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We are in a Classic Debt Spiral from Which There is Probably no Escape

CHANGE! Gotta love liberalism.

Via Monty at AoSHQ: DOOM, Served Hot Off the Grill

Read this link and weep. We are in a classic debt spiral from which there is probably no escape. The mandatory spending numbers will never go down, and debt-service will eat ruthlessly away at the remaining portion of the federal budget. (Most of the states are in the same fiscal boat.) Pretty soon, our government will exist to do two things only: send out welfare checks, and pay the vig on our mind-boggling debt.

And even our debt, formerly considered a safe haven by nearly everyone in the world, ain’t what it used to be. This is why our borrowing costs are going up… way up. Pull quote:

The major entitlement programs — Social Security, Medicare, Medicaid — other “mandatory” spending, national defense, and interest on the debt make up more than 80 percent of federal spending.

[ … ] We cannot tax our way out of this hole. We cannot grow our way out economically. We cannot use demographics to work our way out over time (in fact, we’re barely maintaining a replacement rate of reproduction as it is, and most of that reproducing is among the least productive of our citizenry).

We cannot vote the problem away. The only solution that would really work — draconian cuts to entitlement programs and a serious effort to pay down the national debt — would require a level of austerity that few Americans have the stomach for. This means that a political solution to this problem is also pretty much impossible. There is no political solution to this dilemma because neither the citizens nor the politicians are willing to do what is necessary. (Nor is it simply a Democrat/GOP divide. As we have all seen in the Social Security threads I and others have posted, even many conservatives bristle when faced with cuts to their own programs.)

Example: all liberals, and even many conservatives, quail at the harshness of the so-called “Ryan Roadmap”, and insist that it’s not “politically doable”. Well, guess what? The Ryan roadmap is the best attempt by a politician I’ve seen so far at solving this problem — and it barely scratches the surface. Even if every single one of its reforms were adopted right now, it probably would take decades for us to get back on an even fiscal keel. And I don’t think we have that kind of time.

We lost this battle when the debate stopped being about whether the government should provide a gigantic welfare state, and began to be about how we would fund it.

Remember this, if you remember nothing else: it will never be any easier or cheaper to fix this problem than it is right now. The longer we wait, the more catastrophic the outcome will be. If we will not impose discipline on ourselves, the market will do it for us.

Meanwhile, Obama goes golfing and Democrats, instead of doing the business of the people they were elected to do, decide to run and hide from their States and refuse to participate in representative government.  All the while, liberals (ie public sector unions who only care about themselves), instead of working to save the nation, work to destroy the nation and harass with vulgarity and violence the few people who are working to try to right the ship.


March 10, 2011 , 12:41AM Posted by | Communism, Economy, Liberalism, Socialism, Taxes | Comments Off on We are in a Classic Debt Spiral from Which There is Probably no Escape

There is Absolutely No Precedent for This Nonsense

Left this comment in response to this comment at this post at Ace of Spades HQ. I really don’t know when the heck the Right is going to wake up as to the reality of the political war we are facing:

“As for the political fallout from this, well just ask George H.W. Bush how he enjoyed his second term.”

George HW Bush didn’t have the entire media-industrial complex cheerleading his every single burp and fart though, did he? Swing voters will pony up for new taxes obediently if they’re told on a nightly basis that it’s in their best long term interests and that their messiah NEEDS this money. Let’s quit pretending that any Republican administration is a historical precursor for what we’re seeing now.

Posted by: pendejo grande at August 02, 2009 02:57 PM

Well said. People need to wake up and realize that the game has changed and that we are dealing with a ‘messiah’ and his cultist worshipers and a huge ball-licking, leg-tingling propaganda machine. There is absolutely no comparable precedent for this nonsense.

Posted by: Michael in MI at August 02, 2009 03:32 PM

August 2, 2009 , 2:41PM Posted by | Barack Obama, Economy, Media Bias, Taxes | 3 Comments

Obama Cut Taxes? I Must Have Missed That…

“During Election 2008, then-candidate Obama promised to cut taxes for 95% of all Americans. So far, just 26% of adults believe President Obama has delivered on that promise. Forty-three percent (43%) say he has not and 31% are not sure.”

Wow, 57% (26% “believe delivered” + 31% “not sure”) of Americans are apparently morons (and I don’t mean the good Ace of Spades HQ-type morons).  Also, Kyle on South Park was right: 1/4 of Americans are retarded.

[Kyle, Stan, Cartman and Kenny are standing in the school hallway.]
Kyle:  You know that 1/4 of Americans are retarded right?
Stan:  Yeah, at least 1/4.
Kyle:  Here, let’s do a test.  [to Cartman] There are four of us here, you’re retarded, that’s 1/4.

—South Park, Season 10: Mystery of the Urinal Deuce [10.9]

26% believe Obama has cut taxes?   Really?  Since when is cutting jobs, cutting the military budget and spending, spending, spending and spending some more of taxpayers money equal to “cut[ting] taxes for 95% of all Americans”?

I am pretty confident that even Americans who are actually “retarded” could figure out that Obama has done nothing of the sort.

June 11, 2009 , 11:51AM Posted by | Barack Obama, Economy, Tax Cuts, Taxes | 1 Comment

To All My Valued Employees

I found this in the comments section of a discussion of the economy at Blackfive and found myself very much agreeing with the sentiments.


To All My Valued Employees,

There have been some rumblings around the office about the future of this company, and more specifically, your job. As you know, the economy has changed for the worse and presents many challenges. However, the good news is this: The economy doesn’t pose a threat to your job. What does threaten your job however, is the changing political landscape in this country.

However, let me tell you some little tidbits of fact which might help you decide what is in your best interests.

First, while it is easy to spew rhetoric that casts employers against employees, you have to understand that for every business owner there is aBack Story. This back story is often neglected and overshadowed by what you see and hear. Sure, you see me park my Mercedes outside. You’ve seen my big home at last years Christmas party. I’m sure; all these flashy icons of luxury conjure up some idealized thoughts about my life.

However, what you don’t see is the BACK STORY:

I started this company 28 years ago. At that time, I lived in a 300 square foot studio apartment for 3 years. My entire living apartment was converted into an office so I could put forth 100% effort into building a company, which by the way, would eventually employ you.

My diet consisted of Ramen Pride noodles because every dollar I spent went back into this company. I drove a rusty Toyota Corolla with a defective transmission. I didn’t have time to date. Often times, I stayed home on weekends, while my friends went out drinking and partying. In fact, I was married to my business — hard work, discipline, and sacrifice.

Meanwhile, my friends got jobs. They worked 40 hours a week and made a modest $50K a year and spent every dime they earned. They drove flashy cars and lived in expensive homes and wore fancy designer clothes. Instead of hitting the Nordstrom’s for the latest hot fashion item, I was trolling through the discount store extracting any clothing item that didn’t look like it was birthed in the 70’s. My friends refinanced their mortgages and lived a life of luxury. I, however, did not. I put my time, my money, and my life into a business with a vision that eventually, some day, I too, will be able to afford these luxuries my friends supposedly had.

So, while you physically arrive at the office at 9am, mentally check in at about noon, and then leave at 5pm, I don’t. There is no “off” button for me. When you leave the office, you are done and you have a weekend all to yourself. I unfortunately do not have the freedom. I eat, and breathe this company every minute of the day. There is no rest. There is no weekend. There is no happy hour. Every day this business is attached to my hip like a 1 year old special-needs child. You, of course, only see the fruits of that garden — the nice house, the Mercedes, the vacations… you never realize the Back Story and the sacrifices I’ve made.

Now, the economy is falling apart and I, the guy that made all the right decisions and saved his money, have to bail-out all the people who didn’t. The people that overspent their paychecks suddenly feel entitled to the same luxuries that I earned and sacrificed a decade of my life for.

Yes, business ownership has is benefits but the price I’ve paid is steep and not without wounds.

Unfortunately, the cost of running this business, and employing you, is starting to eclipse the threshold of marginal benefit and let me tell you why:

I am being taxed to death and the government thinks I don’t pay enough. I have state taxes. Federal taxes. Property taxes. Sales and use taxes. Payroll taxesWorkers compensation taxes. Unemployment taxes. Taxes on taxes. I have to hire a tax man to manage all these taxes and then guess what? I have to pay taxes for employing him. Government mandates and regulations and all the accounting that goes with it, now occupy most of my time. On Oct 15th, I wrote a check to the US Treasury for $288,000 for quarterly taxes. You know what my “stimulus” check was? Zero.. Nada. Zilch.

The question I have is this:  Who is stimulating the economy?  Me, the guy who has provided 14 people good paying jobs and serves over 2,200,000 people per year with a flourishing business?  Or, the single mother sitting at home pregnant with her fourth child waiting for her next welfare check?  Obviously, government feels the latter is the economic stimulus of this country.

The fact is, if I deducted (Read: Stole) 50% of your paycheck you’d quit and you wouldn’t work here.  I mean, why should you?  That’s nuts.  Who wants to get rewarded only 50% of their hard work?  Well, I agree which is why your job is in jeopardy.

Here is what many of you don’t understand … to stimulate the economy you need to stimulate what runs the economy.  Had suddenly government mandated to me that I didn’t need to pay taxes, guess what?  Instead of depositing that $288,000 into the Washington black-hole, I would have spent it, hired more employees, and generated substantial economic growth.  My employees would have enjoyed the wealth of that tax cut in the form of promotions and better salaries.  But you can forget it now.

When you have a comatose man on the verge of death, you don’t defibrillate and shock his thumb thinking that will bring him back to life, do you?  Or, do you defibrillate his heart?  Business is at the heart of America and always has been.  To restart it, you must stimulate it, not kill it.  Suddenly, the power brokers in Washington believe the poor of America are the essential drivers of the American economic engine.  Nothing could be further from the truth and this is the type of change you can keep.

So where am I going with all this?

It’s quite simple.

If any new taxes are levied on me, or my company, my reaction will be swift and simple.  I fire you.  I fire your co-workers.  You can then plead with the government to pay for your mortgage, your SUV, and your child’s future.  Frankly, it isn’t my problem any more.

Then, I will close this company down, move to another country, and retire.  You see, I’m done.  I’m done with a country that penalizes the productive and gives to the unproductive.  My motivation to work and to provide jobs will be destroyed, and with it, will be my citizenship.

So, if you lose your job, it won’t be at the hands of the economy; it will be at the hands of a political hurricane that swept through this country, steamrolled the constitution, and will have changed its landscape forever.  If that happens, you can find me sitting on a beach, retired, and with no employees to worry about….

Signed, THE BOSS

A government big enough to supply everything you need, is big enough to take everything you have.   — Thomas Jefferson

January 13, 2009 , 10:56AM Posted by | Capitalism, Conservatism, Economy, Tax Cuts, Taxes | 15 Comments

You Think You Pay High Energy Rates and Gas Prices Now, John McCain Will Make it Worse

McCainservatives like to say that John McCain is a fiscal conservative. I find that interesting considering his current McCain-Lieberman “Climate Stewardship Act” energy bill would cripple Americans with high gas prices by enacting a higher gas tax in addition to raising the cost of energy for all Americans. This means your heating/electric bill will skyrocket, all because John McCain is a disciple of the Al Goracle Global Warming religion.

And that’s just one aspect where he will cripple the economy and create a HUGE burden to the average American. This doesn’t even begin to talk about how the Amnesty Bill will cost the American economy and add a higher tax burden to the American public.

It is just really flabbergasting how people who call themselves conservatives are calling a big government socialist a “fiscal conservative”. Apparently fiscal conservative has been redefined. Fiscal McCainservatism?

Oh, but he’s a war hero, so I guess that makes it okay. Benedict Arnold was a war hero too

What McCain’s “Outreach” Means


RUSH: Michael Gerson, who was the first head speechwriter for President George W. Bush, is now a columnist at the Washington Post — and a compassionate conservative. He is a compassionate conservative. An excerpt from Mr. Gerson’s article today: “In the general election, [McCain’s] ideological heresies will suddenly transform into strengths. Because of his immigration views, he is the only Republican candidate who can make a serious appeal to Hispanic voters. His positions on global warming and campaign finance reform will ease his outreach to independents. But McCain has at least one serious political drawback — and it is not the ‘temperament issue.’ I have yet to hear a serious argument for the proposition that a short fuse should be disqualifying for high office. The peaceful are not always polite — theologian Stanley Hauerwas says, ‘I’m a pacifist because I’m a violent son of a bitch’ — any more than the tightly coiled are always warlike. But those who know McCain report a general lack of interest in domestic policy compared with his engagement in foreign affairs.

“‘It’s sometimes unfairly argued that Bush is intellectually uncurious,’ says one former member of Congress, ‘but on domestic issues that is really true of McCain.’ McCain’s foresight on Iraq has carried him far. But eventually he will need to engage Democrats on issues from health care to education to poverty. And being right on the war will not be enough.” Now, let’s go back. “Because of his immigration views, he’s the only Republican candidate who can make a serious appeal to Hispanic voters.” I told you. I told you. I told you that’s what this is. I told you — and it means they’re going to do what they have to do to get those Hispanic voters when we’re not looking. He’s the only Republican can do that. “His positions on global warming and campaign finance reform will ease his outreach to independents”? And my good friend Bill Bennett says that we are the Trotskyites? The Trotskyism exists on the McCain side. The Trotskyism exists there. They’re the ones urging us to purify with McCain. This is the summation, this paragraph. Michael Gerson, President Bush’s first speechwriter: “These are reasons recommending McCain’s election.” He can reach out to Hispanics; bad thing because of the amnesty bill.

“His position on global warming and campaign finance reform will ease his outreach to independents.” Mr. Gerson, have you guys stopped to think what these very issues are doing to McCain’s base support? Have you stopped to think for a moment why it is he is not getting a majority of the conservative vote — and in certain key states, not even a majority of the Republican vote? Is it really that much more important to all of you on the McCain side of things to get independents and liberals voting for your candidate, or our candidate? Folks, what else can you conclude but than they’re really trying to run us out of the party? I went back and did a little research. On January 10th of this year there was a story at National Review Online by Roy Cordato. Roy Cordato is an economist. He’s VP for research and a resident scholar at the John Locke Foundation, a public policy think tank in North Carolina; and this bounces off Mr. Gerson’s praise of Mr. McCain’s global warming position, making it easier for outreach to independents. Well, what is McCain’s global warming policy?

Well, for one thing it’s costly. “What do John McCain, Environmental Defense, the Natural Resources Defense Council, and the Pew Center on Climate Change have in common? They have united to support a massive new tax increase on energy — which will raise costs throughout the economy and threaten the vitality of, among others, the oil and automobile industries. I suspect that many who would be significantly harmed by McCain’s wrongheaded tax plan — say, blue-collar workers in Michigan — have never heard of it. The Arizona senator’s position on federal tax cuts is better known. Nearly all of his opponents in the presidential campaign have criticized him for voting against both of President Bush’s tax-reduction plans. What is not widely understood is that he is currently sponsoring legislation that, in the name of fighting global warming, would dramatically raise the tax on all carbon-based fuels, including gasoline, home heating oil, coal, and to a lesser extent, natural gas.

“The proposed bill, co-sponsored with Joe Lieberman,” a-hem, “mandates an energy-rationing scheme that all economists acknowledge is equivalent to a broad-based energy tax which is similar to Bill Clinton’s 1993 Btu tax proposal. Energy would be taxed through the back door by placing a cap on the amount of carbon dioxide (CO2) that energy-producing companies can emit. It puts a legal limit on the amount of energy that can be drawn from conventional sources such as oil, coal, and natural gas. McCain’s energy tax would kick in whenever an energy-producing company wants to expand its output above the cap. If, for example, a utility company that is bumping up against its emissions cap wants to increase its production of electricity generated from coal, oil, or natural gas, it will have to buy permission to do so by purchasing unused permits from other companies. The same would be true of an oil refiner… The purchase price of the permits is a tax, and will have the same effects as a tax on the market; it would raise the price of the energy source, i.e. coal, oil, etc., and therefore, it would likewise raise the costs of all production that relies on those sources, as well as the price of all goods and services that” are produced using these products. … “Over the next 100 years, the CO2 reductions from the tax will result in a temperature change that even its proponents concede, is so small,” nobody will even notice, but a massive tax increase gets us.


McCainservatism = socialism. Period. A vote for John McCain is a vote to destroy our economy with socialism.

Oh and please, stop with the “McCain’s foresight on Iraq” tripe. McCain had no such foresight. His “plan” for Iraq was a failure. He supported the President and GEN Petraeus’ surge, but his plan would have been a failure. So McCainservatives can stop with this tired, false talking point. Repeating a lie over and over does not make it true.

February 6, 2008 , 11:57PM Posted by | 2008 Presidential Election, Economy, Global Warming, John McCain, Taxes | Comments Off on You Think You Pay High Energy Rates and Gas Prices Now, John McCain Will Make it Worse