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Archive for December, 2008

The Financial Tsunami Heading Our Way

December 30th, 2008

 

America is on the verge and it’s no joking matter.  This financial tsunami just off shore has been building for decades and is about to come crashing on beaches across the country.  Sadly, there really isn’t much we can do to stop it though one thing is for sure, even if we could, we’re not even close to the real solution.  Until someone is willing to take a stand against the tyranny that awaits us, things are just going to decline fast…real fast.

Why so gloom and doom you ask?  Well, almost everyone offering a solution is missing the real problem and in reality are just offering solutions that move the chairs around on the Titanic.  The problem is the size and reach of the federal government and republicans, like the democrats just want to control it, not shrink it.  Name a leader of national stature that has called for an ending to some agency or department…stop trying, you won’t be able to and this is why I’m gloom and doom.

In the end, it does us no good to debate republicans vs. democrats, there’s not a whole lot of difference; both platforms are predicated on a massive federal government and we end up just fighting over who controls the largess.  For that matter, our beloved Ronald Reagan wasn’t even able to shut down the Department of Education he promised he would once he assumed office.

We’re in the grips of a tremendous frog-in-the-kettle moment and unless someone with national stature is willing to call for radical change and then be able to articulate why, we’re headed for turbulent water.  Eventually, we’ll either devolve into a completely socialist state or the country will violently break apart.   The current trajectory is unsustainable.  Why?

  • We have a current federal debt of 10+ Trillion Dollars - how’s that going to be paid?
  • We have proposed federal deficits in the next couple of years adding up to another few trillion dollars - how’s that going to be paid for?
  • We have Medicare and Social Security unfunded liabilities totalling potentially $54 Trillion Dollars - where’s that money gonna come from?

 

It’s going to be paid for by jacking the average hard-working slug on the street, that’s how.  But the dirty little secret is; it won’t work.  When they kill incentive for me to grow my business by taking more and more of my hard-earned money, guess what I’m going to do…slow down.  Why bust my rear-end, take risks, put up with more and more regulatory burden only to have the federal government slip their fingers into my wallet and slip out a few bucks while whispering into my ear that they’re just trying to “spread the wealth around”.  What arrogance.

It’s time people began to realize that the “government” is not just some innocuous entity.  It only exists in its current form because it can exercise the power of law over us to take our money that we’ve worked hard for.  The “government” produces nothing, has no bottom line, is accountable to no one, and contributes nothing to our GDP yet accounts for roughly 20% of the spending that occurs in our country.  In the end, our federal government only takes, takes takes.  Currently, it’s “taking” at a rate of $22,100 of your hard earned dollars not including state and local taxes and every other type of tax you pay.  Disgustingly, it can take more any time it likes and there’s really nothing you can do about it.  Feel a little helpless!  Let me pile on with some other data about taxes you pay.

Property Taxes Alcoholic Beverages
General Sales and Gross Receipts Taxes Death and Gift Taxes
Documentary and Stock Transfer Taxes Corporations in General
Amusements Hunting and Fishing
Insurance Premiums Motor Vehicles
Motor Fuels Motor Vehicle Operators
Pari-mutuels Occupation and Businesses, NEC
Public Utilities Other License Taxes
Tobacco Products Individual Income Taxes
Other Selective Sales and Gross Receipts Taxes Corporation Net Income Taxes
Severance Taxes Add here!
Taxes, NEC

Folks, the Founders of this great land gave us a great start and we plain ole’ messed it up, we’re all guilty.  But before we can resurrect the gift of freedom, we must first take an honest inventory of how far we’ve strayed, and believe me, it’s far.  And unless we’ve all become beholden to the “living Constitution” crowd, we’ve got to go back to the origins of this mess; Hoover and FDR.  Hoover and bad leadership and FDR and mischievous leadership.  Historians in some camps are coming around to Smoot-Hawley as the cause of the gigantic downturn in the economy; Hoover’s fault.  After this downturn, the stage was set for FDR to come in with his Stalin infatuated “brain trust” and massively increase federal spending under the guise of “helping”.   Would people have suffered more had the republicans in the 30’s had more courage and stopped FDR?  No one will ever know.  But one thing we know for sure is that since FDR’s administration, trillions of dollars of productive energy and effort have been sucked out of our country, gone forever.

So, a new compact is needed.  The working men and women of this country must reassert themselves in these final hours.  We must deprive the federal government of all that is needed for its survival…money.  Regardless of the reason, wisdom alone should lead you to severely restrict spending.  The side benefit to this is that If you do, you will deprive the state and federal government tax revenue.  Drive less - you will deprive them of tax revenue.  Take every single tax deduction you can to reduce the amount they can withhold.  If you own a business, talk to your accountant about taking as much of your income as allowed as a dividend - depriving Social Security and Medicare of revenue.  Any other legal ideas?  If so, post them to comments section.

In the end, politicians know one thing…power.  They only have power because the have the money to sustain power.  For me personally, I’d rather deprive myself of things I’d like to purchase rather than let the, less than honorable on Capitol Hill deprive me of it by prying it out of my wallet.  They may be able to, by force of law, compel me to give them money, but they can’t by force of law make me spend money or work any more than I need to.  Want to really bring them to their knees, participate in a long work stoppage.  These may seem like surreal ideas, but really they’re not.  There was a time not too long ago when a few brave freedom loving citizens decided to protest against the heavy hand of King George…you know the rest. 

These politicians on the Hill are not worthy of being called “Statesman”, they’re not.  They’re power-hungry elitists who would throw you in jail in a minute if you oppose their rule.  Read some of the debate during the Taxpayer Act of 1943 for a real feel of what they think of you. 

          

 

The Economy, Unbelievable

Merry Christmas!

December 25th, 2008

Please remember that tomorrow is not about Madison Avenue marketing, it’s about a baby being born in a manger…who would one day grow to be the Savior of the world.

Blessings!

Misc

The Forgotten Man Club.org

December 21st, 2008

 

I’m starting a new organization today but I need your help.  I need attorneys, PR people, internet and web development staff.  The pay is $0.00 but the payoff is HUGE.

Qualifications:

  1. Buy and read Amity Shlaes The Forgotten Man
  2. Read William Graham Sumner’s The Forgotten Man essay.
  3. Give time each week to help.
  4. If you believe after reading these two works that you’re “C” and are about to get reamed by federal and state governments, contact me.

 

Disqualifications:

  1. Lock and load revolutionaries
  2. Radical overthrowers (you know who you are)

I received a number of comments from my last post that I was pontificating myself…fair enough.  One caveat to that; I’m not a General in the conservative movement.  I’m just a husband, father, and business owner with a blog, that’s all.  With that said, I’m willing to try to get something started that represents the “C” in Sumners equation (don’t know what “C” is, ah ha, you didn’t read Sumner’s article).

“C”, the forgotten men and women of America are about to get hosed, big time.  The federal and state governments have every tool in their box that they need to do this and quite honestly, there’s not a lot we can do to stop them.  They have codified every tactic they need.

While there is little we can do to stop them, there are some things we can try, but it requires massive coordination and sacrifice.  This honestly is the hardest part to stopping the federal juggernaut.  Sumner and Shlaes hit the nail squarely on the head with their equation (A + B get together to help D but realize they need money from C to do it).  Well, guess what our good federal and state legislators figured out back in the 30’s; good ole’ C is busy raising his family or paying her bills or planning their retirement or tending to their church to pay attention to all the legislation being passed for D’s sake.  Not only is C not paying attention, A + B know not to ask C for their opinion.  This is the truely sinister part of Sumner’s equation. 

FDR himself coopted the term Forgotten Man and twisted the meaning given to it by Sumner, transitioning the Forgotten Man into the downtrodden of the Great Depression.  By conjuring up images of the truely destitute and the emotional feelings FDR knew would follow, he was able to create a David vs. Goliath battle between big business and the people who were wiped out.  FDR and the federal government would then come riding in on their white horses to save the day from evil big business and viola, “C’s” wallet was opened, Roosevelt slipped in his fingers and slipped out a few bucks all the while wispering in your ear; “its for the less fortunate”.

Misc

Tinkering, Pontificating and Ranting…Sadly, no solutions.

December 20th, 2008

“Hey Mac, go heavy on the mayo, mustard and ketchup but hold the pickles” we tell the local NY hot dog vendor.  So are we treated to a modern version of this from our talking heads and think-tank experts “hey Mac, go heavy on the tinkering, pontificating and ranting…but hold the solutions.”

We’re a full month and a half into President-Elect Obama’s reign and to no surprise, its a pretty ugly picture; as Mark Steyn puts it: “We’re in the fast lane to Bailoutistan.”  As usual, Steyn’s use of sarcasm is dead-on; but, so is Rush, Glenn, the guys at National Review and every other self proclaimed conservative General.  But let’s be real guys, the problem isn’t that hard to see.  We’re all aware that we’ve got a DEFCON 1 threat of full-blown HUGE Centralized Government at our doorstep and just recounting how terrible things are going to get, absent solutions is, well, frankly just discouraging. 

Sadly, our generals seem to be content with incessant analysis and what if scenarios, couching it in optimism endemic to conservatives.  Yet, is there really reason to be optimistic about our future as General Beck recently assured us on his Wednesday broadcast?  Or, should we adopt General Gingrich’s strategy and not try to link Obama with the sludge that continues to drip out of Chicago politics; “The RNC should pull the ad down immediately.”  Or how about General Limbaugh’s constant reminder that elections have consequences.  No offense Rush, all 57 million of us are painfully aware of that.

Where are the solutions we conservatives ask?  It’s a bit like being told your son has an incurable disease (which, by the way, my son does), and replying “yes, yes, I understand, thanks for the information”  then getting up and driving to McDonald’s for a cheeseburger!  It’s time for our conservative leaders to stop tinkering, pontificating and ranting and then heading to the Golden Arches for a cheeseburger.  How about some solutions guys; pragmatic, practical and real solutions?

Yes, elections have consequences, but so does leadership.  Our Generals have thrust themselves into the spotlight, whether through elected office, clever radio programs, print, or websites; they asked for this mantle, now it’s time for them to play the part.  And please, stop the rhetoric about “how great America is”, or “our best days are in front of us” pabulum, none of us ground troops are buying it.  Don’t forget, we’re on the front lines here and we’re getting shot at in our homes and workplaces through taxation, regulations and government intrusion and quite honestly guys, the future doesn’t look too bright to us.  On a personal note, I’m going to lose my business if Obama implements one particular plank of his “Change” platform.  This is real to us Rush, Newt, Glenn, et al., not some high-stakes rhetorical gambit akin to moving the deck chairs around on the Titanic.

The only guy I’ve seen with the guts to pose a rational solution with any national stature is Dr. Walter Williams in his article “It’s Time To Part Company.”  At least he’s positing a solution, perhaps not too plausible, but it’s sure as heck a lot more inspiring than the incessant battle cry “our best days are in front of us” we’re treated too from our talking heads and think-tank experts.

In the end, I’m probably just a throwback trying to swim upstream, one who is too idealistic and pollyanish.  Yet, deep in me, I still want to believe there is a place for morality based free-markets and a time where a mans word was his bond.  I want to believe there can be a time where the downtrodden and people down on there luck can find help in the local churches, synagogues and temples…not the government.

Amity Shlaes in her book “The Forgotten Man” describes how the term “forgotten man” came about.   William Graham Sumner wrote about the real forgotten man in an essay in the early part of the 20th century and is a must read because it’s happening again.

Welcome to the 21st century and welcome to your new status as a forgotten man as it appears our Generals are more interested in tinkering, pontificating and ranting than offering solutions.  Enough already!

Must Read, Restore America, Unbelievable

Update

December 20th, 2008

For those of you following this blog, I’ve been away for most of the month of December.  I have a disabled son whose been in and out of the hospital with multiple surgeries and consistent with my values, I dedicated my time to him, resisting my posting desires.

Misc

The Smoking Gun – The Tax Payment Act of 1943

December 1st, 2008

 

So, how did the federal government become such an albatross that hangs around our neck?  This certainly wasn’t the intent of our Founders; they envisioned a small federal government and a more robust state government.

 

Answer: In 1943, the Congress in all their wisdom and in cahoots with FDR passed the Tax Payment Act of 1943.  Take a guess what this wonderful piece of legislation did?  This beauty provided the federal government with the power of law to sneak its fingers into your back pocket, lift out your wallet and slip out a few bucks…anytime it wants to.

 

You see, the Tax Payment Act of 1943 gave the government the power to withhold taxes from your paycheck,

all as a service to you so you wouldn’t have to bother with writing those big checks on March 15th (that’s when taxes we due back in 1943).  Geeez, thanks for all the help.

 

Now why is this important?  Well, the sinister government (don’t for a minute think its benevolent) realized that if they could make paying taxes appear to be easy through removing a little bit each check, the average American would grow used to this method and not object to coming increases.  A typical Frog in the Kettle moment in history.

 

You can imagine what happened after they pulled this one off; the well was wide open and they (legislators) could drink from it til their hearts content.  Want to see this in practice?

 

Dateline November 11, 2008.  Against a overwhelming tide of opposition from the American public, legislators in both the House and the Senate today passed the Troubled Assets Relief Program (TARP); a $700 BILLION Taxpayer Bailout of the financial sector.

 

Taxpayer…hmmm, who’s that.  Oh that’s right it’s us.  So, because of the wonders of legislative sausage making in 1943, they continue to slip their fingers into our pockets and take out a few bucks whenever they need it.  And there’s NOTHING WE CAN DO ABOUT IT!  Or is there?

 

Sure there is.  First, quit talking/complaining and do something:

 

  1. Stop thinking the Congress is a bunch of bums but your congressman is peachy.  Write your congressman and senator and ask them what they think about the Tax Payment Act of 1943.  Hint: they won’t have any idea what you’re talking about and some poor legislative assistant will have to spend an hour researching it.  You will then receive a form letter informing you that your congressman is very interested in your thoughts on this most important issue and then say or commit to nothing.  Send me a copy of any letter you get.
  2. If you’re sick of this mess, run for office or help someone run who shares your values on this issue.
  3. Help a coalition or organization that opposes this method of legalized theft.

 

In the end, do something.  Too often, we just sit around and whine about how bad things are…and they are bad.  But unless we do something about it, we deserve what we’ve received.  Imagine what the world would be like if African American’s just sat around and complained about their lack of civil rights?  Rather than sit back and just whine, they actually did something thank heavens.  They had the courage of their convictions and a willingness to act; something I see lacking in the conservative movement.

 

Are you willing to march on Washington DC?  How about a work stoppage to make sure the government understands their power to do anything rests in the majority of workers actually working?  How about opening your wallet for candidates that have the guts and courage of their convictions but don’t want to play the republican game?

 

Talk is cheap as they say and actions speak volumes.  Sick of those government fingers in your back pocket yet?

Must Read, The Economy, Unbelievable