Mr. Obama’s engrossment with raising taxes on higher income earners has eclipsed the point of obsession and resembles a man either possessed by demons or one who is so completely bereft of economic sense that he should be examined by medical professionals for competance. His vindictiveness and pernicious attitude toward an unaffiliated group of successful people has been represented as a cure for what has beset the economy as well as the national deficit, so a common sense and simple representation of this apparent derangement is critical. Consider this:
The two most wealthy men in the country are Warren Buffett and Bill Gates. Depending upon the source it is reasonable to estimate their collective net worth at 100 Billion dollars. If those two me were to DONATE their entire net worth toward repayment of the national debt it would decrease by six tenths of one percent. Mr. Obama and the media would like everyone to drink like mother’s milk the concept that all our problems would dissolve if those awful people in the virtual rich club he maintains exists would simply pay “their fair share.”
The top 1% of wage earners already pay nearly 40% of all taxes, so unless one possesses a room temperature IQ it must be apparent that a much bigger problem exists, and believe me it does.
The national debt is not the hoo-doo-voo-doo item the media has always suggested it is, and I will put it into perspective. The Gross Domestic Product (GDP) was roughly 10 Trillion when President Bush took office and the national debt was approximately 6 Trillion. That is analagous to making $100,000.00 per year and having a $60,000.00 mortgage. Yes, there is debt, but it is without question a manageable debt.
That ratio has remained in tact for much of the past generation, but elevated during the Bush administration as a function of two things: the unexpected events of September 11, 2001, and the fact that the Bush Administration had to make up for 8 years of Mr. and Mrs. Clinton systematically neutering the military budget for 8 years. Nonetheless, the debt remained “manageable.”
In less than three years of Mr. Obama’s administration, the national debt is now commensurate with the GDP. In simple terms, it has more than doubled in three years to a point that the GDP AND national debt now rest at $15 Trillion each. When, not if, the income drops below the national debt, and it borders on that precipice as I type, the downward sprial becomes a vortex, a Bermuda Triangle, from which nothing can escape.
More on that another time.
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In the interim, consider this: All of Wall Street was unable to raise between 800 Million and One Billion for American Airlines during the most recent three months, and that venerable airlines filed a reorganization plan under Chapter 11 earlier this week. Gates at major airports are actually huge assets that appear on the balance sheets of all major airlines, and American was willing to mortgage those valuable slots as well as re-mortgage their planes in order to bring about this financing and “The Street” said no. There wasn’t enough interest in that particular risk, for American has assets of roughly 22 Billion, Liabilities of 29 Billion, and with that type of ratio, it was assumed the “vortex” would soon suck the company into utter darkness. Maybe yes, maybe no, although I’m betting on the latter.
Regardless, companies leveraged like American Airlines have overcome steep odds before and stock market success is based upon one’s ability to gauge odds. Meanwhile, Solyndra received 535 MILLION from Mr. Obama without so much as a revenue stream.
All of these observations mean nothing unless Congress quits promising and spending more than you or I can promise or spend and still maintain ownership of our homes.
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Time for a little nap. It’s been a good night for intercourse (he didn’t really type that did he?). Highly intelligent group tonight. Everyone sees things the way I do. Good for us.
Obama hates successful people because he will never truly be one of them.
Perhaps one of the problems is that Congress has no idea how much money there actually is to spend. Other than a piece of paper that they vote on each year. Only the Federal Reserve knows the numbers and they “ain’t” talking. Just printing worthless paper…or, so we are told. Also, there were some ‘connections’ with the Solyndra Company if I’m not mistaken. Plus, Al Gore’s Global Warming has all tree huggers tied to trees and won’t allow any growth but trees. How much was it they spent to plant thousands of trees? And to study the tree frog? Well, someone had a job doing that. Now, we are looking at the Air Force (B.O.) awarding Brazil a neat manufacturing of air craft that Beechcraft in Kansas could have had. Beechcraft has had their bid in for a long time. Something strange going on and it really stinks.
marilyn: they know what they’re doing…they just figure the chickens will never come home to roost…
Marilyn, spotted owl ain’t half bad with a little BBQ sause.
Thank you. I have long wondered what happens when the rich can no longer support the ‘system’ and the non-workers need their hand-outs. Margaret Thatcher was a hard, wise woman. Obama wants the rich to pay their fair share. Does this include B.O., George Soros, Clintons, all of the Bilderberger folks who are U.S. Citizens…? They all hide their money so how would one tax them? Same with Buffet. Where I live, local wealthy donate a good deal to the community; make it a better place to live with buildings, businesses, colleges, support the Arts, etc. One owner was over-heard that it is better to give back to the community than give their money to the Federal Government for their fun and relaxation. I applaud these big businesses owners because they also promote job growth and stability for the community. Here is what I have to say: I am pretty sure that Congress can start the ball rolling on removing the President from the Oval Office. Why aren’t they doing so?
Speaking of Maggie Thatcher, I think she hit the nail on the head when she pointed out that “the problem with socialism is that sooner or later you run out of other people’s money”. Obama and his ilk will never grasp this simple truth.
jaz: he is a communist ergo his philosophy is to take until he has enough and there is an enslaved populace to supply his needs…
Same here in my little burg in Texas Marilyn. Even WalMart (who I can’t stand)gives to the city, so I’ll keep shopping there. ;-) I’m sure they’re relieved to know that.
marilyn: ultimately the truth is that the only so-called rich barry is concerned about are those he doesn’t control…
Barry O’s obsession with higher taxes on the rich is nothing more than his socialist mentality working in overdrive. He seems to think that he can “share the wealth” (that means you and I work our tushes off while 50% of the population sits under the palm tree sipping pina coladas) and things will just keep rolling along smoothly. Margaret Thatcher said something to the effect that the trouble with socialism is that eventually you run out of other people’s money.
Think about it. Are you going to get up at 6 AM, drive to work, do something profitable for your company and earn a nice salary while your neighbor sits in the backyard around his swimming pool living the same life you are (sans work)? Barry needs to look at what is happening to states such as New York and California to see how that works out. They have shared so much of their state’s wealth that the wealthy workers are moving to more reasonable states and earning their salaries leaving the jealous and lazy to wonder when their daily bread is going to be delivered.
One of the reasons that Texas has such a surge in population is because there is no state tax. Boeing didn’t want to move to South Carolina for the golf or climate. It was because it was less expensive to do business there. But that would leave Barry’s undeserving wealth sharers without their Cadillacs. So he stops Boeing from moving. Someone show me where the President gains that power. Show me where Congress can sit around picking their noses and running for office and not stop him. The same thing that is happening to the aforementioned states can, will and is happening to our country. Are we losing jobs and corporations to China because they have better roads and airports or because it is cheaper to do business there?
Barry needs to go back to Harvard and take a lesson in economics and human nature. (I have a couple of ideas where else he needs to go). It works the same way with a nation as it does in our own households. If we outspend our capability to pay our debts, they come and take our Cadillacs and repossess our houses.
The news media is screaming that we have a lack of leadership in government. What we really have is a bunch of people that like to spend money and stay in office. Until we, the voting public sees that we are going to run out of someone else’s money and votes these dolts out of office, nothing is going to change and we’re going to be bankrupt. (An argument can be made that we already are) The solution is easy. Congress needs to stop spending so much money on wars, airports in their hometowns and building bridges to nowhere and use that money to pay down our debt. And they need to go back to school too and take the same classes and quit spending more than you and I can make. And for homework, read Atlas Shrugged.
Only we, the voters can stop them, and unfortunately there are now more people in this country living off our work than there are of us. I doubt they will vote the goose that lays the golden eggs out of the nest. The good news is that there are more worker bees that vote than there are drones. We need to throw the bums out.
sumitch: well said…of course barry would argue that the reasons people are leaving california is because the rich aren’t paying their share…and because states like texas have an unfair advantage because of their tax climate…not only do we need to vote them out but we must stop voting in more like them…
Thank you Mychal. Natch Obama would blame the California rich and whatever unfair advantage Texas has. It could never be anything that could be called initiave or intelligence (or luck. We didn’t do anything to put the oil here, but we did do something about getting it out). Not that Texas doesn’t have it’s problems, but if the Homeland Security Department would turn their back for a month or so, I expect we could handle that too.
sumitch: I hear you loud and clear…
It’s impossible to argue with your logic, Sumitch, though your best line was for Congress to go school for some financial lessons.
How many of them do you believe could pass? ?
Very few Dan. Unless they could take their staff to go to the classes and take the tests while they go out and slap backs and glad hand.
I really don’t think they know and understand what is happening and what the consequences are. Or even worse, do know and understand and don’t care so long as they get to ride the gravy train,
Paul knows the economics (So do I with a double undergraduate minor) but is too quick on the draw. Romney doesn’t have the mouth and intelligence to beat Obama. None of the rest count. And if Newt wins, we’ve still got to figure out how to stop the law breakers train to DC that are printing pre ticked ballots as we type. I’m no finance whiz, but I’m not dumb as a chicken either. They all have to be stopped. Some have written this is our swan song. They may be right. Think I’ll have another scotch.
dan bubalo: my oft asked question still remains unanswered…how it that one day a schlep is just some dolt on the block…and the next after they are elected they suddenly become geniuses…
Because they say they are?
Must be ‘sabotage’ :( , and my ‘sad face’ only looks VERY SILLY in the ‘face’ (pun intended) of this horrific truth. (“groans and inner turmoil that only the Holy Spirit can express to the Father”) God help us boldly express Your Truth IN JESUS, and Him alone. Thank You Mr. Massie for being obedient to The Truth – Jesus.
mrsjb: amen…
Praise the Lord and pass the amunition.
And now he wants to label the Congress as the bad guy and campaign against Congress. He must have forgotten that for 66% of the time he has been in office he controlled through his party mentions like Pelosi and Reid a mere 100% of two thirds of the three branches of government. He had it all, he controlled it all, and he destroyed it all with debt, debt, debt!!!
john hamilton: and he controlled both houses w/ substantial margins…he can campaign on his lies because there are enough out there who will buy them…and a media that will abide them so they can play in the white house litter box…and don’t forget his cure for everything is to spend more…
Mr. H.: Great observation. He and his minions have tried to compare his plight to Truman to bring some gravitas to his self-inflicted wounds. The reality is he is doing so because Plan A flopped, and there is, nor was there ever, a Plan B.
We are fast approaching or are already at the point where we have only 2 options: either we have leaders who have enough common sense and intestinal fortitude to spend less so the national debt can be paid down, or we import valuable resources from another planet. Which to chose? Hmmm.
Gary, I just posted my comments (at the top of today’s comments) and it looks like you and I stand in the same line. I’m too old to do much more than whine that I did my part and paid my taxes. I hope you are young and willing to do the same. And vote the bums out.
sumitch: you are a warrior and your voice is needed…enver say “all you can do”…you are important in the education and instruction of the future generations of your family and peers…
Well, maybe a desk warrior now, but thanks again. The world needs gadflies too. I do vote, I do make donations to the person (not the party) I like, the NRA, the Humane Society (a mixed message when coupled with the NRA), Judicial Watch and NumbersUSA, have attended a couple of Tea Party gatherings (not too impressed with the local bunch), I write letters to the editor and get some published, I vote and was an officer with the local political precinct until I got mad because they were trying to force me to sign on to an agreement on the party platform, all of which I did not agree with. They said I had to, so I quit. Not everyone will agree with all of these groups, but they are free to make donations against them and neuter me (figure of speach you understand). I fear for my nation. I truly do. When they try to take our guns, we’re going to have to stand up or be just a heard to sheep, and that will come with the second four years I’ll wager.
heard should be herd above. My bad.
sumitch: such effort cannot be minimized…it is important to the cause…
gary thomsen: how about we put barry and his administration on a spaceship headed to another planet w/ enough fuel to almost make it…
Good idea. And let’s let NASA do the fill up and check the oil.
sumitch: just as long as they have just enough fuel to almost get there…
Clear thinking. New guy?
ralph evans: Dan is indeed new…I have long wanted to have a financial expert doing weekly commentary…and I am proud to have Dan fill that role…he is eminently qualified and a perfect fit for Mychal-Massie.com…you will find he epitomizes the straight forward blunt force conservatism that this site is known for…I hope you enjoy his insights as much I do…
Thanks for the addition!
ralph evans: w/ pleasure…watch for his wkly economic commentary…
If Iowa screws up tomorrow, I propose we all go there, burn their corn and shoot their pigs.
sumitch: I Thank You for a small laugh at this late and ugly date! Burn their corn and shoot their pigs – excellent, and no doubt the product of an insiteful and humorous Mind!
I look forward to Mr. Massie’s commentaries like Mothers Milk -a rare and perfectly clear peek into the cesspool of D.C., and especially into bho’s “behind closed doors and closed minds” administration.
I spent a bit of time (18 Months – 1976 to 1978) in South Korea as a young US Army Helicopter Pilot during Pak Chung Hee’s reign, and came home with a wonderous and virtually un-explainable Joy to be back in the Land of the Free, WISHING with ALL MY HEART that my fellow Citizens could experience what I had, for it would have made them one and all a PATRIOT, who would NOT accept compromises to their Freedoms.
Martial Law, Cancellation of all Elections, Armed Korean Military on every Street Corner and Transportation Point, Civil Curfew from Midnight to 0500 every single day, Political Dissenters Arrested and Jailed without the possibility of Defense, Protests quelled with Live Rounds and Heavy Armor, and no Free Press – most people had NO idea what was going on in their own Country.
Heartbreakingly, this is EXACTLY what I see coming here in our own Nation, and damn few people have any inkling what this will mean for them, their Families, and their descendents.
The ONLY difference I see is the ability of the Armed US Populace to Fight back, though for a time, and possibly for ALL time, this will only result in a horribly bloody battlefield on our Home Ground.
Think it cannot happen? Think it through – it’s happened here twice before, and Hundreds of Thousands died in the struggles. Say what you will, but the Revolutionary War and the War Between the States were BOTH fought over the Rights of a People to Govern themselves.
NO I DO NOT DEFEND SLAVERY!!!!!!!!!!! For this single reason, perhaps it was necessary to send an entire Nation into Civil War, but take one step back and understand – this WAS about States Rights.
Before anyone accuses me of being a “Confederate” or the descendent of a Slave Owning society, all of MY family came to the US in the last days of the 19th and very early 20th Century from Eastern Europe, Ireland, and Wales. WE were persecuted there, and decided that the only recourse was to re-settle in a Free Land.
Texans we have been from that day to this, and never a single Slave Owner, KKK Member, or Bigot in the bunch, though we HAVE fought in all of our Nations Wars from that time to this.
WW-1, WW-2, Korea, Vietnam, Iraq and Afganistan – we’ve been there for OUR Country. Some came home, some did not.
God Bless and Preserve this Nation!
Steve Tanner
1-979-335-4552
helisales@aol.com
steve tanner: very well stated…we have the ability to change everything at the ballot box…but unfortunately there are not enough people willing to take the blinders off to accomplish same…I stand on the philosophy that we must be willing to lose in the short term in order to win in the long run…
Steve, you’ve seen exactly what I fear and what I think most people cannot come to grips with and its possibility. You and I weren’t that far apart in 1967 and 68. I spent a little time in Huey gunships being ferried from Northern Thailand to Western Vietnam. I still don’t like to hear them although I was more than happy to welcome them now and then when the unpleasantness got out of hand during TET. I’ll never forget Jim Ikerd who aimed the thing on the round trip for me three times while I called him several unpleasant names. He though scaring the you know what out of me was high humor. I saw no reason to fly so close to the tree tops. He said he couldn’t get as high as I wanted him to.
I think the rare pictures of North Korea that we see and you’ve experienced are just abstractions to most people. They’ve never seen anything worse that the poor parts of towns which would be heaven to far too many people in this world. I’ve talked to some high ranking professionals over the past couple of years and they all assure me that the loyalty is to the Constitution. I pray they’re right because I fear we are far too close to finding out than most people can imagine.
My heritage is similar to yours in that they came over from England, Ireland and Scotland in the early 1800’s. They got to see the civil war (two of each great grandfathers fought for each side), but no wars since Vietnam. My dad followed General Patton’s tanks across North Africa, Italy, France and Germany as a grunt. He hated tanks. He said he ate too much of their dust. I talked my son and nephew out of enlisting so they’ve missed all the fighting we seem to get involved in. I see you’re here in the Great Republic too. I’m in the 972 area code, just over the George W. Expressway from Big D. 972/394-4327, Onehorse2@verizon.net. I guess our job now is to tell these whipper snappers to keep their powder dry.
Make that ’67 and ’68, not ’86 and ’87. Man is this good scotch.
Ooopsy. Nevermind. I got my tongue over my eye tooth and couldn’t see what I was typing. Like I said ……..
sumitch: I wouldn’t suggest that…but I sure would like to see a huge write in for Herman Cain…
So would I Sir – I am greatly disheartened that Mr. Herman Cain will not be running for President. He is the finest example of a Presidential Candidate we could have asked for.
His very public and political eviceratation is a shame on all of us, though there is a special place in HELL for those who orchestrated this injustice.
Steve Tanner
Why not? I’m not too crazy with the field it looks like we’re going to get. Maybe VP this time? Stranger things have happened.