The Debt Clock And Dangerous Delusions

The debt clock found at this site  at that time this sentence was written showed our national debt to be $14.553 trillion which equaled $46,659 per citizen and $130,108 per taxpayer.

It’s a perfect illustration as to the seriousness of the  ongoing debate in Washington and should explain why some strongly question the wisdom of taking on more debt — i.e. “raise the debt ceiling” — without a plan to quickly bring our budget in balance.

President Obama along with Harry Reid and the rest of the Senate Democrats are under the dangerous delusion that one can take on debt forever without an inevitable disastrous end.

Hopefully, they can be freed from it.

And with regard to dangerous delusions, hopefully Americans can be freed from the one that lets them believe that placing community activists and casino lawyers in positions of leadership can somehow not result in an inevitable disastrous end.

Toomey Explains Why We Won’t Default

Six days ago, July 13, Pennsylvania’s competent senator, Pat Toomey, explained the debt ceiling debate to Neil Cavuto of FoxNews.

“If we get to August 2 without having raised debt ceiling that will be disruptive,” he said. “That will be a partial government shutdown.  But we will not default on our debt. There is enough ongoing revenue in
the form of tax revenue to prevent that. And, frankly, if we just raised
the debt limit without the structural reform, without the real spending
cuts we need, then we’re inviting a catastrophe down the road.”

He also said the Republican are more than willing to raise the debt ceiling if the President offers a path to a balanced budget, which he has been strangely and extraordinarily adverse to doing.

“I think there is overwhelming, if not unanimous, support among Republicans
to raise the debt ceiling, which is what the president has insisted he
vitally needs,” Toomey said. “So, we’d be willing to do that. I won’t speak for all of my colleague,
but I think a big majority would be willing to raise the debt limit if
we were on a path to a sustainable balanced budget. I don’t see why the
president can’t accept that.”

Hat tip to Bob Guzzardi

Cleared Christine Fires Back; Moody’s And Ponzi Schemes

The woman who was the subject of unending abuse during her run to represent Delaware in the U.S. Senate has been cleared by federal investigations of the charges made against her by the cynics willing to do what it takes to grab power.

And now she’s fighting back.

U.S. Attorney Charles Oberly III in a letter sent Friday to  Christine O’Donnell’s campaign
lawyer said that prosecutors had finished a probe
of allegations that Ms. O’Donnell used campaign funds for personal
use, including rent, and had made false statements in Federal Election
Commission filings.

“I write to inform you that this office has closed its review and does not intend to pursue criminal charges at this time,” Oberly said in the letter to Cleta Mitchell.

Meanwhile, the Federal Election Commission has voted to end an investigation as to whether Ms. O’Donnell’s campaign and the California-based Tea Party Express illegally coordinated campaign spending.

With  exoneration, Ms. O’Donnell now gets her turn at bat and she has filed a complaint with the FEC asking it to investigate Melanie Sloan who is executive director of Citizens for Ethics and Responsibility in Washington (CREW) which filed the claim of wrongdoing by the O’Donnell Campaign.

Ms. O’Donnell complaint alleges that  CREW based its claim on an affidavit that it failed to vet  former O’Donnell campaign worker David Keegan, Jr. 

The affidavit, according to Ms. O’Donnell, contained false information.

“Although the purely political
motives behind the submission to your office are not illegal, making
false statements to the United States Attorneys’ office and/or FEC would
violate federal law,” said Ms. O’Donnell’s lawyer, Richard Abbott.

In other behind the headline news, Reuters is reporting that Moody’s ratings agency wants the U.S. to end the statutory limit on debt so bondholders won’t be subject to “periodic uncertainty”.

So holders of existing debt are somehow endangered when an institution declines to keep borrowing? Only in a Ponzi scheme. Has Bernie Madoff gotten a prison job managing Moody’s?

In a certainly unrelated matter, the Obama Administration is reported to be considering civil fraud charges against Moody’s and fellow respected ratings agency Standard and Poor’s regarding their actions relating to mortgage debt and the collapse of the housing market.

Expect to see the investigation dropped.

Against Moody’s anyway.

How deep does the corruption in our government go?

No Action On Debt Ceiling Won’t Hurt Grandpa

No Action On Debt Ceiling Won’t Hurt Grandpa — For those fearful  that the elderly will be thrown in the street and bankers will repossess the Statue of Liberty if the debt ceiling is not raised Aug. 2 here are some facts courtesy of MarketWatch.Com that will rest your troubled souls.

Tax revenue for August is expected to be $200 billion.

Now, interest on the debt will be $29 billion, Social Security outlays will be $49.2 billion (hey, wasn’t that supposed to be in a separate “lockbox” fund?????), Medicare and Medicaid outlays will be $50 billion, and $5.8 billion will be spent on active duty troop pay and veterans affairs programs.

So that leaves $66 billion without having to spend beyond our means.

The problem is that Obama wants to spend $300 billion for August.

Well as Mick Jagger once said, you can’t always get what you want.

And with the facts on the table it looks like you don’t even have to try real hard this time to find that you get what you need.

There will be dire consequences to any Republican who votes to raise the debt ceiling.

 

No Action On Debt Ceiling Won’t Hurt Grandpa

Does President Obama Care About Seniors?

President Obama has just told the nation that he couldn’t guarantee senior citizens would get their Social Security checks if the America’s debt ceiling is not raised on Aug. 2.

Republican congressional leaders have said otherwise, but the question  arises as to why the President is being so intransigent in resolving the issue if he thinks this is going to happen.

Doesn’t he care about our elderly?

Issa Bill Would End Untrackable Govt. Spending

Issa Bill Would End Untrackable Govt. Spending — A bill was introduced June 13 by Congressman Darrell Issa (R-CA49) that could change politics as we know it.

H.R. 2146, or the DATA Act, would create a website on which all government spending would be detailed using practices now in place in the common sector and with clear standards.

Isn’t this being done now?

Ho, ho, ho.

The White House controlled USASpending.gov has been found to be off by $1.3 trillion  while www.recovery.gov which was created to follow the $787 billion stimulus program is widely regarded as a joke. For instance, it claimed federal money was distributed to 884 congressional districts. There are only 435.

Both sites have been called cumbersome and intentionally opaque.

Kudos Congressman Issa.

Hat tip PajamasMedia.Com.

Issa Bill Would End Untrackable Govt. Spending

Red Chinese Taxpayers’ BFF

Red Chinese Taxpayers’ BFF
By Bob Guzzardi


Yahoo/ Agence France-Presse reports that a Chinese ratings house has accused the United States of defaulting on its massive debt on Friday, a day after Beijing urged Washington to put its fiscal house in order.

“In our opinion, the United States has already been defaulting,” Guan Jianzhong, president of Dagong Global Credit Rating Co. Ltd., the only Chinese agency that gives sovereign ratings, was quoted by the Global Times saying.

The irony the serial, mass murdering totalitarian Mao Zedong comes to the rescue of the American Taxpayer. Pathetic when the Chinese government states the obvious truth and our own Administration obfuscates the effects of reckless expansion of Government Fiat Dollar Supply.  It is hard to think of the dollar as real money anymore given the way it has been abusively devalued by our own government

Devaluing the currency as Federal Reserve does when it buys Federal Deficit Debt with Fiat Money devalues the real, as opposed to nominal, savings of every saver and diminishes value of real savings that can be invested in productive job creating business that raise the standard of living for all of us. The government (and Democrats) can ignore American savers and investors and buy off corporations with subsidies and special tax breaks but it can’t ignore the Chinese.

 

Red Chinese Taxpayers’ BFF

Hooray! Budget Deal Would Cut Deficit To $1.606 T

Hooray! Budget Deal Would Cut Deficit To $1.606 T — A deal was approved in Washington last night averting a shutdown of the federal government and cutting $38.5 billion in federal spending through Sept. 30, which is the end of the federal fiscal year.

Great job and all but how is this comparatively miniscule amount of savings going to make much difference with the federal deficit that was projected in February to be $1.645 trillion at year’s end. Should we start cheering now that the deficit will $1.606 trillion?

OK, it might be a little less than that since, according to Congressman Pat Meehan, the continuing resolutions cut about $10 billion in spending but the point stands.

The debt by the way remains schedule to close near $15 trillion at year’s end which is 100 percent of our GDP. Would you make a loan to someone whose entire annual income was owed to someone else?

Don’t blame John Boehner and the Republicans for this lack of action. It’s clear the GOP congressmen recognize the crisis and they did the best they could considering the willingness by Harry Reid and the Senate Democrats to hold military personnel in harm’s way hostage for even the smallest concessions.

 

Hooray! Budget Deal Would Cut Deficit To $1.606 T

Balanced Budget Amendment Handwaving

Balanced Budget Amendment Handwaving — Pat Toomey (R-Pa) is being joined by the other 46 Republican senators in sponsoring a Balanced Budget Amendment to the Constitution.

Amending the Constitution  requires votes of approval from two-thirds of the House and Senate; or a convention called by two-thirds of the state legislatures followed by votes of approval by three-fourths of the state legislatures.

It’s not an easy process. For instance, it is far harder to amend the Constitution than it is to pass a budget which requires simple majorities in the House and Senate and the President’s signature.

So, Sen. Toomey why not  forget this Balanced Budget Amendment and just balance the budget?

Is it because the Democrats are standing in the way? Well, maybe it might be more productive to start pointing this out rather than partake of an exercise in Constitutional handwaving.

Balanced Budget Amendment Handwaving

Meehan Describes Debt Crisis During Marple Event

Meehan Describes Debt Crisis During Marple EventMeehan Describes Debt Crisis During Marple Event — Congressman Pat Meehan (R-Pa7) went  well over his allotted hour this afternoon, March 24, to field questions from a standing-room-only crowd of about 80 in the commissioners room at the Marple Township Building.

Meehan, sober and serious, in his introductory comments described the debt crisis illustrating it by noting how the Chinese, our biggest creditor, could build three of their latest strike fighter jets with $50 million left over every day on what we pay them in interest on our debt.

He noted that the arguments now in Washington about budget cuts exclusively concern discretionary spending which makes up but 20 percent of our federal government’s total spending.

Meehan said the Republican-controlled House had sent the Democrat-controlled Senate a budget which cut $60 billion in this discretionary spending and which was rejected by the Senate. He said that for the last 5 weeks the government has been funded via “continuing resolutions” written by the House which have equaled cuts in spending of $2 billion per week. He said that government spending was entirely funded by continuing resolutions in 2010 speculating that the then Democrat House majority did not want the nation’s debt to be fully revealed in an election year.

Why the Republicans sought only $60 billion in cuts initially when their new strategy extends to $104 billion in cuts was not something Meehan explained.

When Meehan mentioned government shutdown the room erupted in cheers. He made it clear in the course of the event, though, that was an avenue he was very reluctant to pursue.

The first person who asked a question was a woman who said her children were federal employees and her son-in-law was in the military just back from Afghanistan and said that they had told her that their superiors said they were not going to be paid if there wasn’t a budget.

Meehan said he didn’t see that happening and that there were a lot of people spreading scare stories.

One person demanded that foreign aid be investigated pointing out that we had been giving Libya billions of dollars and are now bombing them. Another, to loud cheers, said that if federal salaries are cut the ones going to congressmen must be the first.

Defunding Obamacare, a topic being broached on the web and on many radio talk shows, was brought up. Meehan said that its defunding could not be addressed via the continuing resolution process under the congressional rules to which all agreed at the beginning of the year.  He said he was not going to violate the rules as Nancy Pelosi did.

It was a similar answer to one he gave a young man about defunding Planned Parenthood of its annual $360 million taxpayer gift.

The young man, who said he was a federal employee, said he would rather lose his paycheck than see Planned Parenthood continue getting the money.

Meehan took a question from a woman who brought up a personal issue regarding what she said was a “corrupt” Delaware County judge. She said she brought the matter to Meehan’s attention 16 years before while he was Delaware County district attorney. He listened patiently and referred her to his staff.

Meehan noted that he had meet with a group of before the citizens’ town hall and revealed that unlegislated regulations are crushing them. He described how the Environmental Protection Agency has become a law unto itself. He said that it is now demanding the county’s oil refineries add $30 million cooling systems for the water they use for other cooling processes and which is recycled clean, eventually, into the Delaware to keep fish from getting confused.

He noted that the refineries employe 2,000 persons directly with another 4,000 more jobs connected to them. He feared the refinery owners might choose to shut them down rather than deal with the EPA’s overreach.

Meehan pointed out that the local refineries are dealing with unregulated competitors in places like Nigeria which can refine oil into gasoline for pennies on the barrel.

Lisa Esler of the Delaware County Patriots told Meehan that a perception is developing that Speaker of the House John Boehner is weak and too willing to cave-in to the entrenched bureaucracy and  that he had better do a better job of defending and explaining himself.

Several told Meehan that compromise was a bad word.

 

Meehan Describes Debt Crisis During Marple Event