So Why Are We Always Broke?

by: the Common Constitutionalist

A new report appears to show bad news on the financial front  as “the federal budget deficit this year will increase in relationship to the overall size of the economy for the first time since 2009 and continue to grow over the coming decade.” The Congressional Budget Office (CBO) estimates that the deficit will grow by an additional $105 billion, totaling $544 billion for 2016.

In August the same CBO estimated the 2016 deficit to be around $414 billion. Still a lot but nowhere near the revised estimate. So what happened between then and now? Simple – a republican sanctioned shopping spree to the tune of an additional $2 trillion in December. Remember that? Oh sure, republicans say they are also instituting spending cuts, but there aren’t.

Now, in the grand scheme of things, whether we add $400 or $500 billion of deficit spending, the difference won’t make a hill of beans worth of difference. Not with a debt load of around $20 trillion and unfunded mandates approaching a quarter of a quadrillion dollars. That’s a two, a five and 13 zeros. What’s a few hundred billion?

It is potentially so bad that the CBO says, “The likelihood of a fiscal crisis in the United States would increase” without appropriate action,” the CBO study said. “There would be a greater risk that investors would become unwilling to finance the government’s borrowing needs unless they were compensated with very high interest rates; if that happened, interest rates on federal debt would rise suddenly and sharply.” read more

Where Did All the Money Go?

You May Want To Be Sitting Down For This One – Maybe Have a Drink Or Two Or Three…

 

by: the Common Constitutionalist

What is the refrain of the left whenever anyone suggests tax cuts? Naturally it is, “How are you going to pay for them?”

And what about cutting government spending? Well, Democrats will cry, in unison, that there is no where to cut. By cutting spending, we will be ripping food out of the mouths of needy children, or some such nonsense.

Remember this statement – “There Is No Where to Cut“.

And we can’t forget the “Tried and True”, tax cuts for millionaires and billionaires will only hurt the middle class.

As a rather obvious aside: paying for tax cuts bugs the crap out of me. Why should we have to “pay” for a tax cut? It’s our money in the first place. But the government naturally treats our money as theirs first, and if there is anything left over, which they claim there never is, they will consider giving it back to us, the people.

Anywho, speaking of whining about tax cuts, there’s this from just a few months ago. A column written by Steve Benen entitled, “The Magical Cost of Tax Cuts“. read more

Sequestration and the End of the World, Continued

by: the Common Constitutionalist

The White House, the Democrats and their stenographers, the media, have really ramped up the hysteria and hyperbole regarding the March 1 sequester deadline. As for the deadline, to hear these folks whine about it, especially our president, you’d think it really was a dead-line.

sob storyI swear I’ve heard the president say, from one speech to another, that virtually every public sector employee will lose his or her job. It appears this is shaping up to be the mother of all crises. And need I remind you what they say about a good crisis. This is how wedded the government is to our tax dollars.

Now keep in mind that the following list of tragedies that is sure to befall us is only a fraction of the Armageddon this administration is predicting. All this for a lousy 2% cut spending. That’s the equivalent of a person making $50,000 per year giving up one Starbucks coffee a day.

Air travel will be disrupted due to an estimated 47,000 FAA workers being laid off. The TSA will have to let employees go. Of course that will not only cause delays but also security problems. Terrorists, realizing our sudden vulnerability will rush to the nearest airport to wreak havoc knowing the TSA is not on the job. Terrorists such as little four-year-old wheelchair-bound girls and ninety-year old grandma’s may now slip through undetected. The horror!

Hurricanes and other severe weather events will no longer be predicted due to deep cuts at NOAA. Deputy commerce secretary Rebecca M Blank states, “The government runs the risk of significantly increased forecast errors and the government’s ability to warn Americans across the country about high-impact weather events, such as hurricanes and tornadoes, will be compromised.”

Layoffs of over 36,000 at the Bureau of prisons will lead to a dangerous situation of inmate violence according to Eric Holder.pink slip

Uh Oh! Gun violence alert! FBI director Robert Mueller warned the Congress and Senate that gun background checks would be impeded, increasing the likelihood of convicted felons ending up with weapons. Because that’s how felons always get their weapons. They don’t steal them; they attempt to purchase them legally.

Now if I were this administration, what other hot button issues could I scare the general public with? Well, we all eat. How about a nationwide shutdown of meat and poultry plants. This is what agriculture secretary Vilsack is warning of. That will certainly scare the public.

What else? Illegal immigration is a concern of the right. Immigration courts, judges and interpreters will be affected leading to a flood of aliens entering our country illegally. The question is, how will we tell?

Is that it? Is that not esequester-cartoon-bensonnough to tip the scale for you? Well, there’s more. There’s always more.

HHS secretary Kathleen Sebelius claims over 370,000 mentally ill and emotionally disturbed patients will lose vital services. 125,000 additional homeless people will be left wandering the streets. 600,000 women and children will be thrown off WIC. 424,000 AIDS patients will be denied medication and housing assistance. Over 800,000 American Indians will be denied hospital care. No Headstart for 70,000 kids and no child care for another 30,000.

I could go on and on. Just realize that a paltry 2% cut and spend during will result in the total meltdown of our society, evidently.

Now the $64,000 question is, do you believe it? Do you believe the government when they describe such wanton destruction from such a small cut? Well that’s what they are banking on. That’s what progressives do. That’s all they have as motivation; fear. They bank on the ignorant public’s fear of the unknown.

But every once in a while the media will slip up and practice a random act of journalism. It doesn’t happen often but it does prove that these folks (reporters) can do their job; they just choose not to.

ABC news reporter, John Karl, was discussing the looming sequester with host George Snuffleupagus, when he let something slip. They were discussing homeland security cuts when Karl stated, “Yet, despite all the dire warnings and inability to reach an agreement, the spending cuts represent only a fraction of total federal spending. In fact, even with the cuts, the federal government will spend about $15 billion more this year than it spent last year.”spending

What? Did I hear that right? You mean to tell me that these dire warnings of world ending sequestration-spending cuts will result in a budget increase this year? Why is this the first time we are hearing of this? Well, it isn’t. I wrote about this just a few days ago. Remember; it’s called Baseline Budgeting.

So you see, once again, this hand wringing and teeth gnashing is all about nothing. Let me correct that. It’s definitely about something. The left has a lot to lose if the bogus spending cuts are allowed to happen.

The progressives cannot afford for the ignorant to discover they’ve been lied to. If the sequester “cuts” are allowed and the world doesn’t end, the public may just realize that budget cuts aren’t as tragic as they have been portrayed. This is why we see the full-court press.

After all the warnings of doom and gloom, the left knows these cuts won’t even be noticed by the majority of voters and they can’t allow their lie to be exposed. When the public realizes these cuts have little to no effect on their lives, they may actually demand more and the progressives can’t have that.

That’s what this whole production is all about. It’s as simple as that.

Hey, It’s Not Our Money, It’s Theirs

From Bob Livingston at Personal Liberty:

Recent news-making events demonstrate that the rot infesting the cesspool that is Washington, D.C., can no longer be contained. The rot is noxious, pervasive, knows no political party and infests all it touches.

The recent events include the scandalous excesses of the General Services Administration junkets — on which even the bureaucrats’ spouses traveled, partied, wined and dined on the taxpayers’ dimes — and the Secret Service’s drunken whoring with Colombian prostitutes.

These events contain a common thread: Federal government employees who understand that in the United States, money does indeed grow on trees (or at least in Federal Reserve computers). They view the American taxpayer as a bottomless pit. They have come to think of themselves as a privileged class and believe rules of decorum and normal conduct do not apply to them.

This is not a new thing; it has been occurring — at the GSA at least — for about 40 years. As lawmakers grilled GSA officials last week, they learned that GSA employees have repeatedly taken financial kickbacks, engaged in insider dealing and suffered from general incompetence. It’s a pattern that dates back to the 1970s.

It’s also increasingly apparent that the rot is not confined to the Federal government. More than 100 workers in the city government of Washington, D.C., received jobless benefits totaling at least $800,000 while still working for the city. Ninety-two workers implicated in the scheme were suspended (61 of those were subsequently fired), and 40 more workers who left the city’s employment before the scandal broke have been identified. Another 100 workers are being investigated.

Federal bureaucrats and elected elites owe $1 billion in back taxes for 2010. Some of them are people who set or enforce tax policy on the rest of us. Remember that Treasury Secretary Tim Geithner did not pay taxes for the years 2001-2004 until the issue came up as he was being vetted for Senate confirmation. Obviously, Senators did not care.

Nor did Congress care that former House Speaker Nancy Pelosi (D-Calif.) flew home and back on weekends at a cost of $120,000 per trip. That’s almost four times as much as Defense Secretary Leon Panetta spends to go home to Carmel Valley nearly every weekend. They are not the only ones who have done this or are doing it. At least Panetta says he regrets the cost (not that he’s stopping the practice).

Neither the criminal political class in Congress (criminalongress?) nor President Barack Obama, the Redistributionist-In-Chief (RIC), speak of making any meaningful cuts in government spending. Under Obama’s recently introduced budget, Federal spending would increase by 55 percent from 2012 to 2021, according to the Congressional Budget Office. Under Congressman Paul Ryan’s (R-Wis.) budget, Federal spending will increase 34 percent.

In other words, when members of the political class speak of “cuts” what they’re talking about is reducing the amount of year-to-year increases. They never cut anything.

Yet bearing down on America like a Category 5 hurricane is taxmageddon. It will make landfall on Dec. 31 unless a lame duck Congress and President (whether Obama is re-elected or defeated will not matter) can reach some kind of agreement.

What is taxmageddon? It’s a combination of expiring George W. Bush-era tax cuts and the implementation of new Obamacare taxes. The marriage penalty for joint filers will return, the child credit will drop in half and the rate everyone pays on the first $8,700 of wages jumps from 10 percent to 15 percent. The Social Security payroll tax will go from 4.2 percent to 6.2 percent. Obamacare-mandated Medicare taxes will also rise.

There is little comfort to be found in the knowledge that the criminalongress and RIC will tackle the tax issue in a lame duck session following the November election. They will be unfettered by political considerations: Obama because regardless of November’s outcome he will never again be seeking election, and members of criminalongress because elections will be more than two years away for those who won. They will count on voters’ short memories. Those who lost will be attempting to win favor with the corporatocracy: those large fascist corporations that snatch up former lawmakers and pay them exorbitant salaries to lobby their former peers for special favors, tax breaks and government contracts.

Meanwhile, criminalongress will engage in political theater sleight of hand in an attempt to distract you from their own corruption. Criminalongress engages in insider trading, earmarks bills to benefit favored constituencies, take kickbacks in the form of campaign contributions from companies it supposedly oversees and regulates, cedes its authority to faceless and unelected bureaucrats at dozens of unConstitutional alphabet soup agencies, and dishonors the oath to “support and defend” the Constitution by allowing the Imperial President to wage unConstitutional war and set spending policy without Congressional approval.

Other than that, we are in great shape.