Raising the debt ceiling: Here we go again!

House Speaker John Boehner and President Barack Obama

Barack Obama wants Congress to raise the debt ceiling again. Democrats love spending and will vote for any increase he wants, while Republicans will fight any increase without major spending cuts. That just about sums up the argument, on a very simple, superficial level.

The National Debt is a growing problem which needs to be addressed. Unfortunately, the President and Congressional leaders don’t see it as a problem. They say they do, but they don’t

Barack Obama has done a horrendous job as President. Federal spending is out of control and the National Debt is growing rapidly. John Boehner and the Republicans have every right to demand major spending cuts. Unfortunately, there are two problems. First, they should have started acting as the debt ceiling police years ago when George W. Bush and his predecessors were President. They also need to propose meaningful cuts, not just token cuts to appeal to the base. » read more

One person can’t control gas prices

I’m hoping Barack Obama is a one-term President for a variety of reasons that I won’t regurgitate in this post. Defeating him is important, but I’m hoping the Republican nominee won’t use pie-in-the-sky predictions to gain favor with voters. Eventually, such tall tales will catch-up to him and undermine his credibility. The first potential pitfall to come to mind are promises to lower gas prices.

Former House Speaker Newt Gingrich has often said that gas prices would fall below $2.49 per gallon if he were elected. He points out that such a fall would put money into the pockets of consumers, which would be pumped into the economy, corporate profits would be increased, fueling growth, and tax receipts would climb. These positive events would likely follow lower gas prices. The problem is that Gingrich thinks he can single-handedly bring down prices in the span of a single administration. This isn’t likely.
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A debt limit fight is on the horizon

Everyone in Washington will be seeing dollar signs this fall.

It looks like we might will be heading toward another fight over the debt limit. According to Senator Rob Portman, the current limit will likely be reached before Election Day, making it a big topic of debates and news coverage.

Here’s a preview of what we have to expect, courtesy of Senator Portman:

“Following the contentious debt ceiling last August, President Obama promised that he would take action to address the country’s fiscal crisis. He has failed to do that,” Portman said. “In fact, his new budget increases spending and projects that Washington will be hitting the debt ceiling again in mid-October – burning through a $2.1 trillion debt limit increase in just over 14 months.”

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Regulate food stamps

Should people be allowed to by cupcakes with food stamps?

A Florida legislator is sponsoring a bill which would prevent individuals from purchasing junk food with food stamps. As you can imagine, liberals and the poverty pimps are up in arms. Not surprisingly, food stamps are one of the few things Democrats don’t want to regulate.

I’m against government interference in the personal lives of its citizens, but I strongly favor this legislation. Why? Because the government pays for the food! If individuals who receive food stamps don’t agree with the government restricting their choices, then they are free to stop receiving food stamps, and have full freedom to purchase what they want. Of course, they could also buy healthy food with food stamps and Twinkies with their own money, but I guess they don’t taste as good when they’re not government subsidized.

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It’s time to change our change

The obverse of the Eisenhower Dollar, which was minted from 1971 to 1978.

Lately, there has been a lot of talk about making changes to U.S. coinage. Some think making changes to the standard line-up of pennies, nickels, dimes, and quarters is unfathomable, but I think it’s long over-due, and certainly not without precedence. Let’s not forget that at one time, we had 3 cent and 20 cent coins.

I’ve heard several proposals, so I figured I would throw out my own. First, I would get rid of the penny. Inflation has increased prices exponentially over the past several decades, yet we still cling to this miniscule denomination that is a drain on mint resources, and normally ignored by the typical consumer. Think about it: Do you really value a penny?

Many proposals suggest getting rid of the nickel, since it costs so much to make in relation to its face value. I’d actually suggest eliminating the dime before the nickel, since two nickels can substitute for the dime. With that said, this isn’t one of the important changes we need to make. No, the most important change we can make is to get rid of the $1 bill.
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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