Musings on the Week
Return to Common Sense
January 12, 2013
Debt – “Debt is the fatal disease of republics, the first thing and the mightiest to undermine governments and corrupt the people.” Wendell Phillips.
Politics – Obama, like most liberals, ignores inconvenient facts, such as his own deficit commission that identified spending as the driving force behind the nation’s debt crisis.
Politics – Democrat leadership is composed of far-left Progressives and the Republican leadership has been slow to react and coalesce around a far-right conservative agenda.
Politics – As Obama’s selections for replacements unfold it is clear that he has abandoned any pretext of bipartisanship and instead has selected radicals who agree with his agenda.
Politics – The 112th Congress just completed, so all the illegal “recess appointments” expire and must be resubmitted for 113th Congress review and approval.
Politics – I expect the TEA Party movement to re-emerge as the new taxes and regulations hit, and the “second half” of our 2008 recession hits full force (as if it ever really stopped).
Media – The MSM continues to hemorrhage readers, with political ads in the 2012 election propping them up, but I expect the MSM to begin failing, with Newsweek the first to go.
Debt – “Blessed are the young, for they shall inherit the national debt.” Herbert Hoover.
Economy – Economic growth happens when success and risk taking is rewarded and sloth and failure is not, but part of the spending spree has been bailing out and subsidizing failure.
Economy – Failing governments such as California, France, Illinois, and Greece all have punitive class warfare tax rates and out-of-control spending, so we should do the opposite!
Economy – Nearly 40% of investment strategists and money managers polled by CNNMoney think interest rates will begin to rise in 2013 and another 30% say the shift will begin in 2014.
Federal Reserve – The Federal Reserve initially was required to secure the currency with U.S. government bonds, but has now secures with illiquid and risky mortgage-based securities.
Deficit – The political class has just spent two months on a nail-biting white-knuckle thrill-ride negotiation that resulted in business as usual and did not address any deficit root causes.
Debt – The American people need to wake up to understand that without significant spending cuts and entitlement reforms this country will go bankrupt sooner rather than later.
Bailouts – The FHA audit has a negative economic value of $34 billion, despite $1 trillion in mortgages since they chose to blow more hot air into the deflated housing bubble.
Taxes – 90% of Americans find the tax code too complicated and rely on outside services to prepare their tax returns 60% hiring paid professional and 30% relying on software products).
Taxes – Illinois’ 2011 tax hike, a 67% increase for individuals and 46% hike on corporations, has not fixed their financial woes as people vote with their feet and move to low tax states.
Jobs – There are more than four million fewer jobs when President Obama first took office in 2009, and inflation adjusted median income continues to drop, due to weak dollar policies.
Social Security – Several Texas counties opted out of Social Security in 1981/2 and are now able to retire with more money and better benefits and no long-term pension liabilities.
Healthcare – As feared ObamaCare is acting like a poison to our health care system that was already on the mend, and now premiums are beginning to spike with ObamaCare.
Civil Rights – The NAACP has revealed itself as a deeply partisan front when it accused Senator Tim Scott of knowing nothing about civil rights, based on their liberal statist litmus test.
Elections – Election reform is needed to ensure each citizen is able to vote only once, no later than election day, which seems tailor made for electronic (web-based) voting!
Gun Control – The worst thing that could happen is that a majority of American people are punished by partisan knee-jerk gun control measures that don’t fix the underlying problems.
Abortion – Planned Parenthood performed 333,964 abortions in FY 2011 while receiving $542.4 million in “government health services grants and reimbursements (Medicaid).”
Welfare – Welfare checks are just one of many forms of government redistribution, separate from food stamps, Medicaid, housing subsidies, and many other means-tested programs.
Food Stamps – During fiscal year 2012, the federal government spent a record $80.4 billion on food stamps, in addition to $18.3 billion that went to “Child Nutrition Programs.”
Debt – I expect that the country’s credit rating will again be downgraded after Congress debt ceiling discussions again fail to demonstrate firm commitments to controlling spending.
Deficit – I expect one or more states to declare bankruptcy and seek assistance to recover from the bad economic decisions of the past under federal judicial protection.
Housing – I expect that it will take four or more years at the current rate for the backlog of foreclosures to finally clear, before we see any signs of life of a robust housing recovery.
Debt – “Avoiding likewise the accumulation of debt, not only by shunning occasions of expense, but by vigorous exertions in time of peace to discharge the debts which unavoidable wars have occasioned, not ungenerously throwing upon posterity the burden.” George Washington.
Europe – Different Keynesian efforts teach a lesson: Northern Europe is sound thanks to austerity, while Southern Europe is hurting because of half-hearted austerity or fiscal stimulus.
Libya – The press won’t ask who denied requests for additional security, who told the military to stand down and not help, and who created and nurtured the false media narrative.
Libya – The “independent” Benghazi study whitewashed the dereliction of duty by Clinton prior to the attacks, Panetta during the attacks, and Obama’s cover-up after the attacks.
Libya – The only person punished so far from these Benghazi murders is the Mohammed film maker, on unrelated charges, who had nothing whatsoever to do with the attack.
Israel – I expect that Israel will be attacked by Hamas and the IDF will retaliate by invading and then re-annexing Gaza based on defensible borders and 1920 San Remo Conference.
Israel – I expect that Israel will suffer a nuclear attack from Islamist extremists, and Obama will talk a lot, but stand aside and refuse to help defend this longtime ally.
Asia – I expect that North Korea will attack South Korea and attempt to reunite Korea, and Obama will be “unable” to support our troops and will negotiate for a stalemate.