Archive for the “Politics” Category

Total Personal Income U.S. and All States.

The Total Personal Income in 2011 was almost $13 Trillion. The federal budget for 2011 was $3.8 Trillion, about 30% of the Total Personal Income. I see a lot of wiggle room to put forward a $0 deficit budget and to even start paying back principal on the debt.

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How has Romney run his successful businesses in the past?

First he looks around for a company that isn’t producing as well as it should with the assets it has.

He then acquires the company at a reduced rate, since the company isn’t producing as well as it could. He goes to cronies to borrow the money needed to make the purchase, using the assets of the company being acquired to guarantee the loans. The cronies may slice and dice the secured loans and resell them to other investors.

Then he brings in his crack Management Team to revamp the operations to use those precious assets to the best of their potential. Quite often the company employees are not considered part of the assets and will be made redundant while the work they do is outsourced to low-cost contractors. Said contractors may be off-shore so the jobs are no longer in the US.

Facilities, now empty,  may provide some excellent real estate opportunities. Sub-divisions can be sold off, reducing overhead.  Pension funds are other assets that can be better used elsewhere.  All the while, the Management Team is racking up their consulting fees.

And in the end, Romney may have made the company a leaner producer and can sell it to the public, keeping the original loans on the companies books to be repaid over time. What he gets for selling it is the additional profit, over the management fees, that goes to his pockets. If he can’t sell it because the company is too lean and can’t exist with the remaining assets then he and his team can bail out without a loss (all the loans are on the company’s books) and leave the company to resolve its debts through bankruptcy and leaving the secondary loan investors to collect their loan repayments from the courts, if they can.

Then he turns his attention to the United States.  We certainly have a lot of idle or under-performing assets: National Parks, National Forests, Public Lands, Military Reservations, an Air Force, a Navy, an Army, a Coast Guard, lots of Government Buildings, a large Pension Fund. He has something to work with.

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How to save Social Security, Medicare, get rid of the deficit, reduce the debt, and save the state’s budgets in one fell swoop.

First extend Medicare to all citizens and incorporate Medicaid into Medicare, taking it off the backs of the states. Basically, go to single payer health care.

Then take Social Security and Medicare off budget. Congress doesn’t even have  a chance at the monies in these trust funds.

Enable a 20% payroll tax that is directed to SS and Medicare. Employer matching as well. For people receiving income without a paycheck, or over and above a paycheck, they would pay a flat 20% tax to the combined trust funds.

The US income is ~$14T. Medical expenses run ~$2T. So that 20% payroll/income tax should cover the all medical expenses and the remainder goes into Social Security.  The citizen is receiving a retirement fund safety net and basic health care for life.

This takes States and Employers off the hook for providing health care services to their citizens and employees, removing a big drag on their budgets.

For the remainder, Congress passes a budget for the year and must pay for that budget with revenue. It must authorize collecting enough revenue to pay for that budget, keeping SS and Medicare off the table.  And unless there is a declared economic emergency, the budget will include paying 5% of the principal of the outstanding national debt.

The base of the taxpayers are already paying 20% of their income to the trust funds, so I suggest that for citizens making more than the median household income or $75K or some amount that won’t crush the lower-income household, that they pay enough income taxes to cover the budget. Congress can determine if it a flat tax or a sliding scale tax. Either way deficit spending ends and the debt starts to come down.

Or we can leave the national debt part out of the previous equation and say that all corporate taxes collected go to pay down the debt, but then it will never go away.

(I just did a quick check and if we pay off the debt at 5% per year, in 60 years it will be @ 5% of the of the current debt. )

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Bush Convicted of War Crimes in Absentia | Foreign Policy Journal.

Did this make the news here? Bet it doesn’t go anywhere…

 

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The real criminals in the Tarek Mehanna case – Salon.com.

A very good Sentencing Statement. It  should not surprise us that we Americans forget the ideals that founded our country and that we have become what we  revolted against over 200 years ago. It seems to happen to most nations.

 

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Law Will Allow Employers to Fire Women for Using Whore Pills.

If this is the sort of country you want to live in, vote Republican.

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Health program losing federal funds, clinics  | ajc.com.

 

If this is the country you want to live in, vote Republican

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What caused the financial crisis? The Big Lie goes viral – The Washington Post.

…they relied on the credit ratings agencies — Moody’s, S&P and Fitch. They had placed an AAA rating on these junk securities, claiming they were as safe as U.S. Treasurys.

After this display of incompetence, why is anyone paying attention to these agencies anymore? Who cares how they rate the US or Europe financially? They don’t know what they are doing.

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I recently received a letter from my Congressman, Doug Lamborn – R-CO. He opens by stating that he is concerned with the direction our country is going in, like me.  And then he outlines his solution to the ‘fix’ the direction, said ‘fix’ being the direction I am concerned is the wrong way.

What I find most objectionable is his comparison of the Federal Budget with a household budget. Take away eight  ‘0’s at the end of the federal budget and you have an easily understood household budget.   I object to any comparison of a governmental budget to a household budget. The two are not the same and glibly waving your hands over the numbers is not going to make it true. I would also like to suggest that if you insist upon using a household budget analogy, cutting spending is not the only way to reduce accumulating debt. Go out and get a job.  Increasing revenue is a much better and more efficient method of reducing new debt and in addition to some spending cuts it may even work to reduce the overall debt over time.  (And one of the last things you need to spend money on is on a new high-tech, state-of-the-art security system for your home when you are drowning in debt.)

And while I am thinking about it, not only are governments not budgeted and managed like households, they aren’t budgeted and managed like businesses or corporations. An efficient government is not a desired end result, an effective government is. Businesses have different goals and objectives and they need to satisfy different parties to reach those goals.

I think it is fair to say that the Congressman and I do not see things the same way.

Read the rest of this entry »

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The $7 trillion secret loan program: The government and big banks should be punished for deceiving the public about their hush-hush bailout scheme. – Slate Magazine.

We really do need to give the banks and the bankers ( and their aiders and abettors) a fair trial. Except they seem to be fighting it tooth and nail all the way.

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