Posts Tagged ‘national debt’

We in America have been so indoctrinated to believe there are only two ways of looking at our political system: from the perspective of a Republican and from that of a Democrat. The media, our friends and family, and our culture in general all propagate this myth. The truth is the parties are for all intents and purposes the same. If you are for either, you are for massive, all encompassing government. It’s a pick your poison scenario. (more…)

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April 15th is tax day, or the deadline for submitting your tax returns to the government. It’s a day we should all stop and give thanks to our omniscient, omnipresent, and opulent oligarchy. On behalf of the 50% of Americans who pay for the other half, I would like to give thanks to you today, my all-powerful government, for taxing my income, my property, my purchases, my gifts, my investments, and my estate that I would like to leave to my children when I die. Truly… Thank you. I mean it.

I realize that merely confiscating a large percentage of my hard earned money is not enough to fund your imperialistic military, your entitlement programs, foreign aid, bank bailouts, and all of your massive departments. I understand that if I watch my spending and save a little and invest for my future you must tax that as well (wait, didn’t you already tax that money once?). I also realize that you must tax the food, gas, and clothing that I must buy with some of my money that you allow me to keep. I understand that this is still not enough revenue for you so I must pay you each year for things I own like my house and my car. And finally, I totally get that whatever you leave me with, at the end of my days, that I want to leave for my kids, you must take your cut of that too. (more…)

As I’ve written before our economy is based on bubbles. The Fed inflates a bubble, we have a crash, they reinflate and round and round we go. Right now we are seeing the cheap money find its way into stocks. Last time it was housing. Today’s report of an unexpected 0.5% increase in producer prices in March makes one think the freshly printed dollars may be finding their way into the economy at large. The dollar has taken a bit of a beating this week on the FX market. It was down 2.5% against the Yen which is tough to do given Prime Minister Shinzo Abe’s rampant money printing. Who knows if this is the beginning of a trend but, if nothing else, its a harbinger of things to come.

The main way by which the Federal Reserve seeks to “stimulate” the economy is by manipulating interest rates. It does this through its so called open market operations. In other words, it attempts (most often) to force interest rates down by changing the money supply, i.e. printing money. (more…)

Dick Cheney famously said, “Deficits don’t matter.” Well, deficits have run our national debt up to over $17 trillion and counting exploding. Dick Cheney and most politicians are great at spending other people’s money. The more they spend, the more likely they are to get votes, and so the more likely they are to say things like “deficits don’t matter.” We need to remember Dick Cheney, as well as most politicians, are not economists. They are in the business of buying your vote. Deficits do matter. They matter a lot. When they tell you the rules that govern your personal expenditures don’t apply to the government, don’t believe them. No matter what anybody says, irresponsibly spending more than you take in year after year after year with no plans to ever slow down is a recipe for disaster. The federal government is buying votes with your credit card and have no plans on paying down your balance.

If you haven’t seen this video by Tony Robbins on our national debt, brace for a wake-up call. He really puts the severity of our situation in perspective. I was blown away the first time I watched it. And I realize its a bit random to put a Tony Robbins video up on the site, but his self-help dvd’s did change my life. Just kidding… or am I? Believe in yourself, reach for the stars… and enjoy this video on our monstrosity known as our national debt:

Moral Hazard is a very simple concept that has immense and sweeping repercusions. It is at the very root of the decay we see in America today. It causes people, companies, and other entities to behave in a manner they otherwise would not… a manner which is often reckless and destructive. The biggest proliferator of moral hazard in this country is our government along with it’s partner in crime, the federal reserve.

If you don’t know, Moral Hazard is the principle that says if you remove or mitigate the consequences of someone or something’s actions you remove their incentive to guard against risk associated with those actions. In other words, if one is not punished for poor choices, he or she will continue to make those same choices. To boil it down even further: people respond to incentives. Too often our government incentivizes destructive, or at the very least, non productive behavior. (more…)

Submitted by Dirk Trip, Former Marine

Dwight D. Eisenhower, one of the most iconic military leaders in all of human history, left the American people a clearly defined warning about the dangers of an unchecked military industrial complex.

As it stands now, not only do we not like Ike, we’ve set the poor general to spinning in his grave like a drill bit. Our military industrial complex has gone beyond unchecked, it has grown into some sort of immeasurable colossus that gobbles up money like nothing ever before in human history. We never really took our foot off of the gas pedal when it comes to our defense spending, so I guess, F-U Ike, thanks for your service though…

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Think about the type of person the average politician is. I am obviously generalizing here but politicians tend to be narcissistic. They tend to be hungry for power and control. Think of the typical douchey cheesebag you see on Sunday morning political tv shows, with his über white teeth and his perfect hair. Think of all the politicians who cheat on their wives. Think about the nature of politics. You have to be a salesman. And, lets face it, most of these guys are glorified used car salesmen (no offense to my thousands of used car salesman followers). They must be adept at spin, at lying. If the economy is bad, they must convince you it’s fine. They’ll convince us that war is necessary when diplomacy is in order. These guys suck, Republicans and Democrats alike.

Understanding that most politicians blow, I now want to focus on Republicans specifically. I have a real disdain for Democrats but Republicans are a special kind of suck. (more…)

http://www.bloomberg.com/video/not-a-snowball-s-chance-of-surplus-stockman-1xN5X6c2Q6adY43erJ2bPg.html

Check out this really good little 5 minute video with David Stockman. If you want to understand exactly where our economy is, where it is heading, and how we got here do yourself a favor and read his masterpiece The Great Deformation. It is unreal.