Regarding our national debt..an economic primer you should be aware of.
Obama recently said on the Letterman show: “But, we don’t have to worry about it short term, right now interest rates are low because people still consider the United States the safest and greatest country on earth, rightfully so, but, it is a problem long term, and even medium term.”
This monetary policy of printing (borrowing) and spending survives without affecting us for only as long as interest rates remain low but it cannot even do this forever; it creates another very deleterious effect as explained below. The Federal Reserve is both printing (lending) the money and setting the interest rate. Because it is their money, they as lenders, can determine what they wish to charge. Oh yes, one more thing. Our government (that means you and I) is now responsible for that debt because it is money that is lent to government (us). We did not even lend the money to China; we burdened ourselves. That is called monetizing the debt. We (our government) owe the Federal Reserve for what we borrowed. It is like the second coming of Fannie and Freddie, which were quasi government backed enterprises that partnered with the private sector because now, with this recent stimulus designed to pay down bad mortgages, that same debt is totally government owned and backed and to achieve this we have also diluted the money supply. Printed (borrowed) money is really an IOU. No, it is not actually printed but, instead of being backed by gold, it is backed by a note, which is an American Government promise to pay it back so we can now spend more money.
The CRA, Fannie Mae and cheap (low interest) Federal Reserve Money caused the crisis in the first place because the money was easily given to poor risk borrowers which created an artificial market and even further exacerbated the problem by artificially increasing prices that warranted large loans the borrows could never pay back. So now the thinking runs something like this. If our government is given the money, by the Federal Reserve, it will lend the money to the banks holding the bad mortgages and those banks will then lend to new homebuyers to buy some of the massive housing inventory and additional bad mortgages. Now the new homeowners owe the banks, the banks owe the government (us) and the government (us) owes the Federal Reserve. Does this sound ok? It is not because the money was created, in the first place, from thin air.
Ask yourself how an economy can grow strong enough to provide the necessary tax revenue to pay off this new debt (and a lot more debt coming in the form of old debt entitlements and unfunded new entitlements). It is almost impossible, especially in the face of new taxes and regulations that slam business so hard that they stop producing products and services. BTW, that translates into additional jobs lost. Borrowing, again, to pay down old mortgages does not create many jobs unless taxes and regulations do not molest business. Since they do not plan to stop spending on government-established bureaucracies, friends of government and entitlement recipients (of all sorts) to keep their voting base happy and since they will also usher in regulatory and tax policy harmful to business, job growth, must and will, fall off.
What makes the US government unique is that it can partner with the Federal Reserve Bank to print money and keep interest rates low. Theoretically that can go on for a modest (not very long) time but the effect has to ultimately inflate the cost of goods and services simply because diluted money buys less and, additionally, it depresses the production of these same goods and services (supply) to further increase their costs.
So what Obama is saying is that as long as he is President he can keep the lid on the eventual crisis. That crisis translates into failure to pay back what we borrow or an inflation substitute. And the latter is what will occur. In short the currency is devaluated and that must create inflation. Inflation is like getting very old and very sick simultaneously. It robs everyone of what they have saved in terms of deposits, bonds, SS, pensions, certificates of deposit and even their stock market portfolios. These amounts represent finite quantities that do not rise to the occasion. Hard asset prices do; they cost more; yet even that does not always translate into home price appreciation for various other reasons.
So, in essence, devaluating the currency is theft of the first order. Other terms might include larceny, bank fraud, scam, pyramid scheme, shell game, counterfeiting, embezzlement, looting, extortion and stealing. When it takes a wheelbarrow of money to buy an orange you can think back to what Obama once said. And maybe at that time some republican President will get the blame because the bomb, which was very much built by this Administration, goes off on his or her watch.
Let’s see what the forty-seven percent have to say after their pensions, fixed incomes, entitlements and deposits (which do not produce interest income) no longer allow them to afford their new inflation induced life styles.
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Mark Levin Gives Unvarnished Truth
MARK LEVIN: We conservatives, we do not accept bipartisanship in the pursuit of tyranny. Period. We will not negotiate the terms of our economic and political servitude. Period. We will not abandon our child to a dark and bleak future. We will not accept a fate that is alien to the legacy we inherited from every single future generation in this country. We will not accept social engineering by politicians and bureaucrats who treat us like lab rats, rather than self-sufficient human beings. There are those in this country who choose tyranny over liberty. They do not speak for us, 57 million of us who voted against this yesterday, and they do not get to dictate to us under our Constitution.
We are the alternative. We will resist. We're not going to surrender to this. We will not be passive, we will not be compliant in our demise. We're not good losers, you better believe we're sore losers! A good loser is a loser forever. Now I hear we're called 'purists.' Conservatives are called purists. The very people who keep nominating moderates, now call us purists the way the left calls us purists. Yeah, things like liberty, and property rights, individual sovereignty, and the Constitution, and capitalism. We're purists now. And we have to hear this crap from conservatives, or pseudo-conservatives, Republicans."It always amazes me the sheer number of women who defend abortion. Legal abortion has killed 52 million innocents since '73, that means 26 million roughly, were women. Sick." -Jen KuznickiAny woman who understands the problems of running a home will be nearer to understanding the problems of running a country. -Margaret ThatcherEntrepreneurs and their small enterprises are responsible for almost all the economic growth in the United States. -Ronald ReaganI am extraordinarily patient, provided I get my own way in the end. -Margaret ThatcherBroadly speaking, the short words are the best, and the old words best of all. -Winston ChurchillCriticism may not be agreeable, but it is necessary. It fulfils the same function as pain in the human body. It calls attention to an unhealthy state of things. -Winston Churchill
I Don’t Deny Global Warming ExistsI don't deny that global warming exists. It does not exist. There is not a pink elephant in my kitchen. I'm not denying it. It is not there. If I denied that there was a pink elephant in my kitchen, it would have to be there, but I would be lying to myself and everyone and walk around it to cook. But it is not there, therefore, I am not denying that it is.
Snyder said Wednesday that he unconditionally supports expanding the state's Medicaid rolls by roughly 470,000 people. There are 1.9 million people receiving benefits now.
"We're all here to support expanding Medicaid," Snyder said at a news conference called by a large coalition of groups that support the expansion. "We're moving forward with care for people who need it."
The ever-illogical argument that insuring more people will actually cost less. "But health care providers and advocates for the uninsured argue that the state will actually save money -- as much as $1 billion in the first decade -- if fewer residents have to rely on expensive emergency room facilities to address non-life-threatening illnesses and injuries."
Susan Dumass is really quite pedestrian. "The only thing standing in between 450,000 low-income Michiganders and health insurance is Tea Party Republicans' deep-seated hatred of Obamacare."
This week, Michigan’s Rick Snyder became the sixth GOP governor to propose expanding his state’s health insurance program to cover more low-income residents, in line with the Democratic administration’s strong recommendation.
Now that he's made the decision, Snyder must sell the plan to the state legislature, where some members of his own party have repeatedly attempted to distance themselves from the faintest whiff of "Obamacare."
- I can find neither solace or comfort in government. I cannot find hope nor light among those pretending to take my best interest to heart. I cannot worship or revere another human being because there are none alive that can instill my faith. Give me the One God; the One Who had created the heavens and earth and had purposefully breathed life into me. The One Who dwells in the secret place and watches over me and always keeps me company when all others abandoned me. But for Him I would have no purpose in this life; thank you Dear God.