Thanks to our SC businessman for sending the link for this excellent video that presents the viewpoint that our elected representatives cannot balance the budget even if they wanted to because the operating portion of the federal government is paid for entirely with borrowed money – i.e., – the annual deficit is larger than the amount Congress appropriates to operate the federal government. The video demonstrates that even if all discretionary programs like Education & Energy as well as constitutional functions such as Defense were eliminated there is not enough tax revenue collected to pay the interest on the debt & fund the misnamed mandatory programs like Social Security & Medicare. The accountant who narrates the video offers two painful choices: 1) raise tax revenue 50% (the deficit is 50% of the amount of tax revenue collected) or 2) eliminate the operating portion of the federal government – neither of which is a viable solution.
Now this is an excellent video for presenting the real problem but its fault lies in relying on a static analysis for its hopeless solutions. For many months RTE has presented the dynamic analysis that offers a much better solution than raising taxes 50% for those who pay taxes (the bottom half of income earners still pay nothing) or shutting down the Department of Defense, et al. I have documented through many postings the dynamic mindset change that is so desperately needed in our country & this video vividly shows why it is needed – posthaste. I'm sure that people who read these messages carefully quickly thought of the solutions below while watching the video.
But time gets shorter every day to implement the proper solutions – it gets harder the longer we wait until the ultimate cruelty comes when the elderly who currently count on Social Security & Medicare learn one day that it is just not there any more for them in any where near the form they now realize.
Please click on the January 31, 2012 posting entitled Four Points Highlight The Needed Change In Mindset to see the way out of our financial pickle illustrated on the video summarized as follows: 1) repeal ObamaCare & implement a premium support plan for Medicare based on Ryan's original proposal (see graph on above posting) that bends the cost curve down for this gigantic entitlement, 2) reduce the initial Social Security benefit for people under 55 so that the initial benefit is calculated based on the CPI rate instead of the wage rate as it is now, 3) implement Ken Blackwell's "cut, cap, & balance" plan, & 4) enact the FairTax under HR 25 – the problems depicted in the video illustrate why HR 25 is the most important piece of legislation in our lifetimes for America.
Now even despite the very poor economic conditions being tolerated in America we still have time to make the above four corrections before the terms labor squeeze, concessions, & austerity measures are prevalent throughout America – these terms already are well known in several towns across the country. Time is not a luxury the PIIGS countries of Europe have (had) & we should learn accordingly from them before we fall down the same metaphorical flight of stairs & have labor riots in our streets.
In fact the timing of the presentation of this video & the four highlighted solutions is perfect coming two weeks before the election. RTE has listed candidates all year long who follow the type of economic principles that will really make the difference in our lives & for our country – not the politically correct solutions that tinker around the edges of our problems that readers of these messages know are no help. Several of these candidates are losing their races or are in very tight races. Thanks to everyone who has let me know they are working with candidates who are people of substance. For the rest it is not too late even now – just let me know privately & I will help you make a selection of a candidate to work with if you do not have a local candidate that follows America's founding principles of limited government, personal responsibility, & free enterprise.
This is in line with the exhaustive US and world bubble economic analysis conducted by Robert Weidemer.
ReplyDeleteBriefely, The Rob is renowned financial advisor, who in 2005, precisely predicted the 2008 economic debacle; then in 2009 precisely again predicted fiscal and monetary policies which have placed us in a more precarious environment now, than 2008. Rob now predicts an economic catastrophe sometime in the 2013-2016 time frame, with only a sliver of a window to ease (and only ease) the pain the world will experience. Ignore this at your own peril.
I reviewed all 3 of his books. The 1st below is most recent (Sep 2012) and I had input to his most recent book. see links below for exhaustive non partisan analysis and investment advise from Rob
http://economics501.wordpress.com/2012/10/21/aftershock-investor-book-review/
http://economics501.wordpress.com/2011/11/25/aftershock-economy-book-review/
more:
http://economics501.wordpress.com/category/aftershock-economy/
Too bad reliable and honest people are not running for president.
ReplyDeleteNewark Star Ledger today endorsed BO, not because they want to, but he was the best choice they figured.
They mentioned that Romney wants to increase the military by a very, very large amount, at a time the U.S. has large deficit. Also Romney flips flop on issues, one day mentions one thing, next day does complete opposite. People lose confidence in that.
My own additional observation Romney wants to tell China what to do or else. He still lives in the days when the U.S. was a mighty economic power and could tell other countries what to do - and they would do it. Not anymore, China today can dicate policy. If the U.S. were to put a lot of pressure on China, they can turn around and say they want to redeem large amount of U.S. bonds they hold (and it is a very, very large amount). Where would the U.S. get the money to redeem these bonds – easy - print more dollars via the printing press, which in turn will make the U.S. dollar cheaper, adding to our deficit.
Do not misunderstand me, BO is no saint and when it comes to finances - his knowledge is next to zero. He knows how to spend money. Your money.
I mentioned to you months ago, why would Romney want to be President of the U.S.? He is very very wealthy. Perhaps it is his ego - I do not know.
I am not saying stock market will go down BIG, but it will decline - how much I am not smart enough to know. We should know by the middle of next year.
If the market should go up big in 2013-2014 I would be happy. But my indicators do not show it. Do not misunderstand me – in 5-8 years from now the market can be up big. Until then save your money. Even CDs do not pay anything – 1% a year, whereas several years ago they were paying 6-7%. I still have some with Capital One paying 5%.
Have a good night.