Archive for the Finances Category

WSJ OpEd “Can Taxing the Rich Erase the Deficit?”

Posted in Economy, Finances, Government Waste, Politics with tags , on April 13, 2011 by WA4ZKO

Good food for thought piece here on the Wall Street Journal:

Here’s what few will tell you. The math is what it is. No amount of spin (from either side) can get past an honest examination of the math of our tax revenue, potential tax revenue, current spending, and interest on our debt. Taxing the “rich” into oblivion will not cure our nation’s debt problem. It will barely make a dent and will do a lot of harm in many other areas.

Does our tax code need serious review?  Sure it does, but don’t fall prey to the politicians playing to your emotions and envy versus taking a honest look at the problem by simply looking at the math. You’re going to have to be tough and savvy about this. The politicians don’t want you looking at the math, they want to distract you from the real problem (ever increasing spending). It’s like dealing with an alcoholic that doesn’t want to admit he’s an alcoholic. In this case the alcohol is spending.

When you hear a Washington DC politician talking about “spending cuts” be careful with their math. Often they are actually talking about a cut in the rate of spending increases. Example?  They will often take a budget that had a 7% increase in spending on some budget item compared to last year and “cut” it to a 5% increase and call it a 2% cut. In reality that’s not a 2% cut, it’s a 5% increase!

The only viable fix is for us to realize that government spending MUST be REDUCED and DRASTICALLY.  The cuts are coming sooner or later. The only question is will we stop the childishness we heard from our Campaigner in Chief this afternoon and get serious now?  Or will gutless politicians (more scared of loosing an election than their children’s future) keep kicking the can ever so closer to the cliff.

Think of it this way….

Suppose our economic mess is a plane on it’s last drop or two of fuel. We have two choices. We can make a hard emergency landing in a swamp and maybe walk away from it. Or we can let it smash it into the side of the mountain just past the swamp. At this point, this far in, there are no other choices. Don’t kid yourself otherwise.

The brutal reality is that the math is what it is.


Steve Forbes on our idiotic energy policy.

Posted in Economy, Finances, Politics with tags , on March 2, 2011 by WA4ZKO

Politico (far from a far right organization) has recently posted an excellent opinion piece by Steve Forbes titled “Will Mideast strife spark new energy crisis?”

If I was Mr. Forbes I’d rename that piece “The Mideast and America’s idiotic energy policy.”

It’s a good read. First off, let me answer the headline question.  Most likely it will. I think we’re looking at a looming energy driven economic disaster even if things stay relatively contained in the Middle East.

Rather than using our own abundant natural resources, we (Americans) seem just heck bent on making ourselves more and more dependent upon foreign suppliers. It has worked!  We seem heck bent on making plentiful sources of energy falsely scarce and increasingly expensive….all to the continuing trashing of our economy. All while way too many clueless folks are more worried about who will be on the next Dancing with the Stars episode, Lindsy Lohan’s or Charlie Sheen’s latest meltdown, and other pop culture silliness while their country borders on collapse around them.

It’s both terrifying and breathtaking to watch. America’s enemies sit on the sidelines rubbing their hands. They don’t need to fire a shot, we’re doing an incredible job of  destroying ourselves.

Simply put  if we desire a vibrant and competitive economy, then we must have cheap and plentiful energy.  Energy drives everything. Yes it’s really just that simple! Unfortunately it looks like we’ll have to learn this the hard way after we drive our economy into the 2nd Great Depression.  Sorry, don’t kid yourself otherwise….on our current course this is right around the corner.

The car is no longer “in the ditch.” Instead of the car being pushed back onto the road, it’s been pushed to the edge of a cliff.