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Saturday, January 14, 2012

Tax Break? How Do You Figure That? With The "New Voodoo Economics"?

       In December the President and Congress reached a compromise to keep the tax cuts in place.  The truth is they did not do you a favor.  Many previous administrations tried to figure out how to raid the funds in the Social Security Trust Fund.  Obama figured it out and he made it sound so good most Americans think they are getting a break.  What they are really getting is bent over and they are not even going to get a kiss.  It is not a tax break it is stealing from the future of the retirement system.   The truly sad part of the whole thing is that Congress went along with it and no one stood up for the American Taxpayer.  Obama made it sound good but what you are getting is your own money.  What they are not telling you is that down the road that money will not be there for your retirement.  The government is simply letting you keep 2% of your own money that should be going to your Social Security Retirement Account.  As the system was already in trouble and is going to have problems down the road. Now it is going to have bigger problems.  The money that should be there will not be there because you already got it as a tax break.  The only way it could be there is if they would raise the tax 2 or 3 % above what it is now suppose to be. That is counting on the economy getting better, but they are doing nothing to make it better.  The can is going to get worn out if they keep kicking it.
     Phony numbers seem to be the Obama trademark.  I guess his "Change you can believe in." is simply a change in how they count the numbers.  To be more electable Obama needs better unemployment numbers.
His administration has come up with a very effective way to do that.  The people who run out of unemployment benefits and the long term unemployed are simply no longer counted.  They still exist, but not in the database that the government bases its unemployment numbers on.  The truth is that nothing is better, but you just do not count up all the problem people anymore.  Looks good on paper and in the statistics that are released each month.  Everybody knows our government would never lie to us about anything.
    Want some more of the "Obama Math" which is solving Americas problems.  Obama claims that his administration is making over 1.1 Trillion dollars in spending cuts.  How is he doing that.  Well the money we have been spending on the wars in Iraq and Afghanistan is no longer going to be spent.  His logic is that since we are not spending it that is a spending cut.  That is like taking money out the wallet in your back pocket and putting the money in your front pocket and saying you now have more money.  You do not and you did not save a dime.  It is all smoke and mirrors and has no connection with reality.  The money the government was going to spend is still going to be spent.  They are just not gong to ask for as much to spend.  That is the "New Voodoo Economics"if you do not ask for as much you have cut spending?  I do not think that is how it works.  If the debt level has not been cut then you have not cut spending.  At least that is how "old math" worked.
     So what has the Obama Administration done to improve the job market?  Not much. They have simply let time take care of the problem.   They have done nothing to create a job program that might solve some of America's problems, like crumbling infrastructure.  The government needs to create a long time, on going and funded program to take care of America's infrastructure.  Article 1., Section 8  of the Constitution lines out the obligations and duties of the Congress to America.  They took care of taxes and tariffs, they even raised and Army and Navy to protect the country.  However the Founding Father's also declared the Congress was to take care of Welfare of America.  At the end of section 8 they allocated money for the Capitol and the White House and they built them.  Those are items of infrastructure.  When they were destroyed in the War of 1812 they rebuilt them.  They took care of the infrastructure.  Somewhere down the line the government dropped the ball on taking care of infrastructure.
     Congress needs to examine the spending in America and make cuts where they can be made and where they violate the Constitution.  In the Bible, God said in Genesis 1:29 "Every herb and seed bearing plant was given to man for his use. That makes it and inalienable right as it was given by God to man.  The Founding Fathers grew plants that the government now says are illegal.  Why are we spending billions of dollars fighting a war that we can not win.  Prohibition should have proven that.  Are the gangsters still selling booze.? NO!!! They are selling drugs.  The same thing needs to be done to end that war and save the American taxpayers billions of dollars.  They need to tax, regulate and inspect crops.  At least then the ones abusing the drugs will be paying for the programs to take care of themselves instead of dumping it on the taxpayer in the form of prisons and prison guards.  Especially as it is a very racially biased system that tends to discriminate against minorities when just as many if not more whites use the same drugs.
    Will anything be done by the government to create jobs and balance the budget.  I really doubt it as it is to easy to just let things go on as they have been.  Nobody wants their piece of the pie reduced.  So the truth is it will continue to get worse and worse.  The second dip is coming.  It may take time, but it is coming as sure as the sun will rise tomorrow morning.  Countries that are lending America money for little or no return will sooner or later cut off the faucet to cut their losses.  When that happens America will have to face some grim realities and some very uncomfortable hardships.  Gas may hit a $1 a gallon again, but it will not matter if no one has a dollar to buy it.  I studied the Great Depression in detail and while times are hard.  They have not even come close to what the people in the Great Depression went through.  However if it continues the way it is going we will get there.  The only way to survive in that kind of an environment is to be debt free.  That is what my first blogs of this year dealt with.  My advice is to get your lifeboat in order.  The ship of state is going down if it does not change its course.

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