Tag Archives: national debt

Pay Down Debt or Spend More?

Posted on by

Author:  R. Alan Harrop, Ph.D.  

The first month of the second Trump administration has not only been historic, but has shown that he is determined to keep his promises and make “America Great Again.”  This has been exhilarating for his supporters and for every patriotic American.  One of the historic things he has done is the creation of the Department of Government Efficiency (DOGE).  No other president has taken such a meaningful step to search out fraud, waste, and abuse in the federal government, even though we all suspected it was there.  Seemingly every day, DOGE reports examples of government spending of our tax money that needs to be stopped.

Although we do not yet know the total amount of taxpayer money that can be saved, the amount will be substantial.  The question that now arises is what to do with that money. At least three possible options are being considered.  First:  Pay down the national debt; second: use it in constructing the current budget; and third: give a direct refund back to the taxpayers.  Let’s examine these options.

The national debt is currently is $36.5 trillion and increasing by $1 trillion every 100 days.  By 2030, it is projected to reach $45.5 trillion.  Just the interest payment on the debt will be $1.2 trillion this fiscal year ending in October.  By 2035 it’s projected that just the interest on the national debt will be $6 trillion.  This far exceeds the total federal tax revenue for 2024 which was $4.5 trillion.  What does all this tell us?  That the federal government is on a slide to fiscal bankruptcy that is growing more inevitable every year.  The analogy with personal finances would be owing money, say to credit cards companies, where the total interest paid each month more than exceeds one’s monthly income!  Clearly, this is unsustainable.

As far as the annual budget option is concerned, in 2024, the federal government spent $1.8 trillion more than it took in in revenue.  The budget being considered for this fiscal year will likely have a deficit of similar size.   Applying any savings found be DOGE to this year’s budget would seem to help, but only if the politicians can be trusted to not spend more since they will have more to spend.   Given their track record, I am not optimistic they would do the right thing.

Lastly, giving a refund back to the people sounds good but in many ways is fraught with problems when deciding who should get the refund and how much.  Generally, only about 50% of workers actually pay federal income tax.    Also, the amount of tax paid varies considerably.  So, would it be right to grant, say, a refund of $5,000. to all workers when they vary not only in how much federal tax they paid to begin with, or whether they paid any at all? Sorting this out would be complex indeed.  It is also likely, that infusing more cash into the system will result in higher inflation, which we must not allow to happen.

Since the crisis facing our country is the national debt, it seems to me that the best strategy would be to directly apply any savings found by DOGE directly to reducing the federal debt.  It would be equivalent to the example of the person with excessive credit card debt applying some windfall to paying the credit card off or rather taking the money and buying more things.  We need to face up to the crisis of the national debt and the best way to do that is to apply any and all savings identified by DOGE directly to reducing that debt.  This will show our citizens and the world that we are actually serious about solving the federal debt crisis.

2024 Statistics

Posted on by

On Thursday, Prophecy Watch posted a list of 44 statistics from 2024.

Here is the list:

#1 Over 155 million votes were cast in the 2024 presidential election. Donald Trump’s win in that election capped what many consider to be the greatest political comeback in U.S. history.

#2 Nearly 11 billion dollars was spent during the 2024 election cycle. That is the most money ever spent on an election by a very wide margin.

#3 1.2 billion dollars was spent on political ads in the state of Pennsylvania alone.

#4 Prior to the election, one survey found that 79 percent of Americans believed that the nation was on the wrong track.

#5 The U.S. government is currently $36,144,183,375,647.43 in debt.

#6 If our politicians keep spending money at the current rate, the U.S. government will be 51 trillion dollars in debt four years from now.

#7 Total U.S. household debt is nearing 18 trillion dollars.

#8 The number of shoplifting incidents per year in the United States is up 93 percent compared to pre-pandemic levels

#9 On a single day in December, Joe Biden announced that he was commuting the prison sentences of nearly 1,500 criminals and he issued full pardons to 39 others.

#10 The U.S. Census Bureau says that 37 percent of Americans are having trouble even paying their most basic bills.

#11 According to Bank of America, almost a third of all households “spend more than 95% of their disposable income on necessities such as housing costs, groceries and utility bills”.

#12 The price of orange juice is up 327 percent over the last 3 years.

#13 The average household in Miami spends 327 dollars during a single trip to the grocery store.

#14 It now takes more than $100,000 a year for a typical U.S. household to live “the American Dream” in all 50 states, and in 29 U.S. states it takes more than $150,000 a year.

#15 For the average person, it now costs 4.4 million dollars to live “the American Dream” over the course of a lifetime.

#16 Thanks to rampant inflation, the average American now believes that it takes an income of $270,000 a year in order to be “financially successful”.

#17 Overall, U.S. home prices are up more than 1,000 percent since 1974.

#18 Only 10 percent of Americans believe that becoming a homeowner is “easy or somewhat easy”.

#19 37 percent of U.S. cardholders have already maxed out at least one credit card.

#20 The amount of money that Americans owe on their credit cards is twice as large as the GDP of the 100 poorest nations on the entire planet combined.

#21 30 percent of all student loan borrowers have “gone without food or medicine due to their monthly bills”.

#22 At one food bank in New Jersey, demand has actually quadrupled since the peak of the pandemic.

#23 An all-time record high 770,000 people are homeless in the United States, and that number grew by 18 percent in just one year which is also an all-time record high.

#24 We are being told that more than 3 million Americans are now living in their vehicles.

#25 The number of job openings in the United States has fallen by about 4 million since 2021.

#26 U.S. retailers have announced 7,100 store closures in 2024.

#27 For the 12 months ending June 30th, the number of business bankruptcy filings was up more than 40 percent compared to the previous 12 months.

#28 An office building in Manhattan that sold for $332 million dollars in 2006 sold for just $8.5 million dollars in 2024.

#29 Half of all workers in the U.S. make less than $43,222.81 a year.

#30 According to Bank of America, from 2019 to 2024 there was a 10 percent jump in those that are living paycheck to paycheck.

#31 According to the U.S. Census Bureau, 29 percent of all U.S. households were one person households in 2024.

#32 40 percent of Americans report feeling lonely at least some of the time.

#33 30 percent of Americans have been clinically diagnosed with depression at some point in their lives.

#34 The market capitalization of Fartcoin is currently 973 million dollars. Meanwhile, the market capitalization of Office Depot is just 680 million dollars.

#35 According to the U.S. Census Bureau, 46.2 million people that were not born in the United States are now living here.

#36 The federal government has admitted that there are approximately “425,000 convicted criminals living in the U.S. illegally”.

#37 According to North Carolina Governor Roy Cooper, the total damage caused by Hurricane Helene in his state exceeds 50 billion dollars.

#38 According to the official website of the GAO, Congress had appropriated a total of 174 billion dollars for the war in Ukraine as of April.

#39 According to the Institute for Economics & Peace, there are 56 active military conflicts raging around the world right now. That is the highest number that we have seen since World War II.

#40 According to the United Nations, there are over 2 billion people that eat insects as part of their normal diets right now.

#41 It is being projected that the market for insect protein in the United States will be valued at 274 billion dollars in 2031.

#42 Sperm counts have fallen by more than 50 percent since 1973. If this trend continues, soon we will not be able to produce enough viable offspring and the human population of this planet will plummet dramatically.

#43 Our brains are slowly but surely filling up with plastic. One team of scientists discovered that human brain samples from 2024 had concentrations of microplastics that were 50 percent higher than human brain samples from 2016.

#44 If the amount of plastic in our brains continues to rise at a rate of 50 percent every 8 years, 28 percent of our brains will be plastic 80 years from now and everyone will be dead.

Welcome to 2025.

The Impact of the National Debt

Posted on by

Author: R. Alan Harrop, Ph.D

We, the American taxpayers, need to be aware of the soaring national debt; primarily because we will ultimately suffer the consequences of this out-of-control spending. Let’s take a look at the facts. I strongly suggest that you sit down as you read this.

Much of the following data was obtained from the website www.us.debtclock.org as of the end of August 2024. The total debt is currently 35.2 trillion dollars. This debt, by far the highest of any country in history, is increasing at the rate of 1 trillion dollars every three months. This amounts to $268,000 per taxpayer. The debt to the Gross Domestic Product (GDP) ratio is 122% as compared to 35% in 1980. This is comparable to an individual having a debt that is 122% higher than their total assets and income. The interest alone on the national debt now amounts to 918 billion dollars per year, which is more than the entire military defense budget. This is clearly unsustainable.

The impact of federal spending on inflation is equally alarming. Compared to the year 2000, the price of essentials is truly shocking. For example, the average price of a new home is now $406,000 as compared to $166,000 in the year 2000. New cars now average $49,000 as compared to $22,000; annual healthcare now averages $15,000 as compared to $5,000; college tuition now averages $27,000 per year compared $11,000. Contrast these dramatic increases to the increase in median annual income that is now $39,000 compared to $32,000 in the year 2000. Clearly, the standard of living of the average American, especially the young, has diminished significantly, especially when you add the $268,000 we all owe on the national debt!

As we face the upcoming election, we need to evaluate the impact the Democrat and Republican platforms will have on the national debt and inflation. The Democrat platform, as far as we can tell, includes price controls, $25,000 gifts to first time home buyers, increases in corporate tax rates, allowing the Trump tax cuts to expire, a tax on unrealized capital gains, transferring student loan debt to others, and a wealth tax. History shows that none of these proposals will reduce the national debt or inflation–they will only increase government spending and reduce the incentive of the average person or corporation to invest.  Couple this with the money being spent to support illegal aliens, and the problem only worsens. For example, price controls lead to shortages in supplies and result in price increases. The Republican platform includes efforts to reduce the cost of energy by eliminating costly green energy programs and expanding the use of fossil fuels and nuclear power, reducing excessive government regulations, incentives to increase investments, and returning manufacturing to this country. Decreasing the cost of energy is essential to reducing inflation. The national debt crisis can only be solved by reducing the size of the federal government (e.g. abolishing the federal Department of Education and cutting the budgets of all federal agencies) and growing the economy by encouraging investment.

We have a very clear choice in the upcoming election. The fate of the economic survival of this country is on the ballot. Time to face reality.

I’m A Little Late On This, But I Think It’s Important

Posted on by

On July 1st, Townhall posted an article about the presidential debate. All of us who saw the debate drew our own conclusions, but I want to talk about some things that happened after the debate. Jill Biden revved up the crowd at Waffle House by calling President Trump a liar. Generally speaking, that is the charge that Biden supporters make against President Trump. They never quite get down to specifics, but that is the talking point.

Townhall reports:

Although news articles often call Donald Trump a “liar,” I don’t think I have ever seen that term used when discussing Joe Biden. Following the first presidential debate in June, fact-checkers at the New York Times and the Wall Street Journal accused Trump of numerous falsehoods. But they couldn’t find a single Biden falsehood. 

…With respect to Trump, they can’t see the forest for the trees. With respect to Biden, they can’t see the trees.

Immigration. Let’s start with the most blatant falsehood in the entire election season. Last January, Biden claimed, “I’ve done all I can do” to secure the border. He has taken almost 300 executive actions on immigration. Nearly all of these actions made immigration easier, including revoking some of Trump’s policies on his first day in office.

The second worst falsehood is his claim that he needs Congress to act. “Just give me the power I’ve asked from the very day I got into office,” he told reporters. Yet he operates under the same congressional laws as presidents Obama and Trump.

Trump states correctly that innocent young girls have been raped and killed by illegal immigrants. He is justified in saying that those girls would probably be alive today if the Trump immigration policies were still in place.

We are not vetting the immigrants we apprehend, to say nothing of all the got-aways. We don’t really know who they are or where they are. Some are connected to terrorist organizations. FBI Director Wray has testified that there is a serious fear of another 9/11.

…In the debate, Donald Trump claimed that Democrats in general and Biden in particular believe in the legality of killing babies after they are delivered. Even though a Democratic Virginia governor once seemed to suggest that, it is probably not factually correct. But it is very, very close to being correct. For most Democratic candidates, abortion should be legal one minute before delivery, and possibly even during delivery.

…Deficit spending. Some fact-checkers claim that when Trump attacked Biden for running up debt, that was another falsehood. It is true that the Committee for a Responsible Federal Budget claims that Trump accumulated twice as much debt as Biden. Yet, this claim has been refuted by the House Budget Committee. Moreover, the official scorekeeper on this question is the Congressional Budget Office, whose ten-year projection finds that Biden’s policies will add far more to the national debt than Trump’s policies.

Please follow the link to the article for further examples. Remember, when you can’t win on policy, attack your opponent personally. It’s not an honest way to run a campaign, but it often works.

It’s The Spending, Stupid!

Posted on by

On Tuesday, The Daily Caller posted an article about federal spending. If the average American family spent money the way the government does, they would be bankrupt within six months.

The article reports:

The U.S.’ national deficit surged in February as income declined and expenses rose, resulting in the federal government spending more than double what it collected in the month, according to a release from the Treasury Department.

The federal government collected $271 billion in February, mostly through taxes and social insurance and retirement payments, but spent $567 billion, a difference of $296 billion that was funded by an increase in the national debt, according to the Treasury Department. The gain in February brings the total national debt increase in fiscal year 2024 to $828 billion, which began in October 2023.

Remember–we have to pay interest on that debt.

The article continues:

At the end of February, the national debt totaled $34.71 trillion, with $27.38 trillion of that being held by the public and $7.09 trillion being held by other government organizations, according to the Treasury. The federal government recently passed the $34 trillion debt mark right before the start of 2023.

The government has already paid $433 billion in gross interest expenses in fiscal year 2024, far higher than the $306 billion that had been paid at this point in the last fiscal year, according to the Treasury. For the current fiscal year, the Treasury anticipates that it will pay over $1 trillion in just interest costs.

The article concludes:

A Biden administration official claimed that 90% of the non-emergency increase in the debt-to-GDP ratio since 2001 has been the result of tax cuts, the official told the Daily Caller News Foundation in response to a request to comment. The official argued that Biden’s recently proposed budget would reduce the national deficit by $3 trillion through taxing wealthy individuals and big corporations.

If President Joe Biden’s budget proposal is enacted, it is estimated that the debt would increase to $42.5 trillion by the end of fiscal year 2028, around the time his presumptive second term would end.

Can we please have a President who understand the Laffer Curve and economics!

When The Numbers Just Don’t Add Up

Posted on by

Issues & Insights posted an article Monday about President Biden’s claims in his State of the Union address about the taxes the wealthy pay versus the taxes he thinks the wealthy should pay. The bottom line is ‘simply hang on to your wallet no matter how much you make,’ but the article refutes some of his claims.

The article reports:

First, consider his claim that the tax rate paid by billionaires is 8.2%. That plays well with soak-the-rich leftists. But where did he get this number?

Not from the IRS. It calculates the actual tax rate that various income groups pay, including the ultra-rich. Its data show that the 400 people with the biggest incomes in America were paying an average tax rate of more than 23%. Congress’ Joint Committee on Taxation figures that the tax rate on the top 0.4% of families is 26%.

So where does Biden come up with an 8.2% tax rate? He changes the definition of taxable income to include all unrealized gains from investments.

If you have money in the stock market, any gains in the value of those stocks would count as income to Biden, even if you don’t sell the stock. Presumably so would any gains in the value of your home. Or the value of any other assets you possess.

By artificially inflating income, Biden can make their tax burden seem tiny. 

The idea of taxing unrealized gains — in other words, extending the income tax to things that aren’t income — could very well be unconstitutional in addition to being economically reckless.

Just for the record, Americans are already taxed on unrealized gains–every year we pay a real estate tax on what the city or county assesses is the value of our house. We haven’t sold our house. The only actual gain from our house is having a place to live, yet every year we pay taxes on it.

The article concludes:

What about his claim that taxing the wealth — not the income — of billionaires would raise $500 billion?

Sounds like a lot, doesn’t it? Except Biden is hoping nobody notices the caveat — that it’s $500 billion over 10 years. In other words, $50 billion a year.

Even that might sound like a lot … until you put it in context.

That $50 billion wouldn’t even cover one month’s worth of interest payments on the national debt, which was $69.2 billion in January.

It wouldn’t even pay half of the increase in the deficit in the first five months of this year compared with last year. (The deficit from October through February was $830 billion, which is up $108 billion from the same months the year before.)

The idea that an extra $50 billion could finance a new childcare entitlement, paid leave, and home care isn’t just ludicrous, it’s insane.

We don’t expect Biden to know or understand what he’s reading on the teleprompter, but shame on anyone else for believing the lies he’s spewing.

Someone needs to explain the Laffer Curve to the Biden administration.

How Long Can This Continue?

Posted on by

On Sunday, Clarice Feldman posted an article at the American Thinker about our rapidly disintegrating President.

The article notes:

A day after his pumped-up divisive State of the Union address, unsurprisingly headlined “fiery” by the copycat media lackeys, President Biden, speaking in Pennsylvania, reverted to his old befuddled self.

“Pennsylvania, I have a message for you: send me to Congress!” 

“Last night [at] the U.S. Capitol — the same building where our freedoms came under assault on July the 6th!”

“We added more to the national debt than any president in his term in all of history!”

Some Americans believe that the senility and dementia are an act. I don’t agree, but I think it would probably be better if it were.

The article continues:

Well, the last statement is true. I’ll give him that. And large budget deficits are a pattern in Democrat-run cities and states. Democrats pay off cronies and constituencies with government money and then raise your taxes because they’ve spent more than they were able to squeeze out of the economy.

Nearest to me, that pattern is evident in Maryland and Washington, D.C.: They look the other way at rising crime because they defunded the police and decriminalized conduct and then bemoan empty purses as people and businesses flee. They locked down their states and were surprised to learn that capped the revenue spigot. They made ridiculous, frivolous expenditures like bike lanes and street cars and painting BLM on a major street and then can’t pay for necessities like cops, road repairs, and schools.

The article concludes with a list of some of the accomplishments of Calvin Coolidge and some of the things that happened under his watch:

Without government interference, private enterprise quickly electrified the country and created a transportation revolution as more Americans could drive their new automobiles.

Average earnings rose 30 percent in a decade. Gross domestic product (GDP) rose by a third… This great economic and lifestyle revolution for Americans of modest means happened with basically no guidance from the federal government. The government largely stayed out of the way. 

We can dream, can’t we?

It really is time for a change.

Us or Them?

Posted on by

Author: R. Alan Haarrop, Ph.D

George Washington warned us to avoid getting involved in foreign wars. Like most concerns of the Founding Fathers, his warning was right on target. We are fast approaching the two year anniversary of the war between Russia and Ukraine. It appears to be at a stalemate. The spending bill recently passed by the Senate (with the support of North Carolina Senator Thom Tillis) would provide another $60 billion in addition to the $ 75 billion already authorized and spent. This is the most amount of U.S. foreign aid to a European country since the Marshall Plan to rebuild Europe after WWII during the Truman administration. Of course, this is borrowed money which will only add to the current national debt of over $34.3 trillion and counting (see U.D. National Debt Clock). Thanks to the Biden regime, the interest payments on the national debt are now more than the entire military budget.

The question we must ask is, “What is the endgame of our involvement in Ukraine?” Biden’s comment that we are committed to funding Ukraine  “ …As long as it takes” is just not acceptable. We cannot afford to fund endless wars! In addition to the monetary cost, there is real danger of a widening war with Russia which could lead to a nuclear conflict. As history has shown on many occasions, so-called limited wars readily escalate into total war where there are no restrictions or limits. This is especially dangerous in the age of nuclear weapons. It should be noted that this is the closest we have come to a direct war against Russia which has a nuclear arsenal equal to ours.

So what should we do about this omnibus foreign aid bill that actually totals $95 billion? First, the Biden regime must be required to tell us what their endgame objective is. Second, no more aid to Ukraine without a strict accounting for all expenditures. For example, we are being told that some of the aid money will pay for the pensions of Ukrainian government employees. Third, Ukraine should be required to enter into negotiations to end the war, or no more funds from us.

The other disturbing aspect of the $95 billion bill passed by the Senate is the $10 billion slated to go to Hamas. They start a war with one of our allies with a brutal, savage attack against defenseless civilians and we are going to give them money? This would be the equivalent of us sending money to Japan right after the attack on Pearl Harbor. Unbelievable. The Palestinians voted for Hamas as I recall.

Finally, there is no funding in this bill to seal our southern border or to begin deporting the millions of illegals who have entered this country under the Biden regime. Our country’s security should always come first, as George Washington advised.

There Is Spin, And There Is Spin

Posted on by

On January 18th, Issues & Insights posted an article about the difficulty the Biden presidential campaign is having gaining traction.

The article notes:

Rep. James Clyburn, who is a co-chairman of Joe Biden’s reelection campaign, recently tried to explain the president’s predicament by saying that he’s “delivered for the American people in such a way that nobody seems to grasp.”

As campaign slogans go, that’s not exactly “Morning in America.” But the truth is that everybody grasps what Biden has delivered. It’s what he’s delivered that they don’t like.

Clyburn, talking on MSNBC, said the public just needs to “look at the facts and stop listening to all of this tweeting and stuff that’s going on out there that’s not good for the American people.”

We took the South Carolina Democrat’s word for it, and here’s what we found that Biden has delivered, at home and abroad.

This is the list of what President Biden has delivered:

The cost of living has skyrocketed.

Real wages are down.

Poverty is up.

The national debt has exploded.

Deficits are on the rise.

Illegals are flooding across the border.

Attacks on the U.S. are up.

The world is a more dangerous place.

Please follow the link above for further details.

Does anyone want four more years of this?

The Festivus Report

Posted on by

On Friday, Fox News posted an article about Rand Paul’s annual Festivus Report.

The article reports:

Sen. Rand Paul, R-Ky., released his annual Christmas “Festivus” report Friday for the ninth year in a row, outlining $900 billion in government waste. 

Among notable instances, the National Institutes of Health allocated funds to study Russian cats on treadmills, photos of Barbies were utilized as identification to obtain COVID relief funds, the Department of Defense lost $169 million of outdoor-stored military gear, $6 million went towards tourism in Egypt by the United States Agency for International Development, and the Small Business Administration provided over $200 million to “struggling” music artists such as Post Malone, Chris Brown, and Lil Wayne.

Up from $30 trillion in debt in 2022, this year’s debt amounts to $34 trillion, the report also highlights. 

“Who’s to blame for our crushing level of debt? Everybody,” Paul wrote in the report. “This year, members of both parties in Congress voted to raise the debt ceiling, which empowered the government to borrow an unlimited amount of money until 2024. As Congress spends to reward its favored industries and pet projects, the American taxpayers are forced to pay the price through record–high inflation and crippling interest rates.”

He added: “The same big spenders teamed up, yet again, to continue sending Americans’ hard-earned money to foreign countries and funding endless wars, all while ignoring our porous southern border.”

The article concludes:

The Congressional Budget Office forecasts a staggering increase in national debt, estimating an average addition of $2 trillion annually for the coming decade. This translates to over $5 billion in debt daily over the next 10 years. 

“As always, taking the path to fiscal responsibility is often a lonely journey, but, as I’ve done in years past, I will continue my fight against government waste this holiday season,” Paul wrote. 

Last year, Paul’s report broke down $482 billion in wasteful spending, from the billions spent giving COVID relief funds to ineligible people to a $118,000 study on whether Marvel movie villain Thanos would really be able to snap his fingers while wearing the Infinity Gauntlet.

Until the uni-party is unelected in Washington and in many of our states, we can expect more of the same.

 

It’s Past Time For This!

Posted on by

On Tuesday, The Epoch Times posted the following headline:

The Time to Audit the Fed Is Here

A site called worldtraining.net explains some of the history of the Federal Reserve:

On June 4, 1963, a little known attempt was made to strip the Federal Reserve Bank of its power to loan money to the government at interest. On that day President John F. Kennedy signed Executive Order No. 11110 that returned to the U.S. government the power to issue currency, without going through the Federal Reserve. Mr. Kennedy’s order gave the Treasury the power “to issue silver certificates against any silver bullion, silver, or standard silver dollars in the Treasury.” This meant that for every ounce of silver in the U.S. Treasury’s vault, the government could introduce new money into circulation. In all, Kennedy brought nearly $4.3 billion in U.S. notes into circulation. The ramifications of this bill are enormous.

        With the stroke of a pen, Mr. Kennedy was on his way to putting the Federal Reserve Bank of New York out of business. If enough of these silver certificates were to come into circulation they would have eliminated the demand for Federal Reserve notes. This is because the silver certificates are backed by silver and the Federal Reserve notes are not backed by anything. Executive Order 11110 could have prevented the national debt from reaching its current level, because it would have given the government the ability to repay its debt without going to the Federal Reserve and being charged interest in order to create the new money. Executive Order 11110 gave the U.S. the ability to create its own money backed by silver.

        After Mr. Kennedy was assassinated just five months later, no more silver certificates were issued. The Final Call has learned that the Executive Order was never repealed by any U.S. President through an Executive Order and is still valid. Why then has no president utilized it? Virtually all of the nearly $6 trillion in debt has been created since 1963, and if a U.S. president had utilized Executive Order 11110 the debt would be nowhere near the current level. 

The Federal Reserve creates money out of thin air and then loans it to the government at interest. It’s a great scheme.

The Epoch Times reports:

This week, Sen. Rand Paul is pushing an amendment to a major spending bill that would finally do what should have been done decades ago. It should have been an annual undertaking for the past 100 years. He wants a thorough and external audit of the Fed, using prevailing accounting standards to figure out where the billions and trillions are coming from and where they’re going.

Please follow the link to read the entire article. This needs to be done.

We Need Fiscal Responsibility In Washington

Posted on by

On Friday, The Washington Examiner posted an article about this year’s budget deficit. One of the conclusions that can be drawn from the numbers is that so far electing Republicans to the House of Representatives has not had any impact (actually that’s because the lame-duck Democrat Congress passed bills that limited the 2023 Congress’ ability to curtail spending). However, now we have a speaker who seems to be less likely to continue previous shenanigans. The next few weeks are going to be very interesting in terms of the budget process.

The article reports:

The United States is increasingly losing the war against red ink.

Per new Treasury Department figures, the U.S. government is courting a worsening fiscal crisis. Officially, Treasury Secretary Janet Yellen said the federal government ran a $1.7 trillion deficit for fiscal 2023, which ended Sept. 30. That’s up from a $1.4 trillion federal budget deficit posted in 2022.

But as highlighted by the Committee for a Responsible Federal Budget, Yellen’s math ignores another $300 billion in debt incurred by President Joe Biden’s student debt cancellations, bringing the actual total of the deficit under the president to a full $2 trillion. Fix that adjustment for fiscal 2022, and that year’s deficit amounted to a little less than $1 trillion.

This means that in just one year, sans recession and sans war, the federal government under Biden managed to double the deficit by more than $1 trillion. And in large part, it’s all thanks to his embrace of inflation, or at least inflationary spending.

Broadly speaking, the explosion of our national debt, which is now the size of the nation’s annual GDP, is primarily driven by our growth of government spending. While the rest of the nation pays handsomely for inflation with their paychecks, reduced in real terms of purchasing power, our wealthiest generation profits from the pockets of taxpayers. Thanks in large part to the cost-of-living adjustments for our entitlement programs, the three greatest categories of federal budget outlays — Social Security ($1.4 trillion), Medicare ($848 billion), and Medicaid ($616 billion) — grew by 11%, 12%, and 4%, respectively, from just last year.

The article concludes:

The stratospheric surge in bond yields should serve as a warning to Washington that even if the Fed won’t force the government to slow down the spending, the nation’s creditors will not continue to bankroll Uncle Sam without him paying a hefty premium for the privilege. While underlying demographic trends and the inherent, gerontocratic structure of entitlements predestined the nation to a certain fiscal fiasco long before the pandemic, the bipartisan embrace of wartime borrowing, and then Biden’s decision to double down on inflationary policy, have put the country on the path where not even the Fed can fight the deficit disaster on its own.

If Washington won’t listen to the Fed, perhaps it will begin to listen to creditors as the coffers continue to run dry.

We can’t afford to fund wars all over the world. The defense contractors love it, but the country will be destroyed by the debt incurred.

Solutions For America

Posted on by

On December 18th, Victor Davis Hanson posted an article at American Greatness titled, “10 Steps to Save America.”

The article lists his ten ideas:

Cut the Debt

Secure the Border

Tap Natural Resources

Oppose Discrimination

Disrupt and Reform Higher Education

Revive the Armed Forces

Fix Voting

Drain the Swamp

Upend the Welfare State

Restore Norms

Many of these problems are the result of well-meaning policies that were supposed to solve the problems they created. The welfare state was supposed to end poverty. Instead it created a bureaucracy that has no incentive to reduce the number of people on welfare. Draining the swamp refers to the administrative state that is currently making most of our laws–instead of the legislative branch of the government that is supposed to make them. Restoring norms like community standards, marriage as the foundation of our society, and protecting children from pornography would be a step forward.

Please follow the link above to read the entire article. These are things we can all work to implement that would definitely improve the future of our country.

Hang On To Your Wallet

Posted on by

Breitbart is reporting today that the Continuing Resolution (CR) currently making its way through Congress is going to be loaded up with all sorts of goodies not normally found in a CR.

The article reports:

Punchbowl News reported Monday that the Biden White House continues to prepare a list of “anomalies” that they will want funded as part of any continuing resolution (CR) that a CR does not usually fund. The White House will send the list of their priorities to the House and Senate Appropriations Committees likely sometime this week.

The article lists some of the things that the Democrats (and some Republicans) want funded:

Senate Minority Leader Mitch McConnell (R-KY) has vowed to oppose the inclusion of a debt ceiling increase with the government funding bill.

Democrats and Republicans have included many carveouts in high-priority legislation.

For instance, the Democrats’ $3.5 trillion budget resolution includes:

    • A civilian climate corps
    • Debt relief
    • Environmental justice investments in clean water affordability and access, healthy ports, and climate equity
    • Investments in clean vehicles
    • Paid Family and Medical Leave
    • ACA expansion extension and filling the Medicaid Coverage Gap
    • Health equity (maternal, behavioral, and racial justice health investments)
    • State and local tax (SALT) tax deduction relief which primarily benefits wealthy, blue states
    • Tax “fairness” for high-income individuals, or those who are making more than $400,000 per year
    • Universal Pre-K for 3- and 4-year olds
    • Electrifying the federal vehicle fleet (USPS and non-USPS)
    • Lawful permanent status for qualified immigrants or amnesty for illegal aliens

Taxpayers need to stand up against this nonsense. There is a reason we have to raise the federal debt ceiling. This CR would only increase our national debt to the point where there is no hope of paying it off. The only way to decrease our national debt at this point is to print more money, decreasing the value of our currency, and fueling inflation. That is where we are.

Just for the record, our Founding Fathers believed that it was immoral to create a national debt that lasted beyond the administration that created it. We need to get back to that sort of thinking.

Economic Indicators In November

Posted on by

One America News is reporting today that U.S. homebuilding increased more than expected in November and permits for future home construction surged to a 12-1/2-year high.

The article reports:

The economy’s near-term prospects were also bolstered by other data on Tuesday showing a strong rebound in manufacturing production in November as the return of formerly striking General Motors’ <GM.N> workers boosted automobile output. The data suggested the economy remained on a moderate growth path in the fourth quarter despite slowing consumer spending.

…In a separate report on Tuesday, the Fed said manufacturing production rose 1.1% last month after dropping 0.7% in October. Excluding motor vehicles and parts, manufacturing output increased 0.3%.

The rebound in manufacturing production suggests the factory downturn is probably close to running its course. Manufacturing output is still expected to contract in the fourth quarter.

“This is a welcome shift after declines in three out of the four preceding months, but not the end of the struggles for manufacturing,” said Tim Quinlan, a senior economist at Wells Fargo Securities in Charlotte, North Carolina.

Single-family homebuilding, which accounts for the largest share of the housing market, increased 2.4% to a rate of 938,000 units in November, the highest level since January. Single-family housing starts rose in the West and Northeast, but fell in the Midwest and the South.

Single-family housing building permits rose 0.8% to a rate of 918,000 units in November, the highest since July 2007.

Starts for the volatile multi-family housing segment jumped 4.9% to a rate of 427,000 units last month. Permits for the construction of multi-family homes rose 2.5% to a rate of 564,000 units.

The economy is doing very well. The only thing that would make it better would be if the people we elected and sent to Washington would get serious about cutting spending and lowering our national debt.

North Carolina’s Third Congressional District

Posted on by

I am not endorsing anyone for the Third District House of Representatives seat in North Carolina. However, I heard Allen Thomas speak tonight, and I was impressed by a lot of what he had to say.

Mr. Thomas is a native of eastern North Carolina and is the former Mayor of Greenville, North Carolina. He graduated from New Bern High School,  continued his education at Eastern Carolina University, and finally earned his MBA at Chapel Hill. He started a business in North Carolina which he sold last year. As Mayor of Greenville, he was successful in lowering the crime rate in the city and bringing industry into the city and the area of eastern North Carolina. He also served on the board of Global Transpark, creating jobs for eastern North Carolina.

Mr. Thomas listed the following items as major issues in eastern North Carolina:

  • Reinforce the military presence and keep our military here after they leave the military by working with companies to create jobs
  • Reinforce the infrastructure of the area–transportation, broadband, connectivity
  • Insure the future for farmers and for fishermen

Mr. Thomas described himself as a fiscal conservative – he stated that the current national debt is unacceptable. We need to reexamine the role we have played as the world’s policemen and work toward a shared mandate to deal with terrorism and rogue nations.

On immigration Mr. Thomas stated that as a sovereign nation we need to secure our borders. He also noted that illegal immigration has created a shadow economy in certain areas of our economy and that needs to be considered in dealing with the immigrants who have been here for a long time who are not legal citizens. We need to bring that economy into the mainstream of the American economy.

On the issue of life, Mr. Thomas stated that his personal view is to protect life, but he did not want to see America go back to a time when abortions were illegal and performed in back alleys.

Mr. Thomas also pointed out the need for politicians of both parties to work together across the aisle.

Mr. Thomas is a very well-spoken, charismatic candidate. I disagreed with him on some basic issues, but he had some very good ideas.

Some Good News From The Senate

Posted on by

On Friday, The Washington Free Beacon reported that the Senate passed an amendment on Thursday renewing and codifying a Congressional ban on earmarking bills.

The article quotes Senator Ben Sasse who led the initiative to ban earmarks:

“The last thing taxpayers need is for the same politicians who racked up a $22 trillion national debt to go on an earmark binge,” Sasse said in a statement. “It’s pretty simple: Earmarks are a crummy way to govern and they have no business in Congress. Backroom deals, kickbacks, and earmarks feed a culture of constant incumbency and that’s poisonous to healthy self-government. This is an important fight and I’m glad that my Republican colleagues agreed with my rules change to make the earmark ban permanent.”

Earmarks have been banned before, but somehow keep cropping up again. In 2011 the Senate passed a temporary ban on earmarks. In 2017, the Senate voted to keep the ban in place. However, in the past, the ban has not necessarily accomplished much.

The article reports:

The Senate voted in 2017 to keep the ban in place, with a push led by former Sen. Jeff Flake (R., Ariz.). Flake launched an investigation in 2015 which found that, despite the 2011 ban, many earmarks had slipped through, with hundreds of millions spent on side projects, such as grape research and subsidies for a ballet theater in the wealthiest congressional district in America.

Similarly, a Citizens Against Government Waste report found that Congress had approved $5.1 billion in earmarks in 2016. In 2016, House Republicans attempted to undo earmark bans, but the Speaker of the House Paul Ryan (R., Wis.) rebuffed the effort, saying that it would inappropriate right after a “drain the swamp” election.

Earmarks are a tool to get bills passed that might not otherwise be passed. If a Senator is promised a new highway for his state in exchange for his vote, he might vote for whatever is being considered. However, earmarks make it possible to pass bills that are wasteful and would not otherwise pass. Banning earmarks is a really good idea.

Who Holds Our Debt?

Posted on by

CNS News is reporting today:

Chinese holdings of U.S. Treasury securities are 11.5 percent below their peak level which was attained in November 2013, according to data published by the U.S. Treasury.

U.S. government debt held by entities in the People’s Republic of China peaked at $1,316,700,000,000 in November 2013, according to the Treasury. As of August 2018, according to the latest date released by the Treasury this month, China held $1,165,100,000,000 in U.S. Treasury.

That is a drop of $151,600,000,000 from the November 2013 peak.

We are still carrying way too much national debt, and that will be a more serious problem as the federal reserve raises interest rates. However, although China is holding less of our debt, it is still the the top foreign holder of U.S. Treasury securities.

The article concludes:

While China remains the top foreign owner of U.S. government debt—despite its declining holdings—the Federal Reserve still owns far more. As of the end of November, according to the Federal Reserve, it owned $2,324,589,000,000 in U.S. Treasury securities.

China’s $1,165,100,000,000 in U.S. Treasury securities was only 50.1 percent of the Fed’s holdings.

It’s time to cut government spending and get out of debt!

 

 

Why The Republican Party Is Losing Voters

Posted on by

The 2016 Republican Platform includes the following on Page 8:

Reducing the Federal Debt

Our national debt is a burden on our economy and families. The huge increase in the national debt demanded by and incurred during the current Administration has placed a significant burden on future generations. We must impose firm caps on future debt, accelerate the repayment of the trillions we now owe in order to reaffirm our principles of responsible and limited government, and remove the burdens we are placing on future generations. A strong economy is one key to debt reduction, but spending restraint is a necessary component that must be vigorously pursued.

On May 10, 2018, CNS News reported:

The federal government collected a record $2,007,451,000,000 in total taxes through the first seven months of fiscal 2018 (October through April), but still ran a deficit for that period of $385,444,000,000, according to the Monthly Treasury Statement.

It’s the spending–not the revenue–that is the problem. So what are Republicans doing about it?

On May 8, 2018, The Washington Times posted the following:

House GOP leaders vowed Tuesday to speed President Trump’s new $15.4 billion spending cuts proposal through their chamber, brushing aside complaints from Democrats and some Republicans over the trims the White House wants to see.

House Majority Leader Kevin McCarthy on Tuesday predicted the House will pass the package, which includes 38 cuts to programs and generally involves money that’s sitting unused.

So what happened when the bill reached the Senate?

The Daily Haymaker posted the story today:

Senators voted Wednesday to block President Trump’s $15.4 billion spending cuts package, with lawmakers saying it trimmed the budget too much.

Brushing aside administration promises that the cuts were chiefly to money that was never going to be spent, the Senate voted 50-48 to keep the bill bottled up. Two Republicans — Susan Collins of Maine and Richard Burr of North Carolina — joined Democrats to defeat the package.[…]

So if the Republicans won’t even cut spending on money that wasn’t even spent, why in the world should I vote for them? Didn’t they read their own platform? How long could you run up your credit card before creditors would start clamoring for their money? Is the government any different?

 

Representative Walter B. Jones Is Sounding The Alarm On The Deficit

Posted on by

Monday morning, a group of taxpayers and I were fortunate to sit down with Representative Walter B. Jones and ask him questions about his votes and his views. The interview will be aired on 107.1 WTKF The Talk Station on Sunday at 11am and 8 pm. You can stream the interview if you live outside the listening area. The interview will also be available on the Coastal Carolina Taxpayers Association website later in the week.

Representative Jones has been a warrior for responsible government spending since he has been in Congress. His voting record reflects that. He will not support a bill that increase the deficit, regardless of what is in the bill.

This is the handout he gave us about the deficit. I think all of us need to read it carefully. We need to understand the consequences of the unbridled spending that is currently the norm in Washington.

Americans need to learn to live within their means at home and at the federal and state levels. Most Americans carry some level of personal debt and do not realize that as the economy improves and the fed raises interest rates, the cost of that debt (and the cost of the national debt) will increase. It is time we all learned to spend responsibly–both at home and in government.

When All Else Fails, Do The Math

Posted on by

The Democrats are screaming that the tax bill will add to the national debt. It might. Or it might not–depending on the growth of the American economy unleashed by lower taxes. However, there are some numbers that those Democrats might want to consider before they scream too loud.

A website called The Balance posted the following and updated it earlier this month:

The Gateway Pundit reported the following yesterday:

The major complaint that the Democrats have with the tax bill is that it is projected to increase the U S debt by $1.5 trillion. However, when compared to Obama President Trump already nearly has it covered.

The article at the Gateway Pundit includes the following:

The Gateway Pundit also points out:

The FED kept interest rates at near zero percent for most of Obama’s eight year term. Since President Trump was elected the FED have increased rates four times by a total of 1%. Increases in the Fed Funds Rate increase the cost of borrowing and the largest borrower in the world is the US government. With $20 trillion in debt, a 1% increase in interest payments equals $200 billion in annual interest payment increases.

President Trump has already paid for nearly all of the tax cuts. Aside from that fact, whose money is it anyway? The tax cuts will allow Americans to keep more of what they have earned. That is a good thing.

A Quick Summary Of The Trump Economy

Posted on by

Elections have consequences. Thank goodness that one of the consequences of the 2016 presidential election is a rollback of some of the regulations that were crippling the American economy. The Gateway Pundit has a summary of what has happened to the American economy under President Trump:

The DOW daily closing stock market average has risen nearly 14% since the election on November 8th. (On November 9th the DOW closed at 18,332 – on May 19th the DOW closed at 20,804).
* Since the Inauguration on January 20th the DOW is up 5%. (It was at 19,827 at January 20th.)
* The DOW took just 66 days to climb from 19,000 to above 21,000, the fastest 2,000 point run ever. The DOW closed above 19,000 for the first time on November 22nd and closed above 21,000 on March 1st.
* The DOW closed above 20,000 on January 25th and the March 1st rally matched the fastest-ever 1,000 point increase in the DOW at 24 days.
 * On February 28th President Trump matched President Reagan’s 1987 record for most continuous closing high trading days when the DOW reached a new high for its 12th day in a row!
* The S&P 500 and the NASDAQ have both set new all-time highs during this period.
* The US Stock Market gained $2 trillion in wealth since Trump was elected!
* The S&P 500 also broke $20 Trillion for the first time in its history.

Somehow this news has escaped the mainstream media.

The article also includes the following:

The article goes on to list job statistics and home sales statistics. I strongly suggest that you follow the link to read the entire article.

The article concludes:

In Summary

President Obama left President Trump with a weak economy and all sorts of domestic and foreign policy nightmares.  To date President Trump has had little time to address all of these messes but if he handles these as well as he has the economy Americans will soon be in a much better and safer place.

Overall based on the above data it is clear that President Trump is doing a solid, if not excellent job.

The mainstream liberal media won’t report this, but when looking at the economy, President Trump the businessman thumps the former community organizer Barack Obama.

Despite what the media is telling us, this does not sound like a White House in chaos. It sounds like a White House that is getting the country back on a solid economic footing despite tremendous opposition from the media.