Raising the debt ceiling: Look at the big picture

Rep. Eric Cantor leads talks to raise the debt ceiling.

Republican negotiators have walked out of talks to increase the debt ceiling. Why? Let me summarize: Democrats don’t want to cut spending, and Republicans don’t want to raise taxes. To this point, some cuts have been agreed on, but no tax increases are being considered by the Republicans.

These talks are taking place because the debt ceiling needs to be raised in order to avoid a bond default on August 2nd. Ideally, both sides would develop some common sense and use this as an opportunity to set the budget straight, to truly fix it, rather than just make temporary repairs. » read more

Senator Lugar explains the Fair Tax

To me, there’s nothing worse than having taxes taken out of your income before you even receive it. Fortunately, there’s a movement to pass the Fair Tax. Check out the video above to learn more.

Utah law should be looked at as a wake-up call

American Silver Eagle

In the past two or three years, there have been a lot of events that should have served as wake-up calls for politicians and public officials. Another one of these events happened recently when Utah passed a law to encourage individuals to accept U.S. gold and silver bullion coins for their weights, rather than their nominal value. For example, the American Silver Eagle is a one dollar coin, but with the current spot price of silver at $38 per ounce, it is also worth $38.

There are a lot of people concerned about the economy, from survivalists who are waiting for a complete economic collapse, to those expecting slightly greater than usual inflation. Personally, I’m not expecting a massive collapse, but I am expecting increasing inflation and an erosion of the dollar’s value as the presses keep rolling. Making it more convenient to use gold and silver is a good thing which might encourages individuals to diversify their wealth.

The U.S. government needs to have its credit cards cut in half

Treasury Secretary Timothy Geithner wants the United States to keep borrowing.

Let’s say you have an individual that is in deep financial trouble. This person constantly uses their credit cards, spends their money as soon as they get it, and are generally irresponsible. If this person is having trouble paying their mortgage, electric, and grocery bill, what should they do? If you have common sense, you would probably suggest that this person stop nonessential purchases. By doing this, they’ll have enough for their bills, and hopefully, some left over to pay off their credit card balances, which will increase their monthly cash flow.

That solution makes sense, but I have another suggestion. What if the person called up the credit card companies and asked for a credit limit increase? If the banks agreed, they could keep spending lots of money, then use the borrowed funds to take care of their monthly expenses. Eventually, they would reach their credit limit, but they could just make more calls to the credit card companies, and continue to have their credit limit increased. Problem solved! » read more

Wisconsin: Labor that doesn’t labor

Many of those who are protesting Wisconsin Governor Scott Walker’s attempt to reign in state spending should be ashamed of themselves.

So many teachers have called in sick, that several cities and towns had to close their schools. Since there are tens of thousands of union protesters complaining outside the state capital, it’s pretty easy to figure out where those teachers are spending their days. Ideally, these teachers would be fired. Of course, they won’t be. As a matter of fact, there’s allegedly a doctor outside the capital giving teacher’s notes to excuse them for being out of work due to their “illnesses.” » read more

Wisconsin Governor Scott Walker is on the right path

Wisconsin Governor Scott Walker

Wisconsin Governor Scott Walker should be commended for helping usher sweeping change in his state. Legislation supported by Walker would strip many collective bargaining rights from nearly all public unions. The legislation would save the state money and jobs in the long-run, but you would never know it from the reaction.

Union members are saying the Governor should be recalled, and so many teachers have called in sick, that some schools needed to be shut down. For them, it looks like the children’s well-being isn’t their top priority. As for these teachers, maybe some of them need to go back to school. Taking a logic class might be helpful. » read more

With global warming, is heating assistance necessary?

Barack Obama

Democrats are criticizing Barack Obama for cutting money for heating assistance in half. In the President’s defense, is this money really necessary? After all, according to them, global warming is gradually raising the temperature of the Earth. If this trend continues, as many liberals say it will, we would hardly need to have the same level of heating assistance.

Of course, many liberals would rightly point out that we have faced one of the coldest winters in recent history. I wouldn’t disagree with this point, but it is going to warm up a lot, isn’t it?

Tackling the budget: Democrats and Republicans need to go further

Republicans Vs Democrats

Barack Obama is being criticized for a budget proposal that some see as being harsh toward low and middle-income Americans. Critics say it cuts too much from heating assistance, summer Pell Grants, and community block grants. Count me as a critic, but not because he cuts too much, but because he doesn’t cut enough.

I’m one of those people who believe we could completely eliminate the budget deficit in a year or two, not five, ten, or twenty. Of course, that would require massive cuts that go far beyond what President Obama, and even the G.O.P. are proposing. In addition to these cuts, the Bush tax cuts should have been allowed to lapse, at least temporarily. Ladies and gentlemen, we are drowning in debt, and the solutions aren’t pleasant. » read more

We need a balanced budget amendment

The United States is looking at massive deficits and a growing National Debt that will strangle the economy. The principal and interests payments on the debt are also a large part of the deficit. Obviously, the first thing we should do is reduce, then eliminate the deficit. Once we start living within our means, we can pay off the debt, and we can eventually stop paying the huge principal and interest payments.

Of course, this is easier said than done. Democrats think the key to solving the debt issue is to raise taxes and not touch social programs. Republicans feel we need to make major cuts to social programs and avoid raising taxes. Who is right? Both of them. Who is wrong? Both of them. » read more

Good news! Unemployment benefits might end for 2 million Americans

It looks like Congress won’t pass an unemployment extension in the lame-duck session. Without the extension, nearly 2 million unemployed workers will stop receiving checks. You won’t hear this too often, but that’s a good thing.

At one time, unemployment extensions were necessary, but they’re not anymore. Some workers are now able to collect unemployment for 99 weeks. If Congress passed another 26 week extension, it would cost around $56 billion more. This extension isn’t needed, and I’d argue that it would only make matters worse. Why? If you can’t find a job, any job, in 99 weeks, you’re probably not looking very hard (or at all).
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Barack Obama: “I do think at a certain point you’ve made enough money”

Barack Obama recently commented on financial reform and said, “I do think at a certain point you’ve made enough money”. I wonder at which point enough is enough? Since Mr. Obama thinks he is the arbiter of how much people are entitled to earn, I’d love to hear his response.

Somewhere, Karl Marx is smiling.

Barack Obama decides to allow drilling

Barack Obama has decided to lift restrictions on drilling on the Alaskan coast and the Atlantic coast. This is an excellent decision, but I’m hoping it is only a first step, rather than the whole plan. I’d also like to see this linked to a broader national security strategy.

Ideally, the President would have allowed drilling along the entire Atlantic and Pacific coasts, Alaska, and the Gulf of Mexico. Some would agree, since it would possibly reduce prices, since the supply would increase, while environmentalists would be strongly opposed. Of course, neither of these considerations is as important as national security. After all, what good is a strong economy or clean environment if your life is threatened by foreign enemies?

The United States needs to increase domestic oil production, then reduce foreign imports by an equal amount. The less oil that is imported into the United States, the less dependent we are on foreign countries. It’s hard to be secure when you depend on potential enemies for a resource that is a large part of your economy. It seems like a common sense idea to me, so why aren’t more people pushing for this change?

The squeaky wheel gets the grease: Barack Obama attempts to prevent foreclosures

The Obama administration appears poised to “help” the housing market, while taking us deeper into the downward spiral known as socialism. The plan to help borrowers includes four components:

1. Offer lender incentives to reduce the borrower’s mortgage balance.

2. Double the incentives given to lenders to modify second mortgages, such as piggyback loans.

3. Offer incentives to lenders who allow owners to sell their home through a short-sale, rather than foreclosing.

4. Have the FHA help underwater borrowers by taking up to 10% of their mortgage balance.

At this point, you might be in shock. When you purchased your home, you might have actually preferred another property but didn’t buy it because the payments would have been a stretch. You saved for a down payment, have a good credit history, and wanted to make sure you could handle your mortgage. You’re responsible, and you tried your best to do things the right way. » read more

Don’t cut taxes, eliminate them

We need to eliminate taxes. At first glance, you might think this is a ridiculous statement. After all, how do you eliminate taxes without compromising necessary government services? Government bureaucracy can be excessive and wasteful, but there are necessary services and functions that would need to be preserved. Therefore, you don’t eliminate all taxes, you eliminate most taxes.

As citizens, one of the big problems we face is excessive taxation. If you think about it, these taxes and fees come from a myriad of places and can be tough to follow. You might have heard local or state politicians brag when they “cut” taxes. What they didn’t tell you is that they reduced one tax, but likely increased a few other taxes and fees. Sure, you won’t be paying as much in one particular tax, but make no mistake, you will pay. » read more

Over-regulation isn’t necessary

Barack Obama likes to take aim at “fat cat” bankers and Wall Street. Many members of Obama’s proletariat love it and thrive on any attempt to blame corporations for the current economic problems. Yet, there are two things that could have prevented the housing bubble and the current recession.

1. Not everyone should own a home.

Many will find this statement appalling. After all, isn’t home ownership the American Dream? The problem is that the federal government encouraged home ownership and encouraged relaxed lending standards, which allowed unqualified buyers to receive mortgages. Many of these loans had adjustable rates, didn’t require documentation, or required no money down. Is it any wonder that banks were overwhelmed with bad loans? » read more

Arnold Schwarzenegger looks for a bail-out

California is facing a deficit of $18.9 billion, but its residents need not worry because Arnold Schwarzenegger has a plan: He’s asking the federal government for more money. Maybe I’m old fashioned, but I believe that when you get yourself into trouble, you should work to get yourself out. After years of mismanagement of California’s budget, he’s hoping he can spread the pain to tax payers in other states. If you think that’s despicable, I don’t blame you.

Schwarzenegger’s supporters would likely point to the Governor’s other ideas, such as overhauling the pension system and privatizing prisons. Both of these are great ideas, but the fact remains that California is spending more than it earns in revenue. Opposing tax increases is commendable, since the state doesn’t have a revenue problem, it has a spending problem. Unfortunately, the Governor wants to hold down the taxes of Californians by begging the Obama Administration for money to help plug holes in his sinking ship. » read more

GM and Chrysler could learn from Ford

Ford recently announced that its Sync system will soon allow customers to plug in a modem, so that passengers will be able to access broadband internet. Basically, many of Ford’s cars will become rolling hot spots. This is in addition to Sync, which allows you to control many of the car’s features with your voice.

Ford’s recent innovations seem to be far ahead of both Chrysler and GM. Is it merely a coincidence that the most innovative American car company is also the only one that is profitable and wasn’t bailed out by the federal government? Perhaps GM and Chrysler should take notes.

Another day, another $3.8 billion

The U.S. Treasury just gave another $3.8 billion to GMAC, which hopes to one day make a profit again. For those of you following at home, this latest infusion is on top of $12.5 billion distributed previously, for a grand total of $16.3 billion.

I know there are a lot of people who would defend this latest expenditure as being “necessary”. Here’s a question for those people: What about small businesses and medium-sized companies that have had to close their doors? Where’s their bailout? » read more

Socialism, climate change, and hypocrisy

Hugo Chavez spoke at the climate summit in Copenhagen and was greeted by loud applause. Here is an excerpt from his speech, which sums up his over all message:

We could say that there is a ghost lurking. To paraphrase Karl Marx there is a ghost running through the streets of Copenhagen. And I think that ghost is silent, somewhere in this room, amongst us. Coming through the corridors and underneath. And that ghost is a terrible ghost and nobody wants to name him or her. It’s capitalism. Capitalism is that ghost. Nobody I don’t think wants to name it. Capitalism. I’ve also been struck by some of the signs outside this conference. One sign in particular that reads, “Don’t change the climate … change the system!” I particularly liked that one and would add to that by saying that by changing the system, we could save the planet. The destructive model of capitalism is eradicating life.

» read more

“Jobs for Main Street Act” contains welfare payments

The House narrowly approved a “jobs” bill by a narrow vote margin of 217 to 212. The “Jobs for Main Street Act” will provide $50 billion for local governments, and another $50 billion for infrastructure projects. There’s little doubt that most of this money will find its way into the pockets of the unions that support the Democratic party, but that’s another story.

The most sickening item in the bill is a $1,000-per-child tax credit for people with little or no income. Ladies and gentlemen, this is nothing more than using the tax code to provide more welfare payments. Does it really make sense that someone who pays just $800 in taxes could see a $5,000 “tax refund”? The Earned Income Credit is bad enough, but then it is exacerbated by this additional payment. » read more