Archive for March, 2013

Our National Debt

Remember the often repeated theme in the Road Runner Cartoons. Wile E. Coyote is always chasing the Road Runner. At the last minute the Road Runner makes a diversionary move, the Coyote doesn’t. The Coyote runs off the edge of the cliff and for a moment is suspended in air treading space with his legs before —- ZIP he plunges to the bottom of the canyon. Often soon there after a large falling bolder hits him on the head.

That is a graphic of the American economy. We are not going off the cliff. We are off the cliff regardless of what is said.

Our national debt is variously reported to be approximately $16 trillion. Wrong! Not included is what the government owes the Social Security Fund. That is another $18 trillion bringing our national debt of nearly $33 trillion.

Based only on the $16 trillion debt every citizen owes $52.052.60. While solutions are sought the debt goes up $3.87 billion per day.

The soon to be imposed 3.8 percent tax increase on capital gains alone won’t fix the problem. It will hurt investors and hence an economic recovery.

New tax proposals for 2013 are designed to raise $317 billion over the next 10 years. Over 13,000 pages of new regulations have been prepared for this new Obama tax plan. There are more to come. These greatly expand government control and increase costs.

One noted economist has said that unless spending is controlled every citizen could be taxed at the rate of 100% and that would not solve the debt crisis. Spending must be controlled.

Borrowing more from China and other foreign countries isn’t the solution. Foreign governments are not as interested as they once were. They do not see America as a good borrower.

The question is posed as to how we got in this mess. There is a one word answer: GREED.

Greed is compounded by a fog of topor that seems to hang over our nation. This has resulted in a broad base commitment to working the system to get something for nothing. It is a form of greed that has gone viral identified as cupidity, an eager or excessive desire to possess. Avarice, meaning insatiable greed is yet another word for our societal appetite.

Entitlements have to be disciplined. There is no way to sustain them. Congress is going to be slow to make essential cuts because recipients of unmerited entitlements tend to be diligent voters. To take away an entitlement is to lose a vote.

A simple solution is not to tax the rich. There is no way that will solve the problem. If the President’s proposed full tax on the rich were applied to the 2012 budget it would decrease from $1.10 trillion to $1.2 trillion.

Every American is going to have to be involved in accomplishing a recovery. Special interests can’t be shielded, every citizen must be involved. Tough choices have to be made that will impact everyone.

As this financial scenario plays out greed plays the part of the Road Runner and we individually and culturally the pursuing Wile E. Coyote. The result is always the same. You know, the cliff and ZIP. Those who pursue greed never win. There are no cliff hangers. There is always a bottom to the canyon.

If we cannot govern ourselves individually there is no government that can govern us.

May the need for government restraints encourage us to better control not only our personal finances, but every area of our lives. Self-discipline is the most challenging form of discipline and the most essential.

 

What is the Federal Reserve?

Men who came to be known as “The Jekyll Island Club” represented one-sixth of the world’s wealth. Meeting at one of the most prestigious sites in America at the time they plotted the establishment of a central bank which they would control. The strategy of the elitist financiers involved the future of money and credit in America. Efforts to prevent the concept of a central national bank were begun by Thomas Jefferson and later championed by Andrew Jackson.

Those gathered on Jekyll were officially known as the National Monetary Commission (NMC).

Banks at the time were looked upon with suspicion. The NMC purposed to avoid the stigma of a bank by using the title “Federal Reserve System.” Their recommendation removed from Congress control given Congress by Article 1, Sec. 8 Par. 5 of the Constitution which states, “the power to coin money and regulate the value thereof.” The action of the NMC would eventually mean their seven member board which would control the nation’s money and credit were to be appointed by the President and approved by Congress.

President Woodrow Wilson and the Congress elected in 1912, got the central bank legislation passed. This action ultimate resulted in the Federal Reserve being established.

Since that time one of the sidebar effects is the Federal Reserve acts to make the President look good. That is not a new thing.

Recently the Federal Reserve, which is an independent bank, announced they will purchase $40,000,000 of U.S. Treasury Bonds a month to stimulate the economy. Where do they get the money? They exercise the authority given them as an eventual outgrowth of the action of “Jekyll Island Club.” They print it. They have the power to issue money and regulate the value thereof. This is power formerly granted only to Congress.

Boosting the economy sounds good, but what actually does it do?

It devalues the dollar by creating more dollars. That sounds abstract, but what it means is it devalues your savings account, your IRA, the value of your home, any other assets, and the purchasing power of the dollar.

Four years after the signing of our Constitution, a federal law was passed making it a capital crime to do anything to devalue the dollar. That law is no longer in force, but the fact it existed indicates how serious the Congress of that day thought it was to devalue the dollar.

Thomas Jefferson in 1791 warned: “If the American people ever allow the banks to control issuance of their currency, first by inflation and then by deflation, the banks and corporations that grow up around them will deprive the people of all property until their children will wake up homeless on the continent their father occupied.”

The term “banks” is used in this sense not of your local bank, but the central bank now known as “The Federal Reserve Bank.”

The Federal Reserve is more complicated than space will allow for explaining. However, it is considered an independent bank because its decisions do not have to be ratified by the executive or legislative bodies of government.

Members are appointed by the President and traditionally their actions tend to make the President look good. Isn’t it interesting that just before this election they proposed to take action to stimulate the economy. It hasn’t.

This is not Your Father’s America

This is not your father’s America! The voter response November 6, 2012, was the announcement that a new era is now here.

Demographically and politically that was made obvious. However, there are less obvious evidences this is an emerging new culture. Rejoice that there are personal oasis where the values and virtues that have long identified our culture are not being blanched from the fabric that has long been America. Yet ….
Among the citizens of the new America many traits are waning. Personally and corporately some identifiable admirable qualities are no longer the norm.

Fading, but fortunately not gone are noteworthy attributes, such as:
Civility has been escorted off stage and replaced by rudeness or apathetic coolness.
Courtesy is passe. “Me first” is now head of the line.

Social grace is engulfed in a vortex of rudeness. Where is Captain Kangaroo when we need him to remind us of the magic words “please” and “thank you.”

In many quarters deception mocks integrity. Lacking integrity our culture suffers from a poor quality of workmanship, honesty in business transactions, and keeping commitments.

Many do not consider it a virtue to have a good work ethic. Do as little as you must to get as much as you can is the active axiom. Indifference is a prevailing demeanor. The conductor on the “Little Train That Could” is now the apathetic “Mr. Whatever.”

For too many decisions are made on the basis of passion not principles.

One out of every three citizens under age thirty is classified as a “none” because they have no religion. Couple that with the fact seventy percent of all churches in America are either plateaued or declining and it marginalized the religious community, making it a non-player in society.

The theme of eight-eight percent of citcoms is based on unapologetic sexual immorality. We nictitate at adultery and scoff at family values.

A sense of entitlement has rudely brushed aside the concept of personal responsibility and accountability.
Remember the old adages “How may I serve you?” and “The customer is always right.” Persons whose mantra is “no problem” and “no big deal” need to go to Chick-fil-A and learn a better response: “My pleasure.”

Patriotism is virtually mocked by dispassionate freemen/freewomen. Singing the National Anthem and Pledging Allegiance are passing along with “The Greatest Generation.” Remember them? Well, maybe not in that the emerging generations are likely unaware that generation simultaneously fought and won two world wars on opposite sides of the planet. In doing so they preserved the freedoms we now abuse.
I never thought that I, a life long optimistic zealot, enthusiastic about America would write such a summary.

What is a person to do? A resounding course reverberates “Suck it up and get use to it.”
That I refuse to do. I accept it, but do not approve of it. Therefore, I will encourage the significant segment interested in morals and manners to recommit ourselves to impact our little spheres of influence for renewal.