1973 that it was “legal” to “terminate a pregnancy.” Since then, more than 55 million babies have been murdered. The United States demographics is now wrong for a Ponzi scheme to continue much longer. This is why progressives desperately need immigrants to fill the gap.

It is illegal to bribe a voter, but it is “legal” for the Federal Communications Commission to charge fees on cell phone bills and use the money to provide free cell phones to those already on federal transfer payment programs. An inarticulate woman in Cleveland explained why the progressives were re-elected: You cell phone bill-payers provided the bribe!

And the debt spiral continues!

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ymnbde
10662
Points
ymnbde 04/08/13 - 05:00 am
8
1
school choice

if only parents cared about education the way homosexuals care about marriage. This is a good, truthful letter, but he used numbers.
He used numbers that represent quantities of actual dollars and debt and the relationship between time, dollars, and debt.
Government schools teach numbers as words. Proportions and quantities are hard. Well, prepositions and nouns and verbs are hard, too. Government schools don't teach those very well, either.
So the government can basically do what it wants, because they finally have enough, to put it so politely, "low information" voters.
Former governments banned or burned books. Ours doesn't need to, because we're making sure kids can't read.
Nice letter for the old folks, though.

carcraft
28447
Points
carcraft 04/08/13 - 05:10 am
7
0
I don't see much hope. If

I don't see much hope. If the economy is recovering why do we have the lowest employment participation rate since the recession started? 88,000 jobs were added last month but we have an estimated 9 million out of work. Are we being lied to? Well the answer is yes and the media won't call the administration on the lies or hold the feet to the fire on all the broken promises Unemployment is still higher than when Obama took office. We are now entering 5 years of Obamanomics.

Bodhisattva
7183
Points
Bodhisattva 04/08/13 - 06:02 am
0
11
Plus there's still that whole

Plus there's still that whole birth certificate thing that hasn't been cleared up yet.

ymnbde
10662
Points
ymnbde 04/08/13 - 06:34 am
6
0
see what numbers do to liberals?

birth certificate? that's a good one!
1 birth certificate
0 budgets
oh bodhisvatta...
birthers and truthers, truthers and birthers
both should be certified... but neither are
now, back to the numbers!

justthefacts
24990
Points
justthefacts 04/08/13 - 06:41 am
10
0
No blame

Heck, if I voted for this Prez I would try to change the subject also.

Humble Angela
41338
Points
Humble Angela 04/08/13 - 07:08 am
5
0
"Plus there's still that
Unpublished

"Plus there's still that whole birth certificate thing that hasn't been cleared up yet."

Actually there's that budget that hasn't been signed yet....that GITMO that hasn't been closed yet....those wars that haven't been ended yet.....that unemployment that will never be over 8%......that "affordable care act" that is making premiums go up 80%, etc etc etc.

Birth certificates are way down on the list of reasons to dislike this horrible leader.

deestafford
31780
Points
deestafford 04/08/13 - 07:10 am
4
0
What a great well thought out, well researched letter!

A great book to read that explains the liberals way of looking at things is ,"Conflict of Visions" by the great Doctor Thomas Sowell. He discusses constrained and unconstrained visions with the former having limits on what can be done and the latter has no limits on what can be done. Unconstrained visions are the type which liberals have in that restraints such as money and resources should have no bearing on what they want to do. This book is available on e-books for a very nominal fee and it will go a long way to increasing one's economic education.
The big problem is the liberals believe in Keynesian economics which basically says government spending is the solution to all problems. This is what FDR followed and caused the depression to become "The Great Depression" lasting longer than any previous depression in just the same way Obama is following the same model which is causing this recession to last longer than any recession in history. We are not in the recovery mode. If inflation and unemployment were measured in the same way as when Carter was in office both would be in double digits. By the way, Keynes back tracked on much of his theories before he died. FDRs Sec of Treasury told FDR that that they had tried everything he wanted and it was not working and they needed to change tactics. FDR refused and increased his government spending and meddling.
Another good book which shows how FDR caused the depression to worsen and how Obama is following in his footsteps is "The Politically Incorrect Guide to the Great Depression and the New Deal".

CobaltGeorge
175532
Points
CobaltGeorge 04/08/13 - 07:12 am
1
0
All I Can Say Is

The Hand writing has been on the wall, clearly written in bold print for the past almost 5 years.

All the facts, figures, common sense and everything that's has happened in those almost 5 years under the control of the Hammer & Sickle Man has been evidence proven beyond a reasonable doubt that we ALL will fall and fall hard. Be prepared.

A word of advise, if you own any stocks.....SELL and SELL NOW!

Bodhisattva
7183
Points
Bodhisattva 04/08/13 - 07:19 am
0
6
How could anyone support a

How could anyone support a President who had a debt increase of 104.4% on April 8, of the 5th year of his Presidency?

CobaltGeorge
175532
Points
CobaltGeorge 04/08/13 - 07:24 am
0
1
Simple

ask every UN-American Liberal......support with a smile.....

Bodhisattva
7183
Points
Bodhisattva 04/08/13 - 07:31 am
0
5
That was Reagan's

I didn't vote for him. Did you?

justthefacts
24990
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justthefacts 04/08/13 - 07:47 am
7
0
Libs

Libs want to talk about anything but THIS Prez.

nofanofobama
6993
Points
nofanofobama 04/08/13 - 08:01 am
4
0
nice try bod...the dims had

nice try bod...the dims had control of congress then....we had a a large increase of revenue..yes tax revenue. due to yax cuts..yet the dims just spent it..also as you libs like to constantly remind us that reagan had a substantial tax increase during his time.....just like today the dims LIED.LIED AND LIED..about the coresponding spending cuts..reagan acted once in good faith...the dims never do...and i dont think we should believe them again..PERIOD

nofanofobama
6993
Points
nofanofobama 04/08/13 - 08:03 am
1
0
SORRY it should read tax

SORRY it should read tax cuts

rmwhitley
5547
Points
rmwhitley 04/08/13 - 08:09 am
0
0
Sorry,
Unpublished

we don't have a true president. Just a chicago thug by way of Kenya, where his brother just lost an election.

Humble Angela
41338
Points
Humble Angela 04/08/13 - 09:33 am
4
0
Bodhisattva, what was the
Unpublished

Bodhisattva, what was the unemployment rate on that April? How was inflation? How many wars were we engaged in? How were insurance premiums?

How are all of those things with THIS PRESIDENT....try to stay on topic.

Humble Angela
41338
Points
Humble Angela 04/08/13 - 09:41 am
2
0
Not to mention, Regan's debt
Unpublished

Not to mention, Regan's debt going up 104.4% is not as bad as Obama's debt. If I owe $1.00 and in increase my debt 150%, I now owe $2.50......an increase of $1.50.

Now flash forward a few decades....if I owe $1000 and increase my debt 35%, I now owe %1350.....in increase of $350.....a smaller percentage, but a much greater increase in ACTUAL debt. Only a liberal could spin this into somehow being better.

dichotomy
37418
Points
dichotomy 04/08/13 - 09:54 am
4
0
"I am having trouble

"I am having trouble believing that the American people are so clueless about debt. You cannot continue spending more than you take in."

Well see, you started off with a bad assumption. The fact is that the United States has been operating on "funny money" so long now that the average citizen and all of the politicians have lost touch with the reality of how much debt we are in and what the consequences of our huge debt will eventually be.

We have been printing worthless money and handing it out to so many people who are equally worthless for so long that the concept of balancing the budget AND PAYING DOWN THE DEBT has been totally forgotten by our worthless politicians.

Our politicians stumble and mumble when asked about balancing the budget but NOBODY ever even asks or mentions PAYING DOWN THE DEBT. The most you ever here is maybe some mention of CAN WE EVEN PAY THE INTEREST ON THE DEBT.

We are in BIG trouble folks....probably beyond the point of no return. The crash will happen...the only question is when. Oh, we've still got fairly good credit and it may take a decade or two...or three.....that just depends. With the effects of full Obamacare implementation killing job creation, it could be next year.

Darby
29216
Points
Darby 04/08/13 - 11:27 am
4
0
The writer could have reduced his letter...

to just his second sentence and still made his point. "You cannot continue spending more than you take in."

That's all anyone really needs to know. Political ideology aside.

Going back to the 1980's and cherry picking a fact here or there doesn't alter or resolve the mess we find ourselves in doday.

Humble Angela
41338
Points
Humble Angela 04/08/13 - 11:36 am
4
0
Here's a great and true
Unpublished

Here's a great and true quote.

"Up Until 1913 Americans Kept 100% Of Their Earnings, yet despite this, America still had: Schools, Colleges, Roads, Railroads, Streets, Subways, The Army, Navy, Marine Corp (who managed to win 8 wars, and fight one- The war of 1812 to a draw) Tell me again why we need to be taxed/extorted?"

Humble Angela
41338
Points
Humble Angela 04/08/13 - 12:17 pm
2
0
As usual, no cogent, on topic
Unpublished

As usual, no cogent, on topic rebuttals that are free of diversionary tactics.

ultrarnr
944
Points
ultrarnr 04/08/13 - 01:04 pm
0
0
Debt is not the real issue
Unpublished

The real issue is the growing inequality in both wealth and incomes. If debt were such a problem why are Treasury yields at historical lows.

nocnoc
49121
Points
nocnoc 04/08/13 - 05:43 pm
1
0
The only way to control

Deficit Spending is a Constitutional Amendment for balance budget in Peace in time, NO preemptive Wars, and keep our nose out of other countries business. Then hire a Merc unit to hunt down all country leader(s) that attack or threaten the USA with attack.

Darby
29216
Points
Darby 04/08/13 - 10:48 pm
1
0
Humble Angela - I prefer to

think that we kicked their butts in the War of 1812, the whole thing being capped by Gen. Jackson at New Orleans, even though that battle was fought and won following the Treaty of Ghent.

Anyway, had we lost that war, we would have lost the independence we won in 1776, so in that regard, it was a smashing victory.

The Brits did manage to burn the White House but at least Tony Blair finally apologized for that a few years later. I believe "W" was in office at the time.

bumblebeerose
694
Points
bumblebeerose 04/10/13 - 05:05 am
0
0
Balancing a Check Book

How many people know how to balance a check book now days. If you can not balance a check book you can not balance the budget!!!

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