Get America Out of Debt Plan

So far the Federal Government has spent trillions of dollars since 2008 bailing out the Banks and Propping up the Stock Market.  Very little has been done to help most Americans who are struggling due to massive debt problems.  If the Federal Government doesn't wake up soon and pull its head out of its butt the US is going to really go off the cliff.  My proposal to the butt heads in Congress is to get American's out of debt as soon as possible before the Economic Collapse occurs.

1.  All Families will be entitled to Debt Relief up to $100,000 to pay off student loans, pay down mortgages, credit cards and etc.
2.  Single People get up to $50,000 in Debt Relief to pay off student loans, credit cards and etc.
3.  All people who enter into the Debt Relief Plan will not be able to have more than "2" Credit Cards that have a total credit limit more than $2000.
4.  Also any new loans (car, mortgage and etc) will have strict guidelines so they won't get into trouble again.

Now for those that don't have Debt Problems.

1.  You will not have to pay any Federal Tax up to a $50,000 Limit.

This is a one time deal and will be based on Debt Obligations ending in 2012.  Any new debt after 2012 will not be available for this Debt Reduction Plan.  
    

I got news for Boehner

Boehner made a statement today that Obama's goal was to annihilate the Republican Party.  I got news for him it's already been annihilated.   Now if we can only destroy the Democratic Party as well then this country may eventually get back to where the common people have an actual say in how the country is governed.

Boehner Says he will Balance the Budget

I swear these people are idiots.  Boehner said today he will attain a balanced budget in 10 years.  Yeah right they can't even agree to cut 0.1% of the Federal Budget.  The only way a balanced budget will occur is if taxes are raised substantially for everyone and entitlement spending is reduced by at least 25%.  Neither one is going to occur. 

See article at Boehner Commits to 10 Year Balanced Budget

Utah's Sheriff's Warn Federal Government

I expect this will not be the last statement from local and state authorities that will not adhere to any Federal Policies challenging the 2nd Amendment.  Keep in mind folks the US has been rather stable since the Civil Rights/Vietnam era.  I expect this is going to change in the coming years.

You can read the Utah Sheriffs stance at    http://www.utahsheriffs.org/USA-Home_files/2nd%20Amendment%20Letter_1.pdf

Moody's, S&P and Fitch

Here we are again with no spending cuts anywhere in site and not one word from the ratings agencies who have no balls to downgrade the US.  How anyone can attach any credibility to these agencies (Moody's, S&P and Fitch) is beyond belief.

The next Afghanistan is Coming

After spending billions of dollars fighting the Taliban and Al Qaeda in Afghanistan the next nightmare is knocking on the door which is Africa.  Anyone who follows the stories at Debka knows Al Qaeda has rebuilt itself and is now ready to unleash more terror in the Middle East and surrounding areas.  The latest attack in Algeria is likely the start of another major confrontation which will turn Africa into a battleground.   Eventually the US will get involved leading to another round of massive military spending before everything is said and done.  

Obamacare a complete Disaster

Health Premiuims which are already out of control are going to increase dramatically late this year and next due to the passage of Obamacare.

Read the following article at Health Premiums

Corporate World screws Employees

While Corporate Profits are at all time highs Employee Compensation is now at an all time low.  It doesn't take a rocket scientist to figure out how the Corporate World is making more money now than at any time in US History.  They hire fewer employees and make those that have a job work for lower compensation.  If you don't believe it go and take at look at the data from the Bureau of Economic Analysis (BEA) that goes back to 1929.  With Corporations having record profits I believe it's time for them to pay higher taxes to help with the deficit.

 

Corporate Profits since 1929 in Real Dollars

Since I was asked to post a chart of Corporate Profits in Real Dollars here is the chart.  As you can see corporate profits are at an all time high.

Corporate Profits

Since 1929 when the government began tracking corporate profits there has never been a time when companies have made as much money as they are now.

The System is Rigged

With Congress having an approval rating in the teens the normal course of action would to be to vote all of them out of office.  Unfortunately even if Americans did this they would all be replaced by similar people.  The problem is it takes a lot of money to get elected to Congress and most Americans don't have the financial resources to run for office.  Thus things are not going to change much as the rich will continue to be elected to Congress. 

401K's Under Attack

Don't believe me.  Read the article below from CNN.

http://money.cnn.com/2013/01/10/news/economy/middle-class-tax/index.html?section=money_news_economy&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_news_economy+%28Economy+News%29&utm_content=Google+Reader

Why Social Security is in Big Trouble

Currently 10,000 people a day or 3,650,000 a year are reaching retirement age and eligible for Social Security.  Of those roughly 60% will retire and apply for Social Security in the coming years adding over 2,000,000 million receiving Social Security each year.   Meanwhile the costs associated with Social Security have been going up over 3.3% a year which will likely increase to over 5% as more people receive Social Security benefits in the years ahead.  Meanwhile Social Security Receipts have begun to flatten out as unemployment remains rather high.  It's my guess Social Security Receipts will not grow more than 1% a year for the next several years.

Taking all of these factors into account the chart below shows how the Social Security Trust Fund (blue line) may become exhausted by the end of 2025.  Keep in mind by law when the Trust Fund is exhausted all benefits must be cut by 25%.  Thus to keep the Social Social Security Trust Fund solvent in the long run some tough decisions will have to be made soon.
 

      

The 2nd Amendment

Obama has no power to change the US Constitution which contains the 2nd Amendment which allows  a well regulated Militia, being necessary to the security of a free State, the right of the people to keep and bear Arms, shall not be infringed.

There are only two ways the 2nd Amendment can be changed as written in Article 5 of the US Constitution which can be read at http://en.wikipedia.org/wiki/Article_Five_of_the_United_States_Constitution



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Debt Ceiling Next Battle

Currently the US debt is just over 16.4 Trillion Dollars.  Obama wants no restrictions on the Debt Ceiling so he can just raise it to whatever number he wants.  Okay let's give him unlimited authority with the condition that every dollar raised must see spending reduced by an equal amount over the next 10 years.  Thus if the Debt Ceiling is raised by 2 Trillion then there should be 2 Trillion in "Real" Spending Cuts during the next 10 years which is 200 Billion a year starting with 2013.

CBO Adjusts costs of Tax Cuts

Remember the tax increase on the rich will increase revenue about 60 Billion a year or 600 Billion over a decade.  Tonight the CBO has revised the impact of the latest tax cut deal and now says it was off by another 600 Billion as far as the deficit impact.  Thus instead of costing another 4 Trillion over the next 10 years it will now cost 4.6 Trillion instead.  So the entire revenue increase from taxing the rich has now disappeared like dust in the wind.  See CBO story at http://www.cbo.gov/publication/43835

  

Two Stupid Boulder Colorado Police Officers

Yep,

These two were just doing their job in killing a defenseless elk.  I'm sure these two thought it was funny and that nothing would come of it.

 http://www.9news.com/news/article/308500/339/2-officers-on-leave-after-elk-shooting

My encounters with police these days are that a majority of them think they are holier than thou and not subject to the laws that the rest of us have to abide too.     

Disability Claims continue to Skyrocket

The number of people on Disability (includes spouses and kids) continues to increase substantially.  Thus it appears those that can't find jobs are claiming a disability instead. 

   

Working Age of Popluation Shows Disturbing Trends

Breaking down the working population shows some disturbing trends.  Those in the 25-54 age group (green line) has not grown at all since the late 1990's.  Meanwhile those that are 55+ (blue line has grown significantly.   Finally those who are working in the 16-19 age group (red line) has dropped significantly.  Thus the only age group that has shown any increase in finding employment are those who should be nearing retirement.  This trend is affecting the younger age groups which are having difficulty finding a job.  Thus it appears many older Americans plan on working well into their 60's based on the current trend. 

 

Debt Ceiling Breached by Billions of Dollars

The Debt Ceiling was set at 16.394 Trillion Dollars in August of 2011.  On December 31st of 2012 the Total Debt was at 16.432 Trillion.  Congratulations to the Federal Government for blowing away the current Debt Ceiling by 39 Billion Dollars in December.   By the end of 2013 it will exceed easily exceed 17 Trillion.

Federal Employees should brace for a Shutdown in early March

While everyone is celebrating the Fiscal Cliff deal keep in mind not much was agreed to as the major issues were delayed for two months until March 1st.  Spending Cuts and the Debt Ceiling were not resolved.  Boehner who has a weak spine will be replaced as the majority leader in the House by a much tougher person.  Thus I expect a nasty showdown in early March between the House and Obama.  Moody's has fired another shot across the bow by saying they will downgrade the US if nothing significant is resolved by early March.   Thus I don't expect a last minute deal like with the fiscal cliff with a government shutdown likely in early March.  Thus Federal Employees should start preparing for this immediately.    

One more Party to Go

As I wrote about a few weeks ago the 2 Party system will gradually end.  The Republican Party is pretty much done and the Democratic Party is next.  I fully expect by the next presidential election in 2016 that both parties will have a minor affect while a new 3rd Party will be in power and win the presidency. 

60 Billion

The Fiscal Cliff Deal that passed the senate is pure fluff.  Over the next ten years it will generate an increase in revenue around 60 billion a year while there are no spending cuts.  The Government will spend nearly 3.8 Trillion in 2013 so there will be no substantial reduction in the deficit.  If the rating agencies don't downgrade the US on January 2nd then they should be abolished.