Wednesday, 08 June 2011 10:42
U.S. National Debt Is Worse Due To Entitlements, Printing Dollar
Written by 

US debtIt is past time politicians stop the demagoguery. American’s economic crisis and the need for deficit reduction is critical. We cannot continue to spend at present levels. Our nation is in a crisis and unless we soon address the problems, we will soon be joining the ranks of Greece, Portugal, Ireland, and Spain. That is why the rest of the world is looking beyond the dollar as a reserve currency for use is pricing commodities, because the American dollar has lost its value.


One might even argue that the discord in the Middle East, which many relate to food price inflation, is directly related to the collapse of the American dollar’s value.

Since Obama instituted Quantative Easing#2 (QE2) which is a euphemism for printing $600 billion, the American dollar has steadily lost its value. Once, the Canadian dollar was 60 cents to an American dollar. Today it is $1.03 Canadian to an American dollar. That is a 43% change. Just this year the dollar has lost 7.7% of its value which accounts in great measure for the increase in food and fuel prices internationally. You can’t just print money!

The idea was to inject money into the stalled economy to prime it so it would advance. However, little growth has been achieved for all the suffering caused. This year’s Gross Domestic Product (GDP) will increase by a mere 1.8%. Considering that the total economy is about $14.12 trillion, adding $600 billion should have provided a 4.2% increase alone. By gaining only 1.8% is proof that the stimulus failed! Americans paid a lot for nothing…bad economics!

Also, Americans continually hear about our $14 trillion debt, but what are not reported are the total unfunded liabilities our nation faces. The numbers are staggering and difficult to accurately determine. Some sources place it at $14 trillion in debt, $106 trillion in Social Security and Medicare liabilities, $6 trillion in Fannie Mae and Freddie Mac mortgage guarantees, and an additional $1 trillion in unfunded retirement liabilities for government workers and the military. The grand total is $127 TRILLION of debt!!!!

As it stands that amounts to approximately $1 million per worker in America. “Tax the Rich!” some cry. Typical demagoguery. However, the numbers don’t add up. If government were to take 100% of the income from those making over $200,000 that would only pay for this year’s deficit. Furthermore, perhaps it should be noted that those making $200,000 are only 4% of all taxpayers and they already pay 52% of all tax revenues.

Interesting to note, 45% of Americans enjoy the fruits of our land, but pay NO TAXES at all!!! Indeed, many receive income tax credits (a check) amounting to thousands of dollars, but they pay nothing. This is income redistribution!



The bottom line is simple. Americans must learn to live within their means. That means we have to cut back on entitlements. Too many people are benefiting who don’t really need the help. Don’t cut back on all the benefits, but on access to the benefits. However, certainly some benefits can be reduced. Since when should Americans be entitled to cell phones??? Whose idea was that? Or, is this merely a government subsidized ploy to communicate with voters for the next election?

The Obama administration, Democrats, and Republicans must come to some agreement about America’s debt crisis immediately. The Roosevelt “safety net” has become a plush hammock for too many. Work must be tied to benefits and everyone should contribute to the tax system. Programs like having 45% of the population not paying any income taxes coupled with “tax credits” for those who pay nothing have to be re-evaluated.

If America does not stand tall and take some bitter medicine, within a few short years this nation will face bankruptcy and the accompanying social chaos such a crisis engenders. America’s debt and deficit spending is the greatest threat to our national security. Congress and this President must consider it as such or face the consequences.

Stop playing “gotcha” political games. No matter what party you represent… you will pay the price election day if you don’t address the problem now!

by Ron Chapman

TALK ABOUT THESE ISSUES BELOW AND USE OUR BAYOUBUZZ FACEBOOK FEATURES.  JUST LOG IN WITH THE BLUE FACEBOOK LOGIN ABOVE AND TO YOUR LEFT.

For More Information, Watch the video below

Facebook Login



Login to post comments
Powered By JFBConnect
  • Cat Fights on the Hot Cement Confederate New Orleans statues
  • Ex-Saints, Bears, Bills, NFL Exec, Jim W. Miller discusses NFL Draft tomorrow
  • Trump's new plan; Curtains on tax returns release; 40% say Trump-Russia; Probing Obama admin
  • Watch Louisiana Governor Edwards talk about CAT Tax failure

catRarely, have I seen few issues that have generated as much raw heat, tension, and passion than the Confederate monuments controversy. 

Just as existed during the real civil war, where brothers battled brothers, social media is the battleground, particularly Facebook, pitting friend against friend.

On one side of the tense divide, there are those who are protecting the New Orleans civil war era monuments.  Burnt in effigy, forever, is the symbol of Mayor Mitch Landrieu for up-ending what the monument protectors consider to be the loving civil society of New Orleans.

Lately, events have turned somewhat militaristic.

Some protectors of the Confederate monuments have been staying vigilant, in person and online, even surveilling during the wee hours of the morning, waiting for the next Mayor Landrieu attack. On Sunday morning, with protections of snipers, masked workers and a dumbstruck audience, the worst of all of the monuments was cut and carried., the Liberty Monument. 

Read More

miller nfl live2 5It’s D-Day or Draft Day tomorrow in the NFL.

More specifically, Thursday represents the first day of the NFL draft 2017.

Read More

 

trump curtainsThe major President Trump news of the day focuses upon taxes, not only the tax cuts he is proposing but his own taxes, which he obviously, refuses to unveil.

 

Read More

edwards play money 1

At a press conference today, Louisiana Governor John Bel Edwards said the CAT Tax did not pass the House Ways and Means Committee.  The Governor, in addressing the media said that "the fate of that bill was decided long before we unveiled it".

Read More

latter-blum2

Sen. Appel talks budget, economy

TRUMP TALK

Dead Pelican

Optimized-DeadPelican2 1 1